8/20/2019 Release 3Q15

1/21

3Q15 Results 1

Release of the 3Q15 Results

The main operational and financial indicators were:

Steel sales volume of 1.2 million tons; Iron ore sales volume of 775 thousand tons; Consolidated Adjusted EBITDA negative in R$65.3 million and Adjusted EBITDA margin

of -2.7%; Working capital on 09/30/15 of R$2.4 billion; Investments of R$156.5 million; Cash position of R$2.4 billion.

Public Disclosure - Belo Horizonte October 29 th , 2015. Usinas Siderúrgicas de Minas Gerais S.A. - Usiminas (BM&FBOVESPA: USIM3,USIM5 e USIM6; OTC: USDMY and USNZY; LATIBEX: XUSIO and XUSI) today releases its third quarter (3Q15) results. Operational andfinancial 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 thesecond quarter of 2015 (2Q15), except where stated otherwise.

Market Date on 9/30/15 Index

• Consolidated results• Performance of the Business Units:

- Mining- Steel- Steel processing- Capital goods

• Events Subsequent to closing of the Quarter• Highlights• Capital markets• Balance sheet, Income and Cashflow Statements

BM&FBOVESPA: USIM5 R$3,35/share

USIM3 R$8,26/share

EUA/OTC: USNZY US$0,85/share

LATIBEX: XUSI €0,78/share

XUSIO €1,88/share

R$ million - Consolidated 3Q15 2Q15 3Q14 Chg.

3Q15/2Q159M15 9M14 Chg.

9M15/9M14Steel Sales Volume (000 t) 1,179 1,275 1,401 -8% 3,710 4,294 -14%Iron Ore Sales Volume (000 t) 775 1,206 1,238 -36% 3,120 4,462 -30%Net Revenue 2,424 2,677 2,908 -9% 7,781 9,156 -15%COGS (2,534) (2,571) (2,783) -1% (7,542) (8,178) -8%Gross Profit (Loss) (110) 105 125 - 239 979 -76%Net Income (Loss) (1,042) (781) (24) 33% (2,058) 326 -EBITDA (Instruction CVM 527) (97) (755) 344 -87% (498) 1,530 -EBITDA Margin (Instruction CVM 527) -4.0% -28.2% 11.8% +2400 b.p -6.4% 16.7% -2300 b.p

Adjusted EBITDA (65) 227 357 - 541 1,561 -65%Adjusted EBITDA Margin -2.7% 8.5% 12.3% -1100 b.p 7.0% 17.1% -1000 b.pInvestments (CAPEX) 156 226 268 -31% 615 767 -20%Cash and Cash Equivalents 2,397 2,889 3,057 -17% 2,397 3,057 -22%

Main Highlights

8/20/2019 Release 3Q15

2/21

3Q15 Results 2

Economic Outlook

Among the developed countries, the United States continued to have the best performance inthe 3Q15, in spite of the signs of a reduction in the rithm after the strong growth acceleration inthe previous quarter, which achieved an annualized rate of 3.9%. According to the WorldEconomic Outlook Report from the International Monetary Fund – IMF as of October 2015, thegrowth outlook for the American economy in 2015 is 2.6%. Economic activity in the Eurozonecontinued to be resistent, sustaining a moderate growth rate, besides the risks related to Chinaand to emerging markets. Consumer confidence was stable at a hight level and businessconfidence continued to be positive. Job creation and retail sales have also sustained themoderate growth. In China, recent data shows that growth has been weakening and theindustrial purchasing manager indicator in September signaled an even slower rhythm inindustrial production in the 3Q15. The IMF maintained its forecast of a 6.8% growth for 2015 forthe Chinese economy.

In the Latin America, the main economies faced problems, without any signs of recovery in mostcountries. Depreciated currency, in part due to the decrease in commodities ’ prices in the globalmarket, have been pressuring inflation and reducing the government ’s stimulus policies.

In Brazil, signs of a very weak economic activity suggest that the recession has continued in the3Q15, after a decrease of 1.9% in the 2Q15, when compared with the previous quarter. Thescenario of high interest and inflation rates, fast deterioration of labor market and developmentsof Petrobras investigation are some of the factors that have deteriorated the economicenviroment, causing a decline in growth expectations for 2015, from 0.2% at the beginning ofthe year to -2.9% at the end of the 3Q15.

The Brazilian industry faces an even more challenging scenario. According to the IndustrialResearch of Brazilian Geography and Statistics Institute – IBGE, the industrial production inAugust recorded the 18 th consecutive decline compared with the same month of the previousyear and reached a fall of 6.9% from January to August of this year. With high inventory levelsand consumer and business economic confidence indicators at historic low levels, there are nosigns of imminent economic recovery in the period. I ndustry segments intensive in steelconsumption also had even more significant decreases in the period.

8/20/2019 Release 3Q15

3/21

3Q15 Results 3

Economic and Financial PerformanceComments on Consolidated Results

Net Revenue

In the 3Q15, net revenue was R$2.4 billion, 9.4% lower than that in the 2Q15, which was R$2.7billion, mainly due to an 11.6% decline in steel sales volume in the domestic market, whichrepresents higher value-added products than exports, and the reduction of 35.8% in iron oresales volume.

Cost of Goods Sold - COGSIn the 3Q15, COGS totaled R$2.5 billion, against a R$2.6 billion in the 2Q15. For detailedinformation, see each Business Unit section in this document. Gross margin was a negative4.5%, while in the 2Q15, it was a positive 3.9%, a decrease of 840 basis points, as per thechart below:

Operating Expense and Income

Sales expenses were R$82.7 million in the 3Q15, against R$60.5 million in the 2Q15, anincrease of 36.5%, mainly due to the reconignition of provision for losses on doubtful accountsand higher distribution costs impacted by the foreign exchange depreciation. General andadministrative expenses totaled R$101.2 million in the 3Q15, against R$107.8 million in the2Q15, a 6.2% decrease, mainly due to a 17.9% reduction in general expenses and a 9.3%decline in third party services. In the 3Q15, other operating expenses totalized R$147.5 million,against R$1.0 billion in the 2Q15, mainly in function of the impairment of assets in the value ofR$985.0 million, accounted for in the Mining Unit in the 2Q15 (See the complete information inthe Mining Business Unit section in the Earnings Release of the 2Q15). If excluded theseimpairment effects in the 2Q15 from other operating expenses, an increase of 224.1% would beaccounted for in the 3Q15, mainly in function of the increase in expenses with temporaryequipments shutdown, which was R$71.0 million in the 3Q15, against R$31.0 million in the2Q15 and of the negative result of the asset sale and write-off of R$11.1 million in the 3Q15,against a positive R$4.1 million in the 2Q15. Additionally, there was an expense of R$2.2 millionin the sale of surplus electric energy in the 3Q15, against a revenue of R$40.9 million in the2Q15.

Thus, net operating expenses totaled R$331.3 million in the 3Q15, against R$1.2 billion in the 2Q15.In this manner, the Company's operating margin is presented below:

3Q15 2Q15 3Q14 9M15 9M14Domestic Market 73% 76% 82% 79% 86%

Exports 27% 24% 18% 21% 14%Total 100% 100% 100% 100% 100%

Net Revenue Breakdown

3Q15 2Q15 3Q14 9M15 9M14

-4.5% 3.9% 4.3% 3.1% 10.7%

Gross Margin

3Q15 2Q15 3Q14 9M15 9M14

-18.2% -40.9% 1.0% -19.3% 6.2%

EBIT Margin

8/20/2019 Release 3Q15

4/21

3Q15 Results 4

Adjusted EBITDA

Adjusted EBITDA is calculated from net income (loss), reversing profit (loss) from discontinuedoperations, income tax and social contribution, financial result, depreciation, amortization anddepletion, and equity in the results of Associate, Joint Subsidiary and Subsidiary Companies.The adjusted EBITDA includes the proportional participation of 70% of Unigal and others jointsubsidiary companies.

In the 3Q15, Adjusted EBITDA totaled a negative R$65.3 million against a positive R$227.2million in the 2Q15, mainly due to the decline in steel sales volume and prices in the domesticmarket in the Steel Unit and to the decline in iron ore sales volume in the Mining Unit. Thepositive highlight of the quarter was for the Capital Goods Unit, which generated a positiveEBITDA for the 8 th consecutive quarter, even facing an unfavorable economic and politicalscenario for the segment. In the 3Q15, Adjusted EBITDA margin was -2.7%, against 8.5% inthe 2Q15.

See the complete information related to the assets impairment in the “Mining Business Unit” section of the 2Q15 Earnings Release.

The Adjusted EBITDA margins are indicated below:

3Q15 2Q15 9M15 9M14

Net Income (Loss) (1,042,156) (780,798) (2,058,334) 325,809

Income Tax / Social Contribution (223,219) (319,383) (620,673) 70,701

Financial Result 820,075 40,629 1,221,604 309,070

Depreciation, Amortization 348,727 304,342 959,499 824,824

(96,573) (755,210) (497,904) 1,530,404

4,260 (33,991) (41,702) (139,633)

Joint Subsidiary Companies proportional EBITDA 28,640 31,361 97,627 170,504

Impairment of Assets (1,674) 985,046 983,372 -

(65,347) 227,206 541,393 1,561,275

EBITDA Breakdown

Adjusted EBITDA

Consolidated (R$ thousand)

Equity in the Results of Associate and Subsidiary

Companies

EBITDA -Instruction CVM 527

3Q15 2Q15 3Q14 9M15 9M14-2.7% 8.5% 12.3% 7.0% 17.1%

Adjusted EBITDA Margin

8/20/2019 Release 3Q15

5/21

3Q15 Results 5

Financial Result

In the 3Q15, net financial expenses totaled R$820.1 million, against R$40.6 million in the 2Q15,in function of the strong depreciation of the Real against the Dollar of 28.1% in the quarter,against an appreciation of the Real against the Dollar of 3.3% in the 2Q15, which impacted thedollar denominated debt, partially compensated by higher results of the swap transactions. Thedollar denominated debt represented 49% of the total debt in the 3Q15.

Equity in the Results of Associate and Subsidiary Companies

In the 3Q15, equity in the results of associate and subsidiary companies was a negative R$4.3million, against a positive R$34.0 million in the 2Q15, a reduction of R$38.3 million, mainly infunction of the net loss of Unigal in the period, due to the foreign exchange depreciation of28.1% in the quarter, which impacted the dollar denominated debt, that represented 99% of thetotal debt.

Net Profit (Loss)

In the 3Q15, the Company accounted for a net loss of R$1.042.2 million, against a net loss ofR$780.8 million in the 2Q15, which was impacted by the impairment of assets in the Mining Unit.Additionally, the 3Q15 was affected by the negative effect of the net financial expenses in theamount of R$820.1 million, as a result of the strong foreign currency depreciation and of theweaker operational performance in the Steel and Mining Units.

Working Capital

The Company presented a working capital of R$2.4 billion in the 3Q15, a reduction of R$270.6million when compared with the 2Q15, which was R$2.7 billion, due to the reduction in thevolume and in million of Reais of steel and raw materials, partially compensated by the reductionin payable accounts to suppliers in the period. It is worth mention the reduction of 18.0% in

inventories of steel tons.

Investments (CAPEX)

In the 3Q15, CAPEX totaled R$156.5 million, against R$226.1 million in the 2Q15, a reduction of30.8% when compared with the 2Q15, a result of the Company's strategy to control CAPEX andof the reduction of maintenance CAPEX due to the temporary equipments shutdown at theplants. The main investments were spent with sustaining CAPEX. Approximately 79% wasapplied to the Steel Unit, 15% to the Mining Unit, 5% to the Steel Transformation Unit and 1%to the Capital Goods Unit.

R$ thousand 3Q15 2Q15 3Q14Change

3Q15/2Q15 9M15 9M14Change

9M15/9M14

Net Currency Exchange Variation (834,420) 85,830 (163,986) - (1,139,405) (57,300) 1888%

Swap Transactions Market Cap. 168,093 (35,265) 50,419 - 226,811 971 23258%

Inc ome and Inf lat ionary Variat ion over Financ ial Applic at ions 66,115 46,374 45,355 43% 155,135 146,596 6%

Other Financial Income 44,532 47,350 39,954 -6% 139,451 115,049 -

Int ere st and Inf lat ionary Variat ion ov er F inanc ing and Taxe s Pay able inInstallments

(182,703) (140,191) (119,603) 30% (439,366) (351,408) 25%

Other Financial Expenses (81,692) (44,727) (84,591) 83% (164,230) (162,978) -

FINANCIAL RESULT (820,075) (40,629) (232,452) 1918% (1,221,604) (309,070) 295%

+ Appreciation / - Depreciation of Exchange Rate (R$/US$) -28.1% +3,3% -11.3% - -49.6% -4.6% -

Financial Result - Consolidated

8/20/2019 Release 3Q15

6/21

3Q15 Results 6

Indebtedness

Consolidated gross debt was R$8.1 billion on 09/30/15, against R$7.6 billion on 06/30/15, anincrease of 6.7%, mainly in function of the strong depreciation of the Real against the Dollar of28.1% in the quarter, which impacted the debt in Dollar, corresponding to 49% of total debt on09/30/15. Debt composition by maturity date was 22% in the short term and 78% in the longterm. The net debt/EBITDA ratio on 09/30/15 was 6.8 times. On 09/30/15, there was not any

covenants ’ mesurament according to the current loan and financial contracts.The chart below shows consolidated debt indicators:

The graph below presents the cash position and debt profile in million of Reais on 09/30/15:

30-Jun-15 31-Dec-14

Short Term Long Term TOTAL TOTAL TOTAL

Local Currency 1,078,755 3,097,871 4,176,626 51% 4,277,111 -2% 4,265,226 -2%

TJLP 150,672 304,884 455,556 - 507,697 -10% 618,078 -26%

CDI 895,723 2,689,200 3,584,923 - 3,631,126 -1% 3,573,921 0%

Others 32,360 103,787 136,147 - 138,288 -2% 73,227 86%

Foreign Currency (*) 726,720 3,207,444 3,934,164 49% 3,327,611 18% 2,436,521 61%

Gross Debt 1,805,475 6,305,315 8,110,790 100% 7,604,722 7% 6,701,747 21%

Cash and Cash Equivalents - - 2,396,616 - 2,889,080 - 17% 2,851,903 - 16%

Net Debt - - 5,714,174 - 4,715,642 21% 3,849,844 48%

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

Total Indebtedness by Index - Consolidated

R$ thousand30-Sep-15

% ChangeSet15/Jun15Change

Set15/Dec14

1,981

157

9991,186

534

933

31612 40

415

69

749

772

1,651

84

608

0 -

Cash 4Q15 2016 2017 2018 2019 2020 2021 2022 on

Local Currency Foreign Currency

1,748

2,185

1,017924

4012

1,958

Duration: R$: 39 mesesUS$: 35 meses

226

2,397

8/20/2019 Release 3Q15

7/21

3Q15 Results 7

Performance of the Business Units

Intercompany transactions are on arm’s -length basis (market prices and conditions) and salesbetween Business Units are carried out as sales between independent parties.

Mining Steel Steel Processing Capital Goods

Mineração Usiminas Ipatinga Mill Soluções Usiminas Usiminas MecânicaCubatão MillUnigal

Usiminas - Business Units

R$ million

9M15 9M14 9M15 9M14 9M15 9M14 9M15 9M14 9M15 9M14 9M15 9M14

Net Revenue 316 656 7,051 8,472 1,500 1,767 658 604 (1,743) (2,342) 7,781 9,156

Domestic Market 316 530 5,457 7,294 1,494 1,760 630 596 (1,743) (2,342) 6,154 7,838

Export Market - 126 1,594 1,177 6 7 28 8 - - 1,627 1,319

COGS (298) (403) (6,900) (7,713) (1,466) (1,698) (565) (540) 1,687 2,176 (7,542) (8,178)

Gross Profit 18 252 151 759 34 69 92 64 (56) (166) 239 979

Operating Income (Expenses) (1,127) (88) (494) (194) (72) (96) (49) (38) 3 3 (1,738) (413)

EBIT (1,110) 164 (343) 565 (38) (27) 44 27 (53) (163) (1,499) 566

Adjusted EBITDA 14 254 461 1,277 (16) 2 63 45 20 (17) 541 1,561

Adj.EBITDA Margin 4% 39% 7% 15% -1% 0% 10% 8% - - 7% 17%*Consolidates 70% of Unigal

Income Statement per Business Units - Non Audited - Accumulated

Mining Steel* SteelProcessing Capital Goods ConsolidatedElimination and

Adjustment

R$ million

3Q15 2Q15 3Q15 2Q15 3Q15 2Q15 3Q15 2Q15 3Q15 2Q15 3Q15 2Q15

Net Revenue 89 109 2,094 2,401 484 476 217 230 (460) (538) 2,424 2,677

Domestic Market 89 109 1,463 1,764 483 475 190 230 (460) (538) 1,765 2,040

Exports - - 631 636 1 1 27 0 - - 660 637

COGS (65) (122) ( 2,267) (2,317) (475) (464) (186) (194) 460 525 (2,534) (2,571)

Gross Profit 24 (12) (173) 84 9 12 31 36 (0) (14) (110) 105

Operating Income (Expenses) (90) (1,022) (208) (133) (20) (28) (15) (16) 1 1 (331) (1 ,199)

EBIT (66) (1,035) (381) (50) (11) (16) 16 20 1 (13) (441) (1,094)

Adjusted EBITDA (24) ( 6) (82) 206 (4) (9) 23 26 21 11 (65) 227

Adj.EBITDA Margin -27% -5% -4% 9% -1% -2% 10% 11% - - -3% 8%*Consolidates 70% of Unigal

Income Statement per Business Units - Non Audited - Quarterly

ConsolidatedMining Steel* SteelProcessing Capital GoodsElimination and

Adjustment

8/20/2019 Release 3Q15

8/21

3Q15 Results 8

I) M I N I N G

The 3Q15 presented relative iron ore price stability in the international market, mainly due to amore constant volume in the Chinese ports in approximatelly 80 million tons, and the lack of

announcements of players exiting the market, due to the expectation of price level stability.According to CRU Metals expectation, the possible price level between US$40/t and US$55/t (62%Fe, CFR China) may test the feasibility of smaller players, mainly in China and in the exportmarkets, in the coming semesters.

The average PLATTS price was US$55.0/t in the 3Q15, against US$58.5/t in the 2Q15 (62% Fe, CFRChina), a decline of 6.0%.

Operational and Sales Performance - Mining

Production volume totaled 738 thousand tons in the 3Q15, against 1.0 million in the 2Q15, a 26.9%decrease, in order to balance production and sales, aligned with the strategy of controlling working

capital and reducing inventories.In the 3Q15, sales volume was 775 thousand tons, against 1.2 million tons in the 2Q15, a 35.7%decrease, mainly due to the reduction in sales to the Steel Unit, which reduced its steel productionin 16.0% in the 3Q15 when compared with the previous period.

Production and sales volumes are shown in the following chart:

Impairment of Assets

In the 3Q15, there was no impairment of assets, however, in the 2Q15, due to the worsening inthe expectations for the future iron ore prices, the Company registered an impairment ofR$985.0 million in the value of its mining rights. The value in use of the Mining Unit wasupdated to reflect the management´s best estimates on future iron ore prices, based on marketprojections. (See the complete information in the Mining Business Unit section in the EarningsRelease of the 2Q15).

Comments on the Business Unit Results - Mining

In the 3Q15, net revenue totaled R$88.6 million, against R$109.2 million in the 2Q15, a decrease of18.9%, mainly due to a 35.8% decrease in sales volume. This result was partially compensated bythe foreign exchange depreciation of 6.4% on average (the foreing exchange rate accounted for inthe Mining Unit revenue is the average rate regarding the previous month) and by a 1.0% increasein the PLATTS iron ore price (62% Fe, CFR China), on average, adjusted for the period of salespricing regarding Mineração Usiminas. Additionally, there was a reclassification in the deductionsfrom gross revenue, regarding domestic freight contracts with take or pay conditions, went fromgross revenue to operational expenses. Due to this reclassification, the gross revenue was impactedby a positive R$4.9 million in the 3Q15, against a negative R$11.6 million in the 2Q15.

The cash cost per ton was R$51.3/t in the 3Q15, stable in relation to the 2Q15. During the

Thousand tons 3Q15 2Q15 3Q14 Chg.3Q15/2Q15 9M15 9M14Chg.

9M15/9M14

Production 738 1,009 1,434 -27% 3,208 4,616 -31%Sales - Third Parties - Domestic Market 41 135 199 -70% 267 794 -66%Sales - Exports 0 0 0 - 0 680 -100%Sales to Usiminas 734 1,071 1,039 -31% 2,853 2,988 -5%Total Sales 775 1,206 1,238 -36% 3,120 4,462 -30%

Iron Ore

8/20/2019 Release 3Q15

9/21

3Q15 Results 9

3Q15, the labor force adequation was intensified, in order to reflect the current marketconditions. COGS per ton was reduced by 17.6% in relation to the one presented in the 2Q15,mainly due to the accounting reclassification regarding the depreciation of plants shutdown,which went from COGS to other operating expenses in the amount of R$26.3 million. Excludingthis reclassification effect, COGS per ton increased 4.0% in relation to the previous quarter,manly due to the lower dilution of fixed costs, in reason of lower sales volume in 35.7%.

Net operating expenses totaled R$89.9 million in the 3Q15, against R$1.0 billion in the 2Q15, infunction of the impairment of assets accounted for in the amount of R$985.0 million in the2Q15. Excluding the impairment effect , in comparison with the 2Q15, it was registered an increaseof R$51.0 million in net operating expenses, in function of the depreciation of temporary plantsshutdown in the amount of R$26.3 million, of lower sale revenue of surplus electric energy, whichwere R$3.9 million in the 3Q15, against R$9.9 million in the 2Q15, and of higher provision fordomestic freight contracts with take or pay conditions, which was R$32.6 million in the 3Q15,against R$31.1 million in the 2Q15.

Adjusted EBITDA was a negative R$23.6 million in the 3Q15, against a negative R$5.8 million inthe 2Q15. Adjusted EBITDA margin was -26.6% in the 3Q15, against -5.3% in the previousquarter.

Investments (CAPEX)

In the 3Q15, investments totaled R$22.9 million, against R$18.9 million in the 2Q15, related tosustaining CAPEX.

Stake in MRS Logística

Mineração Usiminas holds a stake in the MRS Logística through its subsidiary UPL – UsiminasParticipações e Logística S.A.

MRS Logística is a concession that controls, operates and monitors the Brazilian SoutheasternFederal Railroad Network ( Malha Sudeste da Rede Ferroviária Federal ). The company operatesin the railway transportation segment, connecting the states of Rio de Janeiro, Minas Gerais andSão Paulo, and its core business is transporting, with integrated logistics, cargo in general, suchas iron ore, finished steel products, cement, bauxite, agricultural products, pet coke andcontainers.

MRS transported 43.2 million tons in the 3Q15, an increase of 1.7 million tons in relation to the2Q15, mainly due to an 8.9% increase in cargo in general volume, highlighting agriculturalproducts and conteiners.

I) S T E E L

The 3Q15 faced a strong deterioration in the international prices, which reached historic lowsand amounts close to the operational costs regarding most of the global steel industry. Theincrease in the Chinese exports contributed to this, reaching an annualized volume of 120million tons in August, equivalent to 33% of global exports. The growth in the Chinese exportsoccurs simultaneously with the slowdown in economic activity and the downfall in the apparentconsumption forecasted for 2015. The slowdown in the economic acitivity in China and also inthe emerging countries led the World Steel Association (WSA) to revise downward its steelconsumption forecast in 2015 to 1.513 billion tons.

In Brazil, according to the Brazilian Steel Institute - IABr, crude steel production in the 3Q15was 2.5 million tons, 5.5% lower than that registered in the 2Q15. In the accumulated figuresthrough September, it decreased 1.2%. The flat steel products presented a decline of 6.7%,when comparing the 3Q15 with the 2Q15 and of 4.8% in the accumulated figures through

https://www.google.com.br/search?es_sm=122&q=occurs+simultaneously&spell=1&sa=X&ved=0CBoQvwUoAGoVChMIpa_XlKnUyAIVhIOQCh0Idgt0https://www.google.com.br/search?es_sm=122&q=occurs+simultaneously&spell=1&sa=X&ved=0CBoQvwUoAGoVChMIpa_XlKnUyAIVhIOQCh0Idgt0

8/20/2019 Release 3Q15

10/21

3Q15 Results 10

September. Usiminas forecasts that the Brazilian flat steel consumption has been of 2.4 milliontons in the 3Q15, against 2.7 million tons in the 2Q15, a 12.1% decrease, with 85% beingsupplied by the domestic mills and 15% by imports, which continued at a high level in spite ofthe strong foreign exchange depreciation.

The strong fall in consumption occurred in all segments in general as a consequence of thestrong slowdown in the industrial activity in the period. The lack of visibility of the economicoutlook and less optimistic forecasts regarding the short term economic recovery, led customersto reduce their purchases, adjust their inventories and delay investments. The negativehighlights in comparision with the 2Q15 were the decline of 28.1% in sales to the industrialsegment, 10.1% for distribution segment and 9.5% for automotive segments.

Below are listed the main flat steel consuming segments and their behavior in the Brazilianmarket during the 3Q15:

Automotive: The economic outlook strongly affected by the results of the automotive industry inthe country. In the 3Q15, according to data released by the National Association of VehicleManufacturers - ANFAVEA, vehicle production recorded a 25% decline when compared with the3Q14 and 1% downfall in relation to the 2Q15. Heavy vehicles continued to show even greaterdeclines: 50% negative in relation to the 3Q14 and 9% negative, when compared with the

2Q15. The deterioration in the domestic economy, associated with the weak results, has ledANFAVEA to review its 2015 sales and production forecasts downward for the third time until theend of this year, to -27% and -23%, respectively.

Industrial: Tendências Consulting estimates that investments, measured by Gross Fixed CapitalFormation, declined 20.2% in the 3Q15, when compared with the 3Q14. This is the sixthconsecutive decline in the comparison and the strongest one. According to the BrazilianMachinery and Equipment Association - ABIMAQ, through August 2015, revenue in themachinery and equipment segment declined 7.4%. Only in August, companies represented byABIMAQ had its revenues decreased by 10.7% when compared with the same month in 2014.The entity foresees a domestic sales contraction that will lead the revenues in the Capital GoodsIndustry to its third consecutive year of retraction.

House Appliances: According to the Industrial Survey performed by the Industrial Research ofBrazilian Geography and Statistics Institute – IBGE, the Home Appliance segment registered adecline of 22.2% in the accumulated production figures in the first eight months of 2015 inrelation to the same period of the previous year. The segment continued to be affected by theslower pace of growth in family income and by lower consumer confidence index. The electro-electronics segment presented a decline of 13.0% in production, considering the same basis ofcomparison.

Civil Construction: The civil construction market continued its slowdown in the 3Q15. Accordingto Tendências Consulting, the production of typical inputs to civil construction had a decrease of5.3% in the 3Q15, against the 2Q15, and a decline of 12.3% when compared with the 3Q14.The outlook of an overall deterioration in the domestic activity, with rising political risks, impactsfrom the Petrobras investigation and the country ’s loss of investment grade by Standard &

Poor's has led Tendências Consulting to revise downward its forecast for typical inputs to civilconstruction production for 2015 to a decline of 10.9%, versus 9.9% previously.

Distribution: According to the Steel Distributors National Association – INDA, flat steel sales inthe distribution network receded 7.8% in the 3Q15 when compared with the 2Q15. Additionally,purchases reduced 16.6% comparing these periods. According to the sales forecast ofSeptember, in the end of 3Q15, inventories remained stable at 954 thousand tons andinventories turnover declined to 3.8 months, against 4.2 months in the end of 2Q15.

8/20/2019 Release 3Q15

11/21

3Q15 Results 11

Production - Ipatinga and Cubatão Plants

Crude steel production at the Ipatinga and Cubatão plants was 1.1 million tons in the 3Q15, areduction of 16.0% in relation to the 2Q15, in order to adjust the production rithm with thedecrease in steel demand, aligning with the strategy of controlling working capital and reducinginventories.

Sales

In the 3Q15, total sales reached 1.2 million tons of steel, a 7.5% decrease in relation to those inthe 2Q15, which were 1.3 million million tons. Sales to the domestic market totaled 751.5thousand tons, 11.6% lower than in the 2Q15, as a consequence of weak demand in steelconsuming segments. Exports increased 0.8%, totaling 427.3 thousand tons. Out of the totalsales, 64% was destined to the domestic market and 36% to exports.

76% 81% 88%67% 64%

24%19%

12%33%

36%

1,401

1,247 1,256 1,2751,179

3Q14 4Q14 1Q15 2Q15 3Q15

Exports Domestic Market

Thousand tons 3Q15 2Q15 3Q14 Chg.3Q15/2Q15 9M15 9M14Var.

9M15/9M14

Ipatinga Mill 676 746 799 -9% 2,161 2,627 -18%

Cubatão Mill 438 580 608 -24% 1,658 2,031 -18%

Total 1,114 1,326 1,407 -16% 3,819 4,658 -18%

Production (Crude Steel)

8/20/2019 Release 3Q15

12/21

3Q15 Results 12

The main export destinations are shown in the charts below:

Comments on the Business Unit Results - Steel

In the 3Q15, net revenue in the Steel Unit totaled R$2.1 billion, against R$2.4 billion in the2Q15, a 12.8% decrease, due to the downfall of 11.6% in sales volume in the domestic marketand a decrease of 5.2% in steel prices, on average, in the Brazilian market, in function of thehigher sales to the distribution segment, which purchases lower value-added products.

In the 3Q15, cash cost per ton was stable at R$1,490.6, in relation to the previous period,pointing out the following:

- decrease of 9.1% in iron ore, in function of using lower value-added iron ore mix and of lowermarket prices of this comoditie, in spite of the appreciation of the Dollar against the Real of15.1%;

- decrease of 2.7% in coal and coke, in function of higher consumption of self-generated coke andof lower market prices of this comoditie, in spite of the appreciation of the Dollar against the Realof 15.1%;

27%

20%

16%

9%

8%

3%

3% 2%

11%

9M15

USA

Argentina

Turkey

Mexico

Vietnam

Thailand

Taiwan

Germany

Others

28%

16%

10%8%

7%

6%

5%

4%

17%

3Q15

USA

Mexico

Turkey

Argentina

Thailand

Vietnam

Taiwan

Germany

Others

Thousand tons Change3Q15/2Q15

Total Sales 1,179 100% 1,275 100% 1,400 100% -8% 3,710 100% 4,294 100%

Heavy Plates 196 17% 244 19% 323 23% -20% 727 20% 937 22% Hot Rolled 409 35% 392 31% 434 31% 4% 1,218 33% 1,463 34% Cold Rolled 252 21% 248 19% 297 21% 2% 811 22% 1,015 24% Galvanized 192 16% 196 15% 217 16% -2% 602 16% 675 16% Processed Products 2 0% 4 0% 9 1% -43% 14 0% 48 1% Slabs 127 11% 191 15% 120 9% -34% 337 9% 156 4%

Domestic Market 751 64% 850 67% 1,063 76% -12% 2,708 73% 3,567 83%

Heavy Plates 159 13% 217 17% 239 17% -27% 637 17% 736 17% Hot Coils 192 16% 216 17% 345 25% -11% 749 20% 1,239 29% Cold Coils 220 19% 226 18% 259 19% -3% 730 20% 896 21% Galvanized 165 14% 165 13% 192 14% 0% 523 14% 602 14% Processed Products 2 0% 4 0% 7 1% -43% 14 0% 44 1% Slabs 15 1% 23 2% 21 2% -36% 56 2% 50 1%

Exports 427 36% 424 33% 337 24% 1% 1,002 27% 725 17%

Heavy Plates 37 3% 27 2% 84 6% 39% 91 2% 201 5% Hot Rolled 217 18% 175 14% 89 6% 24% 470 13% 223 5% Cold Rolled 33 3% 23 2% 38 3% 45% 82 2% 119 3% Galvanized 27 2% 31 2% 25 2% -12% 79 2% 73 2% Processed Products - 0% - 0% 2 0% - - 0% 4 0% Slabs 112 10% 169 13% 99 7% -33% 281 8% 105 2%

-40%-19%

2Q153Q15 3Q14

-17%

-24%

-13%

116%

9M15 9M14 Change9M15/9M14

Sales Volume Breakdown

168%

-69%12%

38%

-55%

-31%8%

-

111%

-13%

-20%-11%-72%

-14%

-22%

8/20/2019 Release 3Q15

13/21

3Q15 Results 13

- increase of 16.9% in energy and fuels, due to the increase of electrical energy tariffs and highernatural gas prices;

- increase of 17.4% in own labor cost, due to higher expenses regarding workforce adjustmentand less dilution of fixed cost in function of lower in production volume;

- foreign exchange rate depreciation of 15.1%, on average, affecting costs in dollar, witchrepresents around 40% of cash cost.

COGS per ton totaled R$1,923.1, an increase of 5.8% when compared with the 2Q15, mainly dueto the sale of products produced in previous periods and to an increase in depreciation and costswith idle capacity of equipments.

Sales expenses totaled R$59.9 million in the 3Q15, against R$40.0 million in the 2Q15, a 49.7%increase, mainly due to the reconignition of provision for losses on doubtful accounts and higherdistribution costs impacted by the exchange depreciation. General and administrative expensestotaled R$75.9 million, in line with those in the 2Q15, which were R$76.0 million. Otheroperating expenses totaled R$72.2 million, against R$17.4 million, mainly in function of expensewith the sale of surplus electric energy, which was R$6.0 million in the 3Q15, against a revenueof R$31.1 million in the 2Q15, and higher expenses with temporary equipments shutdown in theamount of R$44.7 million in the 3Q15, against R$31.0 million in the 2Q15. In this manner, inthe 3Q15, net operating expenses totaled R$208.0 million, against R$133.5 million in the 2Q15.

Adjusted EBITDA in the 3Q15 totaled a negative R$81.8 million, against a positive R$205.5 millionin the 2Q15, a reduction of R$287.3 million, as a result of lower volume and prices in the domesticmarket, higher COGS and higher operating expenses. Adjusted EBITDA margin was 3.9%negative in the 3Q15, against 8.6% in the 2Q15, a reduction of 1250 basis points.

Investments (CAPEX)

Investments totaled R$124.3 million in the 3Q15, against R$191.9 million in the 2Q15, a result ofthe Company's strategy to control CAPEX and of the reduction of maintenance CAPEX due to the

temporary equipments shutdown at the plants. The main investments were spent withenvironment projects, safety and sustaining CAPEX.

II) S T E E L P R O C E S S I N G

Soluções Usiminas – SU

Soluções Usiminas operates in the distribution, services and small- diameter tubes’ marketsnationwide, offering its customers high-value-added products. It serves several economic

segments, such as automotive, autoparts, civil construction, distribution, electro-electronics,machinery and equipment and household appliances, among others.

Sales of the Distribution, Services/Just-in-time and Tubes Business Units were responsible for53%, 40% and 7%, respectively, of the volume sold in the 3Q15.

8/20/2019 Release 3Q15

14/21

3Q15 Results 14

Comments on the Business Unit Results - Steel Processing

The outlook of the distribution segment continued to face strong competition with imports. Thedecline in the international steel prices and the higher levels of import volumes in Brazil havepressured the distributor margins.

In the 3Q15, net revenue was R$484.2 million, 1.8% higher than in the 2Q15, which was R$475.8million, in function of a 10.4% increase in sales and services volume.

Cost of goods sold totaled R$475.4 million in the 3Q15, against R$463.6 million in the 2Q15, a2.6% increase, manly as a result of the increase in sales volume.

Operating expenses were R$19.5 million in the 3Q15, against R$28.0 million in the 2Q15, a30.2% reduction, in function of operational adjustments and the units reconfiguration in order toattend the current level of demand.

In the 3Q15, Adjusted EBITDA was a negative R$3.5 million, against a negative R$8.9 million inthe 2Q15. Adjusted EBITDA margin was -0.7% in the 3Q15, against -1.9% in the 2Q15.

III) C A P I T A L G O O D S

Usiminas Mecânica S.A.

Usiminas Mecânica is a capital goods company in Brazil, which operates in the following businessareas: steel structures, shipbuilding and offshore, oil and gas, industrial equipment andassembly and foundry and railcars.

Highlights

The main contracts signed were with Nuclep, Petrobrás and Arteleste, beyond additions toamendment contracts signed with the Steel Unit.

The order book in the 3Q15 was lower than in the 2Q15, totaling approximately R$500 million,in function of stagnation of oil and gas projects and infrastructure segments in the country.

Comments on the Business Unit Results - Capital Goods

In the 3Q15, net revenue was R$217.4 million, against R$229.7 million in the 2Q15, a reductionof 5.4%, due to the conclusion of the MRS railcar project during the 2Q15.

Gross profit in the 3Q15 was R$31.1 million, 12.6% lower than in the 2Q15, which was R$35.6

million, since the costs had not been reduced in the same level of net revenue.In the 3Q15, Adjusted EBITDA was R$22.6 million, against R$25.8 million in the 2Q15. AdjustedEBITDA margin was 10.4% in the 3Q15, against 11.2% in the 2Q15.

8/20/2019 Release 3Q15

15/21

3Q15 Results 15

Event Subsequent to closing of the Quarter

Temporarily interruption of the activities of the primary areas of Cubatão Plant: At ameeting held on October 28th, 2015, the Board of Officers decided to temporarily interrupt theactivities of the primary areas of the Cubatão/SP Plant. The deactivation process will be gradualand will involve sinter and coke plants, blast furnaces (one of which had already paralyzed itsactivities since May 2015) and steelworks, as well as all the activities associated with suchequipments.

Such adjustment intends to reposition Usiminas into a new level of scale and competitivenessbefore an economic context of progressive deterioration of the steel market.

In this scenario, the Cubatão Plant will cease to produce slabs, but its hot and cold rolling lineswill remain active, as well as the activities related to its port terminal. The heavy plates rollingline will remain temporarily suspended.

Highlights

Temporarily shutdown of the heavy plate mill at Cutatão Plant : Due to the shutdown ofthe two blast furnances, as announced in the 2Q15, and to the weak steel demand in thedomestic market, Usiminas temporarilly suspended operation of its heavy plate mill at Cubatão,in order to reduce its production. Usiminas has two heavy plate mills, one in Ipatinga, MinasGerais State and the other one at Cubatão, São Paulo, each with a one million ton annualcapacity. Then, Ipatinga Plant will concentrate production and customer service since it hasaccelerated cooling technology, that allows the production of heavy plates with highertechnology content in order to supply to a wide range of markets, such as shipbuilding, oil andgas, heavy equipment and machinery, construction and energy segments.

Transparency Trophy 2015 : The National Association of Finance, Administration andAccounting Executives (ANEFAC), in partnership with the Institute of Accounting, Actuarial andFinancial Research (FIPECAFI) along with Serasa Experian, recognized Usiminas for the 8 th consecutive year, among the ten most transparent companies in Brazil in the publicly tradedcompany category, with revenue above R$5 billion. Financial statements from 2014 were

evaluated in technical issues, such as compliance to accounting principles, Opinion of ExternalAuditors, general presentation and disclosure of relevant aspects in addition to those requiredby the existing regulation.

Ranking of the "100 most Innovative Companies in Brazil" : Usiminas is one of the "100most Innovative Companies in Brazil" in a Ranking released by Valor Econômico newspaper inpartnership with Strategy& Consulting, from PwC Group. Usiminas holds the 46th position in thegeneral ranking. This is the first Brazilian survey that evaluates innovation in companiesoperating in Brazil in different economic activities. Three pillars of the innovation chain wereevaluated: intention, efforts and results. Based on qualitative and quantitative indicators, in a

model especially developed to the Brazilian context, the edition pointed out companies thatadopt the best policies for innovation, their investments in the local market and the achievedresults.

8/20/2019 Release 3Q15

16/21

3Q15 Results 16

Capital Markets

Performance on the BM&F BOVESPA

On 09/30/15, Usiminas’ Common shares (USIM3) closed quoted at R$8.26 and its Preferredshares (USIM5) at R$3.35. In the quarter, USIM3 depreciated 37.7% and USIM5, 18.7%. In thesame period, the IBOVESPA index depreciated 15.1%.

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 09/30/15,USNZY ADRs, that have higher liquidity, were quoted at US$0.85 and depreciated 37.5% in thequarter.

LATIBEX – Madrid

Usiminas’ shares are traded on the LATIBEX – the Madrid Stock Exchange: XUSI as preferredshares and XUSIO as common shares. On 09/30/15, XUSI closed quoted at €0.78 , depreciating36.1% in the quarter. XUS IO shares closed quoted at €1.88 , depreciating 51.4% in the period.

3Q15 2Q15Change

3Q15/2Q15 3Q14Change

3Q15/3Q14Number of Deals 555,502 500,667 11% 811,778 -32%

Daily Average 8,680 8,208 6% 12,489 -30%

Traded - thousand shares 528,426 457,804 15% 442,550 19%

Daily Average 8,257 7,505 10% 6,808 21%

Financial Volume - R$ million 2,003 2,462 -19% 3,566 -44%

Daily Average 31 40 -23% 55 -44%

Maximum 4.65 6.97 -33% 9.00 -48%

Minimum 2.68 4.12 -35% 6.37 -58%

Closing 3.35 4.12 -19% 6.37 -47%

Market Capitalization - R$ million 3,396 4,177 -19% 6,458 -47%

Usiminas Performance Summary - BM&FBOVESPA (USIM5)

8/20/2019 Release 3Q15

17/21

8/20/2019 Release 3Q15

18/21

3Q15 Results 18

09/30/2015 06/30/2015

4,615,940 4,718,708Loans and Financing and Taxes Payable in Installments 1,805,475 1,723,993Suppliers, Subcontractors and Freight 1,719,521 2,069,668Wages and Social Charges 343,189 319,435Taxes and Taxes Payables 113,906 98,461Related Companies 238,960 188,279Financial Instruments 216,766 146,731Dividends Payable 143 141Customers Advances 54,653 69,897Others 123,327 102,103

8,367,978 7,916,813Loans and Financing and Taxes Payable in Installments 6,305,315 5,880,729 Actuarial Liabili ty 1,226,822 1,213,051 Provision for Legal Liabilities 511,288 501,267 Financial Instruments 198,843 198,335 Environmental Protection Provision 94,638 92,149 Others 31,072 31,282

16,602,814 17,678,366Capital 12,150,000 12,150,000Reserves & Revenues from Fiscal Year 2,598,434 3,661,445Non-controlling shareholders participation 1,854,380 1,866,921

29,586,732 30,313,887

Long-Term Liabilities

Total Liabilities and Shareholders' Equity

Shareholders' Equity

Current Liabilities

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

Assets 09/30/2015 06/30/2015

Current Assets 7,584,430 8,560,921Cash and Cash Equivalents 2,396,616 2,889,080Trade Accounts Receivable 1,364,568 1,357,433

Taxes Recoverable 345,647 367,277Inventories 3,106,307 3,595,707Advances to suppliers 24,934 17,611Financial Instruments 149,603 108,699Other Securities Receivables 196,755 225,114

Non-Current Assets 22,002,302 21,752,966 Long-Term Receivable 4,212,599 3,805,774

Deferred Income Tax & Social Contribution 2,727,748 2,481,044 Deposits at Law 565,101 599,420 Accounts Receiv. Affiliated Companies 4,537 4,630

Taxes Recoverable 84,048 87,418 Financial Instruments 537,808 335,582 Others 293,357 297,680

Investments 1,133,587 1,145,575 Property, Plant and Equipment 15,262,483 15,408,654 Intangible 1,393,633 1,392,963

Total Assets 29,586,732 30,313,887

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

8/20/2019 Release 3Q15

19/21

3Q15 Results 19

R$ thousand 3Q15 2Q15 3Q14 Chg.3Q15/2Q15

Net Revenues 2,424,262 2,676,762 2,907,816 -9% Domestic Market 1,764,747 2,039,974 2,392,386 -13% Exports 659,515 636,788 515,430 4% COGS (2,533,957) (2,571,385) (2,782,955) -1%Gross Profit (109,695) 105,377 124,861 -

Gross Margin -4.5% 3.9% 4.3% -850 b.pOperating Income (Expenses) (331,345) (1,198,920) (95,682) -72% Selling Expenses (82,650) (60,535) (63,821) 37% Provision for Doubtful Accounts (14,725) (1,917) (1,541) 668% Other Selling Expenses (67,925) (58,618) (62,280) 16% General and Administrative (101,168) (107,821) (111,565) -6% Other Operating Income (expenses) (147,527) (1,030,564) 79,704 -86% Reintegra Program (Brazilian Government Export Benefit) 5,812 6,140 - -5% Net Cos t of Actuarial Obligations (4,123) (4,101) (1,289) 1% Provision for Legal Liabilities (21,018) (12,360) (22,380) 70% Result of the Non Operating Asset Sale/Write-Off (11,084) 4,085 2,148 - Result of the Sale of the Surplus Electric Energy (2,161) 40,938 124,401 - Tempora rily Equipments Shutdown (71,030) (31,020) - 129% Impairment of Assets 1,674 (985,046) - - Other Operating Income (Expenses), Net (45,597) (49,200) (23,176) -7%EBIT (441,040) (1,093,543) 29,179 -60%

EBIT Margin -18.2% -40.9% 1.0% +2270 b.pFinancial Result (820,075) (40,629) (232,452) 1918% Financial Income 360,612 52,673 247,318 585%

Financial Expenses (1,180,687) (93,302) (479,770) 1165%Equity in the Results of Associate and Subsidiary Companies (4,260) 33,991 35,101 -Operating Profit (Loss) (1,265,375) (1,100,181) (168,172) 15% Income Tax / Social Contribution 223,219 319,383 143,742 -30%Net Income (Loss) (1,042,156) (780,798) (24,430) 33%

Net Margin -43.0% -29.2% -0.8% -1380 b.pAttributable:

Shareholders (1,029,615) (602,187) (26,095) 71%Minority Shareholders (12,541) (178,611) 1,665 -93%EBITDA (Instruction CVM 527) (96,573) (755,210) 344,489 -87%

EBITDA Margin (Instruction CVM 527) -4.0% -28.2% 11.8% +2420 b.pAdjusted EBITDA - Joint Subsidiary Companies proportional EBITDA (65,347) 227,206 356,516 -

Adjusted EBITDA Margin -2.7% 8.5% 12.3% -1120 b.pDepreciation and Amortization 348,727 304,342 280,209 15%

Income Statement - Consolidated | IFRS

R$ thousand 9M15 9M14 Chg.9M15/9M14

Net Revenues 7,781,446 9,156,434 -15% Domestic Market 6,154,427 7,837,779 -21% Exports 1,627,019 1,318,655 23% COGS (7,542,142) (8,177,820) -8%Gross Profit 239,304 978,614 -76%

Gross Margin 3.1% 10.7% -760 b.pOperating Income (Expenses) (1,738,409) (412,667) 321% Selling Expenses (194,339) (218,695) -11% Provision for Doubtful Accounts (15,457) (1,951) 692% Other Selling Expenses (178,882) (216,744) -17% General and Administrative (331,460) (367,308) -10% Other Operating Income (Expenses) (1,212,610) 173,336 - Reintegra (Brazilian Government Export Benefit) 19,477 - - Net Cost of Actuarial Obligations (12,381) (3,881) 219% Provision for Legal Liabilities (64,661) (70,939) -9% Result of the Non Operating Assets Sale/Write-Off (6,626) 29,359 - Result of the Sale of the Surplus Electric Energy 66,642 288,381 -77% Temporarily Equipments Shutdown (102,050) - - Impairment of Assets (983,372) - - Other Operating Income (Expenses), Net (129,639) (69,584) 86%EBIT (1,499,105) 565,947 -

EBIT Margin -19.3% 6.2% -2540 b.pFinancial Result (1,221,604) (309,070) 295% Financial Income 782,148 343,411 128% Financial Expenses (2,003,752) (652,481) 207%Equity in the Results of Associate and Subsidiary Companies 41,702 139,633 -70%Operating Profit (Loss) (2,679,007) 396,510 - Income Tax / Social Contribution 620,673 (70,701) -Net Income (Loss) (2,058,334) 325,809 -

Net Margin -26.5% 3.6% -3000 b.pAttributable:

Shareholders (1,879,262) 272,934 -Minority Shareholders (179,072) 52,875 -EBITDA (Instruction CVM 527) (497,904) 1,530,404 -

EBITDA Margin (Instruction CVM 527) -6.4% 16.7% -2310 b.pAdjusted EBITDA - Joint Subsidiary Companies proportional EBITDA 541,393 1,561,275 -65%

Adjusted EBITDA Margin 7.0% 17.1% -1010 b.pDepreciation and Amortization 959,499 824,824 16%

Income Statement - Consolidated | IFRS

8/20/2019 Release 3Q15

20/21

3Q15 Results 20

R$ thousand 3Q15 2Q15

Operating Activities Cash Flow Net Income (Loss) in the Period (1,042,156) (780,798) Financial Expenses and Monetary Var. / Net Exchge Var. 760,074 36,209

Interest Expenses 120,588 50,631Depreciation and Amortization 348,727 304,342Losses/(gains) on Sale of Property, Plant and Equipment 8,575 (4,184)

Equity in the Results of Subsidiaries/Associated Companies 4,260 (33,991) Impairment of Assets (1,182) 985,046

Difered Income Tax and Social Contribution (225,093) (325,803) Constitution (reversal) of Provisions (5,927) 2,169

Actuarial Gains and losses 4,123 4,204Stock Option Plan 1,939 3,367Total (26,072) 241,192

(Increase)/Decrease of Assets Accounts Receivables Customer (22,085) 21,227

Inventories 510,589 336,632Recovery of Taxes 27,298 42,730Judicial Deposits 34,172 (14,967)

Accounts Receiv. Affiliated Companies 93 92Others (1,347) (137,493)

Total 548,720 248,221Increase /(Decrease) of Liabilities

Suppliers, Contractors and Freights (350,147) (165,493) Amounts Owed to Affiliated Companies 50,681 (53,504) Customers Advances (15,244) (31,790) Tax Payable 13,581 (35,412) Actuarial Liability Payments (48,414) (48,605) Others 38,662 (11,959) Total (310,881) (346,763)

Cash Generated from Operating Activities 211,767 142,650

Interest Paid (183,698) (152,658) Income Tax and Social Contribution (2,308) (31,508)

Net Cash Generated from Operating Activities 25,761 (41,516)Investments activities cash flow Marketable Securities 671,779 57,280

Amount Received on Disposal of Investments 0 0Amount Paid on the Acquisition of Investments 0 0Fixed Asset Acquisition (127,808) (214,174)

Fixed Asset Sale Receipt 844 4,749Additions to / Payments of Intangible Assets 0 0Dividends Received 491 36,840Purchase of Software (6,342) (11,968)

Net Cash Employed on Investments Activities 538,964 (127,273)

Financial Activities Cash Flow Inflow of Loans, Financing and Debentures (20,396) 1,342,106

Payment of Loans, Financ. & Debent. (421,284) (788,548) Payment of Taxes Installments (297) (291) Swap Operations Liquidations (4,495) (17,412) Dividends and Interest on Capital 2 (38,227)

Net Cash Generated from (Employed on) Financial Activities (446,470) 497,628

Exchange Variation on Cash and Cash Equivalents 61,060 (3,522)

Net Increase (Decrease) of Cash and Cash Equivalents 179,315 325,317

Cash and Cash Equivalents at the Beginning of the Period 1,996,659 1,671,342Cash and Cash Equivalents at the End of The Period 2,175,974 1,996,659

RECONCILIATION WITH BALANCE SHEETCash and Cash Equivalents at the Beginning of the Period 1,996,659 1,671,342Marketable Securities at the Beginning of the Period 892,421 949,701

Cash and Cash Equivalents at the Beginning of the Period 2,889,080 2,621,043Net Increase (Decrease) of Cash and Cash Equivalentes 179,315 325,317Net Increase (Decrease) of Marketable Securities (671,779) (57,280)

Cash and Cash Equivalents at the End of the Period 2,175,974 1,996,659Marketable Securities at the End of the Period 220,642 892,421Cash and Cash Equivalents at the End of the Period 2,396,616 2,889,080

Cash Flow - Consolidated | IFRS

8/20/2019 Release 3Q15

21/21

R$ thousand 9M15 9M14

Operating Activities Cash Flow Net Income (Loss) in the Period (2,058,334) 325,809

Financial Expenses and Monetary Var. / Net Exchge Var. 1,335,090 343,082Interest Expenses 188,367 162,422Depreciation and Amortization 959,499 824,824Losses/(gains) on sale of property, plant and equipment 3,945 (29,359)

Equity in the Results of Subsidiaries/Associated Companies (41,702) (139,633) Impairment of Assets 983,864 0

Difered Income Tax and Social Contribution (648,623) (258) Constitution (reversal) of Provisions 20,066 53,521

Actuarial Gains and losses 12,381 3,881Stock Option Plan 7,355 8,515Total 761,908 1,552,804

Increase/Decrease of Assets 0Accounts Receivables Customer (133,036) 137,252Inventories 465,505 161,173Recovery of Taxes 15,737 75,698Judicial Deposits 1,021 5,015Accounts Receiv. Affiliated Companies 17,846 (1,115)

Others (114,223) (97,642)

Total 252,850 280,381Increase /(Decrease) of Liabilities

Suppliers, contractors and freights (229,223) (434,615) Amounts Owed to Affiliated Companies (99,397) 806

Customers Advances (55,526) 717Tax Payable (13,255) (2,634)

Actuarial Liability payments (135,668) (136,478) Others 46,702 (99,855) Total (486,367) (672,059)

Cash Generated from Operating Activities 528,391 1,161,126

Interest Paid (462,375) (357,988) Income Tax and Social Contribution (8,917) (61,819)

Net Cash Generated from Operating Activities 57,099 741,319Investments activities cash flow Marketable Securities 521,449 (103,905) Amount received on disposal of investments 0 16,486

Amount paid on the acquisition of investments 0 (164,685) Fixed asset acquisition (572,045) (750,006) Fixed asset sale receipt 7,159 43,707

Additions to / payments of Intangible Assets 0 (45,882) Dividends Received 38,610 110,238

Software Purchase (20,557) (16,907)

Net Cash Employed on Investments Activities (25,384) (910,954)

Financial Activities Cash Flow Inflow of Loans, Financing and Debentures 1,678,529 909,335

Payment of Loans, Financ. & Debent. (1,645,171) (1,138,145) Payment of Taxes Installments (874) (8,682) Swap Operations Liquidations (3,833) (18,011) Dividends and Interest on Capital (39,293) (79,772)

Net Cash Generated from (Employed on) Financial Activities (10,642) (335,275)

Exchange Variation on Cash and Cash Equivalents 45,089 (11,213)

Net Increase (Decrease) of Cash and Cash Equivalents 66,162 (516,123)

Cash and Cash Equivalents at the Beginning of the Period 2,109,812 2,633,187Cash and Cash Equivalents at the End of The Period 2,175,974 2,117,064

RECONCILIATION WITH BALANCE SHEETCash and cash equivalents at the beginning of the period 2,109,812 2,633,187Marketable securities at the beginning of the period 742,091 835,629

Cash and cash equivalents at the beginning of the period 2,851,903 3,468,816Net increase (decrease) of cash and cash equivalentes 66,162 (516,123)Net increase (decrease) of marketable securities (521,449) 103,905

Cash and cash equivalents at the end of the period 2,175,974 2,117,064Marketable securities at the end of the period 220 642 939 534

Cash Flow - Consolidated | IFRS