4Q 2008 Figures March 2009,

Transcription

1 4Q 2008 Figures March, 2009

2 Agenda Current Status Business Strategy Investment Plan Usiminas and the Distribution Sector 2

3 Current Status 3

4 The largest flat steel producer in Latin America and the 35th steel producer in the world Demand and Consumption Top Brazilian Steel Producers 2008 * Crude steel production 33.7 t Major Producers Steel production- million t * Source: IBS - Informe Estatístico Preliminar January/2009 and Metal Bulletin 2008 * Flat steel production 4

5 Strategically located Close to major markets Iron Ore Mine 2 ports Railroad (MRS) (Minas Gerais) Brazil Ipatinga Plant Belo Horizonte Santana do Paraíso Plant (Espírito Santo) Iron Ore Mines Praia Mole Terminal Cubatão Plant (São Paulo) São Paulo Cubatão Terminal Ingá Terminal (Rio de Janeiro) MRS 5

6 Full range of flat steel products Slab Caster Slab Heavy Plates Hot Coils Cold Coils EG HDG Ipatinga Plant 5,000 kt 1,000 kt 3,550 kt 2,500 kt 360 kt 480 kt Cubatão Plant 4,500 kt 1,000 kt 2,100 kt 1,200 kt - - 6

7 Sales priorizing domestic market and high h value added d niches Distributors 23% 49% Market share * Others Autoparts 15% Packaging 1% 21% Household Auto 7,176 83% Appliances 1% Industrial Equipment 5% Elect- Equipment 3% Pipelines 6% Civil Construction 7% Small Diam. Tubes 6% Industry 12% 17% 2008 December, 2008 *Flat steel market: Usiminas, CSN and Arcelor Mittal Brasil 7

8 The company presented strong cash generation in recent years US$ Million December,

9 Strong debt reduction and adequacy of debt profile US$ Million December, 2008 Note: Principal Values 9

10 Business Strategy 10

11 Business Strategy Upstream Integration Protection against transfer of margin in the value chain Keep competitiveness of production costs Expansion of Domestic Capacity Take advantage of domestic market growth, capturing a premium for the logistics gains Capture competitiveness from access to local competitive raw material and labor Downstream Integration Assure presence in growing markets Integrate and create value in new market niches Expansion of Products Portfolio Assure maximum potential ti of value creation Reduce dependence of few product lines Assure presence in growing markets Internationalization ti ti Assure access to markets outside Brazil Accelerate growth Diversify and keep close to sector leaders 11

12 Investment Plan 12

13 Original Plan New Slab Plant (Santana do Paraíso) Production capacity 5 million t/yr Coke plant 2.0 million t/yr Power plant 250 MW 13

14 Original Plan Investments Ipatinga Thsnd t. Galvanized 550 Heavy Plate 500 Hot Rolled 150 Technology updating and cost reduction Cubatão Hot Rolled 2,300/4,800 Technology updating and cost reduction Investments in Steel to meet demand of high value added products 14

15 Investments in Mining aiming increase of production and competitiveness Concentration Mill Pellot Plant Mining Equipment Railroad Access Acquisition Production Ramp-up

16 Usiminas and the Distribution Sector 16

17 The Distribution Sector is changing its profile Distribution Distribution + Service Centers + Steel Processing Consolidation Steel Industry adopting model of downstream integration through distribution Size, potential of growth and margin Commercial synergies Operational Synergies 17

18 In March/09 Usiminas acquired Zamprogna, the largest independent d distributor in Brazil Financial Indicators (2008) Localization Sales volume: Net revenues: 288 thousand t R$ 822 million Production and Supply Tubes Service Center Processed Products Guarulhos Campo Limpo Porto Alegre 18

19 Distribution 2007 Jan a set 2008 Company Distributor Part. (%) Rank INDA 2007 Market Share Company Distributor Pat. (%) CSN INAL 100% % CSN INAL 100% % Total % Total % DUFER 100% % DUFER 100% % USIMINAS FASAL 50% % FASAL 50% % USIMINAS RIO NEGRO 64% % RIO NEGRO 64% % Total % ZAMPROGNA 100% % 6.7% ZAMPROGNA % Total % BELGO 100% % BELGO 100% % ArcelorMittal GONVARRI 50% % ArcelorMittal GONVARRI 50% % MANCHESTER 70% % MANCHESTER 70% % Total % 5% Total % Rank INDA 2008 Market Share Total market: 3,489 Total market: 3,305 (Unit: Thousand ton) Source: INDA 19

20 Agenda Current Status Business Strategy Investment Plan Usiminas and the Distribution Sector 20

21 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, of Brazil s economic situation, on the industry and on international markets, and are therefore subject to change. ADR Level I Investor Relations: Bruno Seno Fusaro (Head of IR) Matheus Perdigão Rosa Luciana Valadares dos Santos bruno.fusaro@usiminas.com matheus.rosa@usiminas.com luciana.santos@usiminas.com Phone: Phone: Phone: Fax: Gilson Rodrigues Bentes Diogo Dias Gonçalves gilson.bentes@usiminas.com diogo.goncalves@usiminas.com Phone: Phone :