Agenda. Global View. Usiminas. Investments. Mining & Logistics. Financials. Corporate Governance and Social Responsability

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2 Agenda Global View Usiminas Investments Mining & Logistics Financials Corporate Governance and Social Responsability 2

3 Agenda Global View Usiminas Investments Mining & Logistics Financials Corporate Governance and Social Responsability 3

4 Steel Consumption - World (million t) Substantial growth in the past few years, mainly coming from China... Other USA/Canada LATAM Europe China ,323 1,242 1,139 1, , F Source: IISI

5 World Steel Production Brazil is the 9th largest producer (million t.) China Japan USA Russia India S. Korea Germany Ukraine Brazil Italy Source: International Iron and Steel Institute - IISI

6 Global Average Japan USA Mini Cost competitiveness Brazil has the lowest production cost in the world Production Cost USD / ton (Slabs May 2008) Brazil Mexico India Australia CIS USA Integ China South Korea (Integ) Canada Eastern Europe Western Europe Source: WSD, May 2008

7 Agenda Global View Usiminas Investments Mining & Logistics Financials Corporate Governance and Social Responsability 7

8 Brazilian Steel Production Usiminas System is the 36th largest producer in the world and 1st flat steel producer in Latin America ArcelorMittal 30.3% Top Brazilian Steel Producers (33.8 million ton = Brazil s crude steel production) Others 6.7% Usiminas 25.7% Major Producers 2007 (crude steel production - million t.) 1 - Arcelor Mittal 2 - Nippon Steel 3 - JFE 4 - Posco 5 - Baosteel 6 - Tata Steel 7 - Jiangsu Shagang 34,5 33,8 32,8 28,6 26,5 22,9 116,4 8 - Tangshan 22,8 9 - US Steel 20,5 CSN 15.8% Gerdau 21.5% 10 - Wuhan 20, USIMINAS 8,7 Source: IBS and Metal Bulletin

9 Shareholder Structure Excellence of the main shareholders i Board of Directors from solid Brazilian and foreign groups i Long-term commitment i Excellence and experience of management Total Capital June, 2008 ON s % PN s % Control Group 31.9% Votorantim / Camargo Corrêa Group 11.5% Nippon Group 12.3% Usiminas Pensions Fund 5.0% VALE 2.9% Free Float 50.2% Previ 5.2% Free Float 12.9% 9

10 Usiminas is strategically located Close to major domestic markets Iron Ore Mine 2 ports Railroad (MRS) (Minas Gerais) Brazil Int.. CâmaraC Plant Santana Paraíso Plant (Espírito Santo) Iron Ore Mines (São Paulo) Belo Horizonte Praia Mole Terminal (Rio de Janeiro) J. Bonifácio Plant São Paulo Cubatão Terminal Ingá Terminal MRS 10

11 Cost competitiveness High quality, value-added products (from slabs to coated products) Among the lowest cost producers in the world Operating Profit Margins % Q ,0 40,8 39,4 35,2 33, ,1 34,6 28,7 28,2 27, ,0 37,5 31,7 30,9 29, Usiminas Novolipetsk Source: Integer Research CSN Tata Steel China Steel 0 CSN Novolipetsk Tata Steel Usiminas Magnitogorsk 0 Ezz Novolipetsk Usiminas CSN JSW Steel 11

12 Products Complete product lines: from slabs to coated products Capacity (tonnage/year) Ipatinga Plant Cubatão Plant Major consumers Uncoated Slab 5,000,000 4,500,000 Heavy plate 1,000,000 1,000,000 Hot coil 3,550,000 2,100,000 Cold coil 2,500,000 1,200,000 Rolling mills. Pipelines, pressure vessels, shipbuilding, general structures. Agricultural machinery, pipe and tube, chassis, gas cylinders, containers, general structures. Auto industry, household appliances, packaging. Electrogalvanized coil 360,000 - Auto industry, household appliances. Coated Hot dip galvanized coil 480,000 - Auto industry, household appliances, civil construction. 12

13 Sales (million ton. ) Domestic market is a priority 7,722 7,710 8,062 7,348 7,945 7,990 30% 31% 28% 33% 33% 23% 5,718 16% 77% 70% 69% 72% 67% 67% 84% M08 Domestic Market Foreign Market As of September,

14 Sales Domestic Market (Volume: million t. - 9M08) Combination of market leadership and diversified customer base reduces market risk Chile 8% Argentina 18% Germany 7% Vietnam 3% Thailand 5% Others 9% Packaging 1% Household Appliances 1% Industrial Equipment 5% Others 15% Elect- Equipment 3% Distributors 23% Pipelines 6% Civil Construction 7% Small Diam. Tubes 6% Autoparts 21% Auto Industry 12% Taiwan 7% South Korea 4% As of September, 2008 Mexico 13% Spain 13% USA 13% International Market (Volume: million t. - 9M08) Diversified geographic sales 14

15 Steel Distribution Sector USIMINAS 15% Others 17% ArcelorMittal 14% Mangels 4% CSN / Inal 11% Source: INDA - June, 2008 Tyco Metal 4% Tuper 4% Armco 4% Benafer 4% Frefer 4% Pires do Rio / Cibraço 4% Gerdau 8% Zamprogna 7% 15

16 Market Share Domestic Market (%) - 9M08 Combination of market leadership and diversified customer base reduces market risk Flat Steel TOTAL Auto Industry Autoparts Small Diam. Tubes 49% 50% 60% 37% 51% 50% 40% 63% Pipelines 89% 11% Household Appliances 31% 69% Elect. Equipment 69% 31% Shipbuilding 100% Civil Construction 37% 63% Packaging 12% 88% Distributors 42% 58% 0,0% 20,0% 40,0% 60,0% 80,0% 100,0% Ipatinga and Cubatão Plants Others 49% Market share * As of September, 2008 * Flat Steel market: Usiminas System, CSN, Acesita and Arcelor Brasil. 16

17 Brazil s s outlook i Flat steel demand is expected to exceed 10% Vehicle production may reach million (Anfavea) Industrial segment should outperform, growth to exceed 10% Civil Construction growing activities Flat Steel Demand (1,000 t.) Vehicle Production (1,000 vehicles) 8,576 8,908 10,109 9,229 9, % 11,669 12, % 1,793 1,828 2,210 2,528 2, % 3,400 2, % E E Source: IBS / Usiminas / Anfavea 17

18 Investments & Technology Commitment to the best technology Partnership with Nippon Steel assures access to state-of-the-art technology in steel production, including high value-added products 6 th Technology Transfer Agreement with Nippon Steel, valid until received patents, of which 23 are international 150 researchers 18

19 Agenda Global View Usiminas Investments Mining & Logistics Financials Corporate Governance and Social Responsability 19

20 New Slab Plant (Santana do Paraíso) Production capacity 5 million tons/yr Start of works 1 st Half 2009 Start up 2.5 million t/yr in million t/yr in 2012 Coke plant 2.0 million t/yr Power plant 250 MW TOTAL Investments: : US$ 5.7 billion * * Does not include investment in thermoelectric powerplant of approximately US$ 400 million 20

21 Intendente CâmaraC Plant (Ipatinga) Investments LINE VOLUME thsd tons START UP FORECAST PROJECT AMOUNT UNIGAL II (Galvanized) st Half 2011 US$ 460 million Heavy Plates nd Half 2010 US$ 500 million Hot Rolled Coils st Half 2011 US$ 130 million Other Technology updating, cost savings and environmental control, with highlight for Coke Plant 3 (+750kt/yr) and thermolectric powerplant (60 MW) in 2008 US$ 1.0 billion Total Investments US$ 2.1 billion Investments to serve high value-added markets 21

22 José Bonifácio Plant (Cubatão) Investments LINE VOLUME thsd tons START UP FORECAST PROJECT VALUE Hot Strip Mill 2,300 / 4,800 1 st Half 2011 US$ 1.0 billion BF1 Revamping 3.5 thsd/day => 4.5 thsd/day Concluded US$ 170 million Continuous Casting Machine +350 / ano Concluded US$ 140 million Other Technology updating, cost savings and environmental control US$ 1.1 billion Total Investments US$ 2.4 billion 22

23 Mining Investments Plant / Equip CAPACITY tons PROJECT VALUE Concentration Plant 16 million US$ 650 million Pellet Plant 7 million US$ 750 million Mining Equip. - US$ 90 million Railroad conection - US$ 60 million Others - US$ 20 million Acquisition 1,4 billion US$ 1,9 billion Total Investments US$ 3.5 billion 23

24 Usiminas 2013 Technical configuration of the plants after the investment program Intendente Câmara Plant José Bonifácio Plant Santana do Paraíso million tons Current After Current After New Plant Slabs (1) Hvy Plate Hot Strip / 6.10 (2) Cold Strip EG HDG (1) Concluded - May/2008 (2) Additional expansion - up to 6.10 million tons/year Source: Usiminas 24

25 Agenda Global View Usiminas Investments Mining & Logistics Financials Corporate Governance and Social Responsability 25

26 J. Mendes brief overview J. Mendes is the last sizeable mining asset available in the Quadrilátero Ferrífero, a major iron ore province in Brazil The acquired company is comprised of four mining sites with total expected resources of 2.7 to 3.0 Bt and expected reserves of 1.1 to 1.8 Bt Somisa Global/Camargos J Mendes Pau de Vinho Expected mine useful life of at least 25 years Expected iron content between 46 and 48% Current production level at roughly 5 MMt/year 26

27 Mining Assets 30 Pellet Feed Sinter Feed Lump Source: Usiminas 27

28 Mining Assets Although Ipatinga and Santana do Paraíso do not have logistics access to be supplied by its mines on Serra Azul,, Usiminas will have the benefit of full hedge against iron ore price fluctuations Mining 29.2 MM t/yr Supply J. Bonifácio Plant 10.3 MM t/yr Dom. Mkt. Sales 2.2 MM t/yr Exports 16.7 MM t/yr Hedge José Bonfácio Plant 2.0 MM t/yr Intend.. CâmaraC Plant 8.0 MM t/yr Santana do Paraíso 8.0 MM t/yr Source: Usiminas 28

29 Logistics Assets Usiminas acquired land in Sepetiba Bay where it will build a maritime terminal Price R$ 72 million Land 850 thousand m² Start of operations 2012 Shipping capacity 25 million tons of Iron Ore, in addition to other products Area will be a benchmark from the environmental point of view Amount estimated for environmental recovery - up to R$ 40 million 29

30 Agenda Global View Usiminas Investments Mining & Logistics Financials Corporate Governance and Social Responsability 30

31 Estimated Capex for the Investment Program fits into the capital structure considered adequate for the company US$ million STEELMAKING MINING TOTAL , , ,550 1,060 3, , , , , TOTAL 10,630 3,470 14,100 31

32 The Investment Program foresees the following funding: Type Main Financial Transactions Amount Amount US$ million R$ million Term Years ECAs BNDES Credit Facility Own Funds ~ 50% Capital Markets Commerc'l Banks BNDES Eurobond Debentures / 5 Pre Payment / 7 JBIC

33 Consolidated Ebitda Investment return and market conditions have allowed consistent cash generation US$ Million 31% 35% 32% 35% 35% 46% 42% 35% 36% 37% 39% 2,581 2,739 2,269 1,922 2,010 1, AVG. R$/US$ , , , , , , , , ,95 9M07 1,95 9M08 1,69 Ebitda Ebitda Margin As of September,

34 Consolidated Debt Maturity Debt has an adequate maturity profile. In addition Usiminas has the following available facilities: Standby Facility - US$ 300 million Revolving Facility - US$ 700 million BNDES Credit Facility - R$ 900 million Long 83% US$ 2,449 M TERM Short 17% US$ 517 M CURRENCY Local 32% 2,141 Foreign 68% US$ Million Swap CDI 3% As of September, 2008 Cash on Note: Principal Values 34

35 Total Net Debt And have made it possible to considerably reduce debt US$ Million Net Debt Net Debt / Ebitda ,1 2,491 2,3 2,334 0,7 0,4 0,2-0,2 0, R$/US$ , ,89 1, , , ,14 (537) , M08 1,91 As of September,

36 Financial Highlights Consolidated Figures Sept 30/08 Dec 31/07 Dec 31/06 Dec 31/05 Dec 31/04 Crude Steel Produc. (thsd t) 6,243 8,675 8,770 8,661 8,951 Sales (thsd t) 5,718 7,990 7,945 7,348 8,062 Net sales (US$ million) 7,113 7,131 5,709 5,354 4,197 EBITDA (US$ million) 2,739 2,581 2,010 2,269 1,922 Net Profit (US$ million) 1,420 1,607 1,156 1,609 1,033 Gross Debt (US$ million) 2,966 1,693 1,628 1,685 2,033 Net Debt / EBITDA 0.2 (0.2) EBITDA / Interest

37 Agenda Global View Usiminas Investments Mining & Logistics Financials Corporate Governance and Social Responsability 37

38 Environmental Protection More than R$ 2 billion invested in Ipatinga and Cubatão plants since Usiminas and Cosipa were the 2nd and 3rd steel companies in the world to be certified with ISO Fresh water recirculation rate above 93%. Green belt in Ipatinga area is 10 times above recommended level (World Health Organization). 38

39 Community More than R$ 139 million invested in cultural activities in the last fifteen years (tax incentives), involving 3 thousand artists and 200 thousand spectators. Construction of its 2nd hospital, one of three in Brazil accredited by ONA (National Accreditation Organization), through USIMINAS Foundation, which is self sustaining. Both hospitals provide healthcare to a region with 600 thousand inhabitants. Investment in education through São Francisco Xavier School, maintained by USIMINAS foundation, teaching more than 3 thousand children and young people. The city of Ipatinga holds a high standard of human development, as defined by the UN - United Nations. 39

40 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 brunofusaro@usiminas.com.br mprosa@usiminas.com.br lsantos@usiminas.com.br Tel.: Tel.: Tel.: Fax: Gilson Rodrigues Bentes Diogo Dias Gonçalves Cosipa (São Paulo Office) dgoncalves@usiminas.com.br gilson@cosipa.com.br Tel.: Tel.: