Institutional Presentation 4Q19 and 2019 Classificao da informao: - PowerPoint PPT Presentation

Institutional Presentation 4Q19 and 2019 Classificação da informação: Pública

AGENDA Usiminas Pillars of Usiminas’ Management People Clients Results Governance and Highlights Appendix Classificação da informação: Pública

Usiminas at a Glance Company Overview Geographic Footprint Usiminas is one of the largest flat steel producers in Brazil, with operations in ✓ several segments of the value chain, such as mining and logistics, capital goods, service and distribution centers and customized solutions Two steel plants strategically located along Brazil’s main industrial axis, with ✓ sales force present in the main regions of the country IPATINGA Belo Horizonte Porto TUBARÃO First Brazilian steel company certified by ISO 9001 Itabria ✓ Itaúna Founder of the most enduring environmental education project in the private ✓ sector since 1984 Mining Steel São Paulo Porto ITAGUÁ Steel Processing Porto CUBATÃO Capital Goods Shareholder Structure (% of total capital, except otherwise indicated) Financial Highlights (in R$mm, except otherwise indicated) Voting Capital Preferred Shares 2015 2016 2017 2018 2019 Nippon Group; Nippon Group; Net Revenues 10,186 8,454 10,734 13,737 14,950 1.0% 0.6% Ternium/Tenaris Others; Group; 1.8% Growth YoY -13% -17% 27% 28% 9% Nippon 23.2% Group; Adjusted EBITDA 291 660 2,186 2,693 1,973 31.4% Margin 3% 8% 20% 20% 13% Ternium/Tenaris Net Income (3,685) (577) 315 829 377 Group; 7.3% Margin (36%) (7%) 3% 6% 3% Usiminas Pension Fund; Total Debt 7,886 6,942 6,656 5,854 5,111 Others; 4.8% Cash and Equivalents 97.6% 2,024 2,257 2,314 1,693 1,921 Ternium/Tenaris Group; 32.3% Net Debt 5,862 4,684 4,342 4,161 3,189 705,260,684 shares 547,818,424 shares Net Debt / EBITDA 20.1 x 7.1 x 2.0 x 1.6 x 1.6 x 56% of ON and 44% of PN 2 Classificação da informação: Pública

Complete Solutions on Products and Services Upstream Downstream Mining Steel Steel Processing Capital Goods Mineração Usiminas Ipatinga | Cubatão | Unigal Soluções Usiminas Usiminas Mecânica ✓ ✓ ✓ ✓ JV formed in 2010 through a One of the largest producers of Created in 2009, Soluções High value-added products for partnership with Sumitomo flat rolled steel in Brazil Usiminas has a wide portfolio of the capital goods industry Corporation products and services in the ✓ Two industrial plants in Ipatinga ✓ transformation and distribution Major provider of creative (MG) and Cubatão (SP) ✓ Responsible for the mining solutions for the steel, mining, of flat rolled steel division operations, in addition to rail automotive, energy, ✓ Nominal capacity for producing ✓ Holds 7 industrial facilities and port transportation petrochemical, among other 9.5 million tons of raw steel per industries ✓ annum Soluções Usiminas ’ portfolio ✓ Three iron ore plants at Serra includes steel coils, coarse ✓ Key products: industrial Azul ✓ Also holds Unigal Usiminas, a JV plates, rollers, welded equipment, heavy steel with Nippon Steel responsible for assemblies, metal structures and structures, steel bridges and ✓ Also has pellet and sinter feed steel hot-dip galvanizing metal disks and tubes, among viaducts, cast steel pieces, processing plants activities, enhancing the other items railway wagons, blanks and technology content within ✓ Concluded investments that will stamped products. Usiminas ’ steel expand the current capacity to ✓ Industrial plants in Ipatinga 12mm tons/year 3 Classificação da informação: Pública

Mining Usiminas is evaluating alternatives for its participation in this asset Overview Assets Location 44 °25’W 44 °20’W 44 °15’W JV formed in 2010 through a partnership with Sumitomo Corporation ▪ São Joaquim (30% economic stake) responsible for mining and railway operations De Bicas 20 °5’S 20 °5’S Emicon MUSA Mineração Three mining sites in the Serra Azul region (MG), with resources of ▪ MUSA Pau Leste MMX de Vinho Usiminas MUSA 2.4 billion tons of iron ore Central MUSA Asset base also includes pellet and sinter feed processing plants ▪ Oeste Comisa Ferrous Ferrous Concluded investments that will expand the currently capacity to 12 ▪ Arcelor (Santanense) 20 °10’S 20 °10’S Mittal mm tons/year MBL The company also has voting equity stake of 20% of MRS Logística ▪ Itatiaiuçu and a strategic field in Sepetiba Bay (RJ) 44 °25’W 44 °20’W 44 °15’W 0 5 10 20 km Iron Ore Sales and Price PLATTS (62% FE CFR China) EBITDA (R$ mm) and EBITDA Margin (%) Mining Business Unit - Thousand tons – Prices in US$/ton 43.2% 102 100 36.5% 36.4% 89 33.9% 83 +2% 2,495 2,453 72 1,896 1,772 1,514 1,373 1,707 868 209 683 190 188 12.0% 670 153 416 540 235 600 244 609 612 549 544 480 38 4Q18 1Q19 2Q19 3Q19 4Q19 1 4Q18 1Q19 2Q19 3Q19 4Q19 Total Exports 1 With a negative non-recurring effect of R$ 38 Million negative due a provision for non- recovery of ICMS. Sales to 3rd parties - Domestic Market Iron Ore Price - US$/t CFR China 4 Classificação da informação: Pública

Mining ( Cont’d ) Annual Results Iron Ore Sales and Price PLATTS (62% FE CFR China) Mining Business Unit - Thousand tons – Prices in US$/ton 93 71 8,616 69 58 56 6,474 4,631 3,274 3,790 3,676 3,207 279 891 521 1,800 759 293 283 3,511 2,492 2,403 2,441 2,185 2015 2016 2017 2018 2019 Sales to Usiminas Sales to 3rd parties - Domestic Market Exports Iron Ore Price - US$/t CFR China EBITDA (R$ mm) and EBITDA Margin (%) 65.8% 37.2% 18.7% 12.4% 740 345 203 46 (89) -22.1% 1 2 2015 2016 2017 2018 2019 ¹ Non-recurring effect of R$ 201 million from Porto Sudeste’s agreement. ² With a negative non-recurring effect of R$ 38 Million due a provision for non-recovery of ICMS. 5 Classificação da informação: Pública

1.Mining and Logistics (Cont’d) Key Projects Friables Dry Stacking (ongoing) ✓ Started operation in 2014 ✓ MUSA is investing in the dry stacking technique. With an R$140 million investment, the process will start operating ✓ Two iron ore processing plants in 2020, depending on environmental licensing ✓ Increased nominal 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 Reclaimed Water Filtration Plant Waste + Water Flotation Dry Stack Tailings Waste Source: Company’s 1Q19 Institutional Presentation (available at ri.usiminas.com/enu/download-center) Classificação da informação: Pública

Steel Overview Net Revenue (R$ mm) One of the largest producers of flat rolled steel in Brazil 3,329 ▪ 3,242 3,203 3,089 3,060 324 256 Two industrial plants in Ipatinga (MG) and Cubatão (SP) ▪ 393 359 337 Nominal production capacity of 9.5 mm tons of annual crude ▪ steel The company owns Unigal Usiminas, a JV with Nippon Steel ▪ 3,005 2,986 2,810 2,729 2,722 engaged in steel hot-dip galvanizing, enhancing the technology content within Usiminas ’ steel Largest center of steel research in Latin America ▪ 4Q18 1Q19 2Q19 3Q19 4Q19 Domestic Market Exports Steel Sales Evolution (Thousand tons) EBITDA (R$ mm) and EBITDA Margin (%) 25.1% 1,059 1,026 1,033 1,004 1,009 110 88 120 119 107 12.1% 9.7% 804 6.6% 6.0% 949 945 905 903 885 404 301 213 184 1 4Q18 1Q19 2Q19 3Q19 4Q19 4Q18 1Q19 2Q19 3Q19 4Q19 Domestic Market Exports Total 1 Non-recurring effect of R$ 503 million, relative to Fiscal credits related to ICMS tax in the base calculation of PIS/COFINS (R$411 Mi), Amounts Receivable – Eletrobras (R$ 186 Mi), PDD (R$ 34 Mi Negative) e Other Non-recurring (R$60 Mi negative) 7 Classificação da informação: Pública

Steel (Cont’d) Annual Results Overview Net Revenue (R$ mm) One of the largest producers of flat rolled steel in Brazil ▪ 12,719 12,570 1,276 1,635 Two industrial plants in Ipatinga (MG) and Cubatão (SP) ▪ 9,980 9,174 Nominal production capacity of 9.5 mm tons of annual crude 1,346 ▪ 7,518 2,086 steel 909 11,443 10,935 The company owns Unigal Usiminas, a JV with Nippon Steel ▪ 8,635 engaged in steel hot-dip galvanizing, enhancing the technology 7,089 6,609 content within Usiminas ’ steel Largest center of steel research in Latin America ▪ 2015 2016 2017 2018 2019 Domestic Market Exports Steel Sales Evolution (Thousand tons) EBITDA (R$ mm) and EBITDA Margin (%) 4,915 19% 4,198 18% 4,105 4,026 1,325 3,652 548 424 585 477 9% 8% 2,421 3,650 3,681 3,590 3,441 3,176 1,806 3% 1,102 615 282 1 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 Domestic Market Exports Total 1 Non-recurring effect of R$ 441 million, relative to Fiscal credits related to ICMS tax in the base calculation of PIS/COFINS (R$411 Mi), Amounts Receivable – Eletrobras (R$ 186 Mi), PDD (R$ 34 Mi Negative) Other Non-recurring (R$122 Mi negative). 8 Classificação da informação: Pública

Steel (Cont’d) Flat steel consumption markets Galvanized Cold Rolled Hot Rolled Heavy Plates Civil Construction Civil Construction Civil Construction Civil Construction Machinery and Machinery and Equipment Equipment White Line White Line Pipelines Pipelines Auto Industry Capital Goods Auto Industry Auto Industry Solar Energy Wind Energy Solar Energy Oil and Gas Oil and Gas 9 Classificação da informação: Pública