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Apresentao Usiminas
2T11 - APIMEC
UsiminasResults
2Q13
Information Classification: Public
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Clique paraeditar o texto
mestre
Usiminas and its
Business Units
OperationalImprovementand Financial
Results
CompanyProfile and
Market Data
Agenda
2
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Aquisition of
J. Mendes ironore mines
Aquisition ofZamprogna
Foundation ofSolues
Usiminas due
to theconsolidation
of thecompanies RioNegro, Dufer,
Fasal andZamprogna,
Usial andUsicort
Single CNPJ:Cosipa is
incorporatedby Usiminas
Foundationof Usiminas
1962-OperationStart Up
PrivatizationUsiminas:1991Cosipa: 1993
Listing onLatibex
Creation ofMineraoUsiminas
Partnershipwith Codemeand Metform
Selling ofTerniumshares
Joint Miningand
Cooperation
Agreementswith MBL and
Ferrous
CommercialAgreementswith MMX to
explore Pau deVinho and to
use theSouthest Port
Negociationwith J. Mendes
concluded
1956
1991
2005
2008
2009
2010
2011 Entrance ofTernium/Tenaris
into UsiminasControl Group
Newshareholdersagreement
signed amongNipponGroup,
Ternium /Tenaris and
UsiminasPension Fund
until 2031
2012
Time Line and Shareholder Composition
3
Sale ofAutomotivaUsiminas *
2013
* Conditioned to CADEs approval (CADE is the Brazilian Antitrust Regulator)
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4
Mining
Steel
Steel processing
Capital Goods
Strategically Located
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Mining
Steel
Steel Processing Capital Goods
UPSTREAM
DOWNSTREAM
Ipatinga
Metform and Codemestake
Cubato
Unigal UsiminasMinerao Usiminas
Solues Usiminas Usiminas Mecnica
Complete Solution of Products and Services
5
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Million tons
32.9
34.7
35.9
42.7
69.3
70.6
76.7
88.6
107.2
708.8
Ukraine
Brazil
Turkey
Germany
South Korea
Russia
India
USA
Japan
China
Source: World Steel Association 6
Capacity
2,090
Production
1,548Consumption
1,409
Excess ofCapacity542
Excess ofProduction
139
World Crude Steel Production in 2012
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3.8 3.9 3.9 3.9
3.63.7
1Q12 2Q12 3Q12 4Q12 1Q13 2Q13
3.5 3.53.6
3.4 3.4
3.7
1Q12 2Q12 3Q12 4Q12 1Q13 2Q13
Flat Steel Brazilian Market
Imports (thousand tons)
7
519
413
512
335 319 323
1Q12 2Q12 3Q12 4Q12 1Q13 2Q13
Production
InventoriesintheDistributionNetwork
Apparent Consumption
Million tons
Source: IABR / INDA / Usiminas
1.0 1.0 1.00.9
1.01.1
2.8 2.8 2.7 2.6 2.83.1
-3.0
-2.0
-1.0
0.0
1.0
2.0
3.0
.6
.7
.8
.9
.0
.1
.2
1Q12 2Q12 3Q12 4Q12 1Q13 2Q13
Million tons Monthly basis
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Usiminas and its
Business Units
OperationalImprovementand Financial
Results
Agenda
8
CompanyProfile and
Market Data
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Installed Nominal Capacity : 9.5 million tons / year
Slabs Hot Coils Cold CoilsHeavy PlatesSlab Caster EG HDG
1,950,000tonsOptimizedRolling
Capacity
3,200,000tons1,900,000tons 1,020,000tons350,000tons
Cubato Plant -1,200,000tons -4,400,000tons1,000,000tons4,500,000tons
3,700,000tonsNominalCapacity
8,000,000tons2,000,000tons9,500,000tons 1,050,000tons360,000tons
-
Ipatinga Plant 1,050,000tons360,000tons2,500,000tons3,600,000tons1,000,000tons5,000,000tons
Galvanized
Flat steel production
Steel Business Unit
9
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Auto Industries
Cold Rolled andGalvanized (EG and HDG)
Ship-Building
Heavy Plates
Pipelines
Heavy Plates and Hot
Rolled
Pressure Vessels
Heavy Plates
AgriculturalMachines
Heavy Plates and HotRolled
Civil Construction
Heavy Plates, Hot and ColdRolled and Galvanized (EG
and HDG)
Autoparts
Hot Rolled
HouseholdAppliances
Cold Rolled andGalvanized (EG and
HDG)
Steel Business UnitEveryday steel application
10
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Steel Business UnitCrude steel production Thousand tons
Cubato
Ipatinga
11
1,783 1,858
1,549 1,5091,672
1,845 1,837 1,8041,662
1,749
1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13
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31%
18%
6%
9%
35%
Auto IndustryIndustryHousehold AppliancesCivil Construction
Distribution
Sales Breakdown bySegments 2Q13
Sales Thousand tons
12
Steel Business Unit
1,246 1,327 1,262 1,209 1,2261,428
266
561487 522 365
144
1Q11 2Q11 3Q11 4Q11 1Q12 2Q12
Domestic Market Exports
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117
189
83 74100
201
57
20
178
2894%
7%
3% 3%4%
7%
2%1%
7%
10%
1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13
Adjusted EBITDA Adjusted EBITDA Margin
Adjusted EBITDA/ Adjusted EBITDA MarginSteel Business - R$ Million
13
Steel business Adjusted EBITDA is back to 2 digits
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Steel Business Unit
Production capacity of 2.3
million tons per year
Main Applications
Higher product performance and efficiency
Exclusive coils dimensions in Brazil
Higher productivity for customers
High level of automation
Lower electric energy consumption
High-strength steels
14
Hot Strip Mill II - Cubato Galvanizing Line II - Ipatinga
Higher production capacity
Products portfolio increase
Deep drawing steel
Products Inovation
High-strength steels
Excellent flatness
Production capacity of 550
thousand tons per year
Concluded investments
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Located in Serra Azul/MG
4 mining sites, acquired from J. Mendes Group in February 2008
Reserves of 2.6 billion tons of iron ore
Life time until 2045
MRS: 20% of voting shares, being part of the Control Group
Retroarea in Itagua Port
MBL
Arcelor
Mittal
Ferrous
(Santanense)
Com
isa
Emicon
MMX
Ferrous
MUSA
Pau de Vinho
MUSA
Leste
Minerita
MUSA
Central
MUSA
Oeste
Itatiaiuu
Igarap So Joaquim
De Bicas
70.0%
30.0%
Mining - Minerao Usiminas
Minerao Usiminas15
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Production:
Thousand tons
Sales:
16
Mining - Minerao Usiminas
1,854
1,517
1,785
1,4961,649 1,621
1Q12 2Q12 3Q12 4Q12 1Q13 2Q13
1,730
1,497
1,142
1,747
1,346 1,366
1Q12 2Q12 3Q12 4Q12 1Q13 2Q13
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Iron Ore Production Capacity million tons by the end of the year
Friable Project: ongoingEstimated Capex of R$800 million
Compact Project:under detailing phase
Investment Plan
17
Mining - Minerao Usiminas
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Retroarea in Itagua Port
18
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10 industrial units in MG, SP, RS, ES, BAand PE
Processing capacity of 2 million tons/year
Net Revenue of R$998 million in the 1H13
Steel ProcessingSolues Usiminas and Automotiva Usiminas
19Solues Usiminas
Automotiva
Camaari
Porto Alegre
Campo Limpo Paulista
Guarulhos BonsucessoGuarulhos So Roque
Taubat
Recife
Serra
Betim
Santa Luzia
Solues Usiminas
Automotiva Usiminas
In the 2Q13, Usiminas entered into anAgreement with Aethra Sistemas
Automotivos S.A., for the amount of R$210million (enterprise value) to transfer 100%of its shares. The transaction conclusion isconditioned to the approval of CADE(Brazilian Antitrust Regulator) and is alignedwith the Companys strategy to focus on its
core business, in order to maximize itscompetitive positioning
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Located in Ipatinga/MG, it is one of the
largest capital goods companies in Brazil
Market Segments: Steel Structures,
Shipbuilding and Offshore, Oil and Gas,
Industrial Equipment, Industrial Assembly,
Foundry and Railcars Net Revenue of R$524 million in the 1H13
Usiminas Mecnica
Capital Goods
20
Braslia 3rd Bridge
Ship Panel
20
Platform
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Usiminas and its
Business Units
OperationalImprovementand Financial
Results
Agenda
21
CompanyProfile and
Market Data
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Average 2011: 61.6
+10.1%
Increasing Coke ProductionCoke Plant #3 (Ipatinga) Thousand tons
Average 2012/2013:67.8
22
55.3 54.6
60.3 58.861.9
64.167.3 67.5
63.7 63.559.0
63.166.2
62.265.3 65.8
68.5 67.0 68.8 68.0 66.569.2
66.1 68.169.0
61.5
69.867.2 69.3 67.1
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557
583
First Quarter 2012 Last two months 2012
8 CCs6 CCs
+4.7%
1Q12 2Q13
Improving Continuous Casting Productivity
Slab Production
Increasing slabs production Thousand tons
23
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Adjusted EBITDA - ConsolidatedR$ million
337365
343
218190
232
150
226
313
441
11%12% 12%
8%7% 7%
4%
7%
10%
14%
-10%
-5%
0%
5%
10%
15%
100
150
200
250
300
350
400
450
500
1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13
Adjusted EBITDA Adjusted EBITDA Margin
+41%
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R$2.6 billion Reduction
Reduction of 596 thousand tons in inventories
Working CapitalConsolidated / Steel Business
4.8
2.6 2.7 2.2
Dec/11 Dec/12 Mar/13 Jun/13
1,512
1,031903 916
4Q11 4Q12 1Q13 2Q13
102 54 51 52 Inventory days
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3,070
1,849
985
41
365
555
81
276
112
3,192
2,490
1,652
2010 2011 2012
Steel Mining Others Total
26
- 22%
- 34%
Capex Performance ConsolidatedStrict CAPEX control - R$ million
45
142112
104
17
15
175
261
1Q13 2Q13
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Debt Profile and Cash Position - ConsolidatedR$ million
27
2,804
194948 902 733 1,031
301671
25
1,932
272
411 386 765 2651,108 3
2
Cash 2013 2014 2015 2016 2017 2018 2019 2020 on
Local Currency Foreign Currency
4,736
466
1,3591,498
1,296 1,409
27
674
1,288
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3,410
3,611
3,280
2012 1Q13 2Q13
Net debt
Net Debt - ConsolidatedR$ Million
28
9% net debt reduction, even with a 10% Real devaluation in the 2Q13
-9%
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Quarterly Results Accounted
29
Per Business Unit
Note: All transactions among the business units are made at market price.
R$ million
2Q13 1Q13 2Q13 1Q13 2Q13 1Q13 2Q13 1Q13 2Q13 1Q13 2Q13 1Q13
Net Revenue 223 248 2,898 2,666 639 546 265 259 (780) (524) 3,244 3,195
Domestic Market 191 207 2,683 2,223 634 538 265 259 (780) (524) 2,992 2,703
Exports 33 41 215 442 5 8 0 0 0 0 252 491
COGS (90) (86) (2,707) (2,590) (570) (495) (249) (249) 749 433 (2,868) (2,988)
Gross Profit 133 162 190 75 68 51 16 10 (31) (91) 376 207
Operating Income
(Expenses)(24) (29) (141) (134) (49) (48) (22) (14) 1 1 (234) (224)
EBIT 109 133 50 (58) 19 3 (6) (4) (30) (90) 142 (16)
Adjusted EBITDA 120 144 289 178 33 16 1 2 (1) (27) 441 313
Adj.EBITDA Margin 54% 58% 10% 7% 5% 3% 0% 1% - - 14% 10%
* Unigal 70%
Income Statement per Business Units - Non Audited
ConsolidatedMining Steel*Steel
ProcessingCapital Goods Adjustment
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Results Accounted in the Semester
30
Per Business Unit
Note: All transactions among the business units are made at market price.
R$ million
1H13 1H12 1H13 1H12 1H13 1H12 1H13 1H12 1H13 1H12 1H13 1H12
Net Revenue 471 452 5,563 5,670 1,185 1,029 524 456 (1,305) (1,494) 6,439 6,114
Domestic Market 397 361 4,906 4,582 1,172 1,012 524 454 (1,305) (1,462) 5,696 4,946
Export Market 74 92 657 1,088 13 17 0 2 0 (32) 743 1,168
COGS (176) (173) (5,297) (5,631) (1,066) (943) (499) (483) 1,182 1,387 (5,856) (5,843)
Gross Profit 295 279 266 39 119 87 26 (27) (122) (107) 583 271
Operating Income
(Expenses)(53) (85) (274) (143) (97) (101) (36) (40) 2 4 (458) (365)
EBIT 242 195 (8) (104) 22 (15) (10) (66) (120) (104) 126 (94)
EBITDA 263 211 467 301 49 11 3 (54) (27) (46) 755 422
EBITDA Margin 56% 47% 8% 5% 4% 1% 1% -12% - - 12% 7%
* Unigal 70%
Income Statement per Business Units - Non Audited
Mining Steel*Steel
ProcessingCapital Goods ConsolidatedAdjustment
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Results achieved in the 2Q13
31
Recovery of Consolidated EBITDA margin
Recovery of margins in the Steel Business Unit
Higher steel sales volume in the domestic market
Company financial improvement, with net debt reduction
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Final Message
Costs CAPEX Working Capital
Productivity Increase Industrial Engineering Benchmarking
Operational Efficiency Domestic Sales Increase Leverage ReductionCompanys Profitability
Recovery
Fase I
Control
Fase II
Improvement
Continuous
Process
32
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www.usiminas.com/ri
ADR
Level I
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 Managements
expectations in relation to future performance. These expectations are highly
dependent on market behavior, on Brazils economic situation, on the
industry and on international markets, and are therefore subject to change.
Cristina Morgan C. DrumondHead of IR
Phone: 55-31-3499.8772
Fax: 55-31-3499.9357
Luciana Valadares dos [email protected]
Phone: 55-31-3499.8619
Leonardo Karam [email protected]
Phone: 55-31-3499.8550
Diogo Dias [email protected]
Phone: 55-31-3499.8710
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