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3rd Quarter

2005

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1950 1960 1970 1980 1990 2000

Source: International Iron and Steel Institute - IISI - 2005

Years World Prod.

1950 200

1955 270

1960 350

1965 450

1970 595

1975 6441980 716

1985 719

1990 770

1995 752

1996 750

1997 799

1998 777

1999 788

2000 848

2001 8502002 902

2003 965

2004 1,033

Years World

1970-75 1.6

1975-80 2.2

1980-85 0.11985-90 1.4

1990-95 -0. 5

1995-00 2.4

2000-02 3.2

2002-03 6.6

2003-04 7.0

Average Growth

Rates

% per annum

100

400

200

300

500

600

700

800

900

1,000

1,100

World Steel Production

(million t.)

Substantial growth in the past few years ...

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112.7

98.5

64.3

47.5 46.4 38.732.9 32.6 28.4

269.3


2004(million t.)

China Japan USA Russia Korea Germany Ukraine Brazil India Italy

Steel Production

... mainly coming from China

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-24.7

-13.2

-9.2

-6.1

-6.0

-5.0

4.2

7.2

8.4

11.0

28.2

28.2

30.5

-30 -25 -20 -15 -10 -5 0 5 10 15 20 25 30 35

Turkey

Germany

Belgium / Luxembourg

BrazilRussia

Ukraine

Japan


Top net ExportersTop net importers

World Steel Trade

million t.million t.

Trade ~ 200 million tons per year

Trend may continue through 2005

Vietnam

Italy

Hong Kong

Thailand

China

USA

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Gerdau

22.1%CSN

16.8%

Others

6.4%Acesita

2.5%

USIMINAS

SYSTEM27.2%

Arcelor

25.0%

17,6

17,9

19,0

20,8

21,4

30,2

31,6

32,4

42,8

46,9

8,923 - USIMINAS

10 - Thyssen Krupp

9 - Nucor

8 - Corus

7 - US Steel

6 - Baosteel

5 - Posco

4 - JFE

3 - Nippon Steel

2 - Mittal Steel

1 - Arcelor

Source: IISI - 2005

Source: IBS - 2005

million t.

Usiminas System is the 23rd largest producer in the worldand 1st flat steel producer in Latin America

Top Brazilian SteelProducers - 2004

Usiminas

Leading Producer

Major Steel Plants 2004(crude steel production)

million t.

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Steel in Brazil

High quality iron ore

Well located plants and modern technology

Competitive Costs

Product quality and environmental management

Qualified labor and management

Its competitive conditions make the country a global leader

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232

262271

285 286 289302 303

309 316321

329337

BrazilCIS

MexicoIndia

Canada

USAMini

China

Australia

KoreaIntegJapan

WestEUR

EastEUR

USAInteg

Source: WSD - August 2005

Cost Competitiveness

Production Cost (US$/t)Slabs (Jun 2005)

Brazil has the lowest production cost in the world

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Operating Margin % - 2004

Cost Competitiveness Usiminas has one of the highest operating margins in the world

Data: Integer Research, Company Annual ReportsSeptember, 2005

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RAILROAD

HIGHWAY

CVRD

SO PAULO

BAHIA

MINAS GERAIS

ATLANTIC OCEAN

Itabira

Vitria

Port ofPraia Mole

Santos

Ipatinga

Usiminas

Belo HorizonteUsiminas

Headquarters

Sepetiba Port

Rio de JaneiroSo Paulo

Cosipa

Cubato

Usiminas

Location: Ipatinga, State of

Minas Gerais

Cosipa

Cubato, State of

So Paulo

Usiminas is strategically located

Close to main markets

2 ports

Railroad (MRS)8

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Products

Complete product lines: from slabs to coated products

Major consumers

Heavy plate 1,000,000 1,000,000

Hot coil 3,550,000 2,100,000

Cold coil 2,500,000 1,200,000

--

Capacity (tonnage/year)

360,000

400,000

Slab 5,000,000 4,500,000

Electrogalvanized coil

Hot dip galvanized coil

Pipelines, pressure vessels,

shipbuilding,general structures.Agricultural machinery, pipe and tube,chassis, gas cylinders, containers,generalstructures.

Auto industry, household appliances,packaging.

Auto industry, household appliances.

Auto industry, household appliances,civil construction.

Rolling mills.

Capacity: 4.5 million t.Capacity: 5.0 million t.

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Sales(thousand t.)

Domestic market is a priority

Usiminas + Cosipa

As of September, 2005

72%

82% 70% 69% 72%

28%

18%

30% 31% 28%

2001 2002 2003 2004 9M05

Domestic Market Foreign Market

6,602

7,722 7,7108,062

5,367

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Civil

Construction

7%

Auto

Industry

13%

Autoparts

15%

Distributors

23%

Others

16%

Small Diam.

Tubes

7%

Pipelines

9%

Packaging

2%

HouseholdAppliances

2%

Shipbuilding

1%Elect.

Equipment

5%

Domestic Sales - 9M05

Usiminas + CosipaVolume: 3.88 million t.

Fasal, Rio Negro and Dufer7%

{

Combination of market leadership and diversifiedcustomer base reduces market risk

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15%

6%

31%

25%

51%

28%

77%

12%

52%

51%

32%

30%

7%

14%

75%

14%

6%

17%

42%

7%

7%

21%

55%

87%

55%

35%

66%

46%

47%

42%

41%

6%

0% 20% 40% 60% 80% 100%

Distributors

Packaging

Civil Construction

Shipbuilding

Elect. Equipment

Household Appliances

Pipelines

Small Diam. Tubes

Autoparts

Auto Industry

TOTAL

Usiminas Cosipa Others

Usiminas + Cosipa = 53%

Domestic Market Share (%)9M05

Combination of market leadership and diversifiedcustomer base reduces market risk

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Domestic Market Outlook

2,4002,210

1,8281,7931,8171,682

2000 2001 2002 2003 2004 2005E

9,20010,109

8,9088,5768,6508,368

2000 2001 2002 2003 2004 2005E

Source: Anfavea / UsiminasSource: IBS / Usiminas

Flat Steel Demand (1,000 t.) Vehicle Production (1,000 vehicles)

Sector 2003 2004 04/03 (%)

Auto 817 1,142 39.8

Autoparts 928 1,188 28.0

Shipbuilding 32 84 162.5

Agricultural/Road Mach. 213 247 16.0

Industrial Machinery 173 178 2.9

Household Appliances 287 343 19.5

Civil Construction 800 868 8.5

Small Diam. Tubes 757 743 -1.8

Distributors 2,794 3,097 10.8

Pipelines 310 344 11.0

Others 1,797 1,875 4.3

TOTAL 8,908 10,109 13.5 Source: Usiminas

-9.0%

8.6%

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Usiminas + Cosipa

Volume: 1.5 million t. - 9M 2005

International Market

United States

22%China

22%

Spain

2%

Others

8%

Germany

10%

Colombia

3%

Mexico

9%

South Korea

7%

Portugal

1%

Canada

1%

Taiwan

6%

Chile

3%

Argentina

6%

Diversified geographic sales

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Investments & Technology(US$ million)

Commitment to the best technology

More than US$ 3 billion invested in the last decade

Partnership with Nippon Steel assures access to state-of-the-art technology in steelproduction, including high value-added products

6th Technology Transfer Agreement with Nippon Steel, valid until 2009

407 registered patents, of which 23 are international

150 researchers

In the last 3 years, for each US$ 1 spentin technology Usiminas sells US$ 3

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525578

469

13694 83 65

130

255

212162

156

452

79

70

135

8032

6052

31

36

1997 1998 1999 2000 2001 2002 2003 2004 9M05 2005E 2006E

New Investments

737 740

500

292

546

111 119 117

200

390

Usiminas

Cosipa

140

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Next 2 years: Maintenance - approximately US$ 120 million per year

Projects approved by the Board Increase of self-generated energy from 16% to 33%

Power Plant 60 MW - Usiminas

BF Top blowing turbine 12 MW - Cosipa

Self-sufficiency in coke production by 2007550.000 tons/year Coke plant - Usiminas

Productivity

Revamping of Continuos Casting Machine - Cosipa

Projects under study Production Capacity Increase (on-going studies)

1.0 ~ 2.0 million tons

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Creation of Ternium

Consolidate control of Hylsamex, Sidor and Siderar

Ternium will have ~ 11.5 million t. capacity

Present Situation Proposed SituationUsiminasTechint G.

SiderarSidor Hylsamex

Ternium

Amaznia

Usiminas

SiderarSidor

16.6%

5.3%

59.7%

Control

59.7%

Control

Control

16.3%83.7%Initial

C. Amaznia

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Ebitda Evolution

Consolidated (US$ million)

AVG.

US$

Investment return and market conditions have allowedconsistent cash generation ...

539

655646652

538

422

318263

225255258

274

200170150

49%46%

39%

31%33%

36%

42%45%

37%

31%

27%

48% 50% 47%

41%

1Q02

2.3220

2Q02

2.5840

3Q02

3.3697

4Q02

3.7141

1Q03

3.4929

2Q03

2.9810

3Q03

2.9326

4Q03

2.8999

1Q04

2.8985

2Q04

3.0429

3Q04

2.9782

4Q04

2.7862

1Q05

2.6672

2Q05

2.4819

3Q05

2.3454

Ebitda Ebitda Margin

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Ebitda Evolution


AVG.

US$

Investment return and market conditions have allowedconsistent cash generation ...

1,8401,930

1,001

794671

742

530

46%46%

35%35%32%

35%31%

1999

1.8133

2000

1.8300

2001

2.3539

2002

2.9236

2003

3.0746

2004

2.9262

9M05

2.4981

Ebitda Ebitda Mar in

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1,8171,8121,8472,033

2,2042,3162,5982,6262,705

2,7642,5932,699

2,8113,111

3,387 0.7

5.2 5.04.2

3.4 2.9 2.8 2.7 2.6 2.4 1.9 1.4 1.1 0.8 0.7

500

,500

,500

,500

,500

1Q02

2.3236

2Q02

2.8444

3Q02

3.8949

4Q02

3.5333

1Q03

3.3531

2Q03

2.8720

3Q03

2.9234

4Q03

2.8892

1Q04

2.9086

2Q04

3.1075

3Q04

2.8586

4Q04

2.6544

1Q05

2.6662

2Q05

2.3504

3Q05

22,222

Total Debt Total Debt / Ebitda

R$ /US$

Total Debt Evolution


... and have made it possible to considerably reduce debt

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1235

834779

808

82

524

388

239309

Cas h 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

on

SwapCDI44%

US$

56%

Debt Maturity Consolidated(US$ million)

Long74%

US$ 1,344 mi

Short

26%US$ 473 mi

Foreign69%

Local31%

TERM CURRENCY

Note: Principal, 2005- October to December maturities

Debt has an adequate maturity profile

Stand by Facility- Export Pre-Payment US$ 250 million

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Control Group: 53%

Usiminas

Voting Capital

Shareholder Structure

Excellence of the mainshareholders

Board of Directors from solid Brazilianand foreign groups

Long-term relationships with steelbusiness and Usiminas

Committed to add excellence andexperience to business management

CVRD23.0%

Others(Distributors)

2.3%

Others8.8%

Sudameris(ABN Amro)

1,9%

Bradesco2.6%

Caixa dosEmpregados da

Usiminas

13.4%

Nippon Usiminas18.4%

Camargo Corra7.3%

Votorantim7.3%

Previ14.9%

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24

Potential value creation for shareholders

5750

72

107

78

46

0

20

40

60

80

100

120

Annual shareholder return(2003 - Jul 2005)

BelgoGerdau

CST

Usiminas

CSN

% p.a.

Source: Economtica, Banco Ita (Oct./05)

Creation of Value for Usiminas and thesteel industry has been considerable

over the last few years ...... and Usiminas still has strong

potential for additional value creation

Acesita

Ibovespa = 28%

EV /

EbitdaP / E

2005e 2005e

Arcelor 3.6 5.0

Posco 2.5 5.2

China Steel 3.9 5.8

International Avg. 3.3 5.4

Usiminas 2.2 3.7

CSN 3.2 7.2Gerdau 3.2 5.5

Arcelor Brasil 3.8 7.5

Brazil Avg. 3.1 6.0

Multiples

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Positive stock market reaction

(*) Theoretical Ibovespa portfolio Sept/Dec 2005

2001

2002

2003

2004# of trades 232

Shares (000) 567

Vol. (R$ 000) 3,924

Ibov. Portf. 1.25%

Position 26th

# of trades 265

Shares (000) 628

Vol. (R$ 000) 4,067

Ibov. Portf. 1.49%

Position 21st

# of trades 457

Shares (000) 800

Vol. (R$ 000) 12,745

Ibov. Portf. 2.67%

Position 11th

# of trades 1,060

Shares (000) 1,040

Vol. (R$ 000) 40,005

Ibov. Portf. 4.05%

Position 5th

Steel Sector Bovespa 2004

Ibovespa Portfolio

5.72%

4th

2005 (*)

New Ibov. Portfolio

... & ADR I e Latibex

Usiminas PNA

31%

Sid Nacional ON29%

Gerdau PN

21%

Sid Tubarao PN9%

Others10%

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Sept 30/05 Dec 31/04 Dec 31/03 Dec 31/02

Crude Steel Production (thsd t) 6,517 8,951 8,621 8,447

Sales (thsd t) 5,367 8,062 7,710 7,722

Net sales (US$ million) 4,035 4,197 2,845 2,250

EBITDA (US$ million) 1,840 1,930 1,002 794

Net Profit (US$ million) 1,167 1,032 426 (152)

Gross Debt (US$ million) 1,817 2,033 2,626 2,699

Gross Debt / EBITDA 0.7 1.1 2.5 3.9

EBITDA / Interest Expenses 16.9 11.3 4.3 3.7

Other Highlights

Consolidated Figures - USIMINAS

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www.usiminas.com.br

Investor Relations:

Bruno Seno Fusaro Luciana Valadares dos Santos Matheus Perdigo [email protected] [email protected] [email protected].: + 55-31-3499-8772 Tel.: + 55-31-3499-8619 Tel.: + 55-31-3499-8056Fax: + 55-31-3499-9357

Gilson Rodrigues Bentes - COSIPA (So Paulo Office)[email protected].: + 55 11 5070-8980

Declarations relative to business perspectives of the Company, operating

and financial results and projections, and references to the growth ofthe Company, constitute mere forecasts and were based onManagements expectations in relation to future performance. Theseexpectations are highly dependent on market behavior, of Brazilseconomic situation, on the industry and on international markets, andare therefore subject to change.

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