Public Disclosure - Belo Horizonte August 6th, 2015. Usinas Siderrgicas de Minas Gerais S.A.

- Usiminas (BM&FBOVESPA: USIM3,

USIM5 e USIM6; OTC: USDMY and USNZY; LATIBEX: XUSIO and XUSI) today releases its second quarter (2Q15) results. Operational
and financial information of the Company, except where otherwise stated, are presented based on consolidated figures, in Brazilian
Real, according to International Financial Reporting Standards (IFRS). All comparisons made in this release take into consideration
the first quarter of 2015 (1Q15), except where stated otherwise.

Release of the 2Q15 Results

The main operational and financial indicators were:

Steel sales volume of 1.3 million tons;

Iron ore sales volume of 1.2 million tons;
Consolidated adjusted EBITDA of R$227.2 million and Adjusted EBITDA margin of 8.5%;
Working capital on 06/30/15 of R$2.7 billion;
Investments of R$226.1 million;
Cash position of R$2.9 billion.
Main Highlights

R$ million - Consolidated

2Q15

Steel Sales Volume (000 t)

Iron Ore Sales Volume (000 t)
Net Revenue
COGS
Gross Profit (Loss)
Net Income (Loss)
EBITDA (Instruction CVM 527)
EBITDA Margin (Instruction CVM 527)

1Q15

1,275
1,206
2,677
(2,571)
105
(781)
(755)
-28.2%

1,256
1,139
2,680
(2,437)
244
(235)
354
13.2%

227
8.5%
226
2,889

380
14.2%
232
2,621

Adjusted EBITDA
Adjusted EBITDA Margin
Investments (CAPEX)
Cash Position

Market Data on 06/30/15

BM&FBOVESPA: USIM5 R$ 4.12/share

USIM3 R$13.26/ share
USA/OTC:

USNZY US$1.36/ADR

LATIBEX:

XUSI 1.23/ share

XUSIO 3.87/ share

2Q15 Results

Chg.
2Q15/1Q15
1,456
1%
1,457
6%
3,106
0%
(2,772)
6%
334
-57%
129
232%
538
17.3%
-4100 b.p

2Q14

549
17.7%
261
2,894

-40%
-600 b.p
-3%
10%

1H15
2,531
2,345
5,357
(5,008)
349
(1,016)
(401)
-7.5%
607
11.3%
458
2,889

Chg.
1H15/1H14
2,893
-13%
3,224
-27%
6,249
-14%
(5,395)
-7%
854
-59%
350
1,186
19.0%
-2600 b.p

1H14

1,205
19.3%
499
2,894

-50%
-800 b.p
-8%
0%

Index
Consolidated Results
Performance of the Business Units:
- Mining
- Steel
- Steel Processing
- Capital Goods
Highlights
Capital Markets
Balance Sheet, Income and Cashflow Statements

Economic Outlook

In the global scenario, the United States had the best performance among the developed
countries; signs of growth acceleration in the second quarter led the Federal Reserve to signal
its intention of initiating a process of normalizing interest rates. Simultaneously, the European
economy has begun to show a positive growth trend, as a result of the European Central
Banks program of injecting funds in the economy. However, the recent instability in Greece
has brought volatility to the Eurozone markets, associated with the possible exit of Greece
from the Block. In China, has been weakening, in spite of stimulus measures by the Chinese
Central Bank.
In the Latin America, the main economies continued to present mixed performance in the
2Q15. Declines in commodities prices negatively impacted the performance of several
countries in the region, and depreciated currencies, which put pressure on inflation, reduced
the margin for stimulus, limiting the recovery. In Mexico, GDP growth in the 1Q15 was below
than market expectations, worsening growth prospects for 2015. In Colombia, consumption
continued to support growth and in Chile, the recovery in the 1Q15 has turned to be weaker in
the following months. In Argentina, GDP in 2015 is expected to decline once again.
In Brazil, according to the Industrial Research of Brazilian Geography and Statistics Institute
IBGE, extremely weak economic activity signals indicates the worsening of recession in the
2Q15, after declining 0.2% in the 1Q15. The scenario of high interest rates, inflation,
deterioration of labor market and development of the Petrobrs investigation are some of the
factors that contributed to the poor economic outlook, with consequent decline in growth
expectations for 2015, that according to the Focus Report from Brazilian Central Bank was
+0.2% at the beginning of the year, moving to -1.5% throughout the 2Q15.
The Brazilian industry faces an even more challenging scenario. According to the Industrial
Research of Brazilian Geography and Statistics Institute IBGE, the industrial production in
May recorded the 15th consecutive decline compared with the same month of the previous year
and reached a fall of 6.9% from January to May of this year. With high inventory levels and
consumer and business economic confidence indicators at historic low levels, there are no
signs of imminent economic recovery in the period. Industry segments intensive in steel
consumption also had significant decreases in the period. In the first five months of the year,
capital goods production fell 20.6% and durable goods, 16.4%.

2Q15 Results

Economic and Financial Performance

Comments on Consolidated Results

Net Revenue
Net revenue in the 2Q15 was R$2.7 billion, stable when compared with the 1Q15. Domestic
market represented 76% of the total consolidated net revenue.

Net Revenue Breakdown

Domestic Market
Exports
Total

2Q15
76%
24%
100%

1Q15
88%
12%
100%

2Q14
88%
12%
100%

1H15
82%
18%
100%

1H14
87%
13%
100%

Cost of Goods Sold - COGS

In the 2Q15, COGS totaled R$2.6 billion, against R$2.4 billion in the 1Q15, an increase of
5.5%. Gross margin was 3.9%, against 9.1% in the 1Q15, a decrease of 520 basis points, as
per the chart below:

Gross Margin
2Q15

1Q15

2Q14

1H15

1H14

3.9%

9.1%

10.8%

6.5%

13.7%

Operating Expense and Income

In the 2Q15, sales expenses were R$60.5 million, against R$51.2 million in the 1Q15, an
increase of 18.3%, mainly due to the higher distribution cost in function of the significant
growth in the steel export volume. General and administrative expenses in the 2Q15 totaled
R$107.8 million, against R$122.5 million in the 1Q15, a decline of 12.0%, mainly due to
reduction in the own labor force expenses by 14.3% and in the general expenses by 29.6%. In
the 2Q15, other operating expenses totalized R$1.0 billion, against R$34.5 million in the 1Q15,
in function of the impairment of assets accounted for in the Mining Unit (See the complete
information in the Mining Business Unit section). Additionally, in the 2Q15, there were
expenses with temporarily equipments shutdown in the amount of R$31.0 million and higher
provision related to domestic freight contracts with take or pay conditions, which was R$31.0
million in the 2Q15, against R$8.4 million in the 1Q15. On the other hand, there was higher
sale revenue of surplus electric energy, which totaled R$40.9 million in the 2Q15, against
R$27.9 million in the 1Q15, and lower provision for legal contingencies.
Thus, net operating expenses totaled R$1.2 billion in the 2Q15, against R$208.1 million in the
1Q15. In this manner, the Companys operating margin is presented below:

EBIT Margin

2Q15 Results

2Q15

1Q15

2Q14

1H15

1H14

-40.9%

1.3%

6.5%

-19.8%

8.6%

Adjusted EBITDA
Adjusted EBITDA is calculated from net income (loss), reversing profit (loss) from discontinued
operations, income tax and social contribution, financial result, depreciation, amortization and
depletion, and equity in the results of Associate, Joint Subsidiary and Subsidiary Companies.
The adjusted EBITDA includes the proportional participation of 70% of Unigal and others joint
subsidiary companies.
EBITDA Breakdown
Consolidated (R$ thousand)

2Q15

1Q15

1H15

1H14

Net Income (Loss)

(780,798)

(235,380)

(1,016,178)

350,239

Income Tax / Social Contribution

(319,383)

(78,071)

(397,454)

214,443

Financial Result
Depreciation, Amortization
EBITDA -Instruction CVM 527

40,629

360,900

401,529

76,618

304,342

306,430

610,772

544,615

(755,210)

353,879

(401,331)

1,185,915

Equity in the Results of Associate and Subsidiary

Companies

(33,991)

(11,971)

(45,962)

(104,532)

Joint Subsidiary Companies proportional EBITDA

31,361

37,626

68,987

123,376

Impairment of Assets

985,046

Adjusted EBITDA

227,206

379,534

985,046
606,740

1,204,759

Due to the worsening in the expectations for the future iron ore prices, the Company
registered an impairment of R$985.0 million in the value of its mining rights. The value in use
of the Mining Unit was updated to reflect the managements best estimates on future iron ore
prices, based on market projections. This impairment of assets impacted the EBITDA
Instruction CVM 527, which totaled a negative R$755.2 million in the 2Q15. (See the complete
information in the Mining Business Unit section).
Adjusted EBITDA in the 2Q15 reached R$227.2 million, 40.1% lower than that in the 1Q15,
which was R$379.5 million, mainly due to the lower performance in the Business Units,
excepting the Capital Goods, which has been presenting better performance. In the 2Q15,
Adjusted EBITDA Margin was 8.5%, against 14.2% in the 1Q15. Adjusted EBITDA margins are
shown below:

Adjusted EBITDA Margin

2Q15 Results

2Q15

1Q15

2Q14

1H15

1H14

8.5%

14.2%

17.7%

11.3%

19.3%

Financial Result
In the 2Q15, net financial expenses were R$40.6 million, against R$360.9 million in the 1Q15,
a decrease of 88.7%, mainly due to the appreciation of the Real against the Dollar of 3.3% in
the quarter, which summed exchange gains of R$85.8 million, comparing with the devaluation
of the Real against the Dollar of 20.8% in the 1Q15, which represented exchange losses of
R$390.8 million in the 1Q15. This was partially compensated by lower results of the swap
transactions and higher interest expenses and higher financial expenses.

Financial Result - Consolidated

R$ thousand

2Q15

1Q15

2Q14

Change
2Q15/1Q15

1H15

1H14

Change
1H15/1H14

Net Currency Exchange Variation

85,830

(390,815)

41,856

(304,985)

106,686

Swap Transactions Market Cap.

(35,265)

93,983

(23,602)

58,718

(24,561)

Income and Inflationary Variation over Financial Applications

46,374

42,646

47,193

9%

89,020

101,241

-12%

Other Financial Income

47,350

47,569

43,537

0%

94,919

75,095

26%

(140,191)

(116,472)

(115,936)

20%

(256,663)

(231,805)

11%

(44,727)

(37,811)

(51,609)

18%

(82,538)

(103,274)

-20%

FINANCIAL RESULT

(40,629)

(360,900)

(58,561)

(401,529)

(76,618)

424%

+ Appreciation / - Depreciation of Exchange Rate (R$/US$)

+3,3%

Interest and Inflationary Variation over Financing and Taxes Payable in

Installments
Other Financial Expenses

-20,8%

+2,7%

-89%
-

-16,8%

+6,0%

Equity in the Results of Associate and Subsidiary Companies

In the 2Q15, equity in the results of associate and subsidiary companies was R$34.0 million,
against R$12.0 million in the 1Q15, an increase of R$22.0 million, mainly due to higher
contribution of Unigal and MRS Logstica in the period.

Net Profit (Loss)

In the 2Q15, the company registered a net loss of R$780.8 million, against R$235.4 million in
the 1Q15, in function of the impairment accounted for in the Mining Unit.

Working Capital
In the 2Q15, the Company presented working capital of R$2.7 billion, stable in relation to that of
the 1Q15. There was a reduction in the inventories in Reais of raw materials and products,
highlighting the decline of 13.8% in the volume in tons of steel, partially offset by the reduction
in the accounts payable to suppliers.

Investments (CAPEX)
In the 2Q15, CAPEX totaled R$226.1 million, 2.7% lower when compared with the 1Q15, which
was R$232.3 million. The main investments were with sustaining CAPEX and technological
updating of the plants. Out of total investments, approximately 85% was applied to the Steel
Unit, 8% to the Mining Unit, 6% to the Steel Transformation Unit and 1% to the Capital Goods
Unit.

2Q15 Results

Indebtedness
Consolidated gross debt was R$7.6 billion on 06/30/15, against R$7.1 billion on 03/31/15, an
increase of 6.4%. In the quarter, a new export prepayment loan was signed in the amount of
R$474.5 million in order to increase the debt maturity profile. Debt composition by maturity
date was 23% in the short term and 77% in the long term. The net debt/EBITDA ratio on
06/30/15 was 3.7 times. Usiminas duly obtained the waivers for its covenants breach from its
lenders on 06/30/15. The chart below demonstrates consolidated debt by index:

Total Indebtedness by Index - Consolidated

30-Jun-15

R$ thousand

Short Term

Local Currency

Long Term

31-Mar-15

TOTAL

TOTAL

1,108,397

3,168,714

4,277,111

TJLP

168,983

338,714

507,697

563,763

CDI

906,980

2,724,146

3,631,126

3,643,021

Others
Foreign Currency (*)
Gross Debt

56%

Change
Jun15/Mar15

31-Dec-14

0%

4,265,226

4,286,353

TOTAL

-10%
0%

Change
Jun15/Dec14
0%

618,078

-18%

3,573,921

2%

32,434

105,854

138,288

79,569

74%

73,227

89%

615,596

2,712,015

3,327,611

44%

2,862,430

16%

2,436,521

37%

1,723,993

5,880,729

7,604,722

100%

7,148,783

6%

6,701,747

13%

Cash and Cash Equivalents

2,889,080

2,621,043

10%

2,851,903

1%

Net Debt

4,715,642

4,527,740

4%

3,849,844

22%

(*) 99% of total foreign currency is US dollars denominated

The graph below shows the consolidated debt profile and cash position in R$ million on
06/30/15:

2,889

2,294

Duration: R$: 38 months

US$: 31 months

1,313
1,788

1,584
603

1,761

585

998
66

1,577

569

310

999

1,186
932
534

2015

2016

2017
Local Currency

2Q15 Results

3
316

259

Cash

319

2018

2019

2020

12

40

12

40

2021

2022 on

Foreign Currency

Performance of the Business Units

Intercompany transactions are an arms-length basis (market prices and conditions) and sales
between Business Units are carried out as sales between independent parties.
Usiminas - Business Units
Mining
Minerao Usiminas

Steel

Steel Processing

Ipatinga Mill
Cubato Mill
Unigal

Capital Goods

Solues Usiminas

Usiminas Mecnica

Income Statement per Business Units - Non Audited - Quarterly

R$ million

Mining
2Q15

Net Revenue
Domestic Market

1Q15

2Q15

1Q15

2Q15

1Q15

230

211

(538)

(744)

2,677

2,680

109

118

1,764

2,230

475

536

230

211

(538)

(744)

2,040

2,350

636

327

637

331

(111)

(37)

(15)

(985)

Adj.EBITDA Margin

1Q15

540

Operating Income (Expenses)

Adjusted EBITDA

2Q15

476

(12)

EBITDA Margin (CVM 527)

1Q15

2,556

Gross Profit

EBITDA (CVM 527)

2Q15

2,401

(122)

EBIT

1Q15

Consolidated

118

Impairment of Assets

2Q15

Elimination and
Adjustment

Capital Goods

109

Exports
COGS

Steel
Processing

Steel*

(2,317)

(2,316)

84
(133)

(464)

(527)

(194)

(185)

241

12

13

36

26

(152)

(28)

(24)

(16)

(18)

525

702

(14)

(42)

(2,571)

(2,437)

105

244
(208)

(214)

(985)

(1,035)

(9)

(50)

88

(16)

(11)

20

(13)

(41)

(1,094)

35

(981)

50

206

339

(9)

(4)

26

14

(46)

(755)

354

-898%

42%

(6)

43

-5%

36%

9%

13%

206
9%

-2%

-1%

11%

337

(9)

(4)

13%

-2%

-1%

7%

26

14

11%

7%

-28%

11

(11)

13%

227

380

8%

14%

*Consolidates 70% of Unigal

Income Statement per Business Units - Non Audited - Semi-Annually

R$ million

Mining
1H15

Net Revenue
Domestic Market
Export Market
COGS
Gross Profit
Operating Income (Expenses)
Impairment of Assets
EBIT
EBITDA (CVM 527)
EBITDA Margin (CVM 527)
Adjusted EBITDA
Adj.EBITDA Margin

Steel
Processing

Steel*

1H14

1H15

1H14

1H15

Capital Goods

1H14

1H15

1H14

Elimination and
Adjustment
1H15

Consolidated

1H14

1H15

1H14

227

548

4,957

5,795

1,016

1,158

440

390

(1,283)

(1,643)

5,357

6,249

227

413

3,994

5,141

1,011

1,152

440

382

(1,283)

(1,643)

4,390

5,445

135

963

654

968

803

(233)
(6)

(284)
264

(4,633)

(5,178)

(990)

(1,099)

(379)

(347)

324

617

25

59

61

43

(286)

(157)

(52)

(63)

(34)

(22)

(52)

(77)

(985)

(1,043)

187

38

460

(931)

262

545

-410%

48%

11%

1,227
(56)

1,514
(129)

(5,008)

(5,395)

349

854
(317)

(422)

(985)

(27)

(4)

28

21

(54)

(128)

(1,058)

537

933

(13)

15

40

34

(43)

(59)

(401)

1,186

16%

-1%

1%

9%

9%

-7%

19%

(1)

(20)

607

1,205

11%

19%

37

242

543

934

(13)

15

40

34

16%

44%

11%

16%

-1%

1%

9%

9%

*Consolidates 70% of Unigal

2Q15 Results

I) M I N I N G

The reduction in the Chinese demand and the abundant iron ore supply has continued to
negatively pressure the PLATTS prices, which reached, on average, US$58.4/ton in the 2Q15,
compared with US$62.4/ton in the 1Q15 (62% Fe, C&F China), down by 6.3%. According to
CRU Metals, some smaller market players shutdowns have been recorded, nevertheless, there
is still speculation if other market players that are registering losses will resist.

Operational and Sales Performance - Mining

In the 2Q15, the production volume was 1.0 million tons, 30.9% lower than in the 1Q15, in
line with the focus on controlling working capital and reducing inventories. The sales volume
recorded in the 2Q15 was 1.2 million tons, against 1.1 million tons in the 1Q15, an increase of
5.9%, mainly due to the sales growth to local pig iron producers.
Production and sales volumes are shown in the following chart:
Iron Ore
Thousand tons

Production
Sales - Third Parties - Domestic Market
Sales - Exports

2Q15

1Q15

2Q14

1,009

1,461

1,564

135

91

297

Chg.
2Q15/1Q15
-31%
48%

1H15

1H14

Chg.
1H15/1H14

2,470

3,182

-22%

226

595

-62%
-100%

171

680

Sales to Usiminas

1,071

1,048

989

2%

2,119

1,949

9%

Total Sales

1,206

1,139

1,457

6%

2,345

3,224

-27%

Impairment of Assets
Since the beginning of 2015, the iron ore prices have been falling strongly in function of the
lower expectations regarding GDP global growth, due to the lower activity in the construction
segment in China, besides the strong increase in the iron ore production, mainly from
Australia. After one year of price reductions, there was an additional drop of 17% in the iron
ore prices (62% Fe, C&F China), during the first semester of 2015. Due to the worsening in the
expectations for the future iron ore prices, the Company registered an impairment of R$985.0
million in the value of its mining rights (R$868.0 million in Minerao Usiminas S.A. and R$117.0
million in Usinas Siderrgicas de Minas Gerais S.A.). The value in use of the Mining Unit was
updated to reflect the managements best estimates on future iron ore prices, based on
market projections. Such valuation is highly sensitive to the commodity prices volatility and
eventual changes in the long term expectations may result in further adjustments in the
impairment amount.
The discount rate used in the future cash flow projections represents an estimation of the rate
that would be used by the market to comply with the risks of assets under assessment. The
nominal rate in Real used was 11.9% p.a.. The company considered market sources to define
the inflation and the exchange rates used in the future cash flows projections. The estimated
Brazilian inflation rate used in the long term was 4.5% p.a.. To project the annual foreign
exchange rates (Real/Dollar), there were considered the North American and the Brazilian
inflation rates in the long term. The prices projected for iron ore (62% Fe, C&F China) were
between US$57/ton and US$74/ton. The prices used in the future cash flows calculation are
within the range of forecasts published by market analysts.

2Q15 Results

Comments on the Business Unit Results - Mining

In the 2Q15, net revenue was R$109.2 million, against R$117.9 million in the 1Q15, 7.4%
lower. Although there was an exchange depreciation of 7.1% on average in the period, there
was a 15.5% decline in the PLATTS iron ore price (62% Fe, C&F China), on average, adjusted
for the period of sales pricing regarding Minerao Usiminas. Additionally, there was higher
deductions from gross revenue regarding domestic freight contracts with take or pay
conditions, which went from R$1.2 million in the 1Q15 to R$11.6 million in the 2Q15.
In the 2Q15, cash cost per ton decreased by 2.5% in relation to 1Q15, mainly as a result of
lower leasing costs related to mining rights and materials for maintenance. In the 2Q15, COGS
per ton was 3.3% above that in the 1Q15, mainly due to the lower fixed cost dilution, as a
consequence of the 30.9% decrease in the quarter production.
In the 2Q15, net operating expenses were R$1.0 billion, against R$15.1 million in the 1Q15, in
function of the impairment of assets accounted for in the amount of R$985.0 million.
Additionally, in the 2Q15, there were higher provision for domestic freight contracts with take
or pay conditions, which was R$31.0 million in the 2Q15, against R$8.4 million in the 1Q15. On
the other hand, there was higher sale revenue of surplus electric energy, which was R$9.9
million in the 2Q15, against R$9.1 million in the 1Q15.
The EBITDA Instruction CVM 527 was negative in R$980.7 million and the EBITDA margin
was -898.1% in the 2Q15.
The Adjusted EBITDA was negative R$5.8 million in the 2Q15, against positive R$43.0 million
in the 1Q15. Adjusted EBITDA margin was -5.3% in the 2Q15, against +36.5% in the previous
quarter.

Investments (CAPEX)
In the 2Q15, investments totaled R$18.9 million, against R$24.7 million in the 1Q15, related to
sustaining CAPEX.

Stake in MRS Logstica

Minerao Usiminas holds a stake in the MRS Logstica through its subsidiary UPL Usiminas
Participaes e Logstica S.A.
MRS Logstica is a concession that controls, operates and monitors the Brazilian Southeastern
Federal Railroad Network (Malha Sudeste da Rede Ferroviria Federal). The company operates
in the railway transportation segment, connecting the states of Rio de Janeiro, Minas Gerais
and So Paulo, and its core business is transporting, with integrated logistics, cargo in general,
such as iron ore, finished steel products, cement, bauxite, agricultural products, pet coke and
containers.
MRS transported 41.5 million tons in the 2Q15, a historic record volume in a second quarter.
Comparing the 2Q15 with the 1Q15, there was a 9.2% growth in the volume being transported,
due to the increase in the transport by 7.0% in iron ore, coal and coke and 15.9% in cargo in
general, highlighting agricultural products and containers, which grew 22.5% and 30.3%
respectively. The 1H15 also reached a historic record volume for a first semester, with 79.5
million tons transported.

2Q15 Results

II)

STEEL

The World Steel Association - WSA forecasts apparent steel consumption at 1,544 million tons
in 2015, an increase of 0.5% when compared with 2014. For the developed economies, it is
expected a recovery, with growth of 2.1% in consumption in the European Union and stable
consumption in the United States, even after the strong growth of 11.7% in 2014. For the
emerging economies, it forecasts a 2.8% increase, driven by India, where consumption should
increase 6.2%. China, the largest global consumer, with 707.2 million tons, should reduce
consumption by 0.5%, the first reduction since 1995. Brazil will have the worst performance
among the emerging countries. The Brazilian Steel Institute - IABr forecasts a decline in the
apparent consumption in Brazil of 12.8% in 2015, with flat steel receding 14.0%.
In the 2Q15, the Brazilian flat steel market consumed 3.3 million tons, with 81% of the volume
supplied by local facilities and 19%, by imports. In the comparison with the 1Q15,
consumption decreased 17.5%, mainly due to the retraction of 21.1% in sales of the local
mills, while imports increased 1.6%.
The strong fall in the Brazilian consumption occurred was in all consumer segments in general,
as a result of the strong slowdown in the industrial activity in the period. The lack of visibility
of economic outlook and less optimistic forecasts regarding the short term economic recovery
led customers to reduce purchases, adjust inventories and delay investments.
Below are listed the main flat steel consuming segments and their behavior in the Brazilian
market during the 2Q15:
Automotive: Deterioration of the Brazilian economic outlook in the second quarter had its
reflex in the automotive industry, which concluded the 2Q15 with results much worse than
expected, leading the main institutes in the industry to revise 2015 expectations downward for
the second time this year, deepening even further the expected recession for production and
sale of vehicles. According to data from the National Federation of Automotive Vehicle
Distributors (FENABRAVE), vehicle sales retracted 4% in the 2Q15 over the 1Q15 and 24%
over the same period in the previous year. High inventories that have been accumulated led to
a greater reduction in the production in the second quarter and caused production to fall 8%
compared with the 1Q15, according to the National Association of Vehicle Manufacturers
(ANFAVEA). Heavy vehicles presented even more strong declines compared with the 1Q15: 9% in sales and -21% in production, respectively.
Industrial: According to the Tendncias Consulting, a reduction of 8.7% is expected in the
investment rate in the 2Q15 compared with the same period in the previous year. This would
be the fifth consecutive decline in this comparison and the strongest one. Data from the
Brazilian Machinery and Equipment Association - ABIMAQ through April 2015 confirmed the
serious difficulties the segment is undergoing. Exchange depreciation permitted the growth of
4.5% in net revenue, accumulated for the first four months, but the entity foresees a domestic
sales contraction, which should reverse this result, taking the net revenue of the Capital Goods
industry to its third consecutive year of retraction.
House Appliances: According to the Industrial Survey performed by the Industrial Research of
Brazilian Geography and Statistics Institute - IBGE, the Home Appliance segment registered a
decline of 24.2% in the accumulated production in the first five months of 2015 in relation to
the same period of the previous year. The segment continued to be affected by the slower
pace of growth in family income and lower consumer confidence. In the electro-electronics
segment, the performance was also poor, presenting a decline of 12.5% in production,
considering the same basis of comparison.
Civil Construction: The civil construction market continued to be weak in the 2Q15, as a result
of the poor economic performance, fiscal and monetary adjustments, low consumer confidence
and impacts from the Petrobrs investigation, especially in infrastructure projects involving the
countrys main construction companies. The Tendncias Consulting forecasts production of
typical inputs to civil construction to fall 1.0% in the 2Q15 against the 1Q15 and 8.5% in
relation to the 2Q14.

2Q15 Results

10

Distribution: According to the Steel Distributors National Association - INDA, flat steel sales in
the distribution network fell 16.4% in the 2Q15, against the 1Q15, and 21.7%, in comparison
with the same period of the previous year. In the 1H15, sales accumulated a decline of 18.8%,
compared with the 1H14. Purchases had a drop of 14.9%. Over the 2Q15, inventories
remained stable at around 1.1 million tons, but the higher reduction in sales over the quarter
caused inventories turnover to increase to 4.2 months, based on the sales forecast of June.

Production - Ipatinga and Cubato Plants

Crude steel production at the Ipatinga and Cubato plants was 1.3 million tons in the 2Q15, a
reduction of 3.8% in relation to the 1Q15, with the objective of balancing production with
sales.

Production (Crude Steel)

2Q15

1Q15

2Q14

Chg.
2Q15/1Q15

1H15

1H14

Var.
1H15/1H14

Ipatinga Mill

746

739

894

1%

1,485

1,828

-19%

Cubato Mill

580

640

705

-9%

1,220

1,423

-14%

1,326

1,379

1,599

-4%

2,705

3,251

-17%

Thousand tons

Total

Sales
In the 2Q15, total sales reached 1.3 million tons of steel, stable in relation to those in the 1Q15.
Sales to the domestic market totaled 850.5 thousand tons, 23.1% lower than in the 1Q15, while
exports increased 181.7%, totaling 424.1 thousand tons. Out of the total sales, 67% was
destined to the domestic market and 33% to exports.

1,456
220

1,236

2Q14

1,401
1,247

1,256

242

151

1,064

1,005

1,106

3Q14

4Q14

1Q15

337

Domestic Market

2Q15 Results

1,275
424

850

2Q15

Exports

11

The main export destinations are shown in the graph below:

Exports - Main Markets - 1Q15

Exports - Main Markets 2Q15

Turkey
4%

USA

4%

1%
Argentina

8%

5% 2%

28%

Argentina

6%
USA

Mexico

7%

12%

45%

Vietnam

Taiwan

Italy

Venezuela

18%
26%

34%

South Korea

Chile

Others

Others

Sales Volume Breakdown

Thousand tons

2Q15

1Q15

Change
2Q15/1Q15

2Q14

1H15

Change
1H15/1H14

1H14

1,275

100%

1,256

100%

1,456

100%

2,531

100%

2,893

100%

-13%

Heavy Plates

244

19%

287

23%

334

23%

-15%

531

21%

614

21%

-13%

Hot Rolled

392

31%

418

33%

512

35%

-6%

809

32%

1,029

36%

-21%

Cold Rolled

248

19%

313

25%

341

23%

-21%

561

22%

718

25%

-22%

Galvanized

196

15%

214

17%

243

17%

-9%

410

16%

458

16%

-11%

0%

0%

13

1%

-33%

0%

39

1%

-76%

191

15%

19

2%

12

1%

907%

210

8%

36

1%

487%
-22%

Total Sales

Processed Products
Slabs
Domestic Market

1%

850

67%

1,106

88%

1,236

85%

-23%

1,956

77%

2,503

87%

Heavy Plates

217

17%

261

21%

269

18%

-17%

478

19%

497

17%

-4%

Hot Coils

216

17%

341

27%

429

29%

-36%

557

22%

894

31%

-38%

Cold Coils

226

18%

286

23%

302

21%

-21%

512

20%

637

22%

-20%

Galvanized

165

13%

194

15%

211

15%

-15%

358

14%

410

14%

-13%

0%

0%

12

1%

-33%

0%

36

1%

-75%

23

2%

19

2%

12

1%

19%

42

2%

29

1%

43%

424

33%

151

12%

220

15%

575

23%

390

13%

47%

27

2%

27

2%

66

5%

1%

53

2%

117

4%

-54%

Hot Rolled

175

14%

77

6%

82

6%

128%

252

10%

135

5%

87%

Cold Rolled

23

2%

27

2%

40

3%

-15%

49

2%

81

3%

-39%

Galvanized

31

2%

21

2%

32

2%

51%

52

2%

49

2%

6%

0%

0%

0%

0%

0%

169

13%

0%

0%

169

7%

0%

2470%

Processed Products
Slabs
Exports
Heavy Plates

Processed Products
Slabs

182%

Comments on the Business Unit Results - Steel

In the 2Q15, net revenue in the Steel Unit was R$2.4 billion, 6.1% lower than in the 1Q15, as
a result of a decline of 23.2% in sales volume in the domestic market, partially compensated
by a 3.1% increase in the average price of steel in the domestic market and a growth of
181.7% in exports.
In the 2Q15, the cash cost per ton was lower by 0.7% in relation to the 1Q15, due to reduction
in third-party services, iron ore and energy and fuel, besides the impact of the exchange
depreciation of 7.1% on average, in the period, which affects about 40% of total costs. COGS
per ton was 1.4% lower manly due to the product mix sales with lower value-added products,

2Q15 Results

12

with an increase of 172 thousand tons of slabs, partially compensated by the costs with
temporarily equipments shutdown and depreciation.
Sales expenses were R$40.0 million in the 2Q15, against R$30.2 million in the 1Q15, an
increase of 32.4%, mainly in function of higher export volume. General and administrative
expenses were reduced by 14.6%, totaling R$76.0 million in the 2Q15, against R$89.1 million
in the 1Q15, mainly due to the reduction in labor expenses and general expenses. Other
operating expenses totaled R$17.4 million in the 2Q15, a reduction of 47.2% in relation to
those in the 1Q15, mainly as a result of higher sale revenue of surplus electric energy, which
totaled R$31.1 million in the 2Q15, against R$18.8 million in the 1Q15, and of lower provision
for legal contingencies. In this manner, net operating expenses totaled R$133.5 million in the
2Q15, against R$152.3 million in the 1Q15, a reduction of 12.4%.
Thus, Adjusted EBITDA in the 2Q15 totaled R$205.5 million, against R$337.2 million in the
1Q15, a decline of 39.1%. Adjusted EBITDA margin was 8.6% in the 2Q15, against 13.2% in the
1Q15, a decline of 460 basis points.

Investments (CAPEX)
Investments totaled R$191.9 million in the 2Q15, against R$197.6 million in the 1Q15. The main
investments were concentrated in sustaining CAPEX and in revamping of Coke Plant II in
Ipatinga, which started up on 05/08/15.

III)

STEEL PROCESSING

Solues Usiminas SU
Solues Usiminas operates in the distribution, services and small-diameter tubes markets
nationwide, offering its customers high-value added products. It serves several economic
segments, such as automotive, autoparts, civil construction, distribution, electro-electronics,
machinery and equipment and household appliances, among others.
Sales of the Distribution, Services and Tubes Business Units were responsible for 51%, 41%
and 8%, respectively, of the volume sold in the 2Q15.

Comments of the Business Unit Results Steel Processing

The distribution scenario has been facing high competition with imported steel. With the drop
of the international steel prices, imports in Brazil grew throughout the 2Q15, mainly from
China.
Net revenue in the 2Q15 totaled R$475.8 million, against R$539.7 million in the 1Q15, a
decline of 11.8%, due to lower sales and services volume.
In the 2Q15, cost of goods sold totaled R$463.6 million, against R$526.5 million in the 1Q15,
12.0% lower when compared with the 1Q15, as a result of lower sales and services volume.
Operating expenses were R$28.0 million in the 2Q15, against R$24.4 million in the 1Q15, a
14.5% increase. In the period, the Campo Limpo Paulista plant was temporarily shutdown in
function of adjustments in the facilities of Solues Usiminas in order to improve
competitiveness.
Thus, Adjusted EBITDA in the 2Q15 was R$8.9 million negative, against R$3.6 million negative
in the 1Q15. Adjusted EBITDA margin was -1.9% in the 2Q15, against -0.7% in the 1Q15.

2Q15 Results

13

IV)

CAPITAL GOODS

Usiminas Mecnica S.A.

Usiminas Mecnica is a capital goods company in Brazil which operates in the following
business areas: steel structures, shipbuilding and offshore, oil and gas, industrial equipment
and assembly and foundry and railcars.

Main Contractts
Amendment contracts for additional services for Vale and Anglo American were signed,
allowing its order book to totaled R$700.0 million, even with the recurring lack of investments
in the country.

Comments on the Business Unit Results Capital Goods

In the 2Q15, net revenue was R$229.7 million, against R$210.8 million in the 1Q15, a 9.0%
increase, due to higher volume supplied by the assembly and equipment segments.
In the 2Q15, gross profit was R$35.6 million, against R$25.7 million, 38.7% higher than in the
1Q15, in function of higher profitability of its project portfolio in this period, due to productivity
gains and reduction in costs and expenses.
Thus, in the 2Q15, Adjusted EBITDA totaled R$25.8 million, against R$14.2 million in the
1Q15, a 81.7% increase. Adjusted EBITDA margin was 11.2% in the 2Q15, against 6.7% in
the 1Q15, an increase of 450 basis points.

2Q15 Results

14

Highlights

Shutdown of two blast furnaces: The Company decided to temporarily interrupt operations
in Blast Furnaces #1 at the Cubato plant and #1 at the Ipatinga plant, from 05/31/15 and
06/04/15, respectively. Pig iron production will be reduced by approximately 120 thousand
tons per month. Such adjustment intends to adapt the production to the current steel market
demand and will bring opportunities of cost reduction and competitiveness improvement during
the current market scenario.
Toyota Award: Usiminas was awarded by Toyota during the 13th Suppliers Conference in the
Cost Category, Excellence Level. The award is granted to companies that have exceeded
Toyotas expectations in ideas for cost savings put into practice. Solues Usiminas,
responsible for all of the auto manufactures stamping, was also honored.
Usiminas announces partnership with Jeep: Usiminas reinforces its partnership with the
Fiat-Chrysler Automobile Group FCA and will be the main steel supplier to the Jeep factory
in Brazil, located in Goiana, Pernambuco state. Solues Usiminas, specialized in steel
processing, will supply cutting and inventory services in its Cabo de Santo Agostinho facilities,
in the Suape Industrial Complex, located around 100 km from Jeep. The raw material will be
applied to the Renegade, the first vehicle to be manufactured in Brazil.
REI Award: Usiminas was one of the winners in the REI Award, an initiative of the Automotive
Business magazine, which honors the performance and achievements of Professionals and
companies in the national automotive chain. In total, there were 13 award winners and
Usiminas won in the Category of raw material supplier, with the project Dual Phase 1000
Steel Development. The awards ceremony was held on 06/10/15 in So Paulo, where
representatives of the main auto manufacturers, autoparts and related companies were
present.
AutoData Quality Ranking and Partnership 2015: Usiminas is the first steel company
recognized by the AutoData Quality Ranking and Partnership 2015 as one of the main
suppliers to the national automotive industry. The ranking gathers of supply companies to the
Brazilian automotive industry, which were most awarded in the period 2013/2015. The main
objective of the ranking is to publish the 50 best companies every year, by order of
importance, that supply the Brazilian automotive industry in terms of quality and partnership,
in the opinion of the auto makers and their associations.
Rescission of the Porto Sudeste contract: Minerao Usiminas S.A. (MUSA) notified MMX
Porto Sudeste Ltda. ("Porto Sudeste") of the immediate termination, by MUSA, of the port
services contract executed by the parties in 02/11/11. Such termination by MUSA is based, in
summary, due to the reiterated breach, by Porto Sudeste, of its obligation to complete the port
and to put it in operation, which should have occurred in 04/01/12, as well as the default of its
obligation to pay the contractual penalties in connection with such breach.

2Q15 Results

15

Capital Markets
Usiminas Performance Summary - BM&FBOVESPA (USIM5)
2Q15
Number of Deals
Daily Average
Traded - thousand shares

Change
2Q15/1Q15

1Q15

Change
2Q15/2Q14

2Q14

500,667

488,983

2%

752,556

-33%

8,208

8,016

2%

12,138

-32%
25%

457,804

523,965

-13%

366,019

Daily Average

7,505

8,590

-13%

5,904

27%

Financial Volume - R$ million

2,462

2,237

10%

3,228

-24%

Daily Average

52

-22%

Maximum

6.97

40

5.19

37

34%

9%

10.52

-34%

Minimum

4.12

3.35

23%

7.58

-46%

Closing

4.12

4.97

-17%

7.58

-46%

Market Capitalization - R$ million

4,177

5,039

-17%

7,684

-46%

Performance on the BM&F BOVESPA

Usiminas Common shares (USIM3) closed the 2Q15 quoted at R$13.26 and its Preferred
shares (USIM5) at R$4.12. In the quarter, USIM3 depreciated 38.3% and USIM5, 16.6%. In
the same period, the IBOVESPA index appreciated 3.8%.

Foreign Stock Markets

OTC New York
Usiminas has American Depositary Receipts (ADRs) traded on the over-the-counter market:
USDMY is backed by common shares and USNZY, by Class A preferred shares. On 06/30/15,
USNZY ADRs, that have higher liquidity, were quoted at US$1.36 and depreciated 13.9% in
the quarter.
LATIBEX Madrid
Usiminas shares are traded on the LATIBEX the Madrid Stock Exchange: XUSI as preferred
shares and XUSIO as common shares. On 06/30/15, XUSI closed quoted at 1.23,
depreciating 16.3% in the quarter. XUSIO shares closed quoted at 3.87, depreciating 38.3%
in the period.

2Q15 Results

16

For further information:

INVESTOR RELATIONS DEPARTMENT

Cristina Morgan C. Drumond

Leonardo Karam Rosa
Diogo Dias Gonalves
Renata Costa Couto

cristina.drumond@usiminas.com
leonardo.rosa@usiminas.com
diogo.goncalves@usiminas.com
r.costa@usiminas.com

55
55
55
55

31
31
31
31

3499-8772
3499-8550
3499-8710
3499-8619

For press, please contact us at imprensa@usiminas.com

Visit the Investor Relation site: www.usiminas.com/ri

or access on your mobile phone: http://m.usiminas.com/ri

2Q15 Conference Call - Date 08/06/2015

In Portuguese - Simultaneous Translation into English
Braslia time: at 11:00 a.m.

New York time: at 10:00 a.m.

Dial-in Numbers:

Dial-in Numbers:

Brazil: (55 11) 3193-1001 / 2820-4001

USA: (1 786) 924-6977

Audio replay available at (55 11) 3193-1012

Pincode for replay: 2795819# - Portuguese

Pincode for replay: 4511348# - English

Audio of the conference call will be transmitted live via Internet

See the slide presentation on our website: www.usiminas.com/ri

Statements contained in this release, relative to the business outlook of the Company, forecasts of operating and financial income and
references to growth prospects are mere forecasts and were based on the expectations of Management in relation to future
performance. These expectations are highly dependent on market conduct, the economic situation in Brazil, its industry and
international markets and, therefore, are subject to change.

2Q15 Results

17

Balance Sheet - Assets - Consolidated | IFRS - R$ thousand

Assets
Current Assets
Cash and Cash Equivalents
Trade Accounts Receivable
Taxes Recoverable
Inventories
Advances to suppliers
Financial Instruments
Other Securities Receivables

06/30/2015

03/31/2015

8,560,921
2,889,080
1,357,433
367,277
3,595,707
17,611
108,699
225,114

8,542,517
2,621,043
1,380,296
383,123
3,910,490
22,120
72,225
153,220

Long-Term Receivable
Deferred Income Tax & Social Contribution
Deposits at Law
Accounts Receiv. Affiliated Companies
Taxes Recoverable
Financial Instruments
Others
Investments
Property, Plant and Equipment
Intangible

21,752,966
3,805,774
2,481,044
599,420
4,630
87,418
335,582
297,680
1,145,575
15,408,654
1,392,963

22,441,466
3,426,528
2,134,632
584,473
4,722
90,810
386,038
225,853
1,155,951
15,492,069
2,366,918

Total Assets

30,313,887

30,983,983

Non-Current Assets

Balance Sheet - Liabilities and Shareholders' Equity - Consolidated | IFRS - R$ thousand

Liabilities and Shareholders' Equity
06/30/2015
03/31/2015
Current Liabilities
Loans and Financing and Taxes Payable in Installments
Suppliers, Subcontractors and Freight
Wages and Social Charges
Taxes and Taxes Payables
Related Companies
Financial Instruments
Dividends Payable
Customers Advances
Others

4,718,708
1,723,993
2,069,668
319,435
98,461
188,279
146,731
141
69,897
102,103

5,048,230
1,731,091
2,235,161
280,196
133,509
241,783
135,708
38,368
101,687
150,727

Long-Term Liabilities
Loans and Financing and Taxes Payable in Installments
Actuarial Liability
Provision for Legal Liabilities
Financial Instruments
Environmental Protection Provision
Others

7,916,813
5,880,729
1,213,051
501,267
198,335
92,149
31,282

7,445,663
5,417,692
1,202,560
497,117
205,489
89,372
33,433

Shareholders' Equity
Capital
Reserves & Revenues from Fiscal Year
Non-controlling shareholders participation
Total Liabilities and Shareholders' Equity

2Q15 Results

17,678,366
12,150,000
3,661,445
1,866,921

18,490,090
12,150,000
4,294,558

30,313,887

30,983,983

2,045,532

18

Income Statement - Consolidated | IFRS

R$ thousand

2Q15

Net Revenues
Domestic Market
Exports
COGS
Gross Profit
Gross Margin
Operating Income (Expenses)
Selling Expenses
General and Administrative
Other Operating Income (expenses)
Reintegra Program (Brazilian Government Export Benefit)
Net Cost of Actuarial Obligations
Provision for Legal Liabilities
Result of the Non Operating Asset Sale/Write-Off
Result of the Sale of the Surplus Electric Energy
Temporarily Equipments Shutdown
Impairment of Assets
Other Operating Income (Expenses), Net

EBIT
EBIT Margin
Financial Result
Financial Income
Financial Expenses
Equity in the Results of Associate and Subsidiary Companies
Operating Profit (Loss)
Income Tax / Social Contribution
Net Income (Loss)
Net Margin
Attributable:
Shareholders
Minority Shareholders
EBITDA (Instruction CVM 527)
EBITDA Margin (Instruction CVM 527)
Adjusted EBITDA - Joint Subsidiary Companies proportional EBITDA
Adjusted EBITDA Margin
Depreciation and Amortization

1Q15

2Q14

Chg.
2Q15/1Q15

2,676,762
2,039,974
636,788
(2,571,385)
105,377
3.9%
(1,198,920)
(60,535)
(107,821)
(1,030,564)
6,140
(4,101)
(12,360)
4,085
40,938
(31,020)
(985,046)
(49,200)
(1,093,543)
-40.9%
(40,629)
52,673
(93,302)
33,991
(1,100,181)
319,383
(780,798)
-29.1%

2,680,422
2,349,706
330,716
(2,436,800)
243,622
9.1%
(208,144)
(51,154)
(122,471)
(34,519)
7,525
(3,954)
(31,284)
373
27,865
(35,044)
35,478
1.3%
(360,900)
368,863
(729,763)
11,971
(313,451)
78,071
(235,380)
-8.8%

3,106,300
2,722,578
383,722
(2,772,242)
334,058
10.8%
(133,778)
(71,280)
(127,582)
65,084
0
(1,303)
(19,721)
23,562
89,007
(26,461)
200,280
6.5%
(58,561)
48,915
(107,476)
60,248
201,967
(73,356)
128,611
4.1%

0%
-13%
93%
6%
-57%
-520 b.p
476%
18%
-12%
2885%
-18%
4%
-60%
995%
47%
40%
-540 b.p
-89%
-86%
-87%
184%
251%
232%
+410 b.p

(602,187)
(178,611)
(755,210)
-28.2%
227,206
8.5%
304,342

(247,460)
12,080
353,879
13.2%
379,534
14.2%
306,430

114,415
14,196
538,055
17.3%
549,374
17.7%
277,527

143%
-313%
-460 b.p
-40%
-570 b.p
-1%

Income Statement - Consolidated | IFRS

R$ thousand
Net Revenues
Domestic Market
Exports
COGS
Gross Profit
Gross Margin
Operating Income (Expenses)
Selling Expenses
General and Administrative
Other Operating Income (Expenses)
Reintegra (Brazilian Government Export Benefit)
Net Cost of Actuarial Obligations
Provision for Legal Liabilities
Result of the Non Operating Assets Sale/Write-Off
Result of the Sale of the Surplus Electric Energy
Temporarily Equipments Shutdown
Impairment of Assets
Other Operating Income (Expenses), Net

EBIT
EBIT Margin
Financial Result
Financial Income
Financial Expenses
Equity in the Results of Associate and Subsidiary Companies
Operating Profit (Loss)
Income Tax / Social Contribution
Net Income (Loss)
Net Margin
Attributable:
Shareholders
Minority Shareholders
EBITDA (Instruction CVM 527)
EBITDA Margin (Instruction CVM 527)
Adjusted EBITDA - Joint Subsidiary Companies proportional EBITDA
Adjusted EBITDA Margin
Depreciation and Amortization

2Q15 Results

1H15

1H14

Chg.
1H15/1H14

5,357,184
4,389,680
967,504
(5,008,185)
348,999
6.5%
(1,407,064)
(111,689)
(230,292)
(1,065,083)
13,665
(8,055)
(43,644)
4,458
68,803
(31,020)
(985,046)
(84,244)
(1,058,065)
-19.8%
(401,529)
421,536
(823,065)
45,962
(1,413,632)
397,454
(1,016,178)
-19.0%

6,248,618
5,445,393
803,225
(5,394,865)
853,753
13.7%
(316,985)
(154,874)
(255,743)
93,632
0
(2,592)
(27,908)
27,211
163,980
0
0
(67,059)
536,768
8.6%
(76,618)
96,093
(172,711)
104,532
564,682
(214,443)
350,239
5.7%

-14%
-19%
20%
-7%
-59%
-710 b.p
344%
-28%
-10%
211%
56%
-84%
-58%
0%
26%
-1000 b.p
424%
339%
377%
-56%
-1240 b.p

(849,647)
(166,531)
(401,331)
-7.5%
606,739
11.3%
610,772

299,029
51,210
1,185,915
19.0%
1,204,759
19.3%
544,615

-425%
-134%
-810 b.p
-50%
-800 b.p
12%

19

Cash Flow - Consolidated | IFRS

R$ thousand
Operating Activities Cash Flow
Net Income (Loss) in the Period
Financial Expenses and Monetary Var. / Net Exchge Var.
Interest Expenses
Depreciation and Amortization
Losses/(gains) on Sale of Property, Plant and Equipment
Equity in the Results of Subsidiaries/Associated Companies
Impairment of Assets
Difered Income Tax and Social Contribution
Constitution (reversal) of Provisions
Actuarial Gains and losses
Stock Option Plan
Total
(Increase)/Decrease of Assets
Accounts Receivables Customer
Inventories
Recovery of Taxes
Judicial Deposits
Accounts Receiv. Affiliated Companies
Others
Total
Increase /(Decrease) of Liabilities
Suppliers, Contractors and Freights
Amounts Owed to Affiliated Companies
Customers Advances
Tax Payable
Actuarial Liability Payments
Others
Total
Cash Generated from Operating Activities
Interest Paid
Income Tax and Social Contribution
Net Cash Generated from Operating Activities
Investments activities cash flow
Marketable Securities
Amount Received on Disposal of Investments
Amount Paid on the Acquisition of Investments
Fixed Asset Acquisition
Fixed Asset Sale Receipt
Additions to / Payments of Intangible Assets
Dividends Received
Purchase of Software
Net Cash Employed on Investments Activities
Financial Activities Cash Flow
Inflow of Loans, Financing and Debentures
Payment of Loans, Financ. & Debent.
Payment of Taxes Installments
Swap Operations Liquidations
Dividends and Interest on Capital
Net Cash Generated from (Employed on) Financial Activities
Exchange Variation on Cash and Cash Equivalents
Net Increase (Decrease) of Cash and Cash Equivalents

2Q15

1Q15

(780,798)
36,209
50,631
304,342
(4,184)
(33,991)
985,046
(325,803)
2,169
4,204
3,367
241,192

(235,380)
538,807
17,148
306,430
(446)
(11,971)
(97,727)
23,824
4,054
2,049
546,788

21,227
336,632
42,730
(14,967)
92
(137,493)
248,221

(132,178)
(381,716)
(54,291)
(18,184)
17,661
24,617
(544,091)

(165,493)
(53,504)
(31,790)
(35,412)
(48,605)
(11,959)
(346,763)

286,417
(96,574)
(8,492)
8,576
(38,649)
19,999
171,277

142,650
(152,658)
(31,508)
(41,516)

173,974
(126,019)
24,899
72,854

57,280
(214,174)
4,749
36,840
(11,968)

(207,610)
(230,063)
1,566
1,279
(2,247)

(127,273)

(437,075)

1,342,106
(788,548)
(291)
(17,412)
(38,227)

356,819
(435,339)
(286)
18,074
(1,068)

497,628

(61,800)

(3,522)

(12,449)

325,317

(438,470)

Cash and Cash Equivalents at the Beginning of the Period

1,671,342

2,109,812

Cash and Cash Equivalents at the End of The Period

1,996,659

1,671,342

RECONCILIATION WITH BALANCE SHEET

Cash and Cash Equivalents at the Beginning of the Period
Marketable Securities at the Beginning of the Period
Cash and Cash Equivalents at the Beginning of the Period
Net Increase (Decrease) of Cash and Cash Equivalentes
Net Increase (Decrease) of Marketable Securities

1,671,342
949,701
2,621,043
325,317
(57,280)

2,109,812
742,091
2,851,903
(438,470)
207,610

Cash and Cash Equivalents at the End of the Period

Marketable Securities at the End of the Period
Cash and Cash Equivalents at the End of the Period

1,996,659
892,421
2,889,080

1,671,342
949,701
2,621,043

2Q15 Results

20

Cash Flow - Consolidated | IFRS

R$ thousand
Operating Activities Cash Flow
Net Income (Loss) in the Period
Financial Expenses and Monetary Var. / Net Exchge Var.
Interest Expenses
Depreciation and Amortization
Losses/(gains) on sale of property, plant and equipment
Equity in the Results of Subsidiaries/Associated Companies
Impairment of Assets
Difered Income Tax and Social Contribution
Constitution (reversal) of Provisions
Actuarial Gains and losses
Stock Option Plan
Total

1H15

1H14

(1,016,178)
575,016
67,779
610,772
(4,630)
(45,962)
985,046
(423,530)
25,993
8,258
5,416
787,980

350,239
77,898
66,705
544,615
(27,211)
(104,532)
139,241
42,941
2,592
6,774
1,099,262

Increase/Decrease of Assets
Accounts Receivables Customer
Inventories
Recovery of Taxes
Judicial Deposits
Accounts Receiv. Affiliated Companies
Others
Total

(110,951)
(45,084)
(11,561)
(33,151)
17,753
(112,876)
(295,870)

17,334
(308,962)
12,770
(29,519)
(763)
(74,978)
(384,118)

Increase /(Decrease) of Liabilities

Suppliers, contractors and freights
Amounts Owed to Affiliated Companies
Customers Advances
Tax Payable
Actuarial Liability payments
Others
Total

120,924
(150,078)
(40,282)
(26,836)
(87,254)
8,040
(175,486)

(109,734)
16,638
(71,456)
(35,588)
(90,685)
(45,449)
(336,274)

Cash Generated from Operating Activities

Interest Paid
Income Tax and Social Contribution
Net Cash Generated from Operating Activities
Investments activities cash flow
Marketable Securities
Amount received on disposal of investments
Amount paid on the acquisition of investments
Fixed asset acquisition
Fixed asset sale receipt
Additions to / payments of Intangible Assets
Dividends Received
Software Purchase
Net Cash Employed on Investments Activities
Financial Activities Cash Flow
Inflow of Loans, Financing and Debentures
Payment of Loans, Financ. & Debent.
Payment of Taxes Installments
Swap Operations Liquidations
Dividends and Interest on Capital

316,624
(278,677)
(6,609)
31,338

378,870
(246,236)
(59,344)
73,290

(150,330)
(444,237)
6,315
38,119
(14,215)

22,617
16,486
(111,019)
(488,918)
39,016
(31,056)
96,598
(9,685)

(564,348)

(465,961)

1,698,925
(1,223,887)
(577)
662
(39,295)

802,496
(864,391)
(4,689)
(8,844)
(79,772)

Net Cash Generated from (Employed on) Financial Activities

435,828

(155,200)

Exchange Variation on Cash and Cash Equivalents

(15,971)

(3,879)

(113,153)

(551,750)

Cash and Cash Equivalents at the Beginning of the Period

2,109,812

2,633,187

Cash and Cash Equivalents at the End of The Period

1,996,659

2,081,437

RECONCILIATION WITH BALANCE SHEET

Cash and cash equivalents at the beginning of the period
Marketable securities at the beginning of the period
Cash and cash equivalents at the beginning of the period
Net increase (decrease) of cash and cash equivalentes
Net increase (decrease) of marketable securities

2,109,812
742,091
2,851,903
(113,153)
150,330

2,633,187
835,629
3,468,816
(551,750)
(22,617)

Cash and cash equivalents at the end of the period

Marketable securities at the end of the period
Cash and cash equivalents at the end of the period

1,996,659
892,421
2,889,080

2,081,437
813,012
2,894,449

Net Increase (Decrease) of Cash and Cash Equivalents

2Q15 Results

21