Public Disclosure - Belo Horizonte, April 20, 2017. 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 first quarter (1Q17) 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 fourth quarter of 2016 (4Q16), unless stated otherwise.

Release of the 1Q17 Results

The main operational and financial indicators were:

Steel sales volume of 930 thousand tons;

Iron ore sales volume of 643 thousand tons;
Adjusted consolidated EBITDA of R$533 million and Adjusted EBITDA margin of 23%;
Working capital on 03/31/17 of R$2.6 billion;
Cash position on 03/31/17 of R$2.4 billion;
Investments of R$23 million.

Main Highlights

Var.
R$ million - Consolidated 1Q17 4Q16 1Q16
1Q17/4Q16
Steel Sales Volume (000 t) 930 891 903 4%
Iron Ore Sales Volume (000 t) 643 657 974 -2%
Net Revenue 2,351 2,120 2,041 11%
COGS (1,870) (1,861) (2,081) 1%
Gross Profit (Loss) 481 259 (41) 85%
Net Income (Loss) 108 (195) (151) -
EBITDA (Instruction CVM 527) 528 584 50 -10%
EBITDA Margin (Instruction CVM 527) 23% 28% 2% - 5 p.p.
Adjusted EBITDA 533 234 52 128%
Adjusted EBITDA Margin 23% 11% 3% + 12 p.p.
Investments (CAPEX) 23 67 70 -65%
Cash Position 2,416 2,257 1,736 7%

Market Data 03/31/17 Index

Consolidated Results
BM&FBOVESPA: USIM5 R$4.46/share
Performance of the Business Units:
USIM3 R$8.38/share - Mining
- Steel
- Steel Processing
EUA/OTC: USNZY US$1.37/ADR - Capital Goods
Subsequent Events and Highlights
LATIBEX: XUSI 1.31/share Capital Markets
XUSIO 2.49/share Balance Sheet, Income and Cash Flow Statements

1Q17 Results 1
Economic Outlook

Preliminary data on the global economic outlook in 2017 showed accelerated economic growth
among the principal developed nations, which had been observed since mid-2016. The
movement has pressured commodities prices, with positive effects for emerging economies.
However, political uncertainties on the international scenario remain high, both in the US, with
measures and signals from the Trump government, as well as in Europe, where political forces
skeptical of the European Union project have been growing.

In spite of the high degree of uncertainty in the global scenario, risk perception of the Brazilian
economy has followed a downward trend over the period. Several factors have contributed to
this, with a highlight for recovery in commodities prices, and domestic factors, such as signs
from the government advancing with reforms and forward indicators that economic activity is
finally at a path of recovery. The Dollar/Real exchange rate declined over the first quarter and
inflation continued to fall above expectations. This has led to the perception that there is space
to maintain or accelerate the rate of the local basic interest rate (Selic) cuts. Copom (Monetary
Policy Committee) reduced Selic to 11.25% p.a. in the last meeting of 04/12/17.

Brazilian industry has begun to show signs of a reaction. With available data through February,
Industrial Production registered a 0.3% increase in the indicator that compares the first two
months of the year to the same period in 2016. Capital goods production advanced 3.6% and
durable goods, 11.7%. The industry confidence index improved in the first quarter. According
to the National Industrial Association, the ICEI (Business Confidence Index) reached 54.0
points in March, the highest level since January 2014.

1Q17 Results 2
 Economic and Financial Performance
Comments on the Consolidated Results

Net Revenue
In the 1Q17, net revenue was R$2.4 billion, against R$2.1 billion in the 4Q16, due to higher
sales volume and prices in the Steel and in the Steel Processing Units and higher prices in the
Mining Unit.
Net Revenue Breakdown
1Q17 4Q16 1Q16
Domestic Market 90% 92% 85%
Exports 10% 8% 15%
Total 100% 100% 100%

Cost of Goods Sold - COGS

COGS in the 1Q17 totaled R$1.9 billion, stable compared with the 4Q16. For detailed
information, see the Business Unit sections of this release. Net profit increased from R$259.4
million in the 4Q16 to R$480.7 million in the 1Q17, showing an 85.3% recovery. Gross margin
was 20.4%, against 12.2% in the 4Q16, as per demonstrated below:

Gross Margin
1Q17 4Q16 1Q16
20.4% 12.2% -2.0%

Operating Expense and Income

In the 1Q17, selling expenses were R$52.2 million, against R$85.3 million in the 4Q16, a
38.8% decrease, mainly due to lower provision for losses on doubtful accounts, which were
R$3.9 million in the 1Q17, against R$33.3 million in the 4Q16.
General and administrative expenses in the 1Q17 totaled R$93.1 million, stable in comparison
to the 4Q16, which were R$90.9 million.
Other operating expenses and income were negative in R$150.7 million in the 1Q17, against
an income of R$199.9 million in the 4Q16, mainly due to:
Higher negative result in the sale of surplus electric energy, which was a negative
R$22.7 million in the 1Q17, against a negative R$11.9 million in the 4Q16;
Higher provision for legal liabilities, which were R$49.9 million in the 1Q17, against
R$13.8 million in the 4Q16;
Lower fiscal credits by R$16.1 million in the 1Q17.

These effects were partially offset by:

Non-recurring effects in the 4Q16 referring to reversion of impairment in the Mining
Unit of R$357.7 million. There was no such event in the 1Q17;
Extraordinary event, non-recurring, referring to expenses for early termination of a
supplier contract in the amount of R$70.7 million accounted for in the 4Q16. There was
no such event in the 1Q17;
Higher result of the Reintegra Program, which was R$4.5 million in the 1Q17, against
R$0.2 million in the 4Q16.
Thus, net operating expenses were R$296.1 million in the 1Q17, against net operating
revenues of R$23.7 million in the 4Q16.

1Q17 Results 3
In this manner, the Companys operating margin showed the following performance:

EBIT Margin
1Q17 4Q16 1Q16
7.8% 13.3% -15.7%

Adjusted EBITDA
Adjusted EBITDA is calculated from net income (loss), reversing income tax and social
contribution, financial result, depreciation, amortization and depletion, and equity in the results
of Associate, Joint Subsidiary and Subsidiary Companies, not including impairment of assets.
The adjusted EBITDA includes the proportional participation of 70% of Unigal and others joint
subsidiary companies.

EBITDA Breakdown
Consolidated (R$ thousand) 1Q17 4Q16 1Q16

Net (Loss) Income 108,318 (194,971) (151,377)

Income Tax / Social Contribution 58,855 418,323 (15,360)
Financial Result 54,581 87,053 (101,553)
Depreciation, Amortization 306,341 273,502 318,086

EBITDA - Instruction CVM - 527 528,095 583,907 49,796

Equity in the Results of Associate and Subsidiary

(37,080) (27,314) (51,845)
Companies

Joint Subsidiary Companies proportional EBITDA 41,754 27,973 45,597

Impairment of Assets - (350,449) 8,030

Adjusted EBITDA 532,769 234,117 51,578

Adjusted EBITDA was R$532.8 million in the 1Q17, the best result in 11 quarters, against
R$234.1 million in the 4Q16, mainly due to better performance in the Steel Unit, which
presented higher sales volume and better prices in the period.
For detailed information, see the Business Unit sections of this release.
Adjusted EBITDA margin in the 1Q17 was 22.7%, against 11.0% in the 4Q16, as shown below:

Adjusted EBITDA Margin

1Q17 4Q16 1Q16
22.7% 11.0% 2.5%

Financial Result
In the 1Q17, net financial expenses were R$54.6 million, against R$87.1 million in the 4Q16,
mainly due to exchange variation gains of R$55.6 million in the 1Q17, against losses of R$6.4
million in the 4Q16, in function of a 2.8% foreign exchange appreciation of the Real against the
Dollar in the 1Q17, against a 0.4% devaluation in the 4Q16. These effects were partially offset
by lower financial revenue.

1Q17 Results 4
The chart below summarizes the Financial Result:
Financial Result - Consolidated
Change
R$ thousand 1Q17 4Q16 1Q16
1Q17/4Q16

Net Currency Exchange Variation 55,617 (6,421) 346,957 -

Swap Transactions Market Cap. 1,299 (8,808) (129,051) -

Income and Inflationary Variation 102,626 128,249 56,180 -20%

Other Financial Income 56,525 72,148 50,032 -22%

Interest and Inflationary Variation over Financing and Taxes Payable in

(218,796) (219,021) (176,913) 0%
Installments

Other Financial Expenses (51,852) (53,200) (45,652) -3%

FINANCIAL RESULT (54,581) (87,053) 101,553 -37%

+ Appreciation / - Depreciation of Exchange Rate (R$/US$) 2.8% -0.4% 8.9% + 3.2 p.p.

Equity in the Results of Associate and Subsidiary Companies

In the 1Q17, equity in the results of associate and subsidiary companies was R$37.1 million,
against R$27.3 million in the 4Q16, mainly due to better the results of MRS Logstica and
Codeme.

Net Profit (Loss)

In the 1Q17, the Company accounted for a net profit of R$108.3 million, reverting the net loss of
R$195.0 million in the 4Q16, representing a recovery of R$303.3 million in this period.

Working Capital
In the 1Q17, working capital was R$2.6 billion, against R$2.5 billion in the 4Q16, mainly due
to higher steel and raw materials inventories (including purchased slabs), reflecting higher
prices, partially compensated by the increase in other current liabilities (Forfaiting facilities).
Although steel inventories have increased in Real, steel volume remained stable in comparison
with the previous quarter.

Investments (CAPEX)
In the 1Q17, CAPEX totaled R$23.4 million, 65.3% lower when compared with that in the
4Q16, which was R$67.4 million. Investments were spent with in sustaining CAPEX, with
approximately 77% applied to the Steel Unit, 11% applied to the Mining Unit, 9% applied to
the Capital Goods Unit and 3% applied to the Steel Processing Unit.
Indebtedness
On 03/31/17, consolidated gross debt was R$6.88 billion, stable when compared with that on
12/31/16, which was R$6.94 billion, a R$62.6 million decrease. In the 1Q17, it was a foreign
exchange appreciation of the Real against the Dollar of 2.8%, which directly positively affected
the debt portion in foreign currency, which corresponded to 25.0% of total debt on that date.
Debt composition by maturity was 8.9% in the short term and 91.1% in the long term.
Net consolidated debt on 03/31/17 was R$4.5 billion, against R$4.7 billion on 12/31/16. The
Net Debt/EBITDA ratio ended the 1Q17 at 3.9x, against 7.0x in the 4Q16.

1Q17 Results 5
 The following chart demonstrates the consolidated debt indexes:

Total Indebtedness by Index - Consolidated

31-Mar-17 31-Dec-16 Change 31-Mar-16 Change
R$ thousand %
Short Term Long Term TOTAL TOTAL Mar17/Dec16 TOTAL Mar17/Mar16

Local Currency 51,158 5,110,077 5,161,235 75% 5,162,822 0% 4,096,296 26%

TJLP 3,282 375,517 378,799 - 379,880 0% 380,136 0%
CDI 30,948 4,700,370 4,731,318 - 4,733,141 0% 3,583,170 32%
Others 16,928 34,190 51,118 - 49,801 3% 132,990 -62%
Foreign Currency* 558,397 1,159,682 1,718,079 25% 1,779,065 -3% 3,331,822 -48%
Gross Debt 609,555 6,269,759 6,879,314 100% 6,941,887 -0.9% 7,428,118 -7%
Cash and Cash Equivalents - - 2,415,637 - 2,257,454 7% 1,735,627 39%
Net Debt - - 4,463,677 - 4,684,433 -5% 5,692,491 -22%
(*)99.9% of total foreign currency is US dollars denominated

The graph below demonstrates the cash position and debt profile (principal only) in millions of
Real on 03/31/17:

Duration: R$: 51 months

US$: 51 months

2,416

239

1,073 1,074 1,074 1,073

2,177
199 199 199 199 796
745

564 149
406 137

73 875 875 875 875

93 647
608
14 548 15 333
0
78
14 16
Cash 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

Local Currency Foreing Currency

1Q17 Results 6
 Performance of the Business Units
Intercompany transactions are on arms-length basis (market prices and conditions) and sales
between Business Units are carried out as sales between independent parties.

Usiminas - Business Units

Mining Steel Steel Processing Capital Goods

Minerao Usiminas Ipatinga Mill Solues Usiminas Usiminas Mecnica

Cubato Mill
Unigal

Income Statement per Business Units - Non Audited - Quarterly

R$ million Mining Steel* Steel Processing Capital Goods Adjustment Consolidated

1Q17 4Q16 1Q17 4Q16 1Q17 4Q16 1Q17 4Q16 1Q17 4Q16 1Q17 4Q16

Net Revenue 108 79 2,219 1,959 567 480 83 106 (626) (504) 2,351 2,120

Domestic Market 108 79 1,978 1,797 567 480 82 105 (626) (504) 2,110 1,958

Exports - - 240 161 0 0 1 1 - - 241 162

COGS (53) (47) (1,798) (1,725) (512) (453) (82) (103) 575 467 (1,870) (1,861)

Gross Profit (Loss) 55 31 421 233 55 27 1 4 (51) (36) 481 259

Operating Income (Expenses) (42) 319 (218) (246) (26) (26) (11) (25) 1 2 (296) 24

EBIT 13 350 203 (13) 29 2 (10) (21) (50) (35) 185 283

Adjusted EBITDA 52 24 465 224 37 9 (4) (7) (16) (15) 533 234

Adj.EBITDA Margin 48% 30% 21% 11% 7% 2% -5% -7% 3% 3% 23% 11%
*Consolidated 70% of Unigal

I) M I N I N G

In the 1Q17, the iron ore quotation in the international market showed the highest quarterly
average since the 3Q14, reaching the price of R$85.64/t, having reached US$95.05/t on
02/21/17, the highest level since 08/07/14. Continued demand for steel by China (as a result of
the increase in domestic credit via federal stimulus), allied to higher profitability of Chinese mills
and the growing influence of the future markets on iron ore pricing, were the main factors
responsible for this impact on prices.
Generally speaking, the pricing reality in the last two quarters has injected a wave of optimism in
iron ore market players, having showed a return, albeit timid, of Chinese domestic production.
Additionally, some international high-cost producers have seen this as an opportunity to return to
the market. Also in the 1Q17, it is interesting to note the highest peak of iron ore inventories in
Chinese ports, where they surpassed the mark of 130 million tons.
For the rest of the year, the expectation of a price decline still prevails, mainly due to the start up
of new production capacity throughout this year.

1Q17 Results 7
Operational and Sales Performance - Mining
In the 1Q17, production volume was 681 thousand tons, against 646 thousand tons in the 4Q16.
Sales volume accounted for in the 1Q17 was 643 thousand tons, against 657 thousand tons in the
4Q16, basically destined to the Steel Unit.
Production and sales volumes are show in the chart below:

Iron Ore

Change
Thousand tons 1Q17 4Q16 1Q16
1Q17/4Q16
Production 681 646 701 5%
Sales - Third Parties - Domestic Market 28 69 16 -59%
Sales - Exports 0 0 344 -
Sales to Usiminas 615 588 614 5%
Total Sales 643 657 974 -2%

Comments on the Business Unit Results - Mining

Net revenue registered in the 1Q17 was R$108.3 million, against R$78.5 million in the 4Q16,
higher by 38.0%, due to a 33.7% increase in the iron ore PLATTS price adjusted for the period
of sales price formation of the Mining Unit (Fe 62%, CFR China) (US$82.5/t in the 1Q17, against
US$61.7/t in the 4Q16), partially offset by the foreign exchange appreciation of the Real against
the Dollar of 2.8% in the period.
In the 1Q17, cash cost per ton was R$61.8/t, against R$63.2/t in the 4Q16, a 2.2% decrease,
mainly due to lower own labor costs and third party services costs, partially offset by higher
electric energy and fuel costs. In the 1Q17, Cost of Goods Sold (COGS) was R$53.0 million,
against R$47.2 million in the 4Q16. COGS per ton was R$82.0/t, against R$71.2/t in the 4Q16, a
15.1% increase, mainly in function of the 4Q16 being impacted by the reversion of part of the
depletion of mining rights.
In the 1Q17, net operating expenses were R$42.5 million, against R$318.8 million in the 4Q16,
due to the reversion of asset impairment in the amount of R$357.7 million occurred in the 4Q16.
This effect did not occur in the 1Q17. Additionally, in the 1Q17, the result of the sale of surplus
electric energy was R$0.1 million, against R$2.3 million in the 4Q16.
Thus, Adjusted EBITDA was R$51.5 million in the 1Q17, against R$23.9 million in the 4Q16, a
recovery of 115.4%. Adjusted EBITDA margin was 47.6%, against 30.5% in the 4Q16, a growth of
1,710 basis points.

Investments (CAPEX)
Investments in the 1Q17 were R$2.6 million, against R$14.2 million in the 4Q16, applied 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

1Q17 Results 8
and So Paulo, and its core business is transporting, with integrated logistics, bulk cargo in
general, such as iron ore, finished steel products, cement, bauxite, agricultural products, pet
coke and containers.
MRS transported 40 million tons in the 1Q17, stable in comparison to the 4Q16 and nearly
higher than the volume transported in the same period of last year, highlighting the volume of
general cargo.

II) STEEL

Preliminary data from the World Steel Association indicates that crude steel production reached
264.4 million tons in the first two months of 2017, equivalent to a 5.8% increase over the
same period of the previous year. There was a production increase in most of the main
producing countries, where the greatest contribution came from China, accounting for a
volume of 128.8 million tons, a 5.8% volume increase over the same period in 2016.
Conditions remain challenging for steel. Weak global capital spending has made demand
recovery more difficult, nearly maintaining the scenario of excess global capacity unchanged.
Additionally, the increase in the cost of raw materials, as well as the close of important export
markets, such as the United States and Europe, have created even more adverse conditions to
the steel business environment.
In the Brazilian steel industry, according to data from the Instituto Ao Brasil (the National
Steel Distributors Institute), crude steel production in Brazil increased 9.5% in the first two
months of 2017 over the same period in 2016, with a highlight for flat steel production.
In the 1Q17, the Brazilian flat steel market consumed 2.5 million tons, with 87% of the volume
supplied by local plants and 13% by imports. The first signs of recovery of industrial activity
have already positively impacted the steel consumption. There was a 1.3% increase in
comparison with the previous quarter.
Domestic sales remained stable compared with the 4Q16, but advanced 5.5% over the 1Q16.
Imports also increased in the 1Q17 and totaled 311 thousand tons, a level not seen since the
3Q15. Signals of the industrial activitys recovery in the context of Real appreciation against
the Dollar and price adjustments of the local plants have opened up opportunities for imports.
The volume increased 10,4% over the 4Q16 and imports corresponded to 13% of apparent
consumption in this quarter, representing a 100 basis points increase over the 4Q16. China
remained as the main source of imports, with a 57% share.

Production - Ipatinga and Cubato Plants

In the 1Q17, crude steel production in the Ipatinga plant was 737 thousand, against 777
thousand in the 4Q16. In the 1Q17, rolled steel production in the Ipatinga and Cubato plants
totaled 965 thousand tons, stable in relation to the 4Q16, which was 999 thousand tons.

Production of Crude and Rolled Steel

Change
Thousand tons 1Q17 4Q16 1Q16
1Q17/4Q16

Total Crude Steel 737 777 794 -5%

Ipatinga Mill 737 777 777 -5%
Cubato Mill 0 0 17 -
Total Rolled Steel 965 999 880 -3%

1Q17 Results 9
Sales
In the 1Q17, sales volume totaled 930 thousand tons of steel, against 891 thousand tons in the
4Q16. Domestic market sales totaled 825 thousand tons in the 1Q17, stable in relation to those
in the 4Q16. Export sales volume was 105 thousand tons in the 1Q17, against 71 thousand tons
in the 4Q16, a 48% increase.
The Sales share in the domestic market was 89% and 11% in exports in the 1Q17.

959
903 899 891 930
145 71 105
145 115

758 784 814 821 825

1Q16 2Q16 3Q16 4Q16 1Q17

Domestic Market Exports

The main export destinations are shown below:

1Q17
Germany
2%1%
3% 3% 1% Argentina
3% United Kingdom
4% Mexico
5% 36% Switzerland
USA
8% Spain
China
Portugal
Canada
Belgium
35%

1Q17 Results 10
 Sales Volume Breakdown

Change
Thousand tons 1Q17 4Q16 1Q16
1Q17/4Q16

Total Sales 930 100% 891 100% 903 100% 4%

Heavy Plates 112 12% 140 16% 145 16% -20%
Hot Rolled 266 29% 246 28% 260 29% 8%
Cold Rolled 297 32% 275 31% 239 26% 8%
Galvanized 232 25% 216 24% 229 25% 7%
Slabs 23 2% 15 2% 30 3% 54%

Domestic Market 825 89% 821 92% 758 84% 1%

Heavy Plates 107 12% 134 15% 135 15% -20%
Hot Rolled 256 28% 235 26% 219 24% 9%
Cold Rolled 242 26% 252 28% 205 23% -4%
Galvanized 200 21% 192 22% 179 20% 4%
Slabs 20 2% 9 1% 20 2% 119%

Exports 105 11% 71 8% 145 16% 48%

Heavy Plates 5 1% 6 1% 10 1% -12%
Hot Rolled 10 1% 11 1% 40 4% -12%
Cold Rolled 54 6% 24 3% 34 4% 131%
Galvanized 32 3% 25 3% 51 6% 30%
Slabs 3 0% 6 1% 10 1% -44%

Comments on the Business Unit Results Steel

In the 1Q17, net revenue in the Steel Unit was R$2.2 billion, 13.3% higher than in the 4Q16,
which was R$2.0 billion, in function of better prices by 9.9% in the domestic market and by
10.9% in the export market, in addition to a 48% higher export volume.
In the 1Q17, cash cost per ton of rolled products was R$$1,614/t, against R$1,408/t in the
4Q16, a 14.6% increase comparing both periods, mainly due to higher costs in coal by 47.2%, in
iron ore by 14.5% and in energy and fuel by 13.1%.
Cost of Goods Sold COGS was R$1.80 billion in the 1Q17, against R$1.73 billion in the 4Q16.
COGS per ton was R$1,933/t in the 1Q17, stable in comparison to the 4Q16. In the 1Q17, there
was lower major repairs cost and lower inventory turnover impact.
Selling expenses were R$32.0 million in the 1Q17, 52.9% lower than in the 4Q16, which were
R$67.9 million, mainly due to lower provision for losses on doubtful accounts, which was R$1.0
million in the 1Q17, against R$34.2 million in the 4Q16.
General and administrative expenses (G&A) totaled R$71.5 million, against R$66.7 million in
the 4Q16, a 7.2% increase, mainly due to reversion of provision for bonus in the 4Q16.
Other operating expenses and income totaled R$114.3 million in the 1Q17, stable in relation to
the 4Q16, with mention of:
Higher negative result in the sale of surplus electric energy, which was R$22.8 million in
the 1Q17, against R$14.2 million in the 4Q16;
Higher provision for legal liabilities by R$34.9 million;
Lower fiscal credits by R$16.1 million in the 1Q17.

1Q17 Results 11
These effects were partially offset by:
Extraordinary event, non-recurring, referring to expenses for early termination of
supplier contract in the amount of R$70.7 million account for in the 4Q16. There was no
such event in the 1Q17;
Higher result of the Reintegra Program, which was R$4.5 million in the 1Q17, against
R$0.2 million in the 4Q16. It is worthy to mention that the tariff applied over export
revenues went from 0.1% in the year of 2016 to 2% in the year of 2017;
In this manner, net operating expenses totaled R$217.8 million in the 1Q17, against R$246.3
million in the 4Q16.
Thus, Adjusted EBITDA reached R$464.9 million in the 1Q17, against R$223.8 million in the
4Q16. Adjusted EBITDA margin was 21.0% in the 1Q17, against 11.4% in the 4Q16, an increase
of 950 basis points.

Investments (CAPEX)
In the 1Q17, investments totaled R$18.0 million, against R$47.8 million in the 4Q16, related to
sustaining CAPEX.

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, auto parts, civil construction, distribution, electro-electronics,
machinery and equipment and household appliances, among others.

In the 1Q17, sales in the Distribution, Services/Just-in-Time and Tubes segments were
responsible for 40%, 51% and 9% of total sales volume.

Comments on the Business Unit Results Steel Processing

In the 1Q17, net revenue was R$567.0 million, 18.0% higher than in the 4Q16, which was
R$480.3 million, due to higher sales and services volume by 11.5%, as well as higher average
prices in the period by 5.9%.
In the 1Q17, cost of goods sold was R$512.1 million, against R$452.9 million in the 4Q16, a
13.1% increase, due to higher sales volume and higher value-added products being sold in the
period.
Operating expenses were R$26.1 million in the 1Q17, stable in relation to those in the 4Q16,
which were R$25.9 million.
Thus, Adjusted EBITDA in the 1Q17 was R$36.9 million, against R$9.1 million in the 4Q16, an
increase of 303.5%. Adjusted EBITDA margin was 6.5% in the 1Q17, against 1.9% in the 4Q16,
an increase of 460 basis points.

1Q17 Results 12
 IV) CAPITAL GOODS

Usiminas Mecnica S.A.

Usiminas Mecnica is a Brazilian capital goods company dedicated to the fabrication and
assembly of metallic structures, shipbuilding and offshore platforms, oil and gas, industrial
assembly and equipment fabrication, foundry and railcar manufacture.
Main Contracts
In the 1Q17, the main contracts were destined to the oil and gas and mining industries.
Comments on the Business Unit Results Capital Goods
In the 1Q17, net revenue was R$82.7 million, 22.3% lower than in the 4Q16, which was
R$106.3 million, in function of the decrease in portfolio due to its stagnation of projects in the
infrastructure sectors in the country.
Gross profit was R$0.5 million in the 1Q17, against R$3.7 million in the 4Q16, an 86.0%
decrease, due to lower revenues obtained in all segments operated by Usiminas Mecnica.
Adjusted EBITDA in the 1Q17 was a negative R$4.2 million, against a negative R$7.5 million in
the 4Q16, as a result of the decrease in fixed costs in the period. Adjusted EBITDA margin in
the 1Q17 was a negative 5.0%, against a negative 7.0% in the 4Q16, better by 200 basis
points.

Events After the End of the Quarter

Annual Shareholders Meeting: The Shareholders are hereby called to meet on 04/27/17, at
first call, in the Annual Shareholders Meeting (Meeting) in order to deliberate on the following
matters:
(1) Appreciation of Managements accounts and analysis, discussion and vote on the financial
statements and annual management report for the fiscal year ending in 12/31/16; (2)
Settlement of the global budget for the Administrators compensation for the period until the
2017 Annual Shareholders Meeting; (3) To deliberate on the appointment of the Members of
the Board of Directors, effectives and alternates, who were appointed through the multiple
voting (Voto Mltiplo) system on the Annual Shareholders Meeting held on 04/28/16,
pursuant to the 3rd paragraph of article 141 of the Law # 6.404/76, for a term until the 2018
Annual Shareholders Meeting and appointment of the respective Chairman of the Board of
Directors; and, (4) Appointment of the members of the Fiscal Council (Conselho Fiscal),
effective and alternates, for a term until the 2018 Annual Shareholders Meeting, as well as
determination of their respective compensation.
The documents related to the Agenda are at the shareholders disposal in the Companys
headquarters and in the websites of CVM (www.cvm.gov.br), BM&FBOVESPA
(www.bmfbovespa.com.br) and the Company (www.usiminas.com).

Highlights

Approval of the Capital Reduction of MUSA: On 03/03/17, an Extraordinary General

Meeting of its subsidiary MINERAO USIMINAS S.A. ("MUSA") was held, in which its
shareholders unanimously approved the proposal for the reduction of MUSA's capital stock in
the amount of R$1,0 billion, as it was deemed excessive, and also approved, consequently, the
amendment in its Bylaws, so that its wording may reflect the aforementioned Capital
Reduction.
Once the procedures for the Capital Reduction have been completed, the corresponding
amounts for reduction of capital will be delivered to MUSAs shareholders proportionally to
their participation in the capital stock of MUSA, being the amount of R$700,0 million due to
Usiminas.

1Q17 Results 13
Usiminas Rating: On 03/10/17, as a result of measures taken by Usiminas in the last few
months, such as the capital increase of R$1.0 billion, renegotiation of its debt with national and
international creditors and the recent approval of the capital reduction of R$ 1 billion of MUSA,
the Rating Agency, Moodys International, raised Usiminas rating.
On a global scale, the rating went from Caa2 to Caa1, while on the national scale, the change
was from Caa2.br to B3.br; with this, Moodys recognizes the effectiveness of the actions taken
and understands that the Company reduced pressure in its short term liquidity. Moodys
affirmed that the ratings continue to reflect Usiminas solid position in the Brazilian flat steel
market and the measures adopted by the Company to adjust its operations to theweak
domestic market demand.

Quality Certification Minerao Usiminas (MUSA): MUSA is the first mining company in
the country and one of the pioneering companies in Brazil to obtain the recommendation for
ISSO 9001:2015 Certification, the new version of the norm referring to quality management.
The certification audit was conducted by Bureau Veritas Certification, a global benchmark in
the area.

New product development: After a strong investment cycle and support from its Research
and Development Center, the largest in Latin America, Usiminas launched several high
technology content products, exclusively and for the first time in the country. Only in 2016,
the company launched nine products and, this year, expects to present seven more new
products to the market.
Its DP 1200 grade, for example, is arriving on the market as the highest strength steel
produced in Brazil for the automotive industry. With it, structural reinforcement parts, such as
bumpers and door protection bars, can be manufactured with lower thicknesses and better
forming performance.
On the other hand, in the white goods and civil construction segments, the novelty is the
Electrogalvanized Chromatized Steel. This provides higher corrosion resistance for compressor
supports, stove backings, ladders and other components that do not demand painting.

Mercedes-Benz Environmental Responsibility Award: Usiminas was once again

recognized for its sustainability practices in the production process. On 03/30/17, Usiminas
was one of the winners of the 7th Mercedes-Benz Environmental Responsibility Award with its
project Junto e Misturado - Baia de Mistura (Together and Mixed Mixing Bay). The auto
manufacturer annually evaluates initiatives by its suppliers and the Ipatinga Plant was one of
the winners for results in recycling of waste, previous disposed of in an industrial dump, which
now are processed and utilized in replacement of iron ore and anthracite in one of the steel
production stages.

1Q17 Results 14
 Capital Markets

Usiminas Performance Summary - BM&FBOVESPA (USIM5)

Change Change
1Q17 4Q16 1Q16
1Q17/4Q16 1Q17/1Q16
Number of Deals 692,202 821,644 -16% 719,719 -4%
Daily Average 11,165 13,470 -17% 11,995 -7%
Traded - thousand shares 1,010,930 1,561,664 -35% 1,304,536 -23%
Daily Average 16,305 25,601 -36% 21,742 -25%
Financial Volume - R$ million 4,872 6,401 -24% 1,763 176%
Daily Average 79 105 -25% 29 171%
Maximum 5.62 4.83 16% 2.11 166%
Minimum 3.91 3.50 12% 0.85 360%
Closing 4.46 4.10 9% 1.81 146%
Market Capitalization - R$ million 5,589 5,138 9% 1,834 205%

Performance on the BM&FBOVESPA

Usiminas Common shares (USIM3) closed the 1Q17 quoted at R$8.38 and its Preferred share
(USIM5) at R$4.46. In the 1Q17, USIM3 and USIM5 appreciated 1.45% and 8.78%,
respectively. In the same period, the IBOVESPA index appreciated 7.90%.

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 03/31/17,
USNZY ADRs, which have higher liquidity, were quoted at US$1.37, presenting an appreciation
of 9.60% 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 03/31/17, XUSI closed quoted at 1.31,
appreciating 9.17% in the quarter. XUSIO shares closed quoted at 2.49, registering a
depreciation of 0.40% in the period.

1Q17 Results 15
 For further information:

INVESTOR RELATIONS DEPARTMENT

Cristina Morgan Cavalcanti cristina.morgan@usiminas.com 55 31 3499-8772

Leonardo Karam Rosa leonardo.rosa@usiminas.com 55 31 3499-8550

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

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

or access by mobile phone: m.usiminas.com/ri

1Q17 Conference Call Results - Date 04/20/2017

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: 1986379# - Portuguese Pincode for replay: 5370144# - 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.

1Q17 Results 16
 Balance Sheet - Assets - Consolidated | IFRS - R$ thousand
Assets 31-Mar-17 30-Dec-16 31-Mar-16

Current Assets 6,893,598 6,420,478 6,099,534

Cash and Cash Equivalents 2,415,637 2,257,454 1,735,627
Trade Accounts Receivable 1,173,118 1,179,212 1,289,168
Taxes Recoverable 291,519 238,600 317,430
Inventories 2,814,559 2,604,306 2,481,868
Advances to suppliers 6,617 7,226 10,574
Financial Instruments 68,652 44,669 78,040
Other Securities Receivables 123,496 89,011 186,827

Non-Current Assets 19,410,970 19,834,267 20,516,248

Long-Term Receivable 4,068,519 4,265,283 4,553,616
Deferred Income Tax & Social Contribution 3,040,718 3,120,368 3,322,746
Deposits at Law 667,712 660,229 610,238
Accounts Receiv. Affiliated Companies 3,623 3,842 4,302
Taxes Recoverable 96,074 164,242 87,722
Financial Instruments 748 100,670 342,097
Others 259,644 215,932 186,511
Investments 1,150,372 1,126,176 1,122,739
Property, Plant and Equipment 13,488,122 13,748,890 14,491,957
Intangible 703,957 693,918 347,936

Total Assets 26,304,568 26,254,745 26,615,782

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

Liabilities and Shareholders' Equity 31-Mar-17 31-Dec-16 31-Mar-16

Current Liabilities 2,458,976 1,752,244 4,884,036

Loans and Financing and Taxes Payable in Installments 609,555 76,237 2,683,255
Suppliers, Subcontractors and Freight 683,157 846,377 836,683
Wages and Social Charges 180,941 197,076 241,759
Taxes and Taxes Payables 123,035 65,985 128,740
Accounts Payable Forfaiting 606,752 356,970 706,873
Financial Instruments 71,225 48,577 131,505
Dividends Payable 22,003 22,001 140
Customers Advances 55,094 35,806 59,002
Others 107,214 103,215 96,079

Long-Term Liabilities 8,445,852 9,310,867 6,920,481

Loans and Financing and Taxes Payable in Installments 6,269,759 6,865,650 4,744,863
Actuarial Liability 1,139,376 1,342,727 1,158,741
Provision for Legal Liabilities 665,078 607,863 572,214
Financial Instruments - 102,413 78,248
Environmental Protection Provision 146,721 143,042 130,913
Others 224,918 249,172 235,502

Shareholders' Equity 15,399,740 15,191,634 14,811,265

Capital 13,200,295 13,200,295 12,150,000
Reserves & Revenues from Fiscal Year 524,131 335,445 1,074,987
Non-controlling shareholders participation 1,675,314 1,655,894 1,586,278

Total Liabilities and Shareholders' Equity 26,304,568 26,254,745 26,615,782

1Q17 Results 17
 Income Statement - Consolidated | IFRS

Change
R$ thousand 1Q17 4Q16 1Q17
1Q17/4Q16
Net Revenues 2,350,838 2,120,144 2,040,890 11%
Domestic Market 2,109,663 1,957,768 1,727,749 8%
Exports 241,175 162,376 313,141 49%
COGS (1,870,099) (1,860,736) (2,081,470) 1%
Gross Profit 480,739 259,408 (40,580) 85%
Gross Margin 20.4% 12.2% -2.0% + 8.2 p.p.
Operating Income (Expenses) (296,065) 23,683 (279,555) -
Selling Expenses (52,193) (85,302) (79,690) -39%
Provision for Doubtful Accounts (3,923) (33,319) (16,910) -88%
Other Selling Expenses (48,270) (51,983) (62,780) -7%
General and Administrative (93,141) (90,912) (89,744) 2%
Other Operating Income (expenses) (150,731) 199,897 (110,121) -
Provision for Legal Liabilities (49,911) (13,804) (12,738) 262%
Result of the Non Operating Asset Sale/Write-Off 1,408 393 71,972 -
Result of the Sale of the Surplus Electric Energy (22,701) (11,883) (40,797) 91%
Temporary Equipments Shutdown (includes depreciation) (105,241) (105,404) (118,751) 0%
Impairment of Assets - 350,449 (8,030) -
Termination of a Supplier Contract - - - -
Other Operating Income (Expenses), Net 21,189 50,695 (2,021) -58%
EBIT 184,674 283,091 (320,135) -
EBIT Margin 7.8% 13.3% -15.7% - 5.5 p.p.
Financial Result (54,581) (87,053) 101,553 -
Financial Income 159,151 200,397 106,212 -21%
Financial Expenses (269,349) (281,029) (351,616) -4%
Equity in the Results of Associate and Subsidiary Companies 37,080 27,314 51,845 36%
Operating Profit (Loss) 167,173 223,352 (166,737) -
Income Tax / Social Contribution (58,855) (418,323) 15,360 -
Net Income (Loss) 108,318 (194,971) (151,377) -156%
Net Margin 4.6% -9.3% -7.4% + 13.9 p.p.
Attributable:
Shareholders 88,901 (273,609) (152,770) -
Minority Shareholders 19,417 78,638 1,393 -75%
EBITDA (Instruction CVM 527) 528,095 583,907 49,796 -10%
EBITDA Margin (Instruction CVM 527) 22.5% 27.5% 2.4% - 5.0 p.p.
Adjusted EBITDA - Joint Subsidiary Companies proportional EBITDA 532,769 234,117 51,578 128%
Adjusted EBITDA Margin 22.7% 11.0% 2.5% + 11.7 p.p.
Depreciation and Amortization 306,341 273,502 318,086 12%

1Q17 Results 18
 Cash Flow - Consolidated | IFRS
R$ thousand 1Q17 4Q16 1Q16
Operating Activities Cash Flow
Net Income (Loss) in the Period 108,318 (194,971) (151,377)
Financial Expenses and Monetary Var. / Net Exchge Var. 4,178 66,726 (54,411)
Interest Expenses 192,519 238,744 70,502
Depreciation and Amortization 306,341 273,502 318,086
Losses/(gains) on Sale of Property, Plant and Equipment (1,408) 26,411 (1,972)
Equity in the Results of Subsidiaries/Associated Companies (37,080) (27,314) (51,845)
Impairment of Assets - (350,449) 8,030
Difered Income Tax and Social Contribution 30,605 412,660 (20,441)
Constitution (reversal) of Provisions 73,428 31,613 2,572
Actuarial Gains and losses 7,273 (514) (350)
Stock Option Plan 295 503 1,209
Total 684,469 476,911 120,003

(Increase)/Decrease of Assets
Accounts Receivables Customer (85,924) 127,544 127,563
Inventories (253,094) (380,518) 288,733
Recovery of Taxes 2,125 (32,188) 51,389
Judicial Deposits (16,947) (23,829) (12,844)
Accounts Receiv. Affiliated Companies 219 262 110
Others 25,957 89,236 (32,793)
Total (327,664) (219,493) 422,158

Increase /(Decrease) of Liabilities

Suppliers, Contractors and Freights (163,220) 249,626 16,112
Amounts Owed to Affiliated Companies (23,086) 5,021 (24,262)
Customers Advances 19,288 (17,657) 18,203
Tax Payable 57,850 (46,680) 38,016
Securities Payable Forfaiting 249,782 (252,356) (184,626)
Actuarial Liability Payments (59,582) (55,807) (51,384)
Others (3,782) (18,562) (137,779)
Total 77,250 (136,415) (325,720)

Cash Generated from Operating Activities 434,055 121,003 216,441

Interest Paid (234,033) (245,421) (240,115)

Income Tax and Social Contribution (14,760) (2,375) (4,135)

Net Cash Generated from Operating Activities 185,262 (126,793) (27,809)

Investments activities cash flow

Marketable Securities 1,025,604 274,355 111,194
Amount Received on Disposal of Investments - - -
Amount Paid on the Acquisition of Investments - - -
Fixed Asset Acquisition (22,674) (74,799) (64,859)
Fixed Asset Sale Receipt 1,693 (52,711) 2,364
Additions to / Payments of Intangible Assets - - -
Dividends Received 1,274 93,477 855
Purchase of Software (683) (3,430) (4,576)
Net Cash Employed on Investments Activities 1,005,214 236,892 44,978

Financial Activities Cash Flow

Assigned Credits - - 24,825
Settled Credits assignments - - (87,487)
Inflow of Loans, Financing and Debentures - - -
Payment of Loans, Financ. & Debent. (4,892) 80,586 (90,104)
Shares Issued / Capital Increase - - -
Payment of Taxes Installments (335) (329) (552)
Swap Operations Liquidations (2,525) 1 (30,723)
Dividends and Interest on Capital - (1) (2)
Net Cash Generated from (Employed on) Financial Activities (7,752) 80,257 (184,043)
- - -
Exchange Variation on Cash and Cash Equivalents 1,063 1,664 (10,762)

Net Increase (Decrease) of Cash and Cash Equivalents 1,183,787 192,020 (177,636)

Cash and Cash Equivalents at the Beginning of the Period 719,870 527,850 800,272
Cash and Cash Equivalents at the End of The Period 1,903,657 719,870 622,636

RECONCILIATION WITH BALANCE SHEET

Cash and Cash Equivalents at the Beginning of the Period 719,870 527,850 800,272
Marketable Securities at the Beginning of the Period 1,537,584 1,811,939 1,224,185
Cash and Cash Equivalents at the Beginning of the Period 2,257,454 2,339,789 2,024,457
Net Increase (Decrease) of Cash and Cash Equivalentes 1,183,787 192,020 (177,636)
Net Increase (Decrease) of Marketable Securities (1,025,604) (274,355) (111,194)

Cash and Cash Equivalents at the End of the Period 1,903,657 719,870 622,636
Marketable Securities at the End of the Period 511,980 1,537,584 1,112,991
Cash and Cash Equivalents at the End of the Period 2,415,637 2,257,454 1,735,627

1Q17 Results 19