Sustainability Report

Base-year 2017

MESSAGE FROM THE CEO

A year to remember


It is our pleasure to share with you this comprehensive report on Usiminas operations for 2017 with you. Our purpose is to clearly show you our accomplishments in the extremely complex scenario we have been exposed to. After a critical phase, we have worked in order to obtain our current results which have enabled us to make consistent plans for the future of our company.

We have accomplished many important things in all segments in which we operate, including the consolidation of a positive EBITDA of BRL 2.2 billion, the increase in the value of our shares, the reopening of production plants for operation, the creation of jobs, and important work in health, education and environmental areas.

Led by our board of executive officers and the Group of 10, we leveraged the integrated use of resources, adopted strong strategies and improved our corporate governance practices, as well as reviewed our rules and internal procedures.





As to our external work, after we have reached excellence in managing healthcare structures in the cities of Ipatinga and Itabira, State of Minas Gerais, through Fundação Francisco Xavier, our social institution, we took on management of Hospital de Cubatão (in the State of São Paulo), in which we will invest up to BRL 9 million.

Our accomplishments make us proud and reflect the determination of our team. Last, but not least, I must mention our program “Caminhos do Vale,” which is a program to restore rural roads using slag from our steel production and to recover headwaters. More than 10 cities adhered to our program in 2017 - 36 cities are currently part of the program - which has been granted the international Steelie Award by the World Steel Association under Sustainability Excellence category.

We have faced many challenges and reached many accomplishments thanks to our teams' dedication, ability and the power to overcome obstacles of our team. I also would like to show our appreciation for the support from our shareholders, clients, suppliers and communities, which maintain and justify our existence. If many believe that 2017 was a year to forget, we believe that 2017 was a year to remember.

Hope you enjoy your reading.

Sergio Leite de Andrade - CEO

Our Products And Markets

We are continuously improving our customer service in order to expand our business opportunities. For this reason, we provide a distinguished and technological line of products.

The integration of our products and services offers unique and competitive solutions to several key-economy market segments, such as:

Business Units

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Usiminas

A Usiminas has two steel mills, in Ipatinga, in the Vale do Aço (MG) region, and in Cubatão in the Baixada Santista (SP) region. The integration of the mills allows us to offer the market a diversified portfolio of flat steels, in particular products of high technological content. The Ipatinga plant also includes Unigal which makes hot dip galvanized steel. Find out more at usiminas.com.

Mineração Usiminas

The iron ore mines produce pellet feed, sinter feed and granulates for Usiminas’ own use and for sale at home and abroad. Investments in the production line have led to gains in scale and quality. Find out more at usiminas.com/mineracao.

Soluções Usiminas

A modern steel processing infrastructure transforms Usiminas products into rolls, blanks, pipes, welded assemblies, profiles, structures, metal disks, etc. These parts are made to order for the market and delivered to customers through an efficient logistics system. Find out more at usiminas.com/solucoes.

Usiminas Mecânica

Manufacturer of capital goods for heavy industry, each of its projects bears the stamp of quality, technical rigor and credibility. It operates in the segments of industrial equipment, assemblies, railcars and foundry castings, bridges, structures and blanks. Find out more at usiminas.com/mecanica.

People

Usiminas values its employees and considers them its active agents who are committed to productivity and quality. We believe we need qualified and motivated people in order to build positive results. After all, our people are responsible for production, sales and delivery, for example. Investments in professional training and recycling prove the ongoing commitment to the qualification and development of its team.

Professional Training and Development

PROFESSIONAL TRAINING AND DEVELOPMENT


In order to have highly qualified leaders who may improve our results and permanently outperform them, we have invested in a cutting-edge program applicable to all of our leaders. Our Leadership Path program was offered to 382 leaders, including Vice-presidents, Directors, General Managers, Managers and Coordinators. In a partnership with Fundação Dom Cabral (FDC), these leaders had the opportunity to discuss relevant matters for their current and future work.

Employee Board

Bord of employees based on age

Number of employees
Under 30 2.699
Between 30 and 50 8.937
Above 50 1.206

Bord of employees based on gender

Employees gender
Men 12.097
Women 745

Yearly average hours of training per employee and work category

Training hours by employee level

Employee Level
Directors/General-Managers 747
Managers 14.702
Graduates 50.074
Undergraduates 156.181
Operational 596.849
Administrative 6.670
Total 825.222

Cases

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GARIMPANDO OPORTUNIDADES
(DIG OPPORTUNITIES PROGRAM)

GRUPO DOS 10
(GROUP OF 10)

Health and Safety

More than a guideline, security is a value for Usiminas. The company develops a wide range of actions aimed at creating a safety culture in its units, while preserving the well-being of its employees. Usiminas also offers to its employees programs and benefits related to the prevention of diseases and health treatments.

In addition to training required by law and regulation, we have a strategic plan for long-term improvement and our own tools to promote permanent awareness of our own and outsourced employees, such as the Safe Time - a program in which leaders go through our operating areas in order to encourage safe behavior - and the Golden Rules - which refer to the rules to be followed at greater risks tasks, including the Right of Refusal, which ensures employees that they can interrupt any activities whose risks are not under control. In 2017, Usiminas has registered a 0,44 accident frequency rate.

CORPORATE SOCIAL RESPONSABILITY

Usisaúde is the health plan operator that serves Usiminas employees, their families and the regions where the company is located. To offer differentiated health plans, with quality assistance, while remaining competitive and sustainable, Usisaúde innovates in services, expansion of its various communication channels and growth strategies. In recent years, the operator has restructured areas, hired personnel, implemented new technologies, guidelines and processes, expanded access to services and gained new accesses, mainly in the market portfolio.

Cases

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CENTRO DE SENSIBILIZAÇÃO DA SEGURANÇA
(SAFETY AWARENESS CENTER)

1ª ONCOLOGIA PEDIÁTRICA DO LESTE DE MINAS
(PEDIATRIC ONCOLOGY CENTER)

Community Relations

The relationship with the communities where it operates is a constant focus of Usiminas. The company invests in the development of the regions through its own projects or partnerships with non-governmental organizations and local governments. In 2017, Instituto Cultural Usiminas invested R$ 6,3 million in different projects. The company's sponsorship policy, planned and executed by the Institute, favors projects that promote inclusion, training and human development.

In addition, Usiminas works with the communities through the Fundação São Francisco Xavier, a philanthropic institution under private law, recognized by the Ministry of Social Security as a Benefit Entity for Social Assistance. Currently, it is composed of five units: the Hospital Márcio Cunha, the São Francisco Xavier School, the Usisaúde plan operator, the Integrated Dentistry Center and the Occupational Health and Safety, Occupational Health and Environment Service. The Foundation is also responsible for the management of the Carlos Chagas Municipal Hospital, in Itabira (MG), and the Cubatão Municipal Hospital, in Baixada Santista (SP).

Sponsorship to Social,
Cultural and Sports

programs

Usiminas uses specific laws to support and fund initiatives in Baixada Santista,
Vale do Aço and in the Minas Gerais State Middle West.

Cases

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AVENTURA NO VIVEIRO
(TREE NURSERY ADVENTURE)

HOSPITAL DE CUBATÃO
(CUBATÃO HOSPITAL)

Environment

We are committed to continuously improve our environmental performance, rationally use natural resources, and manage the impact of our operations to the environment. We believe that innovation and sustainability are essential to ensure that we continue to do business and stay competitive. From this perspective, we make investments to find solutions so that our industrial operations are environmentally sustainable, as well as take actions to pursue social equity and improve the quality of life of our surrounding communities.

We have a modern Environmental Control System, which was implemented in 1996 when we became the first steel company in Brazil and the second in the world to be granted the ISO 14001 certification, and which allows us to effectively manage the impacts of our operations and continuously improve our procedures.

The environmental certificates and green seals we have been granted the throughout our history, such as RoHS and ELV European directives, which are world references, prove and reaffirm our commitment to economic development in harmony with the environment.

R$ 91
Million

Was Usiminas' investment in engineering, maintenance and process
improvement, education and resource management aimed at preventing and
minimize the environmental impacts of the company.

Cases

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FLOTAÇÃO
(NOBLE SUBSTANCE FOR WASTES)

AGREGADO SIDERÚRGICO
(STEEL AGGREGATE MULTIFUNCTIONAL WEALTH)

Innovation

Innovation is in the Usiminas' DNA. Since its foundation, the company has in the technological value of its products a market differential. Usiminas has a Research & Development (R&D) Center in Ipatinga which focuses on the generation, control and application of scientific and technological knowledge that represent competitive advantages to us.

The company applies such knowledge especially in the following activities: improvement of industrial procedures, cost reduction, development of new products, steel application engineering, and environment protection.

Seven new products added
to the catalog

Click here to see the description of the products developed in 2017 and that are now part of Usiminas’ product portfolio.

Read more

Cases

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AVANÇO PARA A INDÚSTRIA AUTOMOTIVA
(AUTOMOTIVE INDUSTRY)

UTILIZAÇÃO DE PELLET FEED NA SINTETIZAÇÃO
(USE OF PELLET FEED IN SINTERING)

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