The Management Team of Usiminas

Oct. 7, 2016

Nippon Steel & Sumitomo Metal Corporation

Usinas Siderúrgicas de Minas Gerais S.A. – Usiminas (“Usiminas”), an equity method affiliated company in Brazil of Nippon Steel & Sumitomo Metal Corporation (“NSSMC”), held a meeting of the Board of Directors on May 25, 2016 (local time), and approved the election of the members of the Board of Officers (the “BoO”) including the new CEO, Mr. Sergio Leite de Andrade.

At the Board of Directors meeting above, the election of the members of the BoO including the CEO (the “Election”) was made without prior consent of NSSMC.  NSSMC believes that this is clearly in violation of the Shareholders’ Agreement of Usiminas, which requires the prior consensus between NSSMC and the Ternium group for the election of the CEO and other members of the BoO.

NSSMC subsequently filed a lawsuit with the judiciary branch of Belo Horizonte to suspend the effects of the Election.

Pursuant to the Material Fact published by Usiminas and as reported by the media that followed such disclosure to the market, on October 5, 2016 (local time), the Court of Appeals of Minas Gerais accepted the interlocutory appeal filed by NSSMC to suspend the effects of the illegal Election, determining the immediate reinstatement of Mr. Romel Erwin de Souza to the position of CEO of Usiminas (the “Decision by the Court”).

NSSMC believes that this Decision by the Court, which supports the argument made by NSSMC, is appropriate.

Upon this Decision by the Court, NSSMC understands that Mr. Romel Erwin de Souza will promptly be reinstated as the CEO of Usiminas.

After the completion of reinforcement of its capital through the capital increase in the amount of 1 billion reais and debt restructuring with major banks, Usiminas has been actively taking measures to improve its financial strength and profitability. NSSMC will continue to be committed to support Usiminas under the leadership of Mr. Romel Erwin de Souza so that Usiminas will be able to achieve a turnaround.


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