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					     Leonardo Horta
  Investor Relations Director




BRAZIL DAY 2003
    November 17th, 2003
          New York
Goal

                                  Share price
       Increase Total Shareholder Return
        Dividend
                               appreciation




                    Board of
                    Directors




                      CST’s
                   organization
                                                2
Dividends + Growth
• Investment Capacity aligned with dividend

                                                                      (US$ MM)


                                66

                                                    Dividends: US$ 582 MM

                                                    Investments: US$ 1,911 MM



                         61
                               493
           59                          34              78     23
                 113
                                                                                108
                                                                      40
                        232
          171                         184                     197
                                                      165
                 138                                                  115       109
    49                                        58

   1993   1994   1995   1996   1997   1998   1999    2000    2001    2002       YTD

                                                                                      3
Growth Strategy

         Increase Total Shareholder Return




                      Board of
                      Directors

                      Growth
                      Strategy




                       CST’s
                    organization
                                             4
Strategy support

          Increase Total Shareholder Return




                       Board of
                       Directors

                        Growth
                        Strategy
                 Commercial Initiatives

                 Operational Excellence

                   Capital Structure

                Knowledge management


                         CST’s
                      organization
                                              5
Cutting-edge


                   Higher Value Added Steel
                        53% of revenues


                                                       Expansion
                                        Optimization                               Sales   (thousand tons)
                   CC # 2                                                                            313
                                 HSM
                   RH                                                                       261
  CC # 1
  IR-UT                                                                           201
                                                              Hot coils

                                                                           80
   SK + Killed
 (Cont.Casting.)              CONTINUOUS CASTING


                                                              API         4Q02   1Q03      2Q03    3Q03

 Capped + Rimmed

                                                             RH



 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006




                                                                                                             6
Higher Value Added Mix
• Differentiated relationship with customers




  Product Performance   Reliability        Services




    Prompt response      Volume          Predictability


                                                          7
Higher Value Added Mix
  • Steel Slab Prices (US$/t)


                                                                       238    244
                                                         235    229                 237
                                                  215

Average                            191
        174    175   174                  168
172                          164
                                   154




      1Q01    2Q01   3Q01   4Q01   1Q02   2Q02   3Q02   4Q02   1Q03   2Q03   3Q03




                                                                                          8
Recognition
• Preferential supplier of quality semi-finished steel
  focused on future demand


              Consolidate its positioning at the base of the
              value chain



              Focus on the customer’s core business
              Detailed knowledge of customers’ markets




              Customization turned into customer loyalty


                                                               9
Strategy support

          Increase Total Shareholder Return




                       Board of
                       Directors

                        Growth
                        Strategy
                 Commercial Initiatives

                 Operational Excellence

                   Capital Structure

                Knowledge management


                         CST’s
                      organization
                                              10
Asset Maximization
Asset longevity and performance sustainability
 • Blast Furnace 1                        • Blast Furnace 2

     – In operation since 1983                – World Benchmark

     – 1st in productivity in the world       – 5 years of operation

     – Outstanding operating                  – Total Pig Iron Production of
       performance allowed                      6.7 Mt
       revamping to be postponed
       from 2003 to 2008

     – More than 64 million tons
       produced
       (largest volume produced by a
       single blast furnace)




                                                                               11
Strategy support

          Increase Total Shareholder Return




                       Board of
                       Directors

                        Growth
                        Strategy
                 Commercial Initiatives

                 Operational Excellence

                   Capital Structure

                Knowledge management


                         CST’s
                      organization
                                              12
Capital Structure
 • Cash Generation


                               CAPEX
                     New Investments
                      • 70% DEBT
                      • 30% EQUITY                  COMPATIBLE FREE
                                                      CASH FLOW

                     TAX CREDITS
  CONSISTENT
                      • INCOME TAX / CSLL          LT Debt Amortization
   EBITDA             • ICMS
                      • EXCISE TAX

                                                        Dividends
                     ASSET MANAGEMENT
                      • Working Capital
                      • Depreciation
                      • Useful Life Optimization
                      • Maintenance Policy
                      • Investment Payback




                                                                          13
Capital Structure
                 Net Debt / EBITDA                                        Gearing Ratio- %
                                                                                       (US GAAP)
                                            (time – x)
  9,0                                                           43
                              Brazilian Steel Industry                    44                     41
                 7,1                                                                  38
                              CST
  7,9                                                                                                         31
                               4,8         4,9
                       3,6                                                                                          22
                 5,5
                               4,6
 Source: Fitch
 Source: CST           2,2                2,5
                                                         1,4
 1998        1999      2000   2001        2002       3T03      1998     1999       2000        2001       2002     3T03
                                                                 Note: - Gearing : Net Debt / Shareholders’
                                                                 equity




             70%               30%
             Debt             Equity
                                             New investments – Enhance Capital Structure




                                                                                                                          14
Capital Structure
 • Indebtedness

                       Net Debt
                      (US$ MM)
         683                                   698
                           670                                             LT Maturity
        126               110                 143               Due Date of Long Term Debt
              18%                                   21%
                                16%                              Position on Sep/2003 – US$ million

        123               121                 113                        2004 *                 35
              18%               18%                 16%
                                                                         2005                  112
                                                                         2006                   80

        434               439                 442                   2007 a 2014                215
                                                                      TOTAL                    442
              64%               66%                 63%
                                                                (*) From October to December

      Mar/31/03        Jun/30/03            Sep/30/03
  Long Term    Current Portion of LT Debt     Working Capital


                                                                                                      15
Strategy support

          Increase Total Shareholder Return




                       Board of
                       Directors

                        Growth
                        Strategy
                 Commercial Initiatives

                 Operational Excellence

                   Capital Structure

                Knowledge management


                         CST’s
                      organization
                                              16
Knowledge management




                TI      Processes
   Learning                            Global
 Organization                       Benchmarking
                     People




                                                   17
People



         High School
                                                                                                      180
                                                                                            162
             6%
                                       1st in Brazil
                                                           2007: 76%              128
                                                           BSC’s Goal
                              2nd in Brazil
                               1st in the                                92
                College
                                Industry               2003: 73%
   MBA           35%
   56%                        3rd in          2002: 73%
                              Brazil
                                                                         R$ 7      R$ 4      R$ 8     R$ 11
                                        2001: 71%                       million   million   million   million



                                  1999: 54%                             1999      2000      2001      2002
             Graduate                                                    Training hours / employee / year
                3%
                                     Employee
    Schooling                    Satisfaction Survey                              Training

                          16.5 Years with CST (average)
                                                                                                                18
Community Commitment

         Increase Total Shareholder Return




                      Board of
                      Directors

                       Growth
                       Strategy
                Commercial Initiatives

                Operational Excellence

                  Capital Structure

               Knowledge management


                  CST’s organization
                 Social Responsibility
                                             19
Community Commitment
Sustainable Development
             Investment on Equipment                                                       Electric Energy Generation
                                                                      Accum.
     US$ milhões                                           473         481
                                                461                               MW
                                        446                                                                          210              210
                                427                                                                                            197           203
                        386                                                                                   182
          354    366
    342
                                                                                                       149
                                                                                  138           136
                                                                                         120




                                                                                  1994   1995   1996   1997   1998   1999     2000    2001   2002
   1994   1995   1996   1997    1998    1999    2000       2001        2002




                  Water Consumption                                                             Energy consumption
    5       5      5      5                                                                      21
                                   5                   m3 / t. placas                    21                                 Gigajoule / t aço bruto

                                           4                                                                                    20
                                                       4          4           4   20


                                                                                                                                              19
                                                                                                       19             19
                                                                                                                                       19
                                                                                                               18




   1994   1995   1996    1997    1998    1999     2000       2001        2002     1994   1995   1996   1997   1998   1999      2000   2001   2002

                                                                                                                                                      20
Outlook


            Increase Total
  Increase Total Shareholder Return
           Shareholder Return
                                                  Market demand
                                                   larger than
                                                     capacity
                  Board of
                  Directors           Competitive
                                       Expansion                  Operational
               Board of                                           Excellence
                                      (7.5 million tons)
               Directors
               Growth Strategy


               Commercial Actions                      Capital
               Growth                                 Structure
               Industrial Actions
               Strategy
                Capital Structure



             Knowledge management

                                       Positive Convergence
             CST´s Organization

           Social Responsibility




                                                                                21

				
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posted:12/11/2011
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