Leonardo Horta

Investor Relations Director

BRAZIL DAY 2003November 17th, 2003

New York

2

Increase Total Shareholder ReturnIncrease Total Shareholder Return

Goal

Board of Directors

CST’s organization

Share price Share price appreciationappreciationDividendDividend

3

49

171

59

138

113

232

61 493

66

184

34

58

165

78

197

23

115

40

109

108

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 YTD

Dividends: US$ 582 MM

Investments: US$ 1,911 MM

49

171

59

138

113

232

61 493

66

184

34

58

165

78

197

23

115

40

109

108

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 YTD

Dividends: US$ 582 MM

Investments: US$ 1,911 MM

Dividends + Growth

• Investment Capacity aligned with dividend

(US$ MM)

4

Growth Strategy

Growth Strategy

Board of Directors

CST’s organization

Increase Total Shareholder ReturnIncrease Total Shareholder Return

5

Growth Strategy

Board of Directors

CST’s organization

Increase Total Shareholder ReturnIncrease Total Shareholder Return

Strategy support

Commercial Initiatives

Operational Excellence

Capital Structure

Knowledge management

6

Cutting-edge

Higher Value Added Steel

53% of revenues

CC # 1IR-UT

CC # 2RH

CONTINUOUS CASTING

RH

API

Capped + Rimmed

SK + Killed (Cont.Casting.)

HSM

Expansion

Optimization

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

Hot coils

Sales (thousand tons)

80

201

261

313

4Q02 1Q03 2Q03 3Q03

80

201

261

313

4Q02 1Q03 2Q03 3Q03

7

Higher Value Added Mix

• Differentiated relationship with customers

Product Product PerformancePerformance

VolumeVolume

ReliabilityReliability

Prompt responsePrompt response PredictabilityPredictability

ServicesServices

8

Higher Value Added Mix

• Steel Slab Prices (US$/t)

174 175 174164

154168

215235 229

238 244

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

Average172

191

237

9

Recognition

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

Customization turned into customer Customization turned into customer loyaltyloyalty

Consolidate its positioning at the Consolidate its positioning at the basebase of of the value chainthe value chain

Focus on the customerFocus on the customer’s’s core business core businessDetailed knowledge of customersDetailed knowledge of customers’’ market marketss

10

Strategy support

Growth Strategy

Board of Directors

CST’s organization

Increase Total Shareholder ReturnIncrease Total Shareholder Return

Commercial Initiatives

Operational Excellence

Capital Structure

Knowledge management

11

Asset Maximization Asset longevity and performance sustainability

• Blast Furnace 1

– In operation since 1983

– 1st in productivity in the world

– Outstanding operating performance allowed revamping to be postponed from 2003 to 2008

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

• Blast Furnace 2

– World Benchmark

– 5 years of operation

– Total Pig Iron Production of 6.7 Mt

12

Strategy support

Growth Strategy

Board of Directors

CST’s organization

Increase Total Shareholder ReturnIncrease Total Shareholder Return

Commercial Initiatives

Operational Excellence

Capital Structure

Knowledge management

13

ASSET MANAGEMENT•Working Capital

•Depreciation

•Useful Life Optimization

•Maintenance Policy

• Investment Payback

Capital Structure

• Cash Generation

CONSISTENT

EBITDA

TAX CREDITS• INCOME TAX / CSLL

• ICMS

• EXCISE TAX

COMPATIBLE FREE CASH FLOW

LT Debt Amortization

Dividends

CAPEX

New Investments •70% DEBT

•30% EQUITY

14

Capital Structure

Note: - Gearing : Net Debt / Shareholders’ equity

Source: FitchSource: CSTSource: FitchSource: CST

(time – x)

New investments – Enhance Capital New investments – Enhance Capital StructureStructure

Debt Equity70% 30%

43 4438

41

31

22

1998 1999 2000 2001 2002 3T03

43 4438

41

31

22

1998 1999 2000 2001 2002 3T03

1,42,5

4,8

2,2

7,1

9,0

4,97,9

5,5 3,64,6

1998 1999 2000 2001 2002 3T03

Brazilian Steel Industry

CST

Gearing Ratio- % (US GAAP)

Net Debt / EBITDA

15

434

123

126

439

121

110

442

113

143

Mar/ 31/ 03 Jun/ 30/ 03 Sep/ 30/ 03

Long Term Current Portion of LT Debt Working Capital

698670

66%

18%

16%

Net Debt (US$ MM)

LT Maturity

63%

16%

21%

Capital Structure

• Indebtedness

Due Date of Long Term DebtPosition on Sep/2003 – US$ million

2004 * 35

2005 112

2006 80

2007 a 2014 215

TOTALTOTAL 442442(*) From October to December

683

64%

18%

18%

16

Strategy support

Growth Strategy

Board of Directors

CST’s organization

Increase Total Shareholder ReturnIncrease Total Shareholder Return

Commercial Initiatives

Operational Excellence

Capital Structure

Knowledge management

17

Knowledge management

GlobalGlobal BenchmarkingBenchmarking

Learning Learning OrganizatioOrganizatio

nn

TI Processes

People

18

People

16.5 Years with CST (average)16.5 Years with CST (average)

SchoolingSchooling TrainingTraining

92

128

162180

1999 2000 2001 2002

Training hours / employee / year

92

128

162180

1999 2000 2001 2002

Training hours / employee / year

R$ 4 millionR$ 4

millionR$ 7

millionR$ 7

millionR$ 8

millionR$ 8

millionR$ 11 millionR$ 11 million

Employee Employee Satisfaction Satisfaction

SurveySurvey

1999: 54%

2007: 76%BSC’s Goal

3rd in Brazil

2nd in Brazil1st in the Industry

1st in Brazil

2001: 71%

2002: 73%

2003: 73%

19Social Responsibility

Community Commitment

Growth Strategy

Board of Directors

CST’s organization

Increase Total Shareholder ReturnIncrease Total Shareholder Return

Commercial Initiatives

Operational Excellence

Capital Structure

Knowledge management

20

342 354 366386

427446 461 473 481

1994 1995 1996 1997 1998 1999 2000 2001 2002

US$ milhõesMW

m3 / t. placas

Water Consumption

Gigajoule / t aço bruto

Energy consumption

Investment on Equipment Electric Energy Generation

Community Commitment Sustainable Development

138120

136149

182

210197

210 203

1994 1995 1996 1997 1998 1999 2000 2001 2002

5 5 5 55

4 4 4 4

1994 1995 1996 1997 1998 1999 2000 2001 2002

20

2121

19

18

19

20

19

19

1994 1995 1996 1997 1998 1999 2000 2001 2002

Accum.

21

Increase Total Shareholder Return

Social Responsibility

Growth Strategy

Board ofDirectors

CST´s OrganizationCST´s Organization

Commercial Actions

Industrial Actions

Capital Structure

Knowledge management

Outlook

Positive Convergence

Market demand larger than

capacity

CompetitiveExpansion (7.5 million

tons)

Operational Excellence

Capital Structure

Increase Total Shareholder Return

Growth Strategy

Board ofDirectors