Usiminas Belo Horizonte Rua Prof. José Vieira de Mendonça, 3011 31310-260Belo Horizonte MG T 55 31 3499-8000F 55 31 3499-8899
(Free Translation: For reference only - Original in Portuguese)
USINAS SIDERÚRGICAS DE MINAS GERAIS S.A. - USIMINAS
NOTICE TO THE MARKET
Usinas Siderúrgicas de Minas Gerais S.A. - USIMINAS ("Usiminas" or "Company") hereby informs that concluded, on the date hereof, the execution by and among Unigal Ltda. ("Unigal")1, Usiminas and Nippon Steel Corporation (formerly known as Nippon Steel & Sumitomo Metal Corporation), of an amendment to the Amended and Restated Tolling Service Agreement ("Tolling Service Agreement"), executed on December 2, 2008, which sets forth the compensation (tolling fee) due to Unigal by the process of Hot-DipGalvanized (HDG) of the coils sold by Usiminas.
Due to the referred amendment, Unigal will no longer be paid by the tolling fee based on a formula that takes into consideration a proportion of the price of the HDG coils sold by the Company to its customers and will start to receive a fixed amount per tons dispatched/invoiced to Usiminas, which will be annually adjusted according to the parameters set forth in the amendment.
The Tolling Service Agreement provides that the calculation form of payment due to Unigal might be reviewed by the parties every five (5) years or due to any extraordinary event in which the current economic rationale for the determination of the abovementioned payment is significantly changed.
Belo Horizonte, May 16th, 2019.
Vice-President of Finances and Investor Relations Officer
1Unigal is a sociedade limitada organized and existing under the laws of Brazil since 1999 to develop HDG processes for Usiminas products, in which the Company is a shareholder of 70% (seventy percent) of the corporate capital and
Nippon Steel Corporation (formerly known as Nippon Steel & Sumitomo Metal Corporation), part of the controlling Classificação da informação: Pública
group of the Company, owner of the remaining 30% of Unigal's corporate capital.