1. Leonardo Horta Investor Relations Director BRAZIL DAY 2003 November 17th, 2003 New York

2. 2 Increase Total Shareholder Return Goal Board of Directors CST’s organization Share price appreciation Dividend

3. 3 Dividends + Growth Investment Capacity aligned with dividend (US$ MM)

4. 4 Growth Strategy Board of Directors CST’s organization Increase Total Shareholder Return

5. 5 Growth Strategy Board of Directors CST’s organization Increase Total Shareholder Return Strategy support Commercial Initiatives Operational Excellence Capital Structure Knowledge management

6. 6 Cutting-edge Higher Value Added Steel 53% of revenues CC # 1 IR-UT CC # 2 RH CONTINUOUS CASTING RH API Capped + Rimmed SK + Killed (Cont.Casting.) HSM Expansion Optimization 1993199419951996199719981999 2000200120022003200420052006 Hot coils Sales (thousand tons)

7. 7 Higher Value Added Mix Differentiated relationship with customers Product Performance Volume Reliability Prompt response Predictability Services

8. 8 Higher Value Added Mix Steel Slab Prices (US$/t) Average 172 191 237

9. 9 Recognition Preferential supplier of quality semi-finished steel focused on future demand Customization turned into customer loyalty Consolidate its positioning at the base of the value chain Focus on the customer’s core business Detailed knowledge of customers’ markets

10. 10 Strategy support Growth Strategy Board of Directors CST’s organization Increase Total Shareholder Return Commercial Initiatives Operational Excellence Capital Structure Knowledge management

11. 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. 12 Strategy support Growth Strategy Board of Directors CST’s organization Increase Total Shareholder Return Commercial Initiatives Operational Excellence Capital Structure Knowledge management

13. 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. 14 Capital Structure Note: - Gearing : Net Debt / Shareholders’ equity Source: Fitch Source: CST Source: Fitch Source: CST (time – x) New investments – Enhance Capital Structure Debt Equity 70% 30% Gearing Ratio- % (US GAAP) Net Debt / EBITDA

15. 15 698 670 66% 18% 16% Net Debt (US$ MM) LT Maturity 63% 16% 21% Capital Structure Indebtedness Due Date of Long Term Debt Position on Sep/2003 – US$ million 2004 *35 2005112 200680 2007 a 2014215 TOTAL442 (*) From October to December 683 64% 18%

16. 16 Strategy support Growth Strategy Board of Directors CST’s organization Increase Total Shareholder Return Commercial Initiatives Operational Excellence Capital Structure Knowledge management

17. 17 Knowledge managementGlobal Benchmarking Benchmarking Learning Organization TIProcesses People

18. 18 People 16.5 Years with CST (average) Schooling Training R$ 4 million R$ 7 million R$ 8 million R$ 11 million Employee Satisfaction Survey 1999: 54% 2007: 76% BSC’s Goal 3rd in Brazil 2nd in Brazil 1st in the Industry 1st in Brazil 2001: 71% 2002: 73% 2003: 73%

19. 19 Social Responsibility Community Commitment Growth Strategy Board of Directors CST’s organization Increase Total Shareholder Return Commercial Initiatives Operational Excellence Capital Structure Knowledge management

20. 20 US$ milhões MW m 3 / t. placas Water Consumption Gigajoule / t aço bruto Energy consumption Investment on EquipmentElectric Energy Generation Community Commitment Sustainable Development Accum.

21. 21 Increase Total Shareholder Return Social Responsibility Growth Strategy Board of Directors CST´s Organization Commercial Actions Industrial Actions Capital Structure Knowledge management Outlook Positive Convergence Market demand larger than capacity Competitive Expansion (7.5 million tons) Operational Excellence Capital Structure Increase Total Shareholder Return Growth Strategy Board of Directors