Companhia Siderúrgica Nacional : Apresentação - Teleconferência de Aquisição da LafargeHolcim*

LafargeHolcim Brasil Acquisition Overview

September 13, 2021

CSN CIMENTOS SUCCESSFUL TRACK-RECORD

From zero to 32% market-share in the largest and most competitive regional market in Brazil

	CSN Arcos						Strategy: national footprint
	Beginning of clinker	Kiln #2 expansion at Arcos		Beginning of co-processing	Expansion to new regions via
	production	Installation of the largest		investments (startup in 2021)	greenfield and M&A
		kiln in Brazil
2009	2011	2015	2016	2017	2020	2021	2022+
CSN Volta Redonda		Grinding production	Limestone mines		+1.3 MTPY capacity +10.3 MTPY capacity
Beginning of blast furnace slag grinding and cement	expansion at Arcos	Development of mines to support
production first with imported clinker and then national		expansion projects in relevant markets		Cimentos
0%					14%		32%
Installed Capacity						Southeast market share
						16.3
(Mtpy)
						6.0	10,3
						1.3	1,3
	2.3	4.3			4.7	4.7	17.2
	2010	2015			2020	2021	w/

LafargeHolcim

Clear path to become one of the largest and most competitive players in the sector

Source: CSN

2

STRATEGIC PATH: CSN'S BUSINESSES DIVERSIFICATION

STRATEGY STRENGTHS BALANCE SHEET

% of Total Net Revenue

55%

50%

42% 44%

		6%	4%	8%
		3%	1%	0%
Steel	Mining	Logistics	Cement	Energy

2020 Before Acquisitions 2021e pro forma¹

% of Total EBITDA

4%3%0,4%

53%46%

4%

6%

0,2%

27%

64%

LafargeHolcim acquisition is a step towards a Cement value creation strategy

Stronger cement platform in Brazil: gaining scale through different geographies

Innovative products used in the

technical segment (high-ended value products)

Large and high-quality limestone reserves:

continuity and organic growth opportunities

Leading Brands and Go to Market Approach

Over 50 years of history in Minas Gerais

¹with LafargeHolcim and Elizabeth Cimentos

3

LAFARGEHOLCIM BRAZIL OVERVIEW

Votorantim

34.9

Intercement	17.2	Current active capacity
of 12Mtpy

LafargeHolcim		10.3
Brennand	7.5	#2 largest	Installed Capacity (mtpy)
		cement producer	+172%
			16.3
CSN + Elizabeth	6.0		6.0
Mizu	5.6		2021	w/ LH

ELIZABETH (1.3)

CAAPORÃ (1.7)

CANDEIAS (0.3)

COCALZINHO (0.3)	M.CLAROS (0,9)
ARCOS (2.4)	P.LEOPOLDO (2.2)
	VITÓRIA (0.3)
BARROSO (3.2)	CANTAGALO (0.9)
SOROCABA	RIO BLENDER (0.5)
(mothballed)	V.REDONDA (2.3)

LH.	Plant type
CSN/Eliz.		Grinding Mill
Railway		Integrated Plant
4

MAPPED SYNERGIES AND EBITDA IMPACT

Time to Market in the most important and fast-growingmarkets in Brazil: Southeast, Northeast and Mid-West

Product Mix Optimization: increase in bagged cement with productivity gains, reducing cost and increasing prices

Pricing value strategy: reduce wholesaler participation, focus on pulverized market, increase client basis (actual 8,000 active customers)

Cost savings initiatives: coprocessing, electric power and scale

Logistics: optimization of distribution overlaps reducing freight expenses

SG&A savings and procurement efficiency due to scale, reducing the inputs costs

Use of goodwill and tax loss carryforward

						11	858
					35
				56
			70
	540	146
Normalized Product Distribution	Cost	Logistics	SG&A	EBITDA
EBITDA	Mix					w/
							Synergies
EBITDA	77	98	108	116	121	123	123
R$/ton
							5