Companhia Siderúrgica Nacional S A : 3Q22 Earnings Release

3Q22 FINANCIAL RESULTS

October 31, 2022

3Q22 RESULTS

São Paulo, October 31, 2022 - Companhia Siderúrgica Nacional ("CSN") (B3: CSNA3) (NYSE: SID) discloses its third quarter of 2022 (3Q22) financial results in Brazilian Reais, with all financial statements consolidated in accordance with accounting practices adopted in Brazil issued by the Accounting Pronouncements Committee ("CPC"), approved by the Brazilian Securities and Exchange Commission ("CVM") and the Federal Accounting Council ("CFC") and in accordance with international financial reporting standards ("IFRS"), issued by the International Accounting Standards Board ("IASB").

The comments address the Company's consolidated results in the third quarter of 2022 (3Q22) and the comparisons are in relation to the third quarter of 2021 (3Q21) and the second quarter of 2022 (2Q22). The price of the dollar was BRL 5.44 on 09/30/2021; BRL 5.24 on 06/30/2022 and BRL 5.41 on 09/30/2022.

Operational and financial highlights of 3Q22

IMPROVED OPERATIONAL PERFORMANCE

CSN presented commercial and operational resumption trough 3Q22, with an increase in sales volume in all operating segments, highlighting the resilience of industrial activity in the period. However, due to lower prices in the international market and inputs cost pressures, the quarter's EBITDA reduced.

As a result, Adjusted EBITDA in 3Q22 reached BRL 2.7 billion with an EBITDA Margin of 24%.

IN MINING, PRODUCTION RESUMPTION AND SALES WITH STRONG COST REDUCTION

The quarter was marked by a resumption of production capacity, increased commercial activity and strong dilution of fixed and production cost. However, the fall in the price of ore ended up preventing a more consistent financial performance.

As a result, the mining segment accrued an Adjusted EBITDA of BRL 916 million, with an Adjusted EBITDA Margin of 36%.

STRONG COMMERCIAL PERFORMANCE HIGHLIGHTING THE PERFORMANCE IN THE DOMESTIC MARKET

CSN showed a 19% growth in domestic sales volume in the 3Q22, offsetting the weaker dynamics observed in the external market. On the other hand, the overall global prices composition and the temporary pressure of costs ended up reducing the profitability of the period.

INCORPORATION OF LAFARGEHOLCIM ASSETS AND MAINTENANCE OF POSITIVE DYNAMICS IN THE CEMENT SEGMENT

3Q22 was marked by the beginning of the integration of LafargeHolcim's operations into CSN's results, impacting the segment numbers in one month.

Additionally, the dynamics of the sector remained strong, with CSN presenting sales and price increases in all its units. As a result, cements' Adjusted EBITDA showed a robust expansion of 58% compared to the previous quarter, with an Adjusted EBITDA Margin of 33%.

COMPLETION OF THE ACQUISITION OF THE HPP QUEBRA-QUEIXO AND CEEE-G

CSN concluded, during October, the acquisitions of Quebra-Queixo HPP and CEEE-G, with the incorporation of its assets kicking off on 4Q22.

This is another important step to consolidate the strategy of seeking self-sufficiency and competitiveness in the Energy Sector.

For more information, please visit our website: https://ri.csn.com.br/en	2

3Q22 RESULTS

Consolidated Table - Highlights

Destaques

3Q22

2Q22

3Q22 x 2Q22

3Q21

3Q22 x 3Q21

Steel Sales (Thousand Tones)	1,160	1,066	9%	982	18%
- Domestic Market			859	724	19%	679	27%
- External Market			301	342	-12%	303	-1%
Iron Ore Sales (Thousand Tones)	9,095	7,574	20%	8,183	11%
- Domestic Market			1,122	867	29%	1,269	-12%
- External Market			7,973	6,707	19%	6,914	15%
Consolidated Results (R$ million)
Net Revenue				10,897	10,566	3%	10,246	6%
Gross Porfit				2,538	3,006	-16%	4,305	-41%
Adjusted EBITDA	(1)		2,714	3,262	-17%	4,296	-37%
EBITDA margin %				23.9%	29.7%	-5.7 p.p.	40.6%	-16.6 p.p.
Adjusted Net Debt	(2)			24,300	21,034	16%	14,775	64%
Adjusted Cash/Disponibilities	(2)	15,055	15,657	-4%	16,649	-10%
Net Debt / Adjusted EBITDA		1.69x	1.31x	28%	0.64x	162%

• Adjusted EBITDA is calculated from net income (loss), plus depreciation and amortization, taxes on income, net financial result, income from investment participation, income from other operating income/expenses and includes a proportional participation of 37.27% of the EBITDA of the joint subsidiary MRS Logística.
  ² Adjusted Ebitda Margin is calculated from Adjusted Ebitda divided by Management Net Revenue.
  ³ Adjusted Net Debt and Adjusted Cash/Availability consider 37.27% of MRS, in addition to not considering Forfaiting and Cashed Risk transactions.

Consolidated Results

• Net revenue totaled BRL 10,897 million on 3Q22, which represents a 3.1% increase when compared to 2Q22. This result reflects the increased commercial activity and increased sales volume of the Company's main segments, but partially offset by lower prices of iron ore and steel products.
• The cost of goods sold (COGS) totaled BRL 8,359 million in 3Q22, an increase of 10.5% compared to 2Q22, as a result of the continued high prices of some raw materials such as coke oven coal, in addition to higher costs with reducers in steel operations and greater mine movement.
• The higher cost pressure negatively impacted the gross margin that attained 23.3% in 3Q22 and was 5.2 p.p. lower than that recorded in 2Q22. This performance mainly reflects the dynamics of the provisional prices in mining and the temporary impact of rising raw material costs, an effect that is already starting to decrease in 4Q22.
• Sales, general and administrative expenses totaled for BRL 798 million in 3Q22, 22.6% higher than in the previous quarter, as a consequence of the increase in commercial activity through all segments in the period, but partially offset by lower prices with freight on the C3 route.
• The group of other operating income and expenses was negative in BRL 707 million in 3Q22, mainly as a result of the cash flow hedge accounting operations that totaled BRL 418 million in the period.
• The financial result was negative in BRL 318 million in 3Q22, which represents a 64.3% decline compared to the previous quarter, as a consequence of the normalization of financial expenses after a quarter with minimal changes in the value of Usiminas shares.

For more information, please visit our website: https://ri.csn.com.br/en	3

3Q22 RESULTS

	3Q22	2Q22	3Q22 X 2Q22	3Q21	3Q22 X 3Q21
Financial Result - IFRS	(318)	(890)	-64%	(943)	-66%
Financial Revenue	330	346	-5%	(298)	n.a.
Financial Expenses	(648)	(1,236)	-48%	(645)	0%
Financial Expenses (ex-exchange rate variation)	(1,128)	(1,819)	-38%	(877)	29%
Result with exchange rate variation	480	583	-18%	232	107%
Monetary and Exchange Rate Variation	468	580	-19%	284	65%
Derivatives Result	12	3	306%	(52)	n.a.

• The equity result was positive at BRL 94 million in 3Q22, a performance 74% higher than in the last quarter, as a consequence of the operational improvement in MRS results.

	3Q22	2Q22	3Q22 x 2Q22	3Q21	3Q22 x 3Q21
MRS Logística	119	77	55%	132	-10%
TLSA	(7)	(9)	-22%	(20)	-65%
Arvedi Metalfer BR	-	3	-100%	2	-100%
Equimaq S.A	1	1	0%	-	0%
Others	(2)	-	0%	-	0%
Eliminations	(17)	(18)	-6%	(19)	-11%
Equity Result with Affiliated Companies	94	54	74%	95	-1%

• In 3Q22, the Company's Net Income was BRL 238 million, 35.5% lower than in the last quarter, highlighting the lower operating performance in the period due to the decline in international prices, which ended up compensating for the lower financial expenses presented in the quarter.

Adjusted EBITDA

	3Q22	2Q22	3Q22 x 2Q22	3Q21	3Q22 x 3Q21
Profit (Loss) for the Period	238	369	-36%	1,325	]
-82%
Depretiation	689	643	7%	533	29%
Income Tax and Social Contribution	571	512	12%	1,411	-60%
Finance Income	318	890	-64%	943	-66%
EBITDA (ICVM 527)	1,816	2,414	-25%	4,212	-57%
Other Operating Income (expenses)	707	638	11%	(42)	n.a.
Free Cash Flow Hedge Accounting - Exchange rate	418	342	22%	65	543%
Free Cash Flow Hedge Accounting - Platts Index	-	(23)	-100%	(310)	-100%
Other	289	319	-9%	203	42%
Equity Results of Affiliated Companies	(94)	(54)	74%	(95)	-1%
Proportional EBITDA of Jointly Owned Subsidiaries	285	264	8%	220	30%
Adjusted EBITDA	2,714	3,262	-17%	4,296	-37%

• The Company discloses its adjusted EBITDA excluding participation in investments and other operating income (expenses), understanding that it should not be considered in the calculation of recurring Operational Cash generation.
• • In 3Q22, Adjusted EBITDA was BRL 2,714 million, with an Adjusted EBITDA Margin of 23.9%, 5.7 p.p. below that recorded last quarter. This reduction in profitability is a direct consequence of the cost pressure in the steel industry and the impact of iron ore and steel prices on international markets, which ended up compensating for the higher commercial activity recorded in the quarter. However, it is also important to highlight the temporary effect of this pressure since it is already possible to check an accommodation of costs and prices for the result at the end of the year. In addition, it is also worth noting the impact of the incorporation of LafargeHolcim in the cement segment, whose EBITDA increased by 58.4% in 3Q22, even considering only one month of operational result.

For more information, please visit our website: https://ri.csn.com.br/en	4

3Q22 RESULTS

Adjusted EBITDA (BRL MM) and Adjusted EBITDA Margin¹ (%)

• Adjusted EBITDA Margin is calculated from the division between Adjusted EBITDA and Adjusted Net Revenue, which considers 100% of the stakes in CSN Mineração's consolidation and 37.27% in MRS.

Adjusted Cash Flow¹

Adjusted Cash Flow in 3Q22 reached BRL 3,168 million, an increase of BRL 2,338 million compared to the previous quarter due to the combination of (i) efficient working capital management, (ii) seasonality in the payment of taxes, and (iii) lower impact of financial expenses. With this, the Company was able to mitigate the lowest operating results, presenting a reduction in accounts receivable and longer term with suppliers.

Adjusted Cash Flow¹ on 3Q22 (BRL MM)

• The concept of adjusted cash flow is calculated from adjusted Ebitda, subtracting Ebitda from Jointly Controlled Companies, CAPEX, IT, Financial Results and Changes in Assets and Liabilities², excluding the effect of the Glencore advance.
  ² Adjusted Working Capital is composed by the change in Net Working Capital, plus the change in accounts of long-term assets and liabilities and disregarding the net change in IT and SC.

Debt

As of 09/30/2022, consolidated net debt reached BRL 24,300 million, with the leverage indicator measured by the Net Debt/EBITDA ratio reaching 1.69x. This leverage increase is a consequence of the disbursement made in the period, with the payment for the acquisition of LafargeHolcim, in addition to the CSN Mineração's 2nd Debentures Issuance. However, despite this greater need for financial disbursements, CSN maintained its policy of carrying a large amount of cash, which in this quarter reached approximately BRL 15.7 billion.

For more information, please visit our website: https://ri.csn.com.br/en	5