Companhia Siderúrgica Nacional S A : Notice to the Market - 4Q23 Earnings Presentation

EARNINGS PRESENTATION

4Q23 AND 2023

March 7, 2024

HIGHLIGHTS

1	The combination of strong price realization with an excellent sales
performance in mining and the beginning of the operational recovery in
	the steel industry were the main highlights that guaranteed a solid
	EBITDA growth in 4Q23. As a consequence, Adjusted EBITDA reached
	R$3.6 billion, with an EBITDA margin of 29% in 4Q23.
2	The adjusted cash flow in the 4Q23 reached R$ 387 million, and it was
	not greater only due to the greater investments made in the period, in line
	with the capacity expansion and operation modernization projects at UPV.
3	Second consecutive quarter of decline in the leverage ratio reinforces the
	Company's commitment to reducing its debt level.

FINANCIAL PERFORMANCE

CONSOLIDATED OPERATING AND FINANCIAL INDICATORS

ADJUSTED EBITDA AND ADJUSTED MARGIN	ADJUSTED EBITDA EVOLUTION
(R$ mm and %)	(R$ mm)	+811

									+28.8%
				29%	30%					(4)	(107)		3,626
27%	28%						773
				26%
		24%			2,815
						149
		20%
					13,816	11,907		+81.5%	+39.3%	-1.3%
							∆ 4T23/3T23	∆ 4T23/3T23	∆ 4T23/3T23
3,123	3,203	2,263	2,815	3,626
4Q22	1Q23	2Q23	3Q23	4Q23	2022	2023	3Q23	Steel	Mining	Cement Eliminations/	4Q23
		Adjusted EBITDA	Adjusted EBITDA Margin			Adjusted				Expenses/	Adjusted
				EBITDA				Other		EBITDA

The 28,8% increase in EBITDA in 4Q23 is a direct consequence of price improvement in the mining segment, which added to high sales volume and the recovery of the steel segment, ensured the solid performance of the quarter and compensated for the seasonality at the end of the year.

Source: CSN

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CONSOLIDATED OPERATING AND FINANCIAL INDICATORS

CAPEX (R$ mm)

					+34%
					1,595
1,036	1,191	411
304
400		515
	430
	240		669
		457
396

+33%

4,523

1,020

3,413

715

1,549

1,275

1,954

1,423

WORKING CAPITAL (R$ mm)

2,480	1,922	(624)
3,233
3,178	3,269
11,302	9,298	9,568
							999
	131			296
-11,924	-10,850	-13,212

4Q22

3Q23

4Q23

2022

2023

Steel Mining Others

4Q22

3Q23

4Q23

Accounts Receivable Inventory Suppliers Others

Source: CSN

Capex totaled R$1,595 million in 4Q23, a performance 33.9% higher than in 3Q23, in line with CSN's history

of concentrating its investments at the end of the year, focusing on advances in modernization projects in
steel and capacity growth in mining.
Working capital impacted by the increase in accounts receivable and inventories, in line with the increase in
commercial activity seen in the period, but more than offset by the increase in the line of suppliers.	5

CONSOLIDATED OPERATING AND FINANCIAL INDICATORS

ADJUSTED CASH FLOW	FREE ADJUSTED CASH FLOW ¹ - 4Q23
(R$ mm)	(R$ mm)

					3,626		685
						(292)
							(1,562)
		745	1,022
			387
								(1,582)
-146
										(488)	387
	-2,134				4Q23	Jointly	∆ NWC /	Capex	Financial	Income Tax	Free
				Adjusted	Controled	Assets and		Result		Adjusted
4Q22	1Q23	2Q23	3Q23	4Q23	EBITDA	EBITDA	Liabilities²				Cash Flow
											4Q23

Adjusted Cash Flow in 4Q23 was positive at R$387 million, as a result of the strong operational performance and efficient working capital management, which ended up offsetting the increase in CAPEX and the higher financial expenses of the period.

Source: CSN / Note 1: The concept of Free Cash Flow is calculated based on Adjusted EBITDA, subtracting EBITDA from Jointly Subsidiaries, CAPEX, Income Tax, Financial Result and changes in Net Working Capital¹, excluding

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the effect of the Glencore advance. / Note 2: The Adjusted Working Capital² for the quarter is composed of the change in Net Working Capital, plus the change in long term Assets and Liabilities, excluding noncash items.

CONSOLIDATED OPERATING AND FINANCIAL INDICATORS

LEVERAGE, LIQUIDITY AND NET DEBT (R$ bn ; Net Debt / EBITDA (x))

140
120
100		1.69x	2.21x	2.45x		2.78x	2.63x	2.58	Leverage
80												Guidance
												< 2.00x
60				43.06	44.45	43.92	45.93	48.04
40	39.36
12.59	14.29	12.47	15.99	17.35
15.06
20
24.30	30.47	30.16	31.45	29.94	30.69
0													2024
	3Q22	4Q22	1Q23		2Q23	3Q23	4Q23
			Net Debt			Disposabilities		Net Debt/EBITDA (X)

NET DEBT BUILD-UP (R$ bn)

			+0.75
			+2.5%
29.94		0.29		1.26	0.76	30.69
	(0.39)		(1.17)
3Q23	Free Cash Flow	Pre Paid. Mfe	Exchange	Minoritary	∆ Net Debt.	4Q23
		Mfe	Variation	dividends and	MRS/
				paid interest	Other

on equity

Another quarter marked by a drop in the leverage indicator, reinforcing the Company's commitment to reducing the level of debt.

Source: CSN / Note 1: Net Debt EBITDA Debt considers the final R$/US$ exchange rate of each period; Net Debt and EBITDA considers the average R$/US$ exchange rate of the period.

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DEBT AMORTIZATION SCHEDULE

16,252

Cash

December/23

Liquidity

Profile after completion of the Liabilities Management Plan

										8,245
										1,201
6,816		5,323	4,803															5,780
														3,717			572			4,097
	4,778							3,492
																						433
						7,044
				2,758								578
			5,005
					1,584			580						5,208
															3,664
														580		3,139
	2,038						2,045		1,908
				318											0
2024		2025	2026	2027	2028		2029		2030	2031		2032

Position in 12/29/2023

Gross Debt²: R$48.04 Bi

Net Debt: R$30.69 Bi

Net Debt/EBITDA: 2.58x

Average Term³: 54 months

380

203 186 69 363 32 397 0 281

177 117 331 397 281

2033

2034

2035

2036

2037

Cash after amortizations is sufficient to cover

amortizations for the next 3 years

Capital Markets Banks

The Company remains active in its objective of extending the amortization period, focusing on long-term operations and the local capital market. Among the main movements in 4Q23, we highlight the issuance of Bonds in CSN's offshore subsidiary, in the total value of U$ 500 million, maturing in 2030, with the objective of partially repurchasing the 2026 Bond.

Source: CSN / Note 1: IFRS does not consider participation in MRS 37.27%. / Note 2: Gross/Net Managerial Debt considers interest in MRS 37.27% and accrued interest. / Note 3: Average term after conclusion of the Liability	8
Management Plan.

STEEL

STEEL PERFORMANCE

SALES VOLUME		-5.1%
(Thousand ton.)
4,392	4,166
	1,314	1,249

								+4.5%			3,077	2,917
			1,033	1,051					1,064
1,008	1,018
	269		364	312		271		302
740		669	739	747		762
4Q22	1Q23		2Q23	3Q23	4Q23	2022	2023
					Domestic Market		Foreign Market

12.000

NET REVENUE AND DOMESTIC MARKET AVERAGE PRICE¹ (R$ mm; R$/ton.)

5.969 5.421 5.232

Net Revenue (R$MM)

Average Price (R$/ton.)

6.055 5.344 5.654

4Q22 3Q23 4Q23

ADJUSTED EBITDA AND ADJUSTED EBITDA MARGIN (R$ mm; %)

13.6

3.4 5.9

826								Adjusted EBITDA (R$MM)
		331
183
						Adjusted EBITDA Mg. %

4Q22 3Q23 4Q23

The increase in total sales volume this quarter reflects the Company's operational normalization and the greater commercial activity seen in the foreign market. In the year, the 5.1% drop in sales volume is the result of production bottlenecks faced in the first half of the year.

In relation to EBITDA, it was already possible to observe a recovery in the segment's profitability in 4Q23, a trend that should become even more accentuated in the coming quarters.

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Source: CSN / Note 1: Average price relative to the Domestic Market