Companhia Siderúrgica Nacional (CSNA3) investor relations material

Executive summary

• EBITDA grew in all segments except mining, which was impacted by lower iron ore prices, reflecting strong cost management, business diversification, and a value-over-volume strategy.

• Steel and logistics segments drove EBITDA growth, with logistics achieving record results aided by the Tora integration.

• Mining posted record production and the second-highest sales volume, but EBITDA declined due to iron ore price drops and higher freight costs.

• Cement segment saw 8% sequential sales growth and a 24% EBITDA margin, offsetting raw material cost pressures.

• Net loss narrowed to R$130.4 million, an 82.2% improvement from the previous quarter, aided by reversal of contingencies and iron ore hedging gains.

Financial highlights

• Adjusted EBITDA reached R$2.6 billion with a 23.5% margin, up 5% sequentially and 1.4 p.p. higher than the previous quarter.

• Net revenue was R$10.7 billion, down 2% sequentially and 1.7% year-over-year, mainly due to lower iron ore prices.

• Capex increased 18.2% sequentially, focused on mining infrastructure and steel mill modernization.

• Adjusted cash flow was negative due to higher investments, financial expenses, and increased working capital consumption.

• Net working capital rose 25% year-over-year and 24.8% sequentially due to higher inventories.

Outlook and guidance

• Management expects to meet year-end guidance, continuing debt reduction and capital recycling, and targets leverage below 3x by year-end.

• Ongoing infrastructure projects, especially in mining, are expected to drive future EBITDA growth.

• Confident in achieving full-year mining production guidance of 42–43.5 million tons.