CSN Mineração (CMIN3) investor relations material

Executive summary

• Achieved record own iron ore production for Q1 2026, up 6.7% year-over-year, despite intense rainfall and seasonality impacts, demonstrating operational resilience.

• Net income reached BRL 222 million, reversing a loss from Q1 2025, though down from Q4 2025 due to seasonality and higher financial expenses.

• Adjusted EBITDA was BRL 1.42 billion with a 44.9% margin, reflecting cost control, improved sales mix, and strong profitability amid cost pressures.

• Set a new shipment volume record at TECAR with 8.72 million tons shipped, up 1.4% year-over-year.

• Strong ESG performance: 33% reduction in third-party accidents, 10% increase in female leadership, zero fatalities, and significant reductions in GHG and water intensity since 2020.

Financial highlights

• Revenue for Q1 2026 was BRL 3.17 billion, down year-over-year and sequentially, mainly due to exchange rate effects and seasonality, while sales volume and prices remained stable.

• Adjusted EBITDA margin improved to 44.9%, up from 41.8% in 4Q25 and 1Q25.

• COGS ex-depreciation dropped both sequentially and year-over-year, reflecting lower third-party purchase volumes.

• Adjusted free cash flow was negative BRL 520 million, impacted by seasonality and higher working capital consumption.

• Net debt decreased to BRL 683.1 million, with a leverage ratio of 0.11x LTM EBITDA.

Outlook and guidance

• Expect increased purchases from third parties in coming quarters as supplier conditions improve, with guidance for 45–47 million tons in total sales for 2026 and third-party purchases expected to exceed 25% of sales.

• CapEx for 2026 projected above BRL 3 billion, with significant spending in Q2 and Q3 for P15 expansion.

• Maintain aggressive dividend payout, targeting 85% of net profit.

• Ongoing investments in infrastructure and operational efficiency are anticipated to support future growth.

• Production guidance trajectory reinforced by operational resilience during adverse weather.