Companhia Siderúrgica Nacional (CSNA3) Status update summary

Strategic plan, transformation, and deleveraging initiatives

• Announced a strategic plan to unlock value through mining and infrastructure projects, targeting deleveraging of BRL 16–18 billion by 2026 via asset divestments.

• Asset sales include a minority stake in infrastructure and a majority stake in cement, with both processes starting immediately and expected to close in Q3–Q4 2026.

• MRS stake sale completed for BRL 3.35 billion, not included in the BRL 16–18 billion deleveraging target; initial step included selling 11% of MRS to CMIN in 2025.

• Proceeds from divestments will reduce leverage to around 1.8x net debt/EBITDA in the short term, with a long-term target of 1.5x and a focus on maintaining leverage around 1x over eight years.

• No current plans to divest further mining stakes; focus remains on growth and value creation in mining.

Segment performance and growth outlook

• Mining is the main growth avenue, with expansion projects expected to add BRL 4 billion in annual EBITDA and extend mine life with 2.5 billion tonnes of reserves.

• Infrastructure assets are mature, integrated, and irreplicable, with EBITDA margins of 40–50% and a path to over BRL 60 billion in value; significant equity stake sale planned for 2026.

• Cement segment leads in Brazil with high margins (30%), unique logistics, and growth potential; control sale planned for 2026.

• Steel segment is recovering profitability, with strategic partnerships and alternatives being explored to maximize cash generation.

• Energy segment is a core, high-return, low-risk business, self-sufficient in renewables since 2023, supporting cost reduction and energy transition.

Capital allocation, financial discipline, and operational focus

• Capital allocation will prioritize core businesses, disciplined investment, and strict leverage targets.

• CapEx plans are under review to align with deleveraging; mining and infrastructure projects will be accelerated post-asset sales.

• Inventory reduction and operational improvements are underway to support cash flow and deleveraging.

• Investor interest is strong, with multiple parties engaged in asset sale processes; regulatory approvals are procedural.

• Tax impacts from asset sales are mitigated by existing tax shields, ensuring proceeds are net of taxes.