Companhia Siderúrgica Nacional (CSNA3) Status update summary

Strategic priorities, transformation, and deleveraging plan

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

• Deleveraging will be achieved by selling a majority stake in cement and a minority stake in infrastructure, with the MRS sale already completed and not included in the BRL 16–18 billion target.

• The plan aims to maintain leverage at or below 2x net debt/EBITDA in the short term, with a long-term target of 1–1.5x, supported by EBITDA growth from mining and infrastructure.

• Asset sales are expected to be completed between Q3 and Q4 2026, with regulatory approvals anticipated as procedural steps.

• Proceeds will be used for debt amortization, liability management, and to support investments in priority growth areas.

Segment performance and growth outlook

• Mining is positioned as the main growth driver, 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 scalable, with a minority stake sale planned in a cluster of key assets in the Southeast, while retaining strategic control.

• Cement segment shows sector-leading margins (30%) and is set for a majority stake sale, with flexibility on the final percentage depending on buyer engagement and valuation.

• Steel operations are recovering profitability, with strategic partnerships and alternatives being explored to enhance cash generation and technology investments.

• Energy remains a core, high-margin business, self-sufficient in renewables since 2023, supporting group self-sufficiency, cost reduction, and energy transition.

Capital allocation, financial discipline, and outlook

• CapEx allocation will be reviewed in light of the deleveraging plan, focusing on high-return mining projects and disciplined investment in core segments.

• Inventory reduction and operational efficiency initiatives are underway to strengthen the balance sheet and support deleveraging.

• Tax impacts from asset sales are expected to be mitigated by existing tax shields from financial expenses and previous transactions.

• No additional asset sales are planned beyond those announced, as current initiatives are deemed sufficient to achieve deleveraging targets.

• Long-term growth will be driven by continued investment in mining, infrastructure, and energy, with flexibility to pursue IPOs or private sales as market conditions allow.