Companhia Siderúrgica Nacional S A : 1Q23 FINANCIAL RESULTS

1Q23 FINANCIAL RESULTS

May 3, 2023

RESULT 1Q23

São Paulo, May 3, 2023 - Companhia Siderúrgica Nacional ("CSN") (B3: CSNA3) (NYSE: SID) discloses its first quarter of 2023 (1Q23) financial results in Brazilian Reais, with all financial statements consolidated in accordance with accounting practices adopted in Brazil issued by the Accounting Pronouncements Committee ("CPC"), approved by the Brazilian Securities and Exchange Commission ("CVM") and the Federal Accounting Council ("CFC") and in accordance with international financial reporting standards ("IFRS"), issued by the International Accounting Standards Board ("IASB").

The comments address the consolidated results of the Company in the first quarter of 2023 (1Q23) and the comparisons are relative to the fourth quarter of 2022 (4Q22) and the first quarter of 2022 (1Q22). The exchange rate was BRL 4.74 on 03/31/2022; BRL 5.22 on 12/31/2022 and BRL 5.08 on 03/31/2023.

1Q23 Operational and Financial Highlights

EBITDA GROWTH IN 1Q23, WITH THE MINING SEGMENT OFFSETTING A WEAKER DOMESTIC MARKET

Despite a more challenging macroeconomic start to the year, CSN was able to show new EBITDA growth, with the mining segment once again standing out as the main highlight of the period.

As a result, Adjusted EBITDA in 1Q23 reached BRL 3.2 billion with an EBITDA margin of 28%.

BETTER VOLUMES IN THE EXTERNAL MARKET MITIGATED THE LOWER DEMAND FOR FLAT STEEL IN BRAZIL

The beginning of the year was marked by economic uncertainties and low activity in the domestic market. On the other hand, the Company was able to take advantage of a more benign international scenario and lower cost pressures to maintain profitability stable during the period.

As a consequence, the steel industry adjusted EBITDA reached BRL 754 million in 1Q23, with an adjusted EBITDA margin of 13.0%.

DESPITE BETTER VOLUMES, LOWER PRICES DELAYED THE RECOVERY OF RENTABILITY ON THE CEMENT SEGMENT

Despite the seasonality with the high volume of rainfall observed during the period, CSN presented an expressive increase on volumes on annual basis. On the other hand, the combination of lower prices with still high costs resulted in the expected recovery for the segment being postponed to the next quarter.

STRONG PRICING IN MINING HELPED BOOST THE RESULT IN THE QUARTER

The quarter was marked by a strong price realization and solid sales volume, even considering the seasonality of the period. As a result, the mining segment presented an adjusted EBITDA of BRL 2.0 billion and a rentability of 49%.

After going through the most critical period of rainfall without presenting major operational problems, the Company maintained the production and purchasing guidance for 2023.

ESG

Last week, CSN released its 2022 Integrated Report with a compilation of all the projects and actions that have placed the Company in a prominent position among the main sustainability indicators in the world.

The full version of the document can be accessed at the link below: https://esg.csn.com.br/nossa-empresa/relatorio-integrado-gri

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RESULT 1Q23

Consolidated Table - Highlights

				1Q23	4Q22	1Q23 x 4Q22	1Q22	1Q23 x 1Q22
Steel Sales (Thousand Tones)	1,033	1,008	2%	1,157	-11%
- Domestic Market			644	740	-13%	755	-11%
- External Market			389	268	45%	402	-3%
Iron Ore Sales (Thousand Tones)	8,618	9,729	-11%	6,932	24%
- Domestic Market			666	1,038	-36%	1,111	-40%
- External Market			7,952	8,691	-9%	5,821	37%
Consolidated Results (R$ million)
Net Revenue				11,319	11,129	2%	11,770	-4%
Gross Porfit				3,246	3,281	-1%	4,483	-28%
Adjusted EBITDA	(1)		3,203	3,123	3%	4,718	-32%
EBITDA margin %				27.5%	27.1%	0.5 p.p.	39.1%	-11.5 p.p.
Adjusted Net Debt	(2)			30,158	30,471	-1%	18,635	62%
Adjusted Cash/Disponibilities	(2)	14,293	12,586	14%	14,033	2%
Net Debt / Adjusted EBITDA		2.45x	2.21x	11%	0.89x	175%

• Adjusted EBITDA is calculated from net income (loss), plus depreciation and amortization, taxes on income, net financial result, income from investment participation, income from other operating income/expenses and includes a proportional participation of 37.27% of the EBITDA of the joint subsidiary MRS Logística.
  ² Adjusted Ebitda Margin is calculated from Adjusted Ebitda divided by Management Net Revenue.
  ³ Adjusted Net Debt and Adjusted Cash/Availability consider 37.27% of MRS, in addition to not considering Forfaiting and Cashed Risk transactions.

Consolidated Results

• Net revenue totaled BRL 11,319 million in 1Q23, representing an increase of 1.7% when compared to 4Q22. This performance is the result of better prices achieved in the mining sector, in line with the Platts' increase and with the solid commercial activity observed during the period. These factors ended up offsetting the weaker dynamics observed in the domestic steel market at the beginning of the year and the lower rentability in the cement segment.
• The cost of goods sold (COGS) totaled BRL 8,073 million in 1Q23, 2.9% up from the previous quarter, as a result, mainly due to higher volumes in the steel and cement industries.
• The combination of revenue growth and a small cost pressure resulted in a roughly flat gross margin in the quarter, reaching 28.7% in 1Q23.
• Selling, general and administrative expenses totaled BRL 1,020 million in 1Q23, 16% lower than in 4Q22, as a consequence of the lower volume traded in mining, generating lower freight expenses, as well as the greater budget control carried out by the Company.
• The group of other operating revenues and expenses was negative at R$ 1.655 million in 1Q23, mainly due to iron ore hedging operations (R$ 568 million) carried out during the period, and cash flow hedge accounting (R$ 362 million).
• In 1Q23, the financial result was negative by BRL 1,190 million, which represents a stability in relation to the previous quarter, as a consequence of the maintenance of the cost of debt and lower impact of Usiminas shares.

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RESULT 1Q23

	1Q23	4Q22	1Q23 x 4Q22	1Q22	1Q23 x 1Q22
Financial Result - IFRS	(1,190)	(1,181)	1%	(1,125)	6%
Financial Revenue	345	285	21%	186	85%
Financial Expenses	(1,535)	(1,466)	5%	(1,311)	17%
Financial Expenses (ex-exchange rate variation)	(1,287)	(1,214)	6%	(1,190)	8%
Result with exchange rate variation	(248)	(252)	-2%	(121)	105%
Monetary and Exchange Rate Variation	(270)	(115)	135%	(100)	170%
Derivatives Result	22	(137)	-116%	(21)	n.a.

• The equity result was positive at BRL 22 million in 1Q23, a reduction of 69% compared to last quarter, as a consequence of seasonality and the weaker performance of MRS that was impacted by the rains recorded in the period.

	1Q23	4Q22	1Q23 x 4Q22	1Q22	1Q23 x 1Q22
MRS Logística	54	92	-41%	37	46%
TLSA	(4)	(6)	-33%	(7)	-43%
Arvedi Metalfer BR	-	2	-100%	-	0%
Equimaq S.A	-	1	-100%	-	0%
Others	(14)	(1)	1300%	-	n.a.
Eliminations	(14)	(17)	-18%	(11)	27%
Equity Result with Affiliated Companies	22	71	-69%	19	16%

• In 1Q23, CSN recorded a net loss of R$ 823 million, reversing the profit seen in the previous quarter, as a result of non- recurring impacts, such as iron ore hedge and hedge accounting for exchange rates, with no cash impact. It is also important to note that the effect of the iron ore hedge is only temporary, since the sharp drop in Platts prices after the end of 1Q23 should bring a positive impact to the open position, largely offsetting the impact the Company had in 1Q23.

Adjusted EBITDA

	1Q23	4Q22	1Q23 x 4Q22	1Q22	1Q23 x 1Q22
					]
Profit (Loss) for the Period	(823)	197	n.a.	1,364	n.a.
Depretiation	781	826	-5%	635	23%
Income Tax and Social Contribution	213	(190)	n.a.	1,066	-80%
Finance Income	1,190	1,181	1%	1,125	6%
EBITDA (ICVM 527)	1,361	2,014	-32%	4,190	-68%
Other Operating Income (expenses)	1,665	952	75%	359	364%
Free Cash Flow Hedge Accounting - Exchange rate	362	588	-38%	79	358%
Free Cash Flow Hedge Accounting - Platts Index	568	52	992%	-	0%
Other	735	312	136%	280	163%
Equity Results of Affiliated Companies	(22)	(71)	-69%	(19)	16%
Proportional EBITDA of Jointly Owned Subsidiaries	199	228	-13%	188	6%
Adjusted EBITDA	3,203	3,123	3%	4,718	-32%

*The Company discloses its adjusted EBITDA excluding participation in investments and other operating income (expenses) because it understands that it should not be considered in the calculation of recurring operating cash generation.

• Adjusted EBITDA in 1Q23 was BRL 3,203 million, with an adjusted EBITDA margin quarter. This increase in profitability is a direct consequence of the improvement in

of 27.5% or 0,5 p.p. up from last mining results, which even with a

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RESULT 1Q23

lower sales volume, ended up presenting a higher EBITDA due to the realized prices, compensating for the weaker dynamics observed in the steel and cement segments.

Adjusted EBITDA (BRL MM) and Adjusted EBITDA Margin¹ (%)

• Adjusted EBITDA Margin is calculated from the division between Adjusted EBITDA and Adjusted Net Revenue, which considers the 100% stakes in CSN Mineração's consolidation and 37.27% in MRS.

Adjusted Cash Flow

Adjusted Cash Flow in 1Q23 was negative at BRL 2,134 million, mainly affected by one-off changes in working capital and the effect of the iron ore hedge realized in the period.

Adjusted Cash Flow¹ in 1Q23 (BRLMM)

• The concept of adjusted cash flow is calculated from adjusted Ebitda, subtracting Ebitda from Jointly Controlled Companies, CAPEX, IT, Financial Results and Changes in Assets and Liabilities², excluding the effect of the Glencore advance.
  ² Adjusted Working Capital is composed by the change in Net Working Capital, plus the change in accounts of long-term assets and liabilities and disregarding the net change in IT and SC

Indebtedness

On 03/31/2023, consolidated net debt reached BRL 30,158 million, with the leverage indicator measured by the Net Debt/EBITDA LTM ratio reaching 2.5x. This temporary increase in leverage is a consequence of the exclusion from the calculation base of the strong results from the beginning of 2022 due to the effects of the war in Ukraine. However, when looking at the prospects for results and cash generation for 2023, including the normalization of working capital conditions, a gradual reduction in leverage is expected to be achieved within the target established by the Company, which reinforces the

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