Companhia Siderurgica Nacional · BMFBOVESPA:CSNA3
Companhia Siderurgica Nacional — National Steel — Q4 2022 Earnings Presentation
21 slides from Companhia Siderurgica Nacional's earnings presentation, Mar 9, 2023
Slide 1: CSN fourth quarter 2022 results announcement
São Paulo, March 8, 2023 - Companhia Siderúrgica Nacional ("CSN") (B3: CSNA3) (NYSE: SID) discloses its fourth quarter of 2022 (4Q22) and 2022 yearly financial results in Brazilian Reais, with all financial statements consolidated in accordance with accounting practices adopted in Brazil issued by t
Slide 2: For more information, please visit our website: https://ri.csn.com.br/ 2
For more information, please visit our website: https://ri.csn.com.br/ 2
Slide 3: Consolidated Results
¹ 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 subsidia
Slide 4: Adjusted EBITDA
*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 4Q22 was BRL 3,123 million, with an adjusted
Slide 5: Indebtedness
¹ 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
Slide 6: Amortization Schedule
¹ Net Debt / EBITDA: To calculate the debt considers the final dollar of each period and for net debt and EBITDA the average dollar of the period. The Company remains active in its goal of extending the amortization period, focusing on long-term operations and the local capital market. Among the mai
Slide 7: Foreign Exchange Exposure
The accumulated net foreign exchange exposure in the 2022 balance was USD 779 million, as shown in the table below, resulted from the increase in the Hedge Accounting operations and in line with the company's policy of minimizing the impacts of exchange rate volatility on the result. The Hedge Accou
Slide 8: Investments
Investments A total of BRL 1,036 million were invested in 4Q22, a performance 23% higher than the amount invested on last quarter, as a consequence of the acquisition of large equipment’s for cement operations and the incorporation of current investments on the operations of Cimentos Brasil. In the
Slide 9: Net Working Capital
Net Working Capital The Net Working Capital (NWC) applied to the business totaled BRL 2,480 million in 4Q22 , an increase of 85% when compared to 3Q22 as a consequence of the punctual increase in inventories and accounts receivable, partially offset by the increase with suppliers. Compared to the sa
Slide 10: Dividends
¹ Other CCL Assets: Considers advance employees and other accounts receivable. ² Other CCL Liabilities: Considers other accounts payable, dividends payable, installment taxes and other provisions. ³ Inventories: Does not consider the effect of the provision for inventory losses. For the calculation
Slide 11: CSN asset map
sina Presidente Vargas, Casa de Pedra Ferrovdra: MRS e FTL CSN Energia. Volta Redonda orto Real Tecae Portuiria: Sepetiba ‘tase areos Parand Engenho Teeon ceee-s Alhandea Lusosider Pies PCH Sacre Prada (Oistrbuigloe ——_~Fermandinho PCH Santa Ana Emblagens) ERSA ‘Ags Longos (UPV) uebra-aueio swr uc M
Slide 12: Net Revenue by Segment - 4Q22
‘Net Revenue by Segment - 4022 (BRL million-before eee Steel mining im Cement 7,648 7,698 6,055 3529 2,401 2,527 1181 772 694 778 gid --: ail —_——_ 421 3022 422 4021 3022 4022 © 4021 3022 4022 4021 3022 4022 © 4021 3022 4022
Slide 13: For more information, please visit our website: https://ri.csn.com.br/ 9
For more information, please visit our website: https://ri.csn.com.br/ 9
Slide 14: Steel sales volumes
Total sales reached 1,008 thousand tons in the fourth quarter of 2022 , a volume 1.6% lower than in the same period of 2021. When analyzing the behavior in the different markets, it is perceived that the domestic market sales were the main responsible for the contraction, adding up to 740 thousand t
Slide 15: Steel segment Adjusted EBITDA
· The steel industry's Adjusted EBITDA reached BRL 826 million in 4Q22 and was 34% lower than in 3Q22, with an EBITDA margin of 13.6% (-2.6 p.p.). Despite the lower production costs, the lower prices practiced and the decrease in the volume produced ended up increasing the pressure on fixed costs an
Slide 16: Cement Result
Cement Result Despite the challenges that the rise in interest rates has brought to the real estate segment, the cement market has shown some resilience, with infrastructure projects and structured construction helping to compensate for the smaller launch of new housing units and fall of informal co
Slide 17: Performance of the main ESG targets
Indicators¹ Unit Indicator Base Year 2022 Status Goal Year Environmental PERFORMANCE OF THE MAIN ESG TARGETS Steel Emission Intensity (WSA) 2 tCO 2 and/t raw steel 2.10 (Base year 2018) 1.99
Slide 18: Health and safety at work
Health and safety at work¹ 2021 2022 Δ% Number of accidents with and without leave | Own 113 89 -21 Fatality | Own 0 3 - CAF+SAF+FT accident frequency rate | factor 1 MM HHT | Own 2.59 1.91 -26 CAF+SAF+FT accident frequency rate | factor 1 MM HHT | own and third parties 2.40 1.79 -25 The stabilizati
Slide 19: For more information, please visit our website: https://ri.csn.com.br/ 25
For more information, please visit our website: https://ri.csn.com.br/ 25
Slide 20: For more information, please visit our website: https://ri.csn.com.br/ 26
For more information, please visit our website: https://ri.csn.com.br/ 26
Slide 21: Signature and forward-looking statements
For more information, please visit our website: https://ri.csn.com.br/ 27 SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Date: March 9, 2023 COMPANHIA