Table of Contents

Company Information / Capital Breakdown

MANAGEMENT REPORT 2021

The year 2021 was historic for CSN. After completing exactly eight decades of operation, we reached the peak of our maturity, with record results, acquisitions of new assets, public offering of CSN Mineração at B3, a sharp decrease in our leverage and the consolidation of a robust ESG (Environmental, Social and Governance) policy, among many other achievements. It was CSN’s best result in these 80 years and will certainly be uniquely eternized in our history.

Achieving these marks in an extremely challenging period such as the one in recent years reinforces not only the resilience of the Company by generating record results in adverse times, but also the strength of an extraordinary professional team that has built and enabled the foundations of sustaining these results. It was a year of excellence for CSN, and these achievements would not be possible without the strength and delivery of all employees and the trust that the market places in the Company.

CSN has long since ceased to be just a steel company – and a national one. A dream made of steel, begun 80 years ago, took a proportion to many unimaginable. At Mineração, 2021 was the year in which we concluded our public offering (IPO) on the Stock Exchange. With a funding of about R$ 5.2 billion, the offer – one of the most awaited by the market for years – was among the 10 largest IPOs in B3's history by volume. In terms of volumes, more than 36 million tons of iron ore were produced, with a net revenue of R$ 18 billion – an advance in the financial result of more than 41% compared to 2020.

In addition, we remain steadfast with the commitment to mischaracterize all tailings dams, in a movement in which we were pioneers in 2017. So far, we’ve decharacterized and deregistered in the inspection bodies the B1 and B2 – Água Preta dams in Lafaiete; B5, in Congonhas; and Ecological 2, in Rio Acima. We also concluded the mischaracterization of the Vigia Auxiliary dam, in Ouro Preto, leaving only certification by the competent agencies, and the structures known as B4, in Congonhas, and Vigia, in Ouro Preto, have already had their decharacterization works begun. We also highlight that, since 2020, the Company no longer uses dams in its production, with 100% of the disposal of tailings made by the dry method.

In Cimentos, we follow our expansion project with the acquisition of new assets and consolidation as one of the largest cement companies in Brazil, and now expanding our operations, until then restricted to the Southeast, to several Brazilian states. With this movement, we must anticipate in seven years our growth plans in the sector, since after the completion and approval of ongoing processes by regulators, production capacity is expected to reach 16.3 million tons per year. Everything becomes even more special when we remember that just over 10 years ago CSN entered this market, from scratch, and that in such a short time became one of the main players in the segment. This reinforces our strategic view and demonstrates that we will continue to invest heavily in the sector.

In Steel, high international prices, the high dollar prices, and the strong demand of the domestic market have raised the price to levels well above the last few years, which has positively impacted the results. And we are very confident about 2022, as the outlook for the internal market remains strongly favorable. We also announced, at the last CSN Day, held in December, our growth momentum in the international market, with planned investments in new operations and expansion projects of existing plants. In addition to the various achievements celebrated in our areas of operation, there were also important highlights for the entire Company, such as the advancement of deleveraging – one of our main targets in the last three years. CSN was able to reduce indebtedness to 0.8 times net debt/Ebtida (earnings before interest, taxes, depreciation, and amortization).

The soundness and financial results presented were also accompanied by the consolidation of our ESG policy. Among the various initiatives to illustrate the examples of our commitment to the theme, it is worth noting that CSN was the first steel maker in the country to commit to the objectives of reducing greenhouse gases, with a goal of reducing specific emissions per ton of steel produced by 10% by 2030. Recently, we made an even more bold commitment, raising this reduction target to 20% by 2035. To accelerate this process, we present a detailed roadmap that focuses on increasing the efficiency of materials, energy, and processes, as well as disruptive solutions, including Green Hydrogen, using renewable energy sources. At CSN Mineração, which already uses 100% renewable energy, we also revised the greenhouse gas reduction target to 30% by 2030 and committed to becoming Carbon Neutral in our direct emissions by 2044.

It is also important to highlight that CSN Inova – our innovation arm – is entirely focused on the search for new technologies, startups, and cutting-edge research with the potential to scale and that allow a low-carbon industrial reality. CSN Inova's performance, through its four pillars – CSN Inova Ventures, CSN Inova Open, CSN Inova Bridge and CSN Inova Tech – has been instrumental in actively and strategically positioning us in the innovation ecosystem, which the entire market has been following with successive initiatives with various startups and the state-of-the-art Academy.

We have also made important advances in diversity, a topic that is a priority for CSN. In 2021, the number of women employed grew 20.73% in relation to the interior year and we already have 17.49% of female participation in our staff. By 2025, the goal is to reach 28% across the CSN Group. In relation to People with Disabilities (PwDs), growth was 15% compared to 2020. And our commitment is to spare no effort to consolidate a plural, diverse and inclusive CSN more and more.

And so, we intend to follow in 2022, with all the determination and the grit that we have always shown to the market, maintaining a low degree of indebtedness and betting on innovation and increasingly sustainable projects. Our entire team is committed to these themes, and we have no doubt that it will be an equally spectacular year. Once again, thank you all for your trust in our Company.

Benjamin Steinbruch

Chairman of the Board of Directors

With business in steel, mining, cement, logistics and energy, CSN operates in an integrated manner throughout the steel production chain, from the extraction of iron ore to the production and commercialization of a diversified line of steel products of high added value. The integrated production system, combined with the quality of management, makes CSN have one of the lowest production costs in the business in which it operates.

CSN has an installed capacity of 6.7 million tons of steel, of which 5.2 million are flat steels and 1.5 million long steels (0.4 million UPV and 1.1 million SWT) and the volume sold in 2021 reached 4.6 million tons. Of this total, 69% was sold domestically and 31% exported or sold through its subsidiaries abroad.

In the mining segment there was a 7% increase in sales in 2021, compared to the previous year, in response to heated demand and expansionist policies in the first half of the year. On the production spectra, the company ended the year with 36.2 million tons produced.

In the cement segment, 2021 was another positive year for the Brazilian market. Domestic sales totaled 64.7 million tons, an increase of 6.6% compared to 2020. In the case of CSN, there was an annual growth of 18% in sales volume as a result of the assertive commercial strategy and the incorporation of Elizabeth Cimentos.

CSN is one of the largest industrial consumers of electricity in the country, having electricity generation assets through participation in consortia of hydroelectric plants, in addition to generating energy integrated into its production process. This electric energy self-production activity enables CSN to achieve very competitive energy costs.

3- PERSPECTIVES, STRATEGIES, AND INVESTMENTS

In the five segments in which it operates, CSN has been investing to expand the competitive advantages of its units and in the review of the portfolio of business and projects, seeking to maximize the return to its shareholders.

3.1- SIDERURGIA

The Presidente Vargas Plant in Volta Redonda is CSN's main steel production unit, with an installed production capacity of 5.6 million tons of crude steel, 5.2 million flat steel and 0.4 million long steels. In 2021, the plant produced 3.98 million tons of crude steel, 3.78 million flat steel and 0.2 million long steels, while the production of laminates reached 3.8 million tons. In addition to its units in Brazil, the Company has two subsidiaries abroad: Lusosider, located in Portugal, and SWT- Stahlwerk Thuringen - in Germany.

3.2- MINING

In 2021, CSN sold about 33.2 million tons of iron ore, of which 4.9 million tons were destined for the Presidente Vargas Plant. Tecar, a port terminal operated by CSN Mineração S.A., located in the Port of Itaguaí, in turn, shipped about 27.9 million tons of iron ore in 2021. CSN Mineração also exported 0.4 million tons of iron ore through the Southeast Port.

3.3 - CEMENTS

2021 entered CSN's history as the period of consolidation of the strategy for the cement sector, with strong evolution in its own operations, acquisitions of strategic assets and completion of the corporate restructuring that left the company ready to unlock its growth projects. The volume sold in 2021 was 4,710kton, 18% higher than in 2020. This year, CSN completed the acquisition of Elizabeth Cimentos and announced the acquisition of LafargeHolcim. The purchase of Elizabeth, with the integration of the asset made in September, increased the production capacity of cement operations by 1.3Mtpa, changing its installed capacity from 4.7Mtpa to 6.0Mtpa.

3.4 - LOGISTICS

Ports

Tecon, a port managed by Sepetiba Tecon S.A., controlled by CSN, is positioned as the largest container handling terminal in the State of Rio de Janeiro and one of the largest in Brazil in this segment. Tecon has a current capacity of 660,000 TEUs (Twenty-Foot Equivalent Unit) annually.

Railways

CSN has a stake in three railway companies: MRS Logística S.A., Transnordestina Logística S.A. and FTL - Ferrovia Transnordestina Logística.

MRS Logística S.A. (MRS)

CSN has, directly and indirectly, 34.94% of MRS's capital, which operates the former Southeastern Network of The Federal Railway Network S.A. (RFFSA), in the Rio de Janeiro - São Paulo - Belo Horizonte axis.

The main segment of MRS's operations is that of cargoes called Heavy Haul (loads of ore, coal and coque), having transported, in 2021, about 107.2 million tons of these products, equivalent to 63.1% of the total transported by MRS. Recently, MRS has been following a strategy of diversification of cargo transported with increased General Cargo, which accounted for 36.9% in the mix transported in 2021

The rail transport services provided by MRS are essential for the supply of raw materials and the disposal of final products. All the iron ore, coal and coe consumed by the Presidente Vargas Plant is transported by MRS, as well as part of the steel produced by CSN.

Transnordestina Logística S.A. (TLSA)

TLSA is the concession holder for the construction and operation of the Nova Transnordestina railway, with an extension of 1,753 km, which will connect the railway terminal in Eliseu Martins (PI) to the Ports of Suape (PE) and Pecém (CE), passing through several cities in the states of Piauí, Pernambuco and Ceará. The projected operating capacity of the railway will be 30 million tons/year, should play an important role in the development of the Northeast region, creating a logistics option for the oil and derivatives, agriculture and mining sectors, among others.

FTL - Ferrovia Transnordestina Logística S.A. (FTL)

THE FTL holds the concession of the former northeast network of the RFFSA, which runs through seven states: Maranhão, Piauí, Ceará, Rio Grande do Norte, Paraíba, Pernambuco and Alagoas, with a total length of 4,534 km and current transport capacity of about 2.9 million tons/useful (T.U.), with emphasis on the transport of fuel, cement, and cellulose, among others. FTL currently has an operational railway network that connects the states of Maranhão, Piauí and Ceará along 1,191 km. The other railway sections are suspended traffic, in the process of being negotiationd for their return with the National Land Transport Agency (ANTT) and the National Department of Transport Infrastructure (DNIT).

On February 17, 2021, the Company released a material fact describing the public offering of primary and secondary distribution of common shares issued by CSN Mineração S.A., controlled by the Company, comprising (i) the primary distribution of 161,189,078 new Shares; and (ii) the secondary distribution of, initially, 372,749,743 Shares, of which 327,593,584 shares held by CSN (without considering the supplementary shares), 37,591,014 Shares held by Japan Brasil Ore de Ferro Participações Ltd. and 7,565,145 Shares held by POSCO, in Brazil, with efforts to place the Shares abroad, which was approved at a meeting of the Board of Directors of CSN and at a meeting of the Board of Directors of CSN Mineração, February, 12 2021. The pricing per Share was R$ 8.50, based on the result of the procedure for collecting investment intentions. The Shares began trading at level 2 of B3 S.A. – Brazil, Stock Exchange, Over the Counter ("B3") on February 18, 2021.

On May 7, 2021, the company sold 56,000,000 preferred shares issued by Usinas Siderúrgicas de Minas Gerais S.A. - Usiminas ("Usiminas"), reducing its direct and indirect share to 10.07% of the preferred shares.

On August 31, 2021, CSN informed the market that its subsidiary CSN Cimentos S.A., a closed company controlled by CSN, and which concentrates the group's cement manufacturing and marketing operations ("CSN Cimentos") entered into an Investment, Purchase and Sale of Quotas, Shares and Other Agreements under the control of Elizabeth Cimentos S.A. and Elizabeth Mineração Ltda. And on August 31, 2021, CSN has completed the acquisition of control of Elizabeth Cimentos S.A. and Elizabeth Mineração Ltda.

On September 9, 2021, CSN, through its subsidiary CSN Cimentos S.A., entered into a contract for the purchase and sale of shares through which it intends to acquire 100% (one hundred percent) of the shares issued by LafargeHolcim (Brasil) S.A. Until

the present date of deed of this document, the acquisition is in the process of analysis of CADE (Administrative Council of Economic Defense).

On November 24, 2021, CSN published a material fact announcing the celebration between CSN and the controlling shareholders of Metalgráfica Iguaçu S.A., of an Investment and Other Covenants Agreement, by which the parties agreed to promote the combination of the operations of both companies by incorporating all shares issued by Metalgráfica by CSN, making it its wholly owned subsidiary. Until the present date of deed of this document, the acquisition is in the process of analysis of CADE (Administrative Council of Economic Defense).

5 - CORPORATE GOVERNANCE

Investor Relations

CSN continues to expand its communication channels, aiming to increase the Transparency and Exposure of the Company through new coverage of financial institutions and participation in events and conferences.

Share capital

CSN's share capital is divided into 1,387,524,047 common and book-entry shares, with no par value, and each common share is entitled to one vote in the resolutions of the General Shareholders' Meetings.

Controlled by Vicunha Aços S.A. and Rio Iaco Participações S.A. which hold respectively 48.97% and 3.29% of CSN's total capital, the Company's management is the responsibility of the Board of Directors and the Executive Board.

CSN - Composition of The Share Capital on 12/31/2021 (%)

*Controlling Group

On June 21, 2021, the Company announced, via a material fact, the opening of a Company's Share Repurchase Program ("Share Repurchase Program"), for the acquisition of up to 24,154,500 (twenty-four million, one hundred and fifty-four thousand five hundred) common shares. And, on December 6, 2021, the Company approved the closure of the share repurchase program and the opening of a new program for acquisition, in the period from December 7, 2021, to June 30, 2022, of up to 30,000,000 (thirty million) common shares. On December 31, 2021, the Company had a total of 45,790,000 shares in treasury.

Shareholders' General Meeting

Once a year, as established by the legislation, the shareholders meet at the Ordinary General Meeting to decide on the accounts presented by the directors, the financial statements, the allocation of the result of the year, eventual distribution of dividends,

and every two years, also deliberate on the election of the members of the Board of Directors. The General Meeting also takes place extraordinarily, whenever necessary, to deliberate on matters that are not within its ordinary competence.

Board of Directors

The Board of Directors shall be composed of up to eleven members, who meet ordinarily on the dates foreseen in the annual calendar, at least once each quarter and, extraordinarily, where necessary. The term of office of the Directors is two years, with the possibility of re-election. Currently the Board of Directors is composed of five members. The Board of Directors shall, among other duties, define and monitor the Company's policies and strategies, monitor the acts of the Executive Board, and decide on relevant matters involving Companhia's business and operations. It is responsible for the election and removal of the members of the Executive Board, and may also, if necessary, create special committees for his advisory.

Executive Board

The Executive Board is composed of two to nine Executive Directors, who meet whenever convened by the Chief Executive Officer or by two Executive Directors, and it is in the responsibility of each Executive Director to conduct the operations relevant to its area of operation. The term of office of the Executive Directors is two years, and re-election is permitted. Currently composed of seven Executive Directors, one of them being the Chief Executive Officer. The Executive Board, in the following observations and resolutions of the Board of Directors and the General Meeting, has the powers of administration and management of the Company's social business.

Fiscal Council

The non-permanent Fiscal Council is currently installed, with a mandate until the 2021 Ordinary General Meeting, and is composed of three full members and three alternate members, of whom one full member and an alternate member were appointed by minority shareholders of the Company. The Fiscal Council has as main function to supervise the acts of the administrators and verify the fulfillment of their legal and statutory duties. In addition, the Fiscal Council is also responsible for examining the quarterly information and financial statements prepared by the Company, giving an opinion on the annual report of the management and the proposals of the management bodies to be submitted to the General Meeting.

Audit Committee

The Audit Committee is composed of three independent members, elected by the Board of Directors, with a management term of 2 years. The Audit Committee meets ordinarily at least once each quarter and, extraordinarily, whenever necessary. The Audit Committee has the autonomy to exercise tasks with regard to the provisions of the Sarbanes-Oxley Act - Sections 301 and 407. Some of its main duties are: to review the financial statements and other public information on the operational performance and financial situation of the Company and to recommend to the Board of Directors the appointment, remuneration and hiring of external auditor, as well as to monitor the performance of internal and external audits.

Internal Audit

CSN has an Audit, Risk and Compliance Board, with independent operations within the organization, linked to the Company's Ministry Committee, according to Art.19, VIII of the bylaws.

The internal audit team has its own methodology and tools to carry out its activities, which are aligned with the best market practices and adopts a systematic and disciplined approach, acting objectively and independently in the conduct of its work, to evaluate the effectiveness of controls and consequent improvement of risk management, control and governance processes, as well as fraud prevention, reporting its results to the Board of Directors, through the Audit Committee.

Independent auditors

The independent auditors, Grant Thornton Auditores Independentes, which in 2021 provided services to CSN and its subsidiaries, were hired to issue a conclusion on the quarterly financial statements and opinion on the Company's annual financial statements and additional services to the examination of the financial statements. It is understood that both the Company and its independent auditors that such services do not affect the independence of the auditors.

The services provided by the external auditors, in addition to the examination of the financial statements, are previously submitted to the Audit Committee to conclude, in accordance with the relevant legislation, whether such services, by their nature, do not represent a conflict of interest or affect the independence and objectivity of the independent auditors. Pursuant to CVM Instruction 480/09, the Board of Directors declared on 03/09/2022 that it discussed, reviewed, and agreed with the opinions expressed in the opinion of the independent auditors and with the financial statements for the fiscal year ended December 31, 2021.

Sarbanes-Oxley Act

The Company has in its corporate governance structure the Audit, Risk and Compliance Board, which has as one of its attributions, the assessment of risks that may impact on the financial statements and definition of internal controls to mitigate them, together with the managers responsible for business processes. The Company evaluates the effectiveness of its internal control structure, according to principles established in COSO 2013 and in compliance with the Sarbanes-Oxley Law, and the result of this evaluation is reported to senior management and the Audit Committee.

In an evaluation of internal controls by management, together with the external auditor, the Company did not identify material weakness as of December 31, 2020. The Company is in the final phase of the evaluation of internal controls for the fiscal year 2021, in compliance with section 404 of the Sarbanes-Oxley Act.

Code of Ethics

The Company has a code of ethics approved by the Board of Directors contemplating principles applied in compliance with the Anti-Corruption Law (12,846/13). The code applies to all employees, counselors and directors and also establishes ethical principles and responsibilities for third parties, considering suppliers, service providers and any intermediary and associated agents. The code is made available to all employees and business partners and is used as a statement of commitments made of conduct. Its guidelines are public and can be found on the CSN website at the e-mail address (www.CSN.com.br).

The Audit, Risk and Compliance Board is responsible for the Integrity Program, which aims to ensure compliance with ethical standards of conduct in the exercise of activities and transparency in business. Part of this process is the continuous training of employees and also the monitoring of compliance with laws, regulations, policies, and internal standards

The Company also has reporting channels for reports of misconduct or suspicion. The reporting of complaints by employees, third parties and the external public may take place anonymously or identified, maintaining secrecy, confidentiality, and the guarantee of non-retaliation. The complaints are handled by the Audit Management, subordinated to the Audit, Risks and Compliance Board and reported to the Audit Committee.

Disclosure of Material Acts and Facts

CSN has a Policy of Disclosure of Material Acts or Facts and Securities Trading according to which all disclosure must be made with reliable, adequate and transparent data, within the deadlines and with homogeneity, as established in CVM Instruction 358/2002 and section 409 – Real-Time Disclosure of the Sarbanes-Oxley Law. This policy establishes that the Company's Material Acts and Facts must be carried through the Folha de São Paulo News Portal, together with the disclosure on the investor relations websites of the Company, the Securities and Exchange Commission and B3 S.A. – Brazil, Bolsa, Balcão.

6- INNOVATION

The Company has more than 70 years of research, development, and innovation activities, having been the first national steel maker to produce coated and pre-painted steels. Innovation is part of our essence as a pioneer in process, product, and commercial solutions, always committed to quality and the search for new initiatives that deliver greater added value to our

customers and stakeholders. CSN seeks innovative performance in all its business areas and also has structures totally dedicated to innovation, such as CSN Inova and the Research and Development Center.

Created in 2018, CSN Inova is CSN's corporate innovation area, which aims to position the Company strategically and actively in the innovation ecosystem. Although there are innovative initiatives disseminated throughout the company, CSN Inova is responsible for systematizing and lead the innovation process in an organized and broad manner, in order to enable the execution of innovation projects by groups of people with different skills and different areas of activity.

The essence of CSN - "Doing well, doing more and doing forever" - directs the pillars of innovation of CSN Inova: (i) Process Optimization and Operational Efficiency, (ii) New Sources of Revenue; and (iii) Culture and Sustainability. In addition to systematizing and leading the process of open innovation (hiring startups, connecting with universities, innovation hubs and other ecosystem agents) CSN Inova - always in conjunction with business areas - conducts projects that introduce new methodologies to solve the company's challenges, which help the Company in digital transformation, enhance CSN's assets, opportunities for the development of new business for the Company, among others. There are four areas with integrated performance with different formats of innovation:

CSN Inova Open diagnoses the Group's challenges, tests, and scales new technology-based solutions to solve challenges. CSN Inova Ventures generates shared value with investments in startups and the valuation of these assets. CSN Inova Bridge leads the integrated management of ESG innovation challenges and communication on innovation. CSN Inova Tech conducts the decarbonization journey, monitors technological trends, develops relationships with academia and science & technology centers considered references in the themes they act on, and conducts projects that have the potential to mainly impact our production processes (core) in a disruptive way.

In 2021, more than 50 diagnostic sessions were conducted in the Steel, Mining, Logistics and Cement segments, involving more than 20 different areas, which resulted in numerous challenges opened throughout the year. Thus, for these challenges, CSN Inova Open mapped its processes and indicators, in addition to measuring its economic and strategic potentials in order to identify assertive technological solutions for proof-of-concept tests and pilot projects followed by implementation at scale, when applicable.

At CSN Inova Ventures, to ensure access to the best opportunities, there were more than 100 connections with investment funds and startup accelerators in Brazil, Israel, USA, Singapore, China, England, among other countries, as well as partnerships with agents who are a reference in the innovation and Venture Capital market, such as Endeavor, ABVCAP and BR Angels. As a result of the connections and market studies carried out, the investment thesis was established, which today includes Industry 4.0, Greentechs (e.g., energy, energy efficiency, technologies to aid the decarbonization of processes and etc.). ESG, and Adjacent Themes (Healthtechs and Agtechs). The companies chosen to be part of the fund include themes of extreme importance for the future of the CSN Group, such as advanced materials (2DM), decarbonization (1s1 and H2Pro), energy (Clarke) and digital channels and process digitization (Oico and Traive).

In 2021, CSN Inova Bridge, supported by an extensive research of governance models in sustainability and innovation, the ESG Committee was constituted as an advisory body of the Board of Directors, formatted as an agile laboratory model of socio-environmental innovation to manage our main opportunities of material themes mapped by the CSN Group: (i) Climate Change; (ii) Territories; (iii) Waste; (iv) Diversity & Inclusion; (v) Biodiversity & Forests; (vi) Water & Effluents; (vii) Value Chain, Governance & Compliance; and (viii) Health & Safety at Work.

Finally, 2021 was also marked by the creation of CSN Inova Tech, an area that leads the technological front of CSN's decarbonization journey. For this, the Climate Change Group ("GMC"), a multidisciplinary team linked to the ESG Committee, responsible for leading the decarbonization journey, was structured. The performance of the GMC resulted in the identification and technological analysis of more than 100 mitigation options and construction of the decarbonization roadmap of operations. For this, the area has been mapping strategic partners as relevant players in the sector, as well as universities and state-of-the-art technology centers with the objective of establishing long-term relationships for the development of technological solutions associated with the decarbonization of the group.

In turn, at CSN's Research and Development Center located in Volta Redonda, the General Management of Product Development operates, which has as main mission the development of new products to increase the competitiveness of the company. To this end, the area aims to ennoble the mix and expand the portfolio, aiming at gaining market share in the various market segments, in addition to contributing to the implementation of new technologies in the production process.

The laboratory structure of the Research and Development Center is composed of 15 laboratories that perform analyses related to the physical, chemical, mechanical, and metallographic characteristics of CSN steels and other alloys, with state-of-the-art equipment such as optical microscopy and scanning electron microscopy (SAM). The Company also has an Environment Laboratory for environmental monitoring accredited by the responsible body - INEA.

The Research and Development Center also contains physical and computational simulation laboratories, with state-of-the-art equipment such as gleeble 3500 which, among other modules, has "Large Sample Annealing" (first in Latin America), which allows simulations of thermomechanical processes for optimization of industrial processes. Furthermore, CSN's computer simulation laboratory has several software, such as forming simulation and stamping, which allows you to evaluate in advance the performance of the CSN product in its various applications for its customers.

In 2021, some projects of the Research and Development Center stand out: For the automotive and auto parts market, high strength products classes 420 and 500MPa are being developed to meet the needs of structural application in vehicles of the main automakers in Brazil. In addition, CSN has been working on the development of advanced steels (AHSS – Advanced High Strength Steels), in the Categories Dual Phase (bi-phasic), Complex Phase (CP) steels and hot stamping steel (PHS) or "Hot Forming", which represents a strong trend of increased application in car bodycases, because it allows the conformation of complex geometries and with requirement of high mechanical strength in the final part. The family of polyphasic steels (AHSS) is the response of the world steel industry to the demand for materials produced with current production methods, offering products of high mechanical strength and good conformability, fully meeting the manufacturing requirements of the automakers, vehicle safety, mass reduction and fuel consumption and, consequently, lower generation of polluting gases, minimizing environmental impacts.

In the segment of hot rolled flat steels, the focus was on meeting the needs of the market, maintaining the traditional quality of CSN's products, associated with the continuous search for reduction in the cost of steel and sustainability. Examples include the development of a family of high mechanical strength steel for application in structures for photovoltaic panels and the development of high strength steel for weight reduction of truck wheels. In the segment of cold rolled flat steels, it is possible to highlight the increase in the offer of extrafine products with bright surface characteristics. For the white line market, we highlight the effort to reduce the thickness of our steels, increasingly required by customers in this sector. It is also worth mentioning the development projects of high strength steels for the construction segment.

Finally, in the segment of pre-painted steels, there has been an increase in the diversification of applications, following market trends in aesthetics and durability. With regard to the aesthetic effect, new products with beading paints and textured paints were approved on the market that meet this new trend. The use of pre-painted steel has allowed CSN to provide an optimization in the steel use chain, reducing manufacturing steps in its customers with consequent reduction of environmental impacts. The increasing interest of customers in these products has stimulated development in the segments of construction, white line and automotive.

With a qualified technical staff and the use of Application Engineering technologies to support customers, CSN seeks excellence in testing and simulations of new materials, allowing to increase assertiveness in responses to the demands of the different sectors in which it operates: automotive, white line, metal packaging and industry and distribution. In all of them, we promote the use of innovative steels and innovation in manufacturing processes, providing customers with cost reduction and increased competitiveness.

7- PEOPLE

The CSN Group's People Management model is based on five pillars: Attract; Align and Engage; Evaluate; Develop; Recognize and Reward. The company believes that its competitive differential is its human capital. Through this model knowledge is transformed into a successful trajectory, based on passion, dedication and competence that generate opportunities, achievements, and recognitions. Faced with the new reality established by coronavirus and based on ethical standards of professional conduct, CSN followed all recommendations for prevention and containment of the virus disclosed by the competent health agencies.

Given this pandemic scenario, several measures were taken in relation to the practices of People & Management, aiming to make the employee's experience even more effective. We have implemented a digital platform for sending admission documentation, with the objective of optimizing and speeding up the process. We have established our Internship Program with the implementation of Blind Recruitment. The program was conducted entirely online, including group dynamics, candidate assessments, behavioral assessment, and logical reasoning tests. The candidates were able to follow each stage of the process,

through QR code. We conducted a satisfaction survey regarding adherence of the new process with the trainees and the applicants and had an assigned experience score of 9.5% and 9.0% respectively.

Aiming at the acceleration of the career of the trainees, during the year 2021, we carried out 4 development modules, being: Self-knowledge; Financial Planning; Life and Career Planning and Inclusion and Diversity of Work,

We partnered with Alicerce Educação, as a pilot project, investing in the training of 80 young people, with the objective of delivering them with differentiated educational basis to the Brazilian context, accompanied by a complete MAPA diagnosis at the end of 16 weeks. We have prepared an action plan focused on significant and permanent development through the customization of teaching, meeting the needs and real possibilities of each student. The themes were designed to contemplate the CSN Essence, aiming to develop them beyond the skills of Languages and Mathematics. Accompanying these Young People, we had the opportunity to take advantage of 50 young people in our Learning program, improving their knowledge with a focus on the Company's opportunities.

Another initiative we had was the partnership with BRASA Summer Journey, which has the mission of empowering, connecting, and engaging Brazilian talents, during the period of recess of universities abroad. The goal of the program is that, for 4 weeks, these students develop projects of high impact for the organization, learning from the company's culture. We had the participation of 30 young people who went through various training and mentoring, as well as conversations with the Leaders, to understand the culture of the company, to delve into the theme and bring the best solution. The program was carried out in partnership with the CSN Foundation and CSN Inova, with the theme: "Elaboration of a territorial development plan for the cities of Congonhas and Volta Redonda".

We implemented the Summer Job Program with 02 students of the Win the World Program, where they had the challenge in partnership with CSN Inova to develop the project: "Trend Radar Construction". We carried out the Diagnosis of Acculturation of executives and specialists admitted to the CSN Group, aiming to raise perceptions about our culture; essence; work environment; relationship with the manager and peers, in addition to monitoring whether expectations were met considering what was hired in the selection process.

We launched the Trainee #VemSerCSN program, which aims to attract, retain, and develop young people with high potential to occupy strategic positions, in the medium and long term, aiming to add value to the CSN group's business. We carried out the selection process in record time, only 03 months. The process had 20,008 registered for 50 vacancies. Of these, only 390 went to the hackathon phase, which was held over a weekend and relied on the support of CSN Managers to technically support them in solving a real problem. For the next phase, we had 209 candidates who went to the panel with the managers, where they were able to perform and work as a team, to observe the behavioral skills. In the next stage, we have 156 candidates who were interviewed by managers. In all, we conducted 463 interviews and 107 candidates approved for the 50 vacancies.

We implemented CSN Conecta, a program with the objective of engaging groups of up to 4 employees in the development of solutions, aiming to accelerate esg actions in the company, in the themes of water, energy, waste and emissions. The program was launched in all units of the CSN group, and the initiative, in addition to generating innovation through the solutions that will be developed, will contribute to the generation and sharing of technical knowledge.

We carried out several engagement actions, such as: Palestra Janeiro Branco - Mental Health; Women's Day - Women's Leadership Lecture; Mother's and Father's Day; Lecture Yellow September - Valorization of Life; Secretaries' Day; Kindness Day; Children's Day; Lecture October Rose - Transforming Lives in partnership with the NGO Amor in Mechas.

The Group reinvented itself and many actions were restructured so that the development of employees would take place with total security.

To maintain a high performance and qualified team, the CSN Group was able to recycle its employees in mandatory training, respecting all safety protocols: distancing, smaller workload, open and ventilated locations, use of masks and frequent hygiene and many were performed by online training.

We have defined a Corporate Education program, which will evolve into a Corporate University in the future, focusing on structuring a learning path for all levels of the organization; manage mandatory training; encourage knowledge management; lower training costs, stimulating the action of internal multipliers and encouraging technological and technical research and updating at CSN.

Therefore, we define the Organizational Drivers – Organizational Competencies, Behavioral Competencies and Technical Competencies that will support the Corporate University, as well as Corporate Governance – roles and responsibilities; the Mission, Vision and Purpose of the University, as well as its schools: School of Leaders; Business School; School of Excellence in Results and ESG School. We hire a platform that will have all these contents and will do knowledge management. During 2021, we worked on the design review, parameterization of the LMS and the inclusion of contents.

In the year, 358,420 hours were invested in training, which demonstrates the concern of the CSN Group in the development of its employees.

We manage our People Cycle where all employees had the opportunity to receive and give feedback about their current moment and career expectation. The Cycle consists of the following stages: evaluation - calibration /committee of people - feedback - career & succession - preparation of the PDI - Development. The role of the leader in this process is fundamental. Leaders are responsible for supporting the development of the team in order to make them better professionals than themselves, thereby ensuring the growth of people and the perplexity of CSN through the career & succession program. The Competency Assessment follows the methodology as follows:

▪ 360° evaluation - Executive Directors; Directors; General Managers and Managers: Perform self-assessment; and receive evaluation from the immediate manager; pairs; team; customers | internal suppliers

▪ 180° evaluation - Coordinators and Supervisors: Perform self-assessment and receive evaluation from the immediate manager and team

▪ Evaluation 90° - Specialists; Higher Level; Administrative and Operational Level: Perform self-assessment and receive evaluation from the immediate manager

23,566 employees were eligible for the Competencies Assessment process. After the evaluation, we performed the 9Box of the CSN Group and implemented the calibration in the People's Committee, resulting in the "Inverted L", mapping the company's talents and potentials. Twenty-eight Executive-level People Cycle Committees were held, talent discussions and potential successors to Manager and above, in a record time of 30 days.

We performed a market mapping for executive positions that did not have potential successors, for this we developed a criticality matrix for position analysis. Aiming at the sustainability of the CSN Group's business, we carry out the Assessments of all Steel and Mining Executives, where a PDI should be prepared to accelerate the career of those involved. Following the process, we updated our Skills Self-Development Guide to support the preparation of the PDI, which has also been reformulated. And we have developed a new form to manage feedback. As an improvement of the process, we implemented a new performance management platform, where we will have everything integrated into a single system: results of goals; competencies; 9Box result, calibration committee, people cycle; feedback records and preparation of PDIs. This platform is based on social networks, to provide a better employee experience. It is more agile, transparent, and friendly and can be accessed via mobile phone.

In its practices of attracting and valuing employees, the CSN group ensures non-discrimination, making it clear that the organization is intolerant of any practice contrary to its ethical values. It is included in its Recruitment & Selection policy the following points:

▪ The organization maintains a professional and responsible relationship with its employees and does not admit that career decisions are based on personal relationships;

▪ The organization does not tolerate any attitude guided by prejudices related to origin, religion, race, gender, sexual orientation, social class, age, marital status, political-party position, and disability of any kind, for the purpose of sponsorship and donation to social, welfare and cultural projects. Likewise, for hiring and taking advantage of their professionals, provided they meet the technical requirements and the profile required for the position;

▪ The organization does not admit illegal practices such as child labor and, therefore, maintains a work environment that respects the dignity of all employees, that provides good professional performance and is exempt from any kind of discrimination and sexual or moral harassment. The organization will not employ child or slave labor, nor will it agree to such practices by third parties who provide us with products or provide any kind of service;

▪ To meet the organization’s, need for human resources, internal recruitment and admission of Persons with Disabilities are prioritized, provided they meet the prerequisites of the vacancy in question.

The CSN Group ended 2021 with 24,687 direct and 10,492 indirect employees, indicating for the direct ones a turnover rate of 1.2%.

8 - PERFORMANCE IN ESG ASPECTS (environmental, social and governance)

Important initiatives marked the year 2021 in the development of the ESG themes of the CSN Group. In 2021, CSN published an Integrated Report for the year 2020, highlighting the evolution of CSN in several indexes focused on ESG issues. In September the CSN Foundation celebrated its 60th anniversary and taking advantage of this milestone, the Foundation went through a process of redefining its brand and way of communicating, to make more evident its purpose of transforming lives and communities, based on the axes of action: education, culture, articulation, and curation. And in November CSN and CSN Mineração received Gold Seal from the Brazilian GHG Protocol Program, so the Company reached the highest level of qualification in its corporate greenhouse gas emission inventories by certifying the Gold Seal.

Since 2010, the Company has been inventorying greenhouse gas emissions, following ghg protocol guidelines to support its carbon management, risk mitigation and adaptation to climate change. The company received, for the seventh consecutive year, the GHG Protocol Gold seal for having reported the emissions of all its units and submitted to external verification. Also responding to the request of investors, the Company reports annually to the Carbon Disclosure Project (CDP) the guidelines followed in relation to climate change, supply chain and water security. In 2021, we had a score improvement in Climate Change from C to B.

Finally, we have established ESG ambitions that will guide our journey towards more efficient, integrated, and sustainable management.

In Steel: Reduction of 10% of the emission intensity by ton/steel produced by 2030 and a reduction of 20% by 2035 (base year 2018), according to the WSA methodology.

In Mining: Reduction of 30% of ghg emissions intensity by 2035, per ton of ore produced (base year 2019), and net zero reach by 2044 in scopes 1 and 2.

In cement production: in 2021, we achieved a significant reduction in our GHG emissions of 8% when compared to 2020 emissions, reaching the industry target projected for 2030 according to the Brazilian Cement Technology Roadmap, with this we set the goal of reducing by 28% (base year 2020) our emissions by 2030, reaching 20 years in advance the sector target established for 2050.

A - Environmental dimension

Environmental Management

CSN maintains several instruments of Socio-environmental Management and Sustainability in order to act in a propositional way and serving the various stakeholders involved in the communities and businesses in which it operates.

We constantly work to transform natural resources into prosperity and sustainable development. Throughout 2021 CSN continued its sustainability initiatives to mitigate and compensate for the impacts of its activities and raised R$ 544.2 million for environmental initiatives, including costing and investments.

The Company has an Environmental Management System (EmS), implemented according to the requirements of the international standard ISO 14001: 2015 and certified by an independent international body duly accredited to INMETRO, in most of its units. In 2021, we achieved ISO 14001:2015 certification in two more units, TECAR Port (RJ) – our port unit – and arcos (MG) certification in our cement plant. The year also marked the first certification in ISO 9001 – Quality Management System, the Port of TECAR (RJ), Mina Casa de Pedra (MG) and Mineração ERSA (RO).

Through its Integrated Policy, the CSN Group expresses the importance of the circular economy for its environmental management. Thus, we have as principles reduce, reuse, and recycle materials and products and optimize the use of natural resources, supported by the significant participation of renewable energy sources in our energy matrix.

Water is one of the main inputs for our production processes, especially for the steel and mining sectors. We closed 2021 with a reduction of 16.2% in the specific uptake of water per ton of steel produced, when compared to 2020, from 22.1 m³/t of steel in 2020 to 18.5m³/t of steel in 2021. Compared to 2019, the reduction is even more significant, with a 27.7% reduction.

In regard to search for reduction of waste disposal in landfills, the Presidente Vargas Plant, in 2021, reached the mark of 34.7% annual reduction in the shipment of process slamas to class II landfills, when the target proposed by the company was a reduction of 10%. This positive result and beyond what was expected was achieved due to alternative destination strategies, such as market prospecting of new customers for mud consumption and the use of waste for recovery of areas degraded by erosive processes.

In total, CSN protects an area approximately 4 times larger than that occupied by our operations. There are 77,000 hectares, distributed in several states of Brazil, of protected and preserved natural areas, contributing to the protection of native fauna and flora species, including endemic and endangered species.

At the Presidente Vargas Plant, in Volta Redonda, investment in environmental improvements of more than R$ 300 million is planned by 2024. This investment is divided into more than 30 improvement actions, which represent the company's commitment to sustainability, the legal compliance of its activities and the community.

CSN invests efforts and resources to reduce greenhouse gas emissions and mitigate impacts related to climate change.

Through the use of software with artificial intelligence, the Marginal Abatement Cost Curve (MAC Curve) was generated from the current GHG emissions scenario, as well as emission projections in a normal business environment, and projections of low Carbon scenarios, considering the feasibility and impact of different mitigation options.

120 proposals for technologies applicable to the steel and cement branches that have already undergone a prior analysis of applicability within our units have been mapped. Among these initiatives there are improvements in the production process to disruptive technologies such as the use of DRI and Hydrogen.

In the year we also completed the qualitative assessment of risks and opportunities related to climate change for all segments of CSN, carried out based on the TCFD (Task Force for Climate Related Financial Disclosures) guidelines.

Dam management

CSN Mineração is at the world stage in the management of mining tailings having invested about R$ 400 million in technologies that have enabled better management of tailings with dry filtration and stacking, making since the beginning of 2020 our processes 100% independent of the use of the tailings dam.

The Company's social and environmental guidelines also include the monitoring of dams, used to contain tailings from the process of processing CSN Mineração's activities. According to the classification of the dam (Ordinance 70.389/2017 of the ANM), all dams are audited by independent companies specialized in the subject, aiming to attest to the stability or not of the dams and identify preventive actions to ensure this stability. The Dam Safety Plan and CSN Mineração's Emergency Action Plan for Mining Dams (PAEBM) are finalized with all necessary volumes consolidated in compliance with the ANM ordinance.

We closed the year 2021 with all, the dams of CSN Mineração remaining at zero emergency level, which is the best level according to the National Mining Agency (ANM).

In continuity with the decharacterization schedule of our dams, the work of the belt channel of the Vigia Dam was completed, which is in a process of decharacterization of the Dam with completion expected in 2023.

The Fernandinho dam (B2A), owned by the company Ores Nacional, which had in the first half of the year, its stabilization operation interrupted at the request of the National Mining Agency (ANM), had again authorized the stabilization works that are resulting in a substantial evolution of its safety factors.

B - Social dimension

Job safety

Safety is our top priority, and in 2021 we reached the lowest historical level of our frequency rate (CAF+SAF– accidents with or without leave). There were 2.4 accidents/million man-hours, a decrease of about 2% compared to 2020, better rates in the last 7 years and higher percentage of reduction since the beginning of the compilation of data from the units in 2014, establishing a new milestone for the CSN group. In addition, 2021 was marked by the accumulated in the year of Zero accidents with clearance in the units: Cimentos Arcos, ERSA Mineração, Ores Nacional, Galvasud and FTL Ceará.

We are reaching the results of our constant evolution in accident prevention, always seeking to evaluate the potential of certain situations that may lead to fatal or high-severity accidents. Our strategy is in the task of identifying and preventing the risk of dangerous situations before they can lead to serious and fatal accidents.

The Directorate of Sustainability, Environment, Health and Occupational Safety was created in 2020 with independent scope and goals, but at the same time agreed with operations, always in order to strengthen our risk management structure. The area has outlined a roadmap to improve the culture, standards, and security processes at CSN to ensure that risk and safety assessments are at the heart of all decisions made in our company.

COVID-19

COVID-19 spread significantly on a global scale from March 2020, when the WHO (World Health Organization) decreed a global pandemic, a state that has the potential to cause significant global operational disruptions, increasing market volatility and affecting global and regional economies.

Like the entire planet, the CSN Group was also surprised by this unprecedented crisis but, through the immediate establishment of the Rapid Response Management Committee (Crisis Committee), reacted quickly and diligently based on ethical standards of professional conduct and social responsibility. To this end, it followed all the recommendations of prevention and containment of COVID-19 recommended by the health agencies competent to protect themselves, protect their employees the society around its operations, and in addition to its own operation against the social and economic effects produced by the virus.

With regard to occupational health, in 2021, we focused our efforts on implementing measures to prevent the spread of COVID-19 among our workforce and communities. We have established a dedicated committee to deliberate on COVID-19 matters and promptly adopt all recommended protocols, donating masks, hand sanitizers and cleaning products; strengthening hygiene practices in our areas of work; testing employees where applicable; and adoption of remote work arrangements for individuals in risk groups. These measures demonstrated our commitment to the well-being of our employees and communities.

As soon as the COVID-19 vaccine became available, the Company established partnerships with the municipalities in which they are located in order to promote vaccination of our employees. The Company encouraged all its employees to get vaccinated, at the end of 2021 75% of employees were vaccinated in full regime and 94% with at least one dose of vaccine

In addition to the vaccine, strict and technically validated health measures and processes were implemented to protect the health of each person involved. Among them stand out:

In addition to the adoption of validated medical protocols with:

These measures helped preserve the health and lives of our employees, ensuring that there was no impact on our operational performance.

Diversity

We believe that Diversity and Inclusion is a promising path that contributes to the transformation of our society and drives our business, the initiatives and actions undertaken reflect in practice mechanisms that promote equity and bring sustainable results of representativeness and equality.

The CSN Group has a zero-tolerance commitment to any type of discrimination practice, expressed in its Code of Ethics. We understand that an inclusive and diverse environment is important to stimulate innovation and ensure the continuity of our business, CSN also believes that an inclusion approach is key to eliminating barriers that prevent the hiring and retention of women, and the consequent performance improvement due to gender diversity. By 2020, a bold goal was set: to double the female workforce at CSN by 2025 from 14% to 28%. Towards our commitment, we intensified the Training Women in The Steel Program in Volta Redonda and Mining in Congonhas and started the first class of Young Apprentices exclusively for women in FTL (Ferrovia Trasnordestina Logística). The class of 30 Young Women is a disruptive movement in the sector that aims at representing the railway in a sustainable way. The result of the representation of Women in the CSN Group went from 13.8% in December 2020 to 17.5% in September 2021, an increase of 27% in the period.

In relation to the result of Representativeness of people with disabilities, in 2021 we had a growth of 15%, compared to 2020, with practices aimed at the inclusion of these citizens, such as the Empowering Person with Disabilities, launched in 2021 with the objective of training and hiring. In addition, goals were rattled to all the group's businesses, directing everyone to a path of greater inclusion and diversity.

The highlight in The Steel Industry was the achievement of the Makes a Difference Award, in the Rio Development category, with the 'Diversity in The Steel Program'. The award, which is in its 18th edition, highlights inspiring initiatives that work a strategic vision of the business, integrating the social dimension, thus contributing to the sustainable development of the State of Rio. The projects developed by the companies nominated for the award were carried out in 2020 and are aligned with the Sustainable Development Goals (SDGs) of the United Nations (UN).

Social responsibility

The CSN Foundation is responsible for the social actions of the CSN Group. Its purpose is to transform lives and communities through social, cultural, and educational development. It carries out direct action projects in culture and education, where it is sponsored by the CSN Group and other partners, through tax incentive laws. It develops businesses, such as the Hotel-Escola

Bela Vista, Vila Business Hotel in Volta Redonda (RJ), which generate resources entirely destined for the realization of social actions.

In 2021, the CSN Foundation completed 60 years of operation, with the development of actions aligned with the sustainable development goals (SDGs) established by the United Nations (UN). It materializes in its projects and programs, including the SDDs of 1. Poverty Eradication; 4. Quality Education; 5. Gender Equality; 8. Decent Work and Economic Growth; 10. Reduction of Inequalities and 17. Partnerships and Means of Implementation.

The CSN Foundation believes in the transformation of society through education and cultural expression. Among its actions, the Kid Citizen conducts a sociocultural project that serves 2,550 children and adolescents in the main cities where CSN is inserted. In 2021, its operations expanded with the opening of three more units of the Garoto Cidadão project in Mato Grosso do Sul.

Highlights of the CSN Foundation in the period:

C - Governance dimension

CSN has been working on the formalization of its main ESG commitments. In the third quarter, the first meeting of the ESG Committee, a non-statutory advisory body to the Board of Directors of the CSN Group, took place, and whose composition includes its senior executive leadership. At this first meeting, the establishment of an Integrated ESG Management Commission was approved, to be composed of ambassadors appointed by the members of the body, so that its main functions will be to implement an open innovation and sustainability system. In addition, the Commission will be responsible for the action plans and initiatives organized from the materiality matrix of the CSN Group. The Materiality of the two companies is in the process of updating and will bring even more robustness to the implementation of the Committee next year, with maturity and focus on the material themes of CSN Group and CMIN. The new materiality will be presented in the next Integrated Report 2021.

9 - STATEMENTS ON PROJECTIONS AND FUTURE PROSPECTS

This document contains statements about the future that express or suggest expectations of results, performance, or events. Actual results, performance and events may differ significantly from those expressed or suggested by statements about the future due to several factors, such as: general and economic conditions of Brazil and other countries, interest and exchange rates, future renegotiations and early payment of bonds or credits in foreign currency, protectionist measures in Brazil, U.S. and other countries, changes in laws and regulations and competitive factors in general, on a regional, national or global scale.

CSN's financial information presented here in accordance with international financial reporting standards (IFRS) issued by the International Accounting Standards Board (IASB) and accounting practices adopted in Brazil. Non-financial information, as well as other operational information, was not audited by the independent auditors.

4Q21 AND 2021 FINANCIAL RESULTS

March 09, 2022

São Paulo, March 9, 2022 - Companhia Siderúrgica Nacional ("CSN") (B3: CSNA3) (NYSE: SID) discloses its results for the fourth quarter of 2021 (4Q21) 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”).

All comments presented herein refer to the Company’s consolidated results for the fourth quarter of 2021 (4Q21) and the comparisons are between the fourth quarter of 2020 (4Q20) and the third quarter of 2021 (3Q21). The price of the dollar was R$ 5.20 at 12/31/2020; R$ 5.44 on 09/30/2021 and R$ 5.58 on 12/31/2021.

4Q21 and 2021 Operational and Financial Highlights

	RECORD RESULTS IN THE MAIN ACTIVITY SEGMENTS   The year 2021 was historic for CSN, with the strengthening of all business segments and revenue of approximately R$ 48 billion, driven by the favorable price environment and increased sales volume. Adjusted EBITDA exceeded the mark of R$ 22 billion, with an Adjusted EBITDA margin of 45%, highlighting the strong cost control and operational efficiency. In 4Q21, CSN recorded EBITDA of R$ 3.7 billion, with an adjusted EBITDA margin of 35%.		MINING EBITDA REACHED R$ 10.7 BILLION IN 2021 WITH A MARGIN OF 60%   Mining result was driven by the strong performance in the first half of the year. On the other hand, the result of 4Q21 was impacted by the strong rainfall volume and the scheduled operational halts held in November. Even with these effects, the total production plus purchase of third parties was within the guidance disclosed by CSN and was 18% higher than in 2020.
	STEEL INDUSTRY REACHES RECORD EBITDA FOR THE YEAR WITH STRONG MARGIN INCREASE   Favorable price and demand environment was decisive for overcoming the segment targets, which echoed in the increase of 310% steel adjusted EBITDA, in relation to 2020. In 4Q21, the Company regained market share with the increase in sales volume compared to 3Q21.		LEVERAGE TARGET ACHIEVED WITH SOLID CASH GENERATION   Leverage level ended the year with a Net Debt/EBITDA ratio of 0.76x versus 2.23x in 4Q20, and below the ceiling of 1x placed as guidance by the Company. Current level of leverage is the lowest in the last ten years. Annual Free Cash Flow reached the Record of $13.4 billion, an increase of 59% compared to 2020, mainly influenced by the Company's strong operating performance.
	THE YEAR 2021 WAS MARKED BY THE CONSOLIDATION OF THE GROWTH STRATEGY IN THE CEMENT SEGMENT   Integration of Elizabeth Cements helped break seasonality and maintain the growth pace in 4Q21. In 2021, cement EBITDA was almost double over the previous year, reaching R$ 531 million with a margin of 37%, one of the highest in the entire sector, which reinforces the Company's competitive differentials. In the quarter, pressure on raw material costs led to a sequential decline of 4% in EBITDA.

Consolidated Table – Highlights

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 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

·        The equity result was positive in R$ 19 million in 4Q21, a lesser performance of that observed in the previous quarter due to the worsening of MRS Logística's operations, which was directly impacted over the heavy rains on the period, that decreased the volume of moved cargo.

·        In 4Q21, the Company's net income was R$ 1,061 million, a result 20% inferior to that recorded last quarter due to the lower operating result that ended up compensating the lower financial expenses and taxes recorded in the period. In turn, net income for 2021 reached R$ 13.6 billion against the net income of R$ 4.3 billion recorded in 2020, representing an increase of more than 217%, which attests to the Company's strong operating performance, in addition of the reflex on the gain in the public offering of CSN Mineração shares and sales of part of USIMINAS' shares.

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.

·        In 4Q21, adjusted EBITDA was R$ 3.727 million, with an adjusted EBITDA margin of 34.9% or 5.7 p.p. below of that recorded in the previous quarter. This contraction was a consequence (i) of the seasonality of the period that was also intensified in this quarter with a higher volume of rainfall, that impacted the mining and cement segments; (ii) the freight cost that remained at high levels; and (iii) costs of some raw materials, such as coal and coke. In turn, EBITDA for 2021 reached a record level of R$ 22 billion, with an adjusted EBITDA margin of 44.8%, or 7.7 p.p. above that seen in 2020. The favorable price environment and the increase in sales volume in all segments were factors that contributed to this result.

Adjusted EBITDA (R$ MM) and Adjusted Margin¹ (%)

¹ 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 Flow¹

Adjusted Cash Flow in 4Q21 was positive at R$ 575 million, punctually affected by the increase in the Company's working capital and higher volumes of Capex and income tax. In 2021, Adjusted Cash Flow reached R$ 13.4 billion, representing a growth of 59% compared to 2020, as a result of the improvement in operating results driven by strong price realization in the steel, cement and mining segments.

Adjusted cash flow¹ in 4Q21 (R$MM)

¹ The concept of adjusted cash flow is calculated from adjusted Ebitda, subtracting Ebitda from Jointly Controlled Companies, CAPEX, IR, Financial Results and Changes in Assets and Liabilities², excluding the effect of the Glencore advance.

² Adjusted Working Capital is composed of the change in Net Working Capital, plus the change in accounts of long-term assets and liabilities and disregarding the net change in IR and CS.

Indebtedness

On December 31, 2021, consolidated net debt reached R$ 16,772 million, an increase of R$ 2.1 billion compared to the previous year, largely as a consequence of the repurchase programs made in the period, and the exchange rate variation. As a result, indebtedness was above the expected guidance for the end of the year, but with a leverage indicator (measured by the adjusted net debt/EBITDA ratio) of only 0.76x, i.e., below the 1x target, which reinforces the Company's commitment to maintain its capital structure solid and sustainable levels.

Indebtedness (R$ Billion) and

Net Debt /Adjusted EBITDA (x)

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.

Continuing its debt extension plan, CSN concluded in 4Q21 the issuance of its 11th issue of debentures in the amount of R$ 1.5 billion with maturities in 2027 and 2028. In addition, in December 2021, the Company completed the process of extending its debt with Banco do Brasil, extending its payment period until 2025 and 2026. Additionally, the Company announced in February 2022 the first issuance of a CRI from CSN Cimentos, in the amount of R$ 1.2 billion and maturing from 2030. Finally, in that same month, CSN issued a new $500 million Bond maturing in 2032, in addition to the repurchasing of half of its issues due in 2026.

Amortization Schedule (R$ Bi)

¹ IFRS: does not consider participation in MRS (37.27%).

² Gross Debt/Management Net considers participation in MRS (37.27%) and gross interest.

³ Medium term after completion of the Liability Management Plan.

Foreign Exchange Exposure

The net foreign exchange exposure of the consolidated balance sheet of 12/31/2021 was negative by US$ 149 million, as shown in the table below, representing a significative decrease when compared to 3Q21, as a consequence of cash reduction and lessen volume on the operations of cash flow hedge accounting.

The Cash Flow Hedge Accounting adopted by CSN correlates the projected flow of dollar exports with future debt maturities in the same currency. Thus, the exchange variation of the dollar debt is temporarily recorded in the equity, being brought to the result when the dollar revenues from said exports occur.

Investments

There where invested a total of R$965 million in 4Q21, a level 21% higher than the R$ 800 million invested on last quarter, as a result of the advance in productivity improvement and modernization projects to boost the performance of the UPV plant, with emphasis on the coke battery project, and the expansion and fleet acquisition projects for mining. In 2021, CSN invested a total of R$ 2,934 million, a level 73% higher than in 2020, which shows the efforts and advances in processing projects and capacity increase in mining.

Net Working Capital

The Net Working Capital applied to the business totaled R$1,586 million in 4Q21, an increase of 102% against 3Q21 due to the punctual increase in inventories, the increase in taxes to be recovered, resulting from the recognition of PIS/COFINS credits, in addition to the gradual normalization of the advance line of customers that was exceptionally high by the adjustments of amounts to be received under the form of provisional prices in mining.

The calculation of the Net Working Capital applied to the business does not take glencore's advance, as shown in the following table:

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 of the SME are not considered the balances of warehouse stocks.

Remuneration to shareholders

On December 6, 2021, CSN announced the opening of a new repurchase program for the acquisition of up to 30,000,000 shares, lasting until June 30, 2022. To date, 29,038,600 common shares have been acquired at an average price of R$ 25.15, representing an amount of R$ 730.3 million or 97% of the total program. As of December 31, 2021, the Company maintained a total of 45,790,000 shares in treasury. In addition, CSN Mineração also approved the opening of its second repurchase program for the acquisition of up to 53,000,000 shares, of which 52,466,800 shares have already been repurchased at an average price of R$ 6.21, representing 99% of the total amount of this program or an invested amount of R$ 325.8 million. Considering all the programs, CSN repurchased over 4Q21 an amount equivalent to R$ 1.4 billion.

Additionally, the Board of Directors deliberated for ratification at the next GSM, the distribution of dividends in the amount of R$ 904.5 million to be allocated to the minimum mandatory dividend for 2021, equivalent to R$ 0.67/common share. These amounts will be added to the interest on equity declared in December in the amount of R$ 257.0 million, completing the distribution of 25% of the profit for the period.

Results by Business Segments