Table of Contents

Company Information / Capital Breakdown

MANAGEMENT REPORT 2020

We all know how challenging 2020 was. As soon as the pandemic was declared in Brazil, our reaction was to prepare the company for an unprecedented storm ahead. More than ever, we followed hard our essence of "do well, do more and do forever", ensuring maximum competitiveness and endurance to face the whirlwind that formed. We faced the pandemic as true heroes, maintaining the production of everything Brazil needed, without missing essential products to the market and even to cope with the pandemic. However, we faced the situation well and the market expectation, already from the third quarter, became favorable.

With the growing external demand for iron ore and steel, CSN ended the year in a winning manner. We have overcome our challenges and further consolidated ourselves as a strong and resilient company. The Group's net revenue swelled by 18% compared to 2019. In Cement business our net revenue increased 50% compared to the previous year, with sales volume 13% higher. Another important factor was the downsizing of our leverage: we committed ourselves to the market to significantly reduce our indebtedness, and so it was done. From 3.77 times the net debt by Ebtida (earnings before interest, taxes, depreciation and amortization) adjusted in 2019, we reached 2.23 times in 2020. In 2021, we are committed to further reducing our leverage – and the entire market has been following our mobilization for this.

In addition to the good results and the solidity that we once again demonstrated to the market, 2020 was also decisive to reinforce the commitment to the ESG (Environmental, Social and Governance) critical in CSN's business strategies. Together with the incessant search for innovation and the implementation of new technologies in our operations, environmental, social and governance issues stand out as a strategic pillar in our operations. The world is experiencing a new and silent industrial revolution that will force all companies to adapt to ESG best practices, and CSN, which has been at the forefront of these issues for some time, once again proves that this is the only possible way.

CSN Mineração, a pioneer in the implementation of large-scale tailings filtration, has made its operations independent of the disposal of tailings in dams, ending 2020 with 100% of them filtered and dried. It also once again took the lead by being the first mining company in Minas Gerais to have a dam upstream uncharacterized. These are achievements that certainly represent a new chapter in the history of mining. In addition, CSN Mineração achieved a net revenue of R$ 13,790 billion, an increase of 17% compared to 2019.

In the steel industry, despite the necessary production adjustments, due to the readjustment of demand caused by the pandemic, we were able to maintain stable our sales, while substantially reducing the dependence on purchases of third-party boards.

An important point also to be highlighted is our progress in terms of security. After all, good operational performance is directly linked to this issue. In 2020, we achieved our best indicators in the last 7 years, with a reduction of the taxa of frequence of accidents by 19% compared to the previous year.

The year 2021 is still challenging. The world continues to face the pandemic and suffer the adverse effects it causes on people’s lives and in the economy. CSN will continue to be guided by concern about environmental, social, health and governance issues, not measuring efforts to ensure that productivity and efficiency increase always follow best practices and with the investments necessary to perpetuate the sustainable growth of the organization.

Benjamin Steinbruch

Chairman of the Board of Directors

With businessin 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 2020 reached 4.65 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 19% drop in sales in 2019, compared to the previous year, due to the rains that impacted 1Q20. On the total production side, the company ended the year with 30.7 million tons.

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- STEEL

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 2020, the plant produced 3.7 million tons of crude steel, 3.5 million flat steel and 0.2 million long steels, while laminate production reached 3.4 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 2020 CSN sold about 31,15 million tons of iron ore, of which 4,2 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 24.1 million tons of iron ore in 2020. CSN Mineração also exported 2.8 million tons of iron ore through the Southeast Port.

3.3 - LOGISTICS

Ports

Tecon, a port administered 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 660,000TEUs (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.

MRS's main segment of operation is heavy haul loads ( ore loads, coal and coque), having transported, in 2020, about 98.2 million tons of these products, the equivalent of 61.5% of the total transported by MRS. Recently, MRS has been following a strategy of diversification of the cargo transported with a great focus on general cargo, which reached a level of 38.5% in the mix transported in 2020, representing an important revenue of growth for MRS in addition to mining transport.

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 holds the concession 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 railroad will be 30 million tons/year and 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)

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 extension of 4,534 km and current transportation capacity of about two million tons/year, with emphasis on the transportation 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).

In 2020 there was no relevant event or corporate transaction, pursuant to the legislation in force.

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.

Capital Social

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 4.19% of CSN's total capital, the Company's management is the responsibility of the Board of Directors and the Executive Board.

CSN – Shareholder Composition on 12/31/2020 (%)

*Controlling Group

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 when 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 Company’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 between two and nine Executive Directors, who meet whenever convened by the Chief Executive Officer or by two Executive Directors, overseeing 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 five 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 2021Ordinary 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 Supervisory Board has as its 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 Board Directors, 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 Management Council, through the Audit Committee.

Independent auditors

The independent auditors, Grant Thornton Auditores Independentes, which in 2020 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, 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 02/22/2021 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, 2020.

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, 2018. The Company is in the final phase of the evaluation of internal controls for the year 2019, 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, directors 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-mailwww.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 compliance monitoring of 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 confidentiality, 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 Act or Fact 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 60 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 company 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 has structures totally dedicated to innovation, such as CSN Inova and the Research and Development Center.

Created in 2018, CSN Inova is CSN's innovation arm, 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 leading 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, generate opportunities for new business development for the Company, among others.

In its first cycle of operation, CSN Inova, together with multidisciplinary teams of employees, conducted projects related to digitization and process optimization. These projects involved the identification of the Company's challenges and implementation of solutions presented by startups in the following areas: Legal, HR and UPV's operational. Based on the good results obtained in this first moment, CSN Inova went through an expansion process, increasing its scope of operation and extending it to other areas of the company, in order to give scale to its methodology and the positive impacts for the Company.

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 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 2019, some projects of the Research and Development Center stand out.

For the automotive and auto parts market are being developed high strength products classes 420 and 500MPa 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-phase), Complex Phase (CP) steels and hot-stamping steel (PHS) or "Hot Forming", which represents a strong trend of increased application in car body parts, because it allows the conformation of complex geometries and with high mechanical resistance requirement 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, thus 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 extra fine 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 simulation 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, even more in a year fraught with uncertainties and challenges, such as 2020. 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. In this sense, it established a Prompt Response Management Committee (Crisis Committee) with the objective of ensuring the health, safety and well-being of employees.

Because of this world scenario, several measures have been taken in relation to training practices. 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: social distancing, smaller workload, open and ventilated locations, use of masks and frequent hygiene and many were performed by online training.

In October, for example, online, October Rose took place covering all employees of the CSN group in partnership with the NGO Amor em Mechas. In the year, more than 229,000 hours were invested in training, which demonstrates the concern of the CSN Group in the development of its employees.

The company understands that the impacts of the pandemic directly affect the experience of the employee and, therefore, the Area of People & Management has played an important role in supporting leadership in conducting various adaptations and changes.

As part of this process, on December 1, 2020 was started the new People Cycle, which is not a program of the Board of People & Management but of the CSN Group, where all employees had the opportunity to receive and give feedback regarding their current moment and their 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. The leaders are responsible for the development of the team in order to make them better professionals than themselves, thus ensuring the growth of people and the perennity of CSN, through the career & succession program.

The Competency Assessment was reformulated, and the 360° model was implemented; 180° and 90°, as below:

▪ 360° rating

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

▪ 180° rating

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

▪ 90° rating

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

To support not only the evaluation, but all its challenges as a leader, the company defined what it is to be a leader in the CSN group: "Act as a business owner, performing its best with resilience and creativity in solutions. It is to act with an ethical and transparent posture, directing, developing and engaging your team in the search for the best results to ensure the perpetuity of the business." And to reinforce this challenge, the group's president, Benjamin Steinbruch, held the opening of the 2020 School of Leaders.

As the Evaluation process ends in March 2021, there are still no indicators with final data, but all employees will have the opportunity to evaluate themselves, generating the leading role in each one.

After the evaluation, the Nine Box matrix will be used, in which the performance results (performance and competence) of each employee will be plotted. The results will support the Career and Succession committees, which evaluate the company's potential managers.

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 free 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 People with Disabilities are prioritized, provided they meet the prerequisites of the vacancy in question;

And to detail the various actions implemented by the CSN Group in the areas of environment, social and governance, in December the CSN DAY event took place, with the theme "Business prospects 2021 and ESG commitment". The event was held by the investor relations area of the company and aimed to bring CSN executives closer to the general public, reinforcing the search for transparency and once again showing confidence with future prospects in the face of a challenging year.

The CSN Group ended 2020 with 23,196 direct and 11,857 indirect employees, indicating a turnover rate of 1.2%, one of the lowest in the industrial sector.

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

Important initiatives marked the year 2020 in the development of ESG themes in the CSN Group. In October, we became signatories to the United Nations Global Compact, joining the organization's Climate Action Platform. In December, we published our Integrated Report of the biennium 2018/2019 – GRI Standards and launched our ESG website (esg.csn.com.br) through the realization of our First Week ESG, an online event that brought the concept and management Of CSN to internal and external audiences, in addition to the participation of experts in the three pillars. Also, we remained on the FTSE4Good Index, which brings together companies with a positive reputation in corporate responsibility from around the world.

In December, we released our Integrated Policy of Sustainability, Environment, Health and Safety at Work, rescuing the acronym "SEMPRE", already very present in the CSN management. In addition to the proposed integration, the new Policy formalizes the CSN Group's commitment to the Sustainable Development Goals (SDGs), a United Nations initiative, and reinforces the importance of safe, ethical, transparent, inclusive, environmental protection and biodiversity behavior, seeking to promote these principles throughout its value chain.

Since 2010, the Company has been conducting the inventory of greenhouse gas emissions, following the guidelines of the GHG Protocol aimed at supporting its carbon management, risk mitigation and adaptation to climate change. The company received, for the sixth 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 2020, we had a score improvement in Climate Change from D to C.

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

1.   Gender Equality: double, by 2025, the percentage of women in the workforce of the CSN Group, The Presidente Vargas Plant and CSN Mineração, based on the 2019 figures;

2.   GHG emissions: reduce by 10% the intensity of GHG emissions (tCO2e/ production ton) from scopes 1 and 2 by 2030 at CSN Mineração, Presidente Vargas Plant and CSN Cimentos;

3.   Particulate matter: reduce by 40%, by 2030, the emissions of particulate matter per ton of raw steel produced at the Presidente Vargas Plant;

4.   Energy: achieving 100% renewable energy from CSN Mineração by 2021;

5.   Water: reduce by 10%, at 2030, the capture of water per ton of ore produced at CSN Mineração;

6.   Certifications: certify, by 2021, all cement plants and the PORT TECAR at ISO 14.001:2015;

7.   Occupational Safety: in addition to zero accidents, which is the main objective of the CSN Group, the goal is to reduce by 10% year-on-year the accident frequency rate of the CSN Group;

8.   Governance: continuously increase our Index of Attendance to the best governance practices provided for in CVM Instruction No. 586/2017.

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 2020 CSN continued its sustainability initiatives to mitigate and compensate for the impacts of its activities and alised R$ 420.5 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.

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. In 2020, with the entry of new technology for filtration and dry stacking of tailings, we were able to reduce by 32% the water consumption of the Central Ore Processing Plant at CSN Mineração, paving the way to reach the goal set in the 2030 commitments to reduce by 10% our total water consumption per ton of ore produced.

UPV is the only steel company in the country to realize the water footprint and is CSN's plant with the highest water consumption. In addition, based on the risk assessment methodologies Water Risk Filter WWF and Aqueduct WRI, we started to analyze, from 2020, the exposure of our business to water risks, from the perspective of both processes and watersheds close to our operations. These same analyses will also be conducted by CSN Mineração throughout 2021.

In total, CSN protects an area approximately 3 times larger than the area occupied by its operations, that is, about 68,000 hectares and for more than 15 years we have conducted programs to monitor fauna and flora in areas impacted by our operations.

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.

We also invested, in partnership with the Municipality of Volta Redonda - RJ, in a project that included the implementation of several environmental actions, with a value above R$ 3 million. The project, called "Volta Redonda Verde Program", defined performance on three work fronts:

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.

On another front, 2020 also marked the end of the process of mischaracterization of our first Tailings Dam, Dam B5. During 2021 we continued to advance the schedule for decharacterization of the other 4 (four) dams of CSN Mineração.

In this sense, still in February 2021, we will have completed the mischaracterization of our second dam - the Vigia Auxiliary Dam, leaving only 3 dams that will continue in the process of mischaracterization in the coming years.

It is important to highlight that all dams of CSN Mineração are at zero emergency level, according to the National Mining Agency (ANM), and hold a declaration of stability issued by anm.

B - Social dimension

Job safety

Safety is our top priority, and by 2020 we reached the lowest historical level of our frequency rate (CAF+SAF– accidents with or without leave). There were 2.46 accidents/million man-hours, a decrease of about 19% compared to 2019, 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.

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.

The main highlights of 2020, compared to 2019, were:

The year 2020 also brought the challenge of performing our first Integrated and Online Sipat Ma: the challenges of bringing together employees amid the restriction measures for COVID-19 have brought the need to innovate and engage the internal public with an online program with four days of expert lectures for the entire audience and more than 6,000 views.

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.

Among the actions adopted to protect its more than 23,000 employees, strict and technically validated health measures and processes were implemented for the indispensable protection of the health of each of those 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 are preparing the future of CSN that depends on people and the quality of their human capital stock. One of our most relevant tasks is to identify young talent, promoting them to managerial positions and preparing them to be the future leaders of the company.

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 improvement of performance due to gender diversity. By 2020, a bold target was set: to double the female workforce at CSN by 2025, from 14% to 28%. During 2020, the advent of COVID-19 brought challenges to CSN's Diversity agenda, which had already been consolidated through face-to-face activities in 2019.

Still, we can highlight important results achieved at The Presidente Vargas Plant:

• Capacitate Program, which dedicates intensive actions to the training and hiring of women.

• Black development: conclusion of the SENAI course

• Development of women: conclusion of the SESI course

• Delivery of changing rooms and start of new works

• Promotion of the first women in the positions of operational leader in the hot rolling operation and Mobile Machinery Operator II, internal transport management.

• Dissemination on TV of women and blacks, with reports on participation in the company's programs.

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.

2020 was the year that the world faced a pandemic and all educational and cultural initiatives had to reinvent themselves in the digital environment, such as the Kid Citizen project, which began to act online and using all the platforms available to reach its student. The CSN Foundation Cultural Center saw change as a way to cross the physical boundaries of Volta Redonda, the city in which it is based, and to make connections with other places, expanding its public reach and activities.

Other initiatives such as the CSN Community Space, in Congonhas (MG), and the Truck-Stage of The Citizen Boy had their activities of service to the public suspended, respecting the restrictive measures against COVID-19, decreed by the local government.

Still, the CSN Foundation has expanded its expertise in curating projects of partner institutions. In 2020, R$ 52.4 million were invested in 90 initiatives, of which R$50.5 million came from funds raised and R$1.9 from own resources. In the period between 2003 and 2020, the amount invested by CSN exceeds R$ 287 million in the areas of culture, sports, health, children, adolescents and the elderly, through 10 tax incentive laws.

Through its indirect performance, the CSN Foundation contemplated 23 cities in 08 Brazilian states in initiatives, such as: Ipiranga Museum; 24th Tiradentes Film Festival; Museum of Tomorrow; People's House; Unibes Cultural; Barretos Cancer Hospital; Angelina Caran Hospital (SC); Albert Einstein Hospital.

In its direct practice, the CSN Foundation was present in 19 municipalities, supporting 291 scholarship students and impacting 3,415 young people through its projects and carrying out 441 cultural actions. In total, approximately 300,000 people were reached by the institution's initiatives.

Main projects of the CSN Foundation

Citizen Boy

The Citizen Boy is a sociocultural project that aims to transform society through cultural expression. The current pedagogical cycle already provided to work with activities in digital media, but with the pandemic its performance began to be mandatory online. It was a moment of adaptation, in the Citizen Boy saw the possibility of strengthening bonds and expanding the engagement of family members, educators and students in the activities.

Citizen Boy in numbers:

CSN Foundation Cultural Center

Space of free and multidisciplinary actions, focused on the formation and dissemination of art, education and culture. Located in Volta Redonda (RJ), it reinvented itself in the digital environment during the pandemic and expanded the possibilities of exchanges and connections with other regions of Brazil, adapting its programming in an Off-axis Agenda. In all, 253 activities were carried out and the actions totaled 47,078 views.

Scholarship program

In 2020, even adapting to the digital environment, the two schools of the CSN Foundation maintained the curriculum of classroom classes. Thus, the students did not lose content and performed their extracurricular activities, maintaining their routine.

In Congonhas (MG), the Center for Technological Education - CET offers Elementary School, High School and Technical Courses in Mining, Electromechanics and Industrial Automation. In 2020, the school totaled 563 students, 219 of them scholarship holders.

In Volta Redonda (RJ), the Pandiá Calógeras Technical School – ETPC offers high school classes with Technical Courses in Administration, Electronics, Electromechanics, Informatics, Mechatronics and Chemistry. In 2020, there were 263 students in total, of which 70 were scholarship holders.

Of the total of the two schools, 826 students in total, of these 35% benefited from full and partial scholarships.

Young Apprentice Program

Aimed at the insertion of young people in the labor market, it is present in 9 poles, six in Minas Gerais (Congonhas, Conselheiro Lafaiete, Ouro Branco, Contagem, Belo Horizonte, São Gonçalo do Rio Abaixo), one in São Paulo capital and two poles in the state of Rio de Janeiro (Volta Redonda and Duque de Caxias). Even before the end of the contract, 53 young people were effective and another 1,083 young people were treated in 132 partner companies.

Empowering Hospitality and Services

Social project that offers training for young people from the South of Rio de Janeiro in partnership with cras (Reference and Social Assistance Center) of the city halls and DEGASE (General Department of Socio-Educational Actions) for young people between 16 and 29 years old. Over the course of 6 months, students participate in theoretical and practical classes in various areas of the hotel. There are 1,374 young people trained since the beginning of the project and in 2020, 32 students completed the course.

Environmental Education Program - PEA

Socio-environmental intervention that includes lectures, events, cultural activities and workshops for the internal public of CSN Mineração and in schools and communities of six municipalities of Minas Gerais: Arcos, Belo Vale, Congonhas, Ouro Preto, Pains and Rio Acima. This year, it restricted its activities of attendance of the internal public of CSN, with 4,881 employees assisted.

Winning the World

The Win the World program offers undergraduate scholarships abroad for young women. Julia Shimizu and Jessica Oliveira are the full scholarship holders of the program and attend the graduation at Barnard College.

CSN Community Space

Espaço Comunidade CSN is present in Congonhas (MG), has the purpose of developing CSN Mineração's relationship with the community, creating links, establishing a direct dialogue channel with the population, identifying possible opportunities, welcoming residents and solving doubts and clarifications about mining, new ventures and projections of CSN. Before the spread of the pandemic in Brazil, between January and March 2020, Espaço Comunidade CSN performed 103 visits.

Vr Gastronomic Pole

In its form of operation, the CSN Foundation understands the importance of political articulation, so it promoted the creation of the VR Gastronomic Pole, with the aim of strengthening the economy of Volta Redonda (RJ) through gastronomy and tourism. With the pandemic, the VR Gastronomic Center remained active, conducted online training for delivery and take-out bars and restaurants and new hygiene and service protocols. Participated in the Festival Fora do Eixo virtual, in partnership with the Cultural Center, with cultural lives and related to gastronomic issues. It also advanced in organizational matters for the legal formalization of the institution.

C - Governance dimension

The CSN Group constantly seeks to develop mechanisms to improve the governance of ESG aspects. In 2020, it established a Department of Sustainability, Environment, Health and Safety at Work, with immediate reporting to the Company's CEO and corporate structure, which ensures robustness and extends the scope of the Board of Directors to the various levels and companies of the CSN Group. This Board of Directors has synergistic operations with the CSN Foundation and with the financial and legal-corporate areas of the CSN Group.

In addition, at the end of 2020, the CSN Group undertook the establishment of an ESG Committee, an advisory structure of the CSN Board of Directors. The formalization of this structure will be completed in February 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, USA 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.

São Paulo, February 22, 2021

Results for 2020 and the Fourth Quarter

Companhia Siderúrgica Nacional (“CSN”) (B3 S.A. – Brasil, Bolsa e Balcão: CSNA3) (NYSE: SID) announces its results for the fourth quarter of 2020 (4Q20) in Brazilian Reais, in accordance with International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB), which are fully convergent with international accounting standards and with Brazilian accounting practices, fully converging with international accounting standards, issued by the Accounting Pronouncements Committee (CPC) and referenced by the Brazilian Securities and Exchange Commission (CVM), according to CVM Instruction 485 of September 1, 2010.

All comments presented herein refer to the Company’s consolidated results for the fourth quarter of 2020 (4Q20) and FY 2020 and comparisons refer to the third quarter of 2020 (3Q20) and fourth quarter of 2019 (4Q19). The Brazilian Real/U.S. Dollar exchange rate was R$5.1967 on December 31, 2020, R$5.6407 on September 30, 2020 and R$4.0307 on December 31, 2019.

Operating and Financial Highlights in 2020 and 4Q20

CSN’s Consolidated Table

¹ Adjusted EBITDA is calculated based on net profit (loss), plus depreciation and amortization, income tax, net financial result, share of profit (loss) of investees and other operating income/expenses, and includes the proportional share of EBITDA of jointly owned subsidiaries MRS Logística and CBSI. Adjusted EBITDA includes 100% stake in CSN Mineração, 37.27% stake in MRSI.

² Adjusted Net Debt and Adjusted Cash and Cash Equivalents include the stakes of 100% in CSN Mineração, 37.27% in MRS, excluding Forfaiting and Drawee Risk operations.

CSN’s Consolidated Result

In 2020, the Company’s Net Income reached R$4,293 million, compared to the Net Income of R$2,245 million in 2019, due to the improved operating result, as well as the reversal of provisions for the write-off of deferred income tax and the appreciation of USIMINAS’ shares.

Adjusted EBITDA

*The Company discloses adjusted EBITDA excluding interests in investments and other operating income (expenses) understanding that these items should not be considered when calculating the recurring operating cash flow.

·  Adjusted EBITDA reached R$4,738 million in 4Q20, versus R$3,506 million in the third quarter, due to a better steel result and the continuity of good performance in mining. Adjusted EBITDA margin reached 47%, or 8,0p.p. higher on the same comparison basis.

¹ Adjusted EBITDA margin is calculated as the ratio between Adjusted EBITDA and Adjusted Net Revenue, which considers stakes of 100% in CSN Mineração and 37.27% in MRS and 50% in CBSI (50% 3Q19, 100% 3Q20).

Adjusted Free Cash Flow¹

Free Cash Flow in 4Q20 reached R$3,750MM, positively affected by the recovery in working capital and strong cash generation. In 2020, FCF totaled R$8,446MM, up by 395%, due to an excellent operating performance, led by the strong demand for ore in mining and the price performance in steel, cement and, particularly, mining.

¹The concept of free cash flow is calculated from adjusted Ebitda, subtracting Ebitda from Joint Ly subsidiaries, CAPEX, IR, Financial Results and changes in Net Working Capital¹, excluding the effect of the Glencore advance.

²The Adjusted Working Capital² for the quarter is composed of the change in Net Working Capital, plus the change in accounts of long-term assets and liabilities and disregarding the net variation of IR and CS, provision for consumption, dividends payable/receivable, CAPEX not cash, Correction Credit Light, AFAC TLSA not cash) and IRRF JCP).

Indebtedness

On December 31, 2020, consolidated net debt reached R$25,619 million, with the exchange rate variation offset by the strong cash generation in the period, leading to a strong drop in the leverage indicator measured by the Net Debt/EBITDA ratio, which reached 2.23x, the lowest level since Dec/2011.

In 4Q20, the Company issued debt securities in the capital market, through the reopening of Bonds maturing in 2028 in the amount of US$310MM, in addition to debt amortizations totaling R$1,129MM. Additionally, the liquidity reinforcement will assist the Company in completing its negotiations for re-profiling of the maturities of its debts expected to occur in the next 3 years.

Amortization Schedule (R$ Billion)