SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of the
Securities Exchange Act of 1934
For the month of August, 2023
Commission File Number 1-14732
COMPANHIA SIDERÚRGICA NACIONAL
(Exact name of registrant as specified in its charter)
National Steel Company
(Translation of Registrant's name into English)
Av. Brigadeiro Faria Lima 3400, 20º andar
São Paulo, SP, Brazil
04538-132
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual reports
under cover Form 20-F or Form 40-F. Form 20-F ___X___ Form 40-F _______
Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes _______ No ___X____
Quarterly Financial Information – June 30, 2023 – Companhia
Siderúrgica Nacional – CSN
(CONVENIENCE TRANSLATION INTO ENGLISH FROM THE ORIGINAL PREVIOUSLY ISSUED
IN PORTUGUESE)
|
![](https://www.sec.gov/Archives/edgar/data/1049659/000129281423003742/siditr2q236k_020.jpg) |
|
|
Table of Contents
Company Information |
|
Capital Breakdown |
1 |
Parent Company Financial Statements |
|
Balance Sheet – Assets |
2 |
Balance Sheet – Liabilities |
3 |
Statement of Income |
4 |
Statement of Comprehensive Income |
5 |
Statement of Cash Flows |
6 |
Statement of Changes in Shareholders’ Equity |
|
01/01/2023 to 06/30/2023 |
7 |
01/01/2022 to 06/30/2022 |
8 |
Statement of Value Added |
9 |
Consolidated Financial Statements |
|
Balance Sheet – Assets |
10 |
Balance Sheet - Liabilities |
11 |
Statement of Income |
12 |
Statement of Comprehensive Income |
13 |
Statement of Cash Flows |
14 |
Statement of Changes in Shareholders’ Equity |
|
01/01/2023 to 06/30/2023 |
15 |
01/01/2022 to 06/30/2022 |
16 |
Statement of Value Added |
17 |
Comments on the Company’s Consolidated Performance |
18 |
Notes to the financial information |
38 |
Comments on the Performance of Business Projections |
83 |
Reports and Statements |
|
Unqualified Independent Auditors’ Review Report |
87 |
Officers Statement on the Financial Statements |
89 |
Officers Statement on Auditor’s Report |
90 |
Quarterly Financial Information – June 30, 2023 – Companhia
Siderúrgica Nacional – CSN
(CONVENIENCE TRANSLATION INTO ENGLISH FROM THE ORIGINAL PREVIOUSLY ISSUED
IN PORTUGUESE)
|
![](https://www.sec.gov/Archives/edgar/data/1049659/000129281423003742/siditr2q236k_020.jpg) |
|
|
Company Information / Capital Breakdown
Number of Shares
(Units) |
Current Period
6/30/2023 |
|
Paid-in Capital |
|
|
Common |
1,326,093,947 |
|
Preferred |
0 |
|
Total |
1,326,093,947 |
|
Treasury Shares |
|
|
Common |
0 |
|
Preferred |
0 |
|
Total |
0 |
|
Quarterly Financial Information – June 30, 2023 – Companhia Siderúrgica Nacional – CSN (CONVENIENCE TRANSLATION INTO ENGLISH FROM THE ORIGINAL PREVIOUSLY ISSUED IN PORTUGUESE) | ![](https://www.sec.gov/Archives/edgar/data/1049659/000129281423003742/siditr2q236k_020.jpg) |
| |
Parent Company Financial Statements / Balance Sheet - Assets |
|
(R$ thousand) |
|
|
|
|
|
Code |
Description |
Current Quarter 06/30/2023 |
Previous Year 12/31/2022 |
1 |
Total Assets |
57,267,132 |
61,196,813 |
1.01 |
Current assets |
11,981,731 |
15,264,617 |
1.01.01 |
Cash and cash equivalents |
1,644,167 |
2,839,405 |
1.01.02 |
Financial investments |
1,202,825 |
1,207,610 |
1.01.02.01 |
Financial investments measured a fair value through profit or loss |
1,167,137 |
1,184,895 |
1.01.02.01.03 |
Financial investments measured a fair value through profit or loss – Usiminas’ shares |
1,167,137 |
1,184,895 |
1.01.02.03 |
Financial investments at amortized cost |
35,688 |
22,715 |
1.01.03 |
Trade receivables |
1,544,930 |
1,956,531 |
1.01.04 |
Inventory |
5,704,913 |
7,413,421 |
1.01.06 |
Recoverable taxes |
1,129,359 |
1,137,460 |
1.01.08 |
Other current assets |
755,537 |
710,190 |
1.01.08.03 |
Others |
755,537 |
710,190 |
1.01.08.03.04 |
Prepaid expenses |
237,446 |
244,416 |
1.01.08.03.06 |
Dividends receivable |
235,782 |
295,480 |
1.01.08.03.07 |
Others |
282,309 |
170,294 |
1.02 |
Non-current assets |
45,285,401 |
45,932,196 |
1.02.01 |
Long-term assets |
9,303,211 |
9,167,437 |
1.02.01.03 |
Financial investments at amortized cost |
110,842 |
140,510 |
1.02.01.07 |
Deferred taxes assets |
3,082,109 |
3,256,712 |
1.02.01.10 |
Other non-current assets |
6,110,260 |
5,770,215 |
1.02.01.10.03 |
Judicial deposits |
218,218 |
231,627 |
1.02.01.10.04 |
Recoverable taxes |
966,930 |
879,695 |
1.02.01.10.06 |
Prepaid expenses |
60,229 |
58,950 |
1.02.01.10.11 |
Receivable from related parties |
3,641,847 |
3,377,049 |
1.02.01.10.12 |
Others |
1,223,036 |
1,222,894 |
1.02.02 |
Investments |
27,932,253 |
28,918,775 |
1.02.02.01 |
Equity interest |
27,793,309 |
28,778,632 |
1.02.02.02 |
Investment Property |
138,944 |
140,143 |
1.02.03 |
Property, plant and equipment |
7,996,194 |
7,786,485 |
1.02.03.01 |
Property, plant and equipment in operation |
7,388,298 |
6,874,631 |
1.02.03.02 |
Right of use in leases |
10,999 |
11,433 |
1.02.03.03 |
Property, plant and equipment in progress |
596,897 |
900,421 |
1.02.04 |
Intangible assets |
53,743 |
59,499 |
Quarterly Financial Information – June 30, 2023 – Companhia Siderúrgica Nacional – CSN (CONVENIENCE TRANSLATION INTO ENGLISH FROM THE ORIGINAL PREVIOUSLY ISSUED IN PORTUGUESE) | ![](https://www.sec.gov/Archives/edgar/data/1049659/000129281423003742/siditr2q236k_020.jpg) |
| |
Parent Company Financial Statements / Balance Sheet – Liabilities |
(R$ thousand) |
|
|
|
Code |
Description |
Current Quarter 06/30/2023 |
Previous Year 12/31/2022 |
2 |
Total Liabilities |
57,267,132 |
61,196,813 |
2.01 |
Current liabilities |
12,911,194 |
14,644,052 |
2.01.01 |
Payroll and related taxes |
188,894 |
150,192 |
2.01.02 |
Trade payables |
3,080,122 |
3,684,793 |
2.01.03 |
Tax payables |
275,796 |
397,496 |
2.01.04 |
Borrowings and financing |
5,915,173 |
3,419,019 |
2.01.05 |
Other payables |
3,426,993 |
6,961,181 |
2.01.05.02 |
Others |
3,426,993 |
6,961,181 |
2.01.05.02.01 |
Dividends and interests on shareholder´s equity |
4,644 |
598,267 |
2.01.05.02.04 |
Advances from customers |
83,318 |
83,300 |
2.01.05.02.07 |
Derivative financial instruments |
30,998 |
- |
2.01.05.02.09 |
Trade payables – Forfaiting and Drawee risk |
2,519,299 |
5,318,425 |
2.01.05.02.10 |
Lease liabilities |
11,216 |
8,451 |
2.01.05.02.11 |
Other payables |
777,518 |
952,738 |
2.01.06 |
Provisions |
24,216 |
31,371 |
2.01.06.01 |
Provision for tax, social security, labor and civil risks |
24,216 |
31,371 |
2.02 |
Non-current liabilities |
25,873,962 |
27,063,294 |
2.02.01 |
Borrowings and financing |
17,014,332 |
17,994,249 |
2.02.02 |
Other payables |
145,024 |
148,990 |
2.02.02.02 |
Others |
145,024 |
148,990 |
2.02.02.02.06 |
Derivative financial instruments |
- |
58,005 |
2.02.02.02.07 |
Lease liabilities |
1,216 |
4,729 |
2.02.02.02.08 |
Trade payables |
19,737 |
14,352 |
2.02.02.02.09 |
Others |
124,071 |
71,904 |
2.02.04 |
Provisions |
8,714,606 |
8,920,055 |
2.02.04.01 |
Provision for tax, social security, labor and civil risks |
410,469 |
390,445 |
2.02.04.02 |
Other provisions |
8,304,137 |
8,529,610 |
2.02.04.02.03 |
Provision for environmental liabilities and decommissioning of assets |
165,600 |
158,213 |
2.02.04.02.04 |
Pension and healthcare plan |
537,290 |
537,290 |
2.02.04.02.05 |
Provision for losses on investments |
7,601,247 |
7,834,107 |
2.03 |
Shareholders’ equity |
18,481,976 |
19,489,467 |
2.03.01 |
Paid-up capital |
10,240,000 |
10,240,000 |
2.03.02 |
Capital reserves |
32,720 |
32,720 |
2.03.04 |
Earnings reserves |
7,374,442 |
8,988,442 |
2.03.04.01 |
Legal reserve |
1,158,925 |
1,158,925 |
2.03.04.02 |
Statutory reserve |
6,215,517 |
6,215,517 |
2.03.04.08 |
Proposed Additional Dividend |
- |
1,614,000 |
2.03.05 |
Accumulated earnings (losses) |
(742,793) |
- |
2.03.08 |
Other comprehensive income |
1,577,607 |
228,305 |
Quarterly Financial Information – June 30, 2023 – Companhia Siderúrgica Nacional – CSN (CONVENIENCE TRANSLATION INTO ENGLISH FROM THE ORIGINAL PREVIOUSLY ISSUED IN PORTUGUESE) | ![](https://www.sec.gov/Archives/edgar/data/1049659/000129281423003742/siditr2q236k_020.jpg) |
| |
Parent Company Financial Statements / Statement of Income |
(R$ thousand) |
|
Code |
Description |
Current Quarter 04/01/2023 to 06/30/2023 |
Year to date 01/01/2023 to 06/30/2023 |
Same quarter previous year 04/01/2022 to 06/30/2022 |
YTD previous year 01/01/2022 to 06/30/2022 |
3.01 |
Revenues from sale of goods and rendering of services |
4,878,076 |
9,348,143 |
6,139,087 |
12,537,589 |
3.02 |
Costs from sale of goods and rendering of services |
(4,611,523) |
(8,702,487) |
(4,894,623) |
(9,762,356) |
3.03 |
Gross profit |
266,553 |
645,656 |
1,244,464 |
2,775,233 |
3.04 |
Operating (expenses)/income |
134,319 |
(643,914) |
(516,257) |
532,629 |
3.04.01 |
Selling expenses |
(184,478) |
(395,967) |
(221,285) |
(463,615) |
3.04.02 |
General and administrative expenses |
(82,717) |
(136,621) |
(60,660) |
(110,326) |
3.04.04 |
Other operating income |
(35,407) |
12,540 |
18,022 |
37,592 |
3.04.05 |
Other operating expenses |
(311,527) |
(1,102,012) |
(572,375) |
(751,829) |
3.04.06 |
Equity in results of affiliated companies |
748,448 |
978,146 |
320,041 |
1,820,807 |
3.05 |
Income before financial income (expenses) and taxes |
400,872 |
1,742 |
728,207 |
3,307,862 |
3.06 |
Financial income (expenses) |
(732,232) |
(1,333,570) |
(605,967) |
(1,361,652) |
3.06.01 |
Financial income |
73,552 |
263,876 |
(597,115) |
(721,877) |
3.06.02 |
Financial expenses |
(805,784) |
(1,597,446) |
(8,852) |
(639,775) |
3.06.02.01 |
Net exchange differences over financial instruments |
(149,538) |
(236,470) |
539,603 |
407,728 |
3.06.02.02 |
Financial expenses |
(656,246) |
(1,360,976) |
(548,455) |
(1,047,503) |
3.07 |
Income before income taxes |
(331,360) |
(1,331,828) |
122,240 |
1,946,210 |
3.08 |
Income tax and social contribution |
514,963 |
589,035 |
75,086 |
(542,482) |
3.08.01 |
Current |
195,434 |
181,446 |
(125,014) |
(237,397) |
3.08.02 |
Deferred |
319,529 |
407,589 |
200,100 |
(305,085) |
3.09 |
Net income from continued operations |
183,603 |
(742,793) |
197,326 |
1,403,728 |
3.11 |
Net income for the year |
183,603 |
(742,793) |
197,326 |
1,403,728 |
3.99 |
Earnings per share – (Reais / Share) |
|
|
|
|
3.99.01 |
Basic earnings per share |
|
|
|
|
3.99.01.01 |
Common shares |
0.13845 |
(0.56014) |
0.14877 |
1.05710 |
3.99.02 |
Diluted earnings per share |
|
|
|
|
3.99.02.01 |
Common shares |
0.13845 |
(0.56014) |
0.14877 |
1.05710 |
Quarterly Financial Information – June 30, 2023 – Companhia Siderúrgica Nacional – CSN (CONVENIENCE TRANSLATION INTO ENGLISH FROM THE ORIGINAL PREVIOUSLY ISSUED IN PORTUGUESE) | ![](https://www.sec.gov/Archives/edgar/data/1049659/000129281423003742/siditr2q236k_020.jpg) |
| |
Parent Company Financial Statements / Statement of Comprehensive Income |
(R$ thousand) |
Code |
Description |
Current Quarter 04/01/2023 to 06/30/2023 |
Year to date 01/01/2023 to 06/30/2023 |
Same quarter previous year 04/01/2022 to 06/30/2022 |
YTD previous year 01/01/2022 to 06/30/2022 |
4.01 |
Net income for the year |
183,603 |
(742,793) |
197,326 |
1,403,728 |
4.02 |
Other comprehensive income |
686,522 |
1,349,302 |
(1,023,023) |
(282,869) |
4.02.01 |
Actuarial gains over pension plan of subsidiaries, net of taxes |
670 |
1,342 |
25 |
56 |
4.02.04 |
Reflex treasury shares acquired by subsidiary |
(169,291) |
(198,093) |
155,081 |
(585,971) |
4.02.11 |
(Loss)/gain cash flow hedge accounting, net of taxes |
575,793 |
889,539 |
(1,282,476) |
117,472 |
4.02.13 |
Cash flow hedge reclassified to income upon realization, net of taxes |
6,621 |
239,735 |
341,734 |
421,030 |
4.02.15 |
(Loss)/gain cash flow hedge accounting, net taxes, from investments in subsidiaries |
272,729 |
416,779 |
(237,387) |
(235,456) |
4.03 |
Comprehensive income for the year |
870,125 |
606,509 |
(825,697) |
1,120,859 |
Quarterly Financial Information – June 30, 2023 – Companhia Siderúrgica Nacional – CSN (CONVENIENCE TRANSLATION INTO ENGLISH FROM THE ORIGINAL PREVIOUSLY ISSUED IN PORTUGUESE) | ![](https://www.sec.gov/Archives/edgar/data/1049659/000129281423003742/siditr2q236k_020.jpg) |
| |
Parent Company Financial Statements / Statements of Cash Flows – Indirect Method |
(R$ thousand) |
Code |
Description |
Year to date 01/01/2023 to 06/30/2023 |
YTD previous year 01/01/2022 to 06/30/2022 |
6.01 |
Net cash from operating activities |
(401,881) |
2,912,298 |
6.01.01 |
Cash from operations |
(156,495) |
1,792,049 |
6.01.01.01 |
Net income for the period |
(742,793) |
1,403,728 |
6.01.01.02 |
Financial charges in borrowing and financing raised |
799,557 |
571,407 |
6.01.01.03 |
Financial charges in borrowing and financing granted |
(118,574) |
(82,010) |
6.01.01.04 |
Depreciation, amortization and depletion |
558,761 |
516,621 |
6.01.01.05 |
Equity in results of affiliated companies |
(978,146) |
(1,820,807) |
6.01.01.06 |
Deferred taxes assets |
(407,589) |
305,085 |
6.01.01.08 |
Provision for tax, social security, labor, civil and environmental risks |
12,869 |
(6,875) |
6.01.01.09 |
Monetary and exchange variations, net |
751,026 |
(80,115) |
6.01.01.10 |
Updated shares – Fair value through profit or loss |
17,758 |
1,033,056 |
6.01.01.12 |
Write-off and estimated losses net of reversal |
(1,314) |
282 |
6.01.01.13 |
Provision for environmental liabilities and decommissioning of assets |
7,387 |
5,416 |
6.01.01.14 |
Charges on lease liabilities |
628 |
846 |
6.01.01.15 |
Accrued for consumption and services |
(16,445) |
(2,080) |
6.01.01.18 |
Dividends USIMINAS |
(51,111) |
(103,671) |
6.01.01.19 |
Other provisions |
11,491 |
51,166 |
6.01.02 |
Changes in assets and liabilities |
(245,386) |
1,120,249 |
6.01.02.01 |
Trade receivables - third parties |
2,485 |
38,477 |
6.01.02.02 |
Trade receivables - related party |
345,511 |
429,502 |
6.01.02.03 |
Inventory |
1,636,471 |
(95,441) |
6.01.02.04 |
Receivables - related parties/dividends |
1,979,543 |
2,431,565 |
6.01.02.05 |
Recoverable taxes |
(79,134) |
414,779 |
6.01.02.06 |
Judicial deposits |
13,409 |
(16,078) |
6.01.02.07 |
Derivative transactions received |
15,340 |
- |
6.01.02.09 |
Trade payables |
(562,692) |
(551,701) |
6.01.02.10 |
Trade payables – Forfaiting and Drawee risk |
(2,799,126) |
(535,835) |
6.01.02.11 |
Payroll and related taxes |
38,701 |
37,634 |
6.01.02.12 |
Tax payables |
(58,774) |
(456,291) |
6.01.02.14 |
Payables to related parties |
(13,090) |
65,032 |
6.01.02.16 |
Interest paid |
(741,416) |
(489,841) |
6.01.02.17 |
Interest received |
1,565 |
1,593 |
6.01.02.19 |
Others |
(24,179) |
(153,146) |
6.02 |
Net cash investment activities |
(970,065) |
(1,061,880) |
6.02.01 |
Investments / AFAC / Acquisitions of Shares |
(110,782) |
(278,399) |
6.02.02 |
Purchase of property, plant and equipment, intangible assets and investment property |
(717,519) |
(633,551) |
6.02.08 |
Intercompany loans granted |
(161,052) |
(150,312) |
6.02.09 |
Intercompany loans received |
2,592 |
2,383 |
6.02.11 |
Financial Investments, net of redemption |
16,696 |
(2,001) |
6.03 |
Net cash used in financing activities |
176,708 |
(1,302,510) |
6.03.01 |
Borrowings and financing raised |
5,125,458 |
1,196,064 |
6.03.02 |
Transactions cost - Borrowings and financing |
(6,506) |
(5,188) |
6.03.03 |
Borrowings and financing – related parties |
153,864 |
1,039,378 |
6.03.04 |
Amortization of leases |
(5,282) |
(4,331) |
6.03.05 |
Amortization of borrowings and financing |
(2,346,132) |
(2,339,156) |
6.03.06 |
Amortization of borrowings and financing - related parties |
(530,449) |
(107,673) |
6.03.07 |
Dividends and interest on shareholder’s equity |
(2,214,245) |
(673,129) |
6.03.08 |
Share repurchase |
- |
(408,475) |
6.05 |
Increase (decrease) in cash and cash equivalents |
(1,195,238) |
547,908 |
6.05.01 |
Cash and equivalents at the beginning of the year |
2,839,405 |
3,885,265 |
6.05.02 |
Cash and equivalents at the end of the year |
1,644,167 |
4,433,173 |
Quarterly Financial Information – June 30, 2023 – Companhia Siderúrgica Nacional – CSN (CONVENIENCE TRANSLATION INTO ENGLISH FROM THE ORIGINAL PREVIOUSLY ISSUED IN PORTUGUESE) | ![](https://www.sec.gov/Archives/edgar/data/1049659/000129281423003742/siditr2q236k_020.jpg) |
| |
Parent Company Financial Statements / Statement of Changes in Equity - 01/01/2023 to 06/30/2023 |
(R$ thousand) |
|
|
|
|
|
Code |
Description |
Paid-up capital |
Capital reserve, granted options and treasury shares |
Earnings reserve |
Retained earnings (accumulated losses) |
Other comprehensive income |
Shareholders’ equity |
5.01 |
Opening balances |
10,240,000 |
32,720 |
8,988,442 |
- |
228,305 |
19,489,467 |
5.03 |
Adjusted opening balances |
10,240,000 |
32,720 |
8,988,442 |
- |
228,305 |
19,489,467 |
5.04 |
Capital transaction with shareholders |
- |
- |
(1,614,000) |
- |
- |
(1,614,000) |
5.04.06 |
Dividends |
- |
- |
(1,614,000) |
- |
- |
(1,614,000) |
5.05 |
Total comprehensive income |
- |
- |
- |
(742,793) |
1,349,302 |
606,509 |
5.05.01 |
Net income for the period |
- |
- |
- |
(742,793) |
- |
(742,793) |
5.05.02 |
Other comprehensive income |
- |
- |
- |
- |
1,349,302 |
1,349,302 |
5.05.02.04 |
Cumulative translation adjustments for the year |
- |
- |
- |
- |
(198,093) |
(198,093) |
5.05.02.06 |
Actuarial gains/(losses) on pension plan, net of taxes |
- |
- |
- |
- |
1,342 |
1,342 |
5.05.02.07 |
(Loss) / gain on cash flow hedge accounting, net of taxes |
- |
- |
- |
- |
1,546,053 |
1,546,053 |
5.07 |
Closing balance |
10,240,000 |
32,720 |
7,374,442 |
(742,793) |
1,577,607 |
18,481,976 |
Quarterly Financial Information – June 30, 2023 – Companhia Siderúrgica Nacional – CSN (CONVENIENCE TRANSLATION INTO ENGLISH FROM THE ORIGINAL PREVIOUSLY ISSUED IN PORTUGUESE) | ![](https://www.sec.gov/Archives/edgar/data/1049659/000129281423003742/siditr2q236k_020.jpg) |
| |
Parent Company Financial Statements / Statement of Changes in Equity - 01/01/2022 to 06/30/2022 |
(R$ thousand) |
|
|
|
|
Code |
Description |
Paid-up capital |
Capital reserve, granted options and treasury shares |
Earnings reserve |
Retained earnings (accumulated losses) |
Other comprehensive income |
Shareholders’ equity |
5.01 |
Opening balances |
10,240,000 |
32,720 |
10,092,888 |
- |
(50,610) |
20,314,998 |
5.03 |
Adjusted opening balances |
10,240,000 |
32,720 |
10,092,888 |
- |
(50,610) |
20,314,998 |
5.04 |
Capital transaction with shareholders |
- |
- |
(395,180) |
- |
224,806 |
(170,374) |
5.04.04 |
Treasury shares acquired |
- |
(395,180) |
- |
- |
- |
(395,180) |
5.04.08 |
(Loss) / gain on the percentage change in investments |
- |
- |
- |
- |
224,806 |
224,806 |
5.04.10 |
Treasury shares canceled |
- |
1,332,110 |
(1,332,110) |
- |
- |
- |
5.04.11 |
Reclassifications of treasury shares |
- |
(936,930) |
936,930 |
- |
- |
- |
5.05 |
Total comprehensive income |
- |
- |
- |
1,403,728 |
(282,869) |
1,120,859 |
5.05.01 |
Net income for the period |
- |
- |
- |
1,403,728 |
- |
1,403,728 |
5.05.02 |
Other comprehensive income |
- |
- |
- |
- |
(282,869) |
(282,869) |
5.05.02.04 |
Cumulative translation adjustments for the year |
- |
- |
- |
- |
(585,971) |
(585,971) |
5.05.02.06 |
Actuarial gains/(losses) on pension plan, net of taxes |
- |
- |
- |
- |
56 |
56 |
5.05.02.07 |
(Loss) / gain on cash flow hedge accounting, net of taxes |
- |
- |
- |
- |
303,046 |
303,046 |
5.07 |
Closing balance |
10,240,000 |
32,720 |
9,697,708 |
1,403,728 |
(108,673) |
21,265,483 |
Quarterly Financial Information – June 30, 2023 – Companhia Siderúrgica Nacional – CSN (CONVENIENCE TRANSLATION INTO ENGLISH FROM THE ORIGINAL PREVIOUSLY ISSUED IN PORTUGUESE) | ![](https://www.sec.gov/Archives/edgar/data/1049659/000129281423003742/siditr2q236k_020.jpg) |
| |
Parent Company Financial Statements / Statement of Value Added |
(R$ thousand) |
Code |
Description |
Year to date 01/01/2023 to 06/30/2023 |
YTD previous year 01/01/2022 to 06/30/2022 |
7.01 |
Revenues |
11,291,561 |
15,156,167 |
7.01.01 |
Sales of products and rendering of services |
11,268,196 |
15,136,063 |
7.01.02 |
Other revenues |
14,606 |
9,834 |
7.01.04 |
Allowance for (reversal of) doubtful debts |
8,759 |
10,270 |
7.02 |
Raw materials acquired from third parties |
(10,484,751) |
(11,807,941) |
7.02.01 |
Cost of sales and services |
(9,644,967) |
(10,778,847) |
7.02.02 |
Materials, electric power, outsourcing and other |
(816,177) |
(951,557) |
7.02.03 |
Impairment/recovery of assets |
(23,607) |
(77,537) |
7.03 |
Gross value added |
806,810 |
3,348,226 |
7.04 |
Retentions |
(558,370) |
(516,319) |
7.04.01 |
Depreciation, amortization and depletion |
(558,370) |
(516,319) |
7.05 |
Value added created |
248,440 |
2,831,907 |
7.06 |
Value added received |
1,401,745 |
2,837,249 |
7.06.01 |
Equity in results of affiliates companies |
978,146 |
1,820,807 |
7.06.02 |
Financial income |
263,876 |
308,825 |
7.06.03 |
Others |
159,723 |
707,617 |
7.06.03.01 |
Other and exchange gains |
159,723 |
707,617 |
7.07 |
Value added for distribution |
1,650,185 |
5,669,156 |
7.08 |
Value added distributed |
1,650,185 |
5,669,156 |
7.08.01 |
Personnel |
686,288 |
618,594 |
7.08.01.01 |
Salaries and wages |
495,287 |
475,769 |
7.08.01.02 |
Benefits |
158,003 |
113,188 |
7.08.01.03 |
Severance payment (FGTS) |
32,998 |
29,637 |
7.08.02 |
Taxes, fees and contributions |
(54,155) |
1,267,837 |
7.08.02.01 |
Federal |
(200,943) |
1,040,473 |
7.08.02.02 |
State |
146,788 |
227,364 |
7.08.03 |
Remuneration on third-party capital |
1,760,845 |
2,378,997 |
7.08.03.01 |
Interest |
1,168,747 |
579,028 |
7.08.03.02 |
Rental |
3,676 |
903 |
7.08.03.03 |
Other and passive exchange variations |
588,422 |
1,799,066 |
7.08.04 |
Remuneration on Shareholders' capital |
(742,793) |
1,403,728 |
7.08.04.03 |
Retained earnings (accumulated losses) |
(742,793) |
1,403,728 |
Quarterly Financial Information – June 30, 2023 – Companhia Siderúrgica Nacional – CSN (CONVENIENCE TRANSLATION INTO ENGLISH FROM THE ORIGINAL PREVIOUSLY ISSUED IN PORTUGUESE) | ![](https://www.sec.gov/Archives/edgar/data/1049659/000129281423003742/siditr2q236k_020.jpg) |
| |
Consolidated Financial Statements / Balance Sheet - Assets |
(R$ thousand) |
|
Code |
Description |
Current Quarter 06/30/2023 |
Previous Year 12/31/2022 |
1 |
Total assets |
83,866,380 |
85,354,359 |
1.01 |
Current assets |
28,283,039 |
30,612,360 |
1.01.01 |
Cash and cash equivalents |
11,975,423 |
11,991,356 |
1.01.02 |
Financial investments |
1,204,679 |
1,456,485 |
1.01.02.01 |
Financial investments measured a fair value through profit or loss |
1,167,137 |
1,184,895 |
1.01.02.01.03 |
Financial investments measured a fair value through profit or loss – Usiminas’ shares |
1,167,137 |
1,184,895 |
1.01.02.03 |
Financial investments at amortized cost |
37,542 |
271,590 |
1.01.03 |
Trade receivables |
2,671,612 |
3,233,164 |
1.01.04 |
Inventory |
9,508,614 |
11,289,229 |
1.01.06 |
Recoverable taxes |
1,986,314 |
1,865,626 |
1.01.08 |
Other current assets |
936,397 |
776,500 |
1.01.08.03 |
Others |
936,397 |
776,500 |
1.01.08.03.03 |
Derivative financial instruments |
140,928 |
- |
1.01.08.03.04 |
Prepaid expenses |
382,556 |
347,870 |
1.01.08.03.06 |
Dividends receivable |
77,377 |
77,377 |
1.01.08.03.07 |
Others |
335,536 |
351,253 |
1.02 |
Non-current assets |
55,583,341 |
54,741,999 |
1.02.01 |
Long-term assets |
12,812,185 |
12,364,418 |
1.02.01.03 |
Financial investments at amortized cost |
127,242 |
156,185 |
1.02.01.05 |
Inventory |
1,231,360 |
1,045,665 |
1.02.01.07 |
Deferred taxes assets |
4,977,852 |
5,095,718 |
1.02.01.10 |
Other non-current assets |
6,475,731 |
6,066,850 |
1.02.01.10.03 |
Judicial deposits |
537,525 |
533,664 |
1.02.01.10.04 |
Recoverable taxes |
1,427,358 |
1,317,132 |
1.02.01.10.06 |
Prepaid expenses |
80,208 |
82,586 |
1.02.01.10.11 |
Receivable from related parties |
3,168,120 |
2,869,532 |
1.02.01.10.12 |
Others |
1,262,520 |
1,263,936 |
1.02.02 |
Investments |
5,308,032 |
5,219,082 |
1.02.02.01 |
Equity interest |
5,150,485 |
5,060,002 |
1.02.02.02 |
Investment Property |
157,547 |
159,080 |
1.02.03 |
Property, plant and equipment |
26,812,536 |
26,370,445 |
1.02.03.01 |
Property, plant and equipment in operation |
22,405,977 |
21,700,015 |
1.02.03.02 |
Right of use in leases |
701,683 |
644,880 |
1.02.03.03 |
Property, plant and equipment in progress |
3,704,876 |
4,025,550 |
1.02.04 |
Intangible assets |
10,650,588 |
10,788,054 |
Quarterly Financial Information – June 30, 2023 – Companhia Siderúrgica Nacional – CSN (CONVENIENCE TRANSLATION INTO ENGLISH FROM THE ORIGINAL PREVIOUSLY ISSUED IN PORTUGUESE) | ![](https://www.sec.gov/Archives/edgar/data/1049659/000129281423003742/siditr2q236k_020.jpg) |
| |
Consolidated Financial Statements / Balance Sheet – Liabilities |
(R$ thousand) |
|
|
|
Code |
Description |
Current Quarter 06/30/2023 |
Previous Year 12/31/2022 |
2 |
Total Liabilities |
83,866,380 |
85,354,359 |
2.01 |
Current liabilities |
18,537,814 |
22,475,119 |
2.01.01 |
Payroll and related taxes |
486,135 |
422,495 |
2.01.02 |
Trade payables |
6,248,846 |
6,596,915 |
2.01.03 |
Tax payables |
702,210 |
870,333 |
2.01.04 |
Borrowings and financing |
5,615,593 |
5,193,636 |
2.01.05 |
Other payables |
5,444,605 |
9,318,651 |
2.01.05.02 |
Others |
5,444,605 |
9,318,651 |
2.01.05.02.01 |
Dividends and interests on shareholder´s equity |
4,955 |
611,307 |
2.01.05.02.04 |
Advances from customers |
1,467,095 |
1,120,072 |
2.01.05.02.07 |
Derivative financial instruments |
30,998 |
416,935 |
2.01.05.02.09 |
Trade payables – Forfaiting and Drawee risk |
2,878,420 |
5,709,069 |
2.01.05.02.10 |
Lease liabilities |
163,355 |
177,010 |
2.01.05.02.11 |
Other payables |
899,782 |
1,284,258 |
2.01.06 |
Provisions |
40,425 |
73,089 |
2.01.06.01 |
Provision for tax, social security, labor and civil risks |
40,425 |
73,089 |
2.02 |
Non-current liabilities |
44,708,983 |
41,063,196 |
2.02.01 |
Borrowings and financing |
36,054,194 |
35,725,106 |
2.02.02 |
Other payables |
5,151,728 |
2,216,418 |
2.02.02.02 |
Others |
5,151,728 |
2,216,418 |
2.02.02.02.03 |
Advances from customers |
3,833,205 |
943,919 |
2.02.02.02.06 |
Derivative financial instruments |
68,399 |
69,472 |
2.02.02.02.07 |
Lease liabilities |
596,036 |
516,836 |
2.02.02.02.08 |
Trade payables |
27,916 |
46,269 |
2.02.02.02.09 |
Others |
626,172 |
639,922 |
2.02.03 |
Deferred taxes assets |
564,325 |
216,950 |
2.02.04 |
Provisions |
2,938,736 |
2,904,722 |
2.02.04.01 |
Provision for tax, social security, labor and civil risks |
1,393,164 |
1,411,736 |
2.02.04.02 |
Other provisions |
1,545,572 |
1,492,986 |
2.02.04.02.03 |
Provision for environmental liabilities and decommissioning of assets |
990,287 |
937,657 |
2.02.04.02.04 |
Pension and healthcare plan |
555,329 |
555,329 |
2.02.04.02.05 |
Provision for losses on investments |
(44) |
- |
2.03 |
Shareholders’ equity |
20,619,583 |
21,816,044 |
2.03.01 |
Paid-up capital |
10,240,000 |
10,240,000 |
2.03.02 |
Capital reserves |
32,720 |
32,720 |
2.03.04 |
Earnings reserves |
7,374,442 |
8,988,442 |
2.03.04.01 |
Legal reserve |
1,158,925 |
1,158,925 |
2.03.04.02 |
Statutory reserve |
6,215,517 |
6,215,517 |
2.03.04.08 |
Proposed Additional Dividend |
- |
1,614,000 |
2.03.05 |
Accumulated earnings (losses) |
(742,793) |
- |
2.03.08 |
Other comprehensive income |
1,577,607 |
228,305 |
2.03.09 |
Earnings attributable to the non-controlling interests |
2,137,607 |
2,326,577 |
Quarterly Financial Information – June 30, 2023 – Companhia Siderúrgica Nacional – CSN (CONVENIENCE TRANSLATION INTO ENGLISH FROM THE ORIGINAL PREVIOUSLY ISSUED IN PORTUGUESE) | ![](https://www.sec.gov/Archives/edgar/data/1049659/000129281423003742/siditr2q236k_020.jpg) |
| |
Consolidated Financial Statements / Statements of Income |
(R$ thousand) |
|
|
|
Code |
Description |
Current Quarter 04/01/2023 to 06/30/2023 |
Year to date 01/01/2023 to 06/30/2023 |
Same quarter previous year 04/01/2022 to 06/30/2022 |
YTD previous year 01/01/2022 to 06/30/2022 |
3.01 |
Revenues from sale of goods and rendering of services |
10,989,111 |
22,307,801 |
10,565,922 |
22,335,788 |
3.02 |
Costs from sale of goods and rendering of services |
(8,745,660) |
(16,819,136) |
(7,560,441) |
(14,847,726) |
3.03 |
Gross profit |
2,243,451 |
5,488,665 |
3,005,481 |
7,488,062 |
3.04 |
Operating (expenses)/income |
(1,102,487) |
(3,767,180) |
(1,234,203) |
(2,161,450) |
3.04.01 |
Selling expenses |
(879,942) |
(1,740,455) |
(503,932) |
(947,928) |
3.04.02 |
General and administrative expenses |
(201,789) |
(361,670) |
(146,922) |
(290,252) |
3.04.04 |
Other operating income |
(53,557) |
41,172 |
26,215 |
49,616 |
3.04.05 |
Other operating expenses |
(74,501) |
(1,835,038) |
(663,970) |
(1,046,551) |
3.04.06 |
Equity in results of affiliated companies |
107,302 |
128,811 |
54,406 |
73,665 |
3.05 |
Income before financial income (expenses) and taxes |
1,140,964 |
1,721,485 |
1,771,278 |
5,326,612 |
3.06 |
Financial income (expenses) |
(1,185,909) |
(2,375,536) |
(890,012) |
(2,015,249) |
3.06.01 |
Financial income |
249,015 |
593,834 |
(462,956) |
(498,815) |
3.06.02 |
Financial expenses |
(1,434,924) |
(2,969,370) |
(427,056) |
(1,516,434) |
3.06.02.01 |
Net exchange differences over financial instruments |
(79,960) |
(327,258) |
583,747 |
462,423 |
3.06.02.02 |
Financial expenses |
(1,354,964) |
(2,642,112) |
(1,010,803) |
(1,978,857) |
3.07 |
Income before income taxes |
(44,945) |
(654,051) |
881,266 |
3,311,363 |
3.08 |
Income tax and social contribution |
328,243 |
114,801 |
(511,935) |
(1,578,089) |
3.08.01 |
Current |
99,131 |
(258,262) |
(692,486) |
(1,270,201) |
3.08.02 |
Deferred |
229,112 |
373,063 |
180,551 |
(307,888) |
3.09 |
Net income from continued operations |
283,298 |
(539,250) |
369,331 |
1,733,274 |
3.11 |
Consolidated net income for the year |
283,298 |
(539,250) |
369,331 |
1,733,274 |
3.11.01 |
Earnings attributable to the controlling interests |
183,603 |
(742,793) |
197,326 |
1,403,728 |
3.11.02 |
Earnings it attributable to the non-controlling interests |
99,695 |
203,543 |
172,005 |
329,546 |
3.99 |
Earnings per share – (Reais / Share) |
|
|
|
|
3.99.01 |
Basic earnings per share |
|
|
|
|
3.99.01.01 |
Common shares |
0.13845 |
(0.56014) |
0.14877 |
1.05710 |
3.99.02 |
Diluted earnings per share |
|
|
|
|
3.99.02.01 |
Common shares |
0.13845 |
(0.56014) |
0.14877 |
1.05710 |
Quarterly Financial Information – June 30, 2023 – Companhia Siderúrgica Nacional – CSN (CONVENIENCE TRANSLATION INTO ENGLISH FROM THE ORIGINAL PREVIOUSLY ISSUED IN PORTUGUESE) | ![](https://www.sec.gov/Archives/edgar/data/1049659/000129281423003742/siditr2q236k_020.jpg) |
| |
Consolidated Financial Statements / Statement of Comprehensive Income |
(R$ thousand) |
Code |
Description |
Current Quarter 04/01/2023 to 06/30/2023 |
Year to date 01/01/2023 to 06/30/2023 |
Year to date 01/01/2023 to 06/30/2023 |
Year to date 01/01/2023 to 06/30/2023 |
4.01 |
Consolidated net income for the year |
283,298 |
(539,250) |
369,331 |
1,733,274 |
4.02 |
Other comprehensive income |
755,757 |
1,455,112 |
(1,083,398) |
(342,641) |
4.02.01 |
Actuarial gains/(losses) over pension plan of subsidiaries, net of taxes |
672 |
1,351 |
(41) |
56 |
4.02.04 |
Cumulative translation adjustments for the year |
(169,291) |
(198,093) |
155,081 |
(585,971) |
4.02.10 |
Losses in cash flow hedge |
575,793 |
889,539 |
(1,166,286) |
260,622 |
4.02.12 |
Cash flow hedge reclassified to income upon realization, net of taxes |
6,621 |
239,735 |
225,544 |
277,880 |
4.02.15 |
(Loss)/gain cash flow hedge accounting from investments in subsidiaries, net taxes |
341,962 |
522,580 |
(297,696) |
(295,228) |
4.03 |
Consolidated comprehensive income for the year |
1,039,055 |
915,862 |
(714,067) |
1,390,633 |
4.03.01 |
Earnings attributable to the controlling interests |
870,125 |
606,509 |
(825,697) |
1,120,859 |
4.03.02 |
Earnings it attributable to the non-controlling interests |
168,930 |
309,353 |
111,630 |
269,774 |
Quarterly Financial Information – June 30, 2023 – Companhia Siderúrgica Nacional – CSN (CONVENIENCE TRANSLATION INTO ENGLISH FROM THE ORIGINAL PREVIOUSLY ISSUED IN PORTUGUESE) | ![](https://www.sec.gov/Archives/edgar/data/1049659/000129281423003742/siditr2q236k_020.jpg) |
| |
Consolidated Financial Statements / Statements of Cash Flows – Indirect Method |
(R$ thousand) |
|
|
Code |
Description |
Year to date 01/01/2023 to 06/30/2023 |
YTD previous year 01/01/2022 to 06/30/2022 |
6.01 |
Net cash from operating activities |
1,668,650 |
(983,646) |
6.01.01 |
Cash from operations |
2,635,704 |
4,498,374 |
6.01.01.01 |
Earnings attributable to the controlling interests |
(742,793) |
1,403,728 |
6.01.01.02 |
Earnings attributable to the non-controlling interests |
203,543 |
329,546 |
6.01.01.03 |
Financial charges in borrowing and financing raised |
1,661,173 |
1,123,146 |
6.01.01.04 |
Financial charges in borrowing and financing granted |
(90,838) |
(69,714) |
6.01.01.05 |
Depreciation, amortization and depletion |
1,614,863 |
1,320,050 |
6.01.01.06 |
Equity in results of affiliated companies |
(128,811) |
(73,665) |
6.01.01.07 |
Deferred taxes assets |
(373,063) |
307,888 |
6.01.01.08 |
Provision for tax, social security, labor, civil and environmental risks |
(66,405) |
6,190 |
6.01.01.09 |
Monetary and exchange variations, net |
512,755 |
(861,285) |
6.01.01.12 |
Updated shares – Fair value through profit or loss |
17,758 |
1,033,056 |
6.01.01.13 |
Charges on lease liabilities |
35,528 |
34,124 |
6.01.01.14 |
Accrued for consumption and services |
(51,704) |
11,291 |
6.01.01.15 |
Write-off and estimated losses net of reversal |
725 |
6,612 |
6.01.01.17 |
Provision for environmental liabilities and decommissioning of assets |
52,587 |
38,493 |
6.01.01.19 |
Dividends USIMINAS |
(51,140) |
(103,672) |
6.01.01.20 |
Other provisions |
41,526 |
(7,414) |
6.01.02 |
Changes in assets and liabilities |
(967,054) |
(5,482,020) |
6.01.02.01 |
Trade receivables - third parties |
533,479 |
(986,383) |
6.01.02.02 |
Trade receivables - related party |
44,495 |
40,232 |
6.01.02.03 |
Inventory |
1,453,123 |
(331,276) |
6.01.02.04 |
Dividends received |
51,140 |
103,672 |
6.01.02.05 |
Recoverable taxes |
(230,914) |
386,763 |
6.01.02.06 |
Judicial deposits |
(3,861) |
(17,060) |
6.01.02.08 |
Trade payables |
(342,038) |
(616,644) |
6.01.02.09 |
Trade payables – Forfaiting and Drawee risk |
(2,830,649) |
(269,053) |
6.01.02.10 |
Payroll and related taxes |
65,552 |
61,784 |
6.01.02.11 |
Tax payables |
(224,357) |
(2,292,821) |
6.01.02.13 |
Payables to related parties |
(78,176) |
52,059 |
6.01.02.14 |
Advances from customers |
3,186,240 |
(393,005) |
6.01.02.15 |
Interest paid |
(1,672,086) |
(1,057,410) |
6.01.02.16 |
Receipt/(payment) of cash flow hedge operations |
(793,899) |
22,286 |
6.01.02.18 |
Others |
(125,103) |
(185,164) |
6.02 |
Net cash investment activities |
(1,631,093) |
(2,395,977) |
6.02.01 |
Cash received from the acquisition of investments -Topázio and Santa Ana |
- |
6,486 |
6.02.02 |
Investments |
(141,369) |
(272,239) |
6.02.03 |
Purchase of property, plant and equipment, intangible assets and investment property |
(1,654,963) |
(1,539,406) |
6.02.11 |
Intercompany loans granted |
(101,912) |
(112,693) |
6.02.13 |
Financial Investments, net of redemption |
262,993 |
(11,972) |
6.02.14 |
Intercompany loans and interest received |
4,158 |
- |
6.02.15 |
Acquisition of investments in Topázio Energética, Santa Ana and Brasil Central |
- |
(466,153) |
6.03 |
Net cash used in financing activities |
(94,470) |
1,636,655 |
6.03.01 |
Borrowings and financing raised |
7,270,697 |
9,545,800 |
6.03.03 |
Transactions cost - Borrowings |
(107,075) |
(232,189) |
6.03.05 |
Amortization of borrowings and financing |
(4,435,867) |
(5,934,235) |
6.03.06 |
Amortization of leases |
(102,123) |
(66,137) |
6.03.07 |
Dividends and interest on shareholder’s equity |
(2,720,102) |
(1,266,016) |
6.03.08 |
Share repurchase |
- |
(410,568) |
6.04 |
Exchange rate on translating cash and cash equivalents |
40,980 |
20,182 |
6.05 |
Increase (decrease) in cash and cash equivalents |
(15,933) |
(1,722,786) |
6.05.01 |
Cash and equivalents at the beginning of the year |
11,991,356 |
16,646,480 |
6.05.02 |
Cash and equivalents at the end of the year |
11,975,423 |
14,923,694 |
Quarterly Financial Information – June 30, 2023 – Companhia Siderúrgica Nacional – CSN (CONVENIENCE TRANSLATION INTO ENGLISH FROM THE ORIGINAL PREVIOUSLY ISSUED IN PORTUGUESE) | ![](https://www.sec.gov/Archives/edgar/data/1049659/000129281423003742/siditr2q236k_020.jpg) |
| |
Consolidated Financial Statements / Statements of Changes in Equity - 01/01/2023 to 06/30/2023 |
(R$ thousand) |
|
|
|
|
|
Code |
Description |
Paid-up capital |
Capital
reserve,
granted
options and
treasury shares |
Earnings reserve |
Retained
earnings (accumulated losses) |
Other comprehensive income |
Shareholders’ equity |
Non-controlling interests |
Shareholders’ equity |
5.01 |
Opening balances |
10,240,000 |
32,720 |
8,988,442 |
- |
228,305 |
19,489,467 |
2,326,577 |
21,816,044 |
5.03 |
Adjusted opening balances |
10,240,000 |
32,720 |
8,988,442 |
- |
228,305 |
19,489,467 |
2,326,577 |
21,816,044 |
5.04 |
Capital transaction with shareholders |
- |
- |
(1,614,000) |
- |
- |
(1,614,000) |
(498,323) |
(2,112,323) |
5.04.06 |
Dividends |
- |
- |
(1,614,000) |
- |
- |
(1,614,000) |
(441,749) |
(2,055,749) |
5.04.07 |
Interest on equity |
- |
- |
- |
- |
- |
- |
(56,574) |
(56,574) |
5.05 |
Total comprehensive income |
- |
- |
- |
(742,793) |
1,349,302 |
606,509 |
309,353 |
915,862 |
5.05.01 |
Net income for the year |
- |
- |
- |
(742,793) |
- |
(742,793) |
203,543 |
(539,250) |
5.05.02 |
Other comprehensive income |
- |
- |
- |
- |
1,349,302 |
1,349,302 |
105,810 |
1,455,112 |
5.05.02.04 |
Cumulative translation adjustments for the year |
- |
- |
- |
- |
(198,093) |
(198,093) |
- |
(198,093) |
5.05.02.06 |
(Loss) / gain on cash flow hedge accounting, net of taxes |
- |
- |
- |
- |
1,546,053 |
1,546,053 |
105,801 |
1,651,854 |
5.05.02.07 |
Actuarial gains/(losses) on pension plan, net of taxes |
- |
- |
- |
- |
1,342 |
1,342 |
9 |
1,351 |
5.07 |
Closing balance |
10,240,000 |
32,720 |
7,374,442 |
(742,793) |
1,577,607 |
18,481,976 |
2,137,607 |
20,619,583 |
Quarterly Financial Information – June 30, 2023 – Companhia Siderúrgica Nacional – CSN (CONVENIENCE TRANSLATION INTO ENGLISH FROM THE ORIGINAL PREVIOUSLY ISSUED IN PORTUGUESE) | ![](https://www.sec.gov/Archives/edgar/data/1049659/000129281423003742/siditr2q236k_020.jpg) |
| |
Consolidated Financial Statements / Statements of Changes in Equity - 01/01/2022 to 06/30/2022 |
(R$ thousand) |
|
|
|
|
Code |
Description |
Paid-up capital |
Capital
reserve,
granted
options and
treasury
shares |
Earnings reserve |
Retained
earnings (accumulated losses) |
Other comprehensive income |
Shareholders’ equity |
Non-controlling interests |
Shareholders’ equity |
5.01 |
Opening balances |
10,240,000 |
32,720 |
10,092,888 |
- |
(50,610) |
20,314,998 |
3,059,391 |
23,374,389 |
5.03 |
Adjusted opening balances |
10,240,000 |
32,720 |
10,092,888 |
- |
(50,610) |
20,314,998 |
3,059,391 |
23,374,389 |
5.04 |
Capital transaction with shareholders |
- |
- |
(395,180) |
- |
224,806 |
(170,374) |
(736,907) |
(907,281) |
5.04.04 |
Treasury shares acquired |
- |
(395,180) |
- |
- |
- |
(395,180) |
(1,638) |
(396,818) |
5.04.07 |
Interest on equity |
- |
- |
- |
- |
- |
- |
(510,463) |
(510,463) |
5.04.08 |
(Loss)/gain on the percentage change in investments |
- |
- |
- |
- |
224,806 |
224,806 |
(224,806) |
- |
5.04.09 |
Reclassifications of treasury shares |
- |
(936,930) |
936,930 |
- |
- |
- |
- |
- |
5.04.10 |
Treasury shares canceled |
- |
1,332,110 |
(1,332,110) |
- |
- |
- |
- |
- |
5.05 |
Total comprehensive income |
- |
- |
- |
1,403,728 |
(282,869) |
1,120,859 |
269,774 |
1,390,633 |
5.05.01 |
Net income for the year |
- |
- |
- |
1,403,728 |
- |
1,403,728 |
329,546 |
1,733,274 |
5.05.02 |
Other comprehensive income |
- |
- |
- |
- |
(282,869) |
(282,869) |
(59,772) |
(342,641) |
5.05.02.04 |
Cumulative translation adjustments for the year |
- |
- |
- |
- |
(585,971) |
(585,971) |
- |
(585,971) |
5.05.02.06 |
Actuarial gains/(losses) on pension plan, net of taxes |
- |
- |
- |
- |
56 |
56 |
- |
56 |
5.05.02.07 |
(Loss) / gain on cash flow hedge accounting, net of taxes |
- |
- |
- |
- |
303,046 |
303,046 |
(59,772) |
243,274 |
5.07 |
Closing balance |
10,240,000 |
32,720 |
9,697,708 |
1,403,728 |
(108,673) |
21,265,483 |
2,592,258 |
23,857,741 |
Quarterly Financial Information – June 30, 2023 – Companhia Siderúrgica Nacional – CSN (CONVENIENCE TRANSLATION INTO ENGLISH FROM THE ORIGINAL PREVIOUSLY ISSUED IN PORTUGUESE) | ![](https://www.sec.gov/Archives/edgar/data/1049659/000129281423003742/siditr2q236k_020.jpg) |
| |
Consolidated Financial Statements / Statements of Value Added |
(R$ thousand) |
Code |
Description |
Year to date 01/01/2023 to 06/30/2023 |
YTD previous year 01/01/2022 to 06/30/2022 |
7.01 |
Revenues |
25,411,662 |
25,461,350 |
7.01.01 |
Sales of products and rendering of services |
25,314,536 |
25,459,603 |
7.01.02 |
Other revenues |
87,376 |
(4,632) |
7.01.04 |
Allowance for (reversal of) doubtful debts |
9,750 |
6,379 |
7.02 |
Raw materials acquired from third parties |
(19,327,048) |
(16,536,910) |
7.02.01 |
Cost of sales and services |
(16,164,886) |
(14,613,156) |
7.02.02 |
Materials, electric power, outsourcing and other |
(2,873,826) |
(1,838,129) |
7.02.03 |
Impairment/recovery of assets |
(288,336) |
(85,625) |
7.03 |
Gross value added |
6,084,614 |
8,924,440 |
7.04 |
Retentions |
(1,610,985) |
(1,316,597) |
7.04.01 |
Depreciation, amortization and depletion |
(1,610,985) |
(1,316,597) |
7.05 |
Value added created |
4,473,629 |
7,607,843 |
7.06 |
Value added received |
1,547,472 |
2,267,121 |
7.06.01 |
Equity in results of affiliated companies |
128,811 |
73,665 |
7.06.02 |
Financial income |
593,834 |
531,887 |
7.06.03 |
Others |
824,827 |
1,661,569 |
7.07 |
Value added for distribution |
6,021,101 |
9,874,964 |
7.08 |
Value added distributed |
6,021,101 |
9,874,964 |
7.08.01 |
Personnel |
1,682,735 |
1,284,948 |
7.08.01.01 |
Salaries and wages |
1,277,715 |
1,014,204 |
7.08.01.02 |
Benefits |
326,547 |
215,277 |
7.08.01.03 |
Severance payment (FGTS) |
78,473 |
55,467 |
7.08.02 |
Taxes, fees and contributions |
1,082,153 |
2,646,069 |
7.08.02.01 |
Federal |
654,046 |
2,357,651 |
7.08.02.02 |
State |
395,778 |
264,219 |
7.08.02.03 |
Municipal |
32,329 |
24,199 |
7.08.03 |
Remuneration on third-party capital |
3,795,463 |
4,210,673 |
7.08.03.01 |
Interest |
2,135,298 |
1,170,046 |
7.08.03.02 |
Rental |
1,266 |
1,968 |
7.08.03.03 |
Others |
1,658,899 |
3,038,659 |
7.08.04 |
Remuneration on Shareholders' capital |
(539,250) |
1,733,274 |
7.08.04.03 |
Retained earnings (accumulated losses) |
(742,793) |
1,403,728 |
7.08.04.04 |
Non-controlling interests in retained earnings |
203,543 |
329,546 |
Quarterly Financial Information – June 30, 2023 – Companhia Siderúrgica Nacional – CSN (CONVENIENCE TRANSLATION INTO ENGLISH FROM THE ORIGINAL PREVIOUSLY ISSUED IN PORTUGUESE) | ![](https://www.sec.gov/Archives/edgar/data/1049659/000129281423003742/siditr2q236k_020.jpg) |
| |
![](https://www.sec.gov/Archives/edgar/data/1049659/000129281423003742/siditr2q236k_021.jpg)
Quarterly Financial Information – June 30, 2023 – Companhia Siderúrgica Nacional – CSN (CONVENIENCE TRANSLATION INTO ENGLISH FROM THE ORIGINAL PREVIOUSLY ISSUED IN PORTUGUESE) | ![](https://www.sec.gov/Archives/edgar/data/1049659/000129281423003742/siditr2q236k_020.jpg) |
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São Paulo, August 2nd, 2023 - -
Companhia Siderúrgica Nacional ("CSN") (B3: CSNA3) (NYSE: SID) discloses its second quarter of 2023 (2Q23)
financial results in Brazilian Reais, with all financial statements consolidated in accordance with accounting practices adopted in
Brazil issued by the Accounting Pronouncements Committee ("CPC"), approved by the Brazilian Securities and Exchange Commission
("CVM") and the Federal Accounting Council ("CFC") and in accordance with international financial reporting standards
(“IFRS”), issued by the International Accounting Standards Board (“IASB”).
The comments address the Company's consolidated results
for the second quarter of 2023 (2Q23) and the comparisons are in relation to the first quarter of 2023 (1Q23) and the second quarter
of 2022 (2Q22). The dollar price was BRL 5.24 on 06/30/2022; BRL 4.74 on 03/31/2023 and BRL 4.82 on 06/30/2023.
Quarterly Financial Information – June 30, 2023 – Companhia Siderúrgica Nacional – CSN (CONVENIENCE TRANSLATION INTO ENGLISH FROM THE ORIGINAL PREVIOUSLY ISSUED IN PORTUGUESE) | ![](https://www.sec.gov/Archives/edgar/data/1049659/000129281423003742/siditr2q236k_020.jpg) |
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Consolidated Table - Highlights
![](https://www.sec.gov/Archives/edgar/data/1049659/000129281423003742/siditr2q236k_023.jpg)
¹ Adjusted EBITDA is calculated from net income
(loss), plus depreciation and amortization, taxes on profit, net financial result, investment participation result, other operating income/expenses
result and includes the proportional share 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 Drawn Risk operations.
Consolidated Results
| · | Net revenue reached BRL 10,989 million
in 2Q23, representing a decrease of 2.9% when compared to 1Q23. This performance reflects the lower prices in the mining sector, which
ended up offsetting the record sales verified in the segment and the operational improvements observed in the steel and cement segments.
|
| · | Cost of goods sold (COGS) totaled BRL
8,746 million in 2Q23, up 8.3% from the previous quarter, mainly as a result of higher volumes sold in all segments of the Company's operations,
in addition to the increased cost pressure with raw materials for the production of steel and cement. |
| · | The combination of revenue reduction and cost
pressure resulted in an 8.3p.p. reduction in gross margins in 2Q23, reaching 20.4%. |
| · | Selling, general and administrative expenses
totaled BRL 1,082 million in 2Q23, 6.0% higher than in the previous quarter, as a consequence of the record traded volumes in mining,
generating a higher freight expense. |
| · | The group of other operating revenues and
expenses was negative by BRL 128 million in 2Q23, a decrease of 92.3% compared to 1Q23, mainly explained by the positive effect of
iron ore hedging operations, which generated a balance of BRL 227 million in the quarter, in addition to the lower impact of hedge accounting
on the operations. |
| · | In 2Q23, the financial result was negative
by BRL 1,186 million, practically stable compared to the previous quarter, as a consequence of the maintenance of the cost of debt and
lower impact of Usiminas shares. |
Quarterly Financial Information – June 30, 2023 – Companhia Siderúrgica Nacional – CSN (CONVENIENCE TRANSLATION INTO ENGLISH FROM THE ORIGINAL PREVIOUSLY ISSUED IN PORTUGUESE) | ![](https://www.sec.gov/Archives/edgar/data/1049659/000129281423003742/siditr2q236k_020.jpg) |
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![](https://www.sec.gov/Archives/edgar/data/1049659/000129281423003742/siditr2q236k_024.jpg)
| · | The equity result was positive at BRL
107 million in 2Q23, an increase of 386% compared to the previous quarter, as a consequence of seasonality and recovery of MRS's result,
after the strong rainfall recorded at the beginning of the year. |
![](https://www.sec.gov/Archives/edgar/data/1049659/000129281423003742/siditr2q236k_025.jpg)
| · | CSN reported a net income of BRL 283 million
in 2Q23, reversing the loss observed in the previous quarter, as a result of lower impacts on the line of other revenues and operating
expenses, due to the positive effect of iron ore hedge, in addition to the tax (IR/CSLL) reversal provision verified in the period. |
Adjusted EBITDA
![](https://www.sec.gov/Archives/edgar/data/1049659/000129281423003742/siditr2q236k_026.jpg)
*The Company discloses its Adjusted EBITDA excluding
participation in investments and other operating income (expenses) because it understands that they should not be considered in the calculation
of recurring operating cash generation.
| · | In 2Q23, Adjusted EBITDA was BRL 2,263
million, with an Adjusted EBITDA margin of 19.8% or 7.6 p.p. lower than last quarter. The reduction in profitability is a direct consequence
of the worsening prices of the mining segment, which, even with the record sales volume, ended up presenting a much lower EBITDA in the
period. In addition, rising raw material costs in steel and
cement production also contributed to the reduction in margins in the quarter. |
Quarterly Financial Information – June 30, 2023 – Companhia Siderúrgica Nacional – CSN (CONVENIENCE TRANSLATION INTO ENGLISH FROM THE ORIGINAL PREVIOUSLY ISSUED IN PORTUGUESE) | ![](https://www.sec.gov/Archives/edgar/data/1049659/000129281423003742/siditr2q236k_020.jpg) |
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Adjusted EBITDA (BRL MM) and Adjusted
Margin¹ (%)
![](https://www.sec.gov/Archives/edgar/data/1049659/000129281423003742/siditr2q236k_027.jpg)
¹ The Adjusted EBITDA Margin is calculated from
the division between Adjusted EBITDA and Adjusted Net Revenue, which considers the interests of 100% in the consolidation of CSN Mineração
and 37.27% in MRS.
Adjusted Cash Flow
Adjusted Cash Flow in 2Q23 was positive at BRL 745
million, as a result of the normalization of working capital, with a strong reduction in inventories, mainly in the mining segment.
Adjusted Cash Flow¹ in 2Q23
(BRL MM)
![](https://www.sec.gov/Archives/edgar/data/1049659/000129281423003742/siditr2q236k_028.jpg)
¹ The concept of Adjusted cash flow is calculated
from Adjusted EBITDA, subtracting Ebitda from Joint Subsidiaries, CAPEX, IR, Financial Result and changes in Assets and Liabilities²,
excluding the effect of the Glencore advance.
² The Adjusted Working Capital is composed of
the variation of the Net Working Capital, plus the variation of accounts of long-term assets and liabilities and disregarding the net
variation of IR and CS.
Indebtedness
On 06/30/2023, the consolidated net debt reached
BRL 31,455 million, with the leverage indicator, measured by the LTM Net Debt/EBITDA ratio reaching 2.78x. This one-off increase in leverage
is mainly the result of the payment of BRL 2.7 billion in dividends in the period. On the other hand, when considering the prepayment
operations of iron ore and energy, in a total of BRL 3.4 billion, of which BRL 2.4 billion after the end of the quarter, the pro forma
leverage would go to 2.57x. These and other initiatives that are currently being evaluated, reinforce the Company's commitment to reduce
its indebtedness, bringing leverage to the expected guidance for the end of the year. In addition, CSN maintained its policy of carrying
high levels of cash, which in this quarter reached the level of BRL 12.5 billion.
Quarterly Financial Information – June 30, 2023 – Companhia Siderúrgica Nacional – CSN (CONVENIENCE TRANSLATION INTO ENGLISH FROM THE ORIGINAL PREVIOUSLY ISSUED IN PORTUGUESE) | ![](https://www.sec.gov/Archives/edgar/data/1049659/000129281423003742/siditr2q236k_020.jpg) |
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![](https://www.sec.gov/Archives/edgar/data/1049659/000129281423003742/siditr2q236k_029.jpg)
¹ Net Debt / EBITDA: For debt calculation considers
the final dollar of each period and for net debt and EBITDA the average dollar of the period.
The Company remains very active in its objective
of extending its amortization period, focusing on long-term operations and the local capital market. Among the main movements of the period,
the 14th issuance of simple debentures in the total amount of BRL 700 million stands out, having as objective the investment
in railway infrastructure in the logistics and transport sector.
Amortization Schedule (BRL Bi)
![](https://www.sec.gov/Archives/edgar/data/1049659/000129281423003742/siditr2q236k_030.jpg)
¹ IFRS: does not consider participation in MRS
(37.27%).
² Management Gross / Net Debt considers participation
in MRS (37.27%), without accrued interest.
3 Average Term after completion of the
Liability Management Plan.
Foreign Exchange Exposure
The accumulated net foreign
exchange exposure in the consolidated balance sheet up to 2Q23 was US$ 509 million, as shown in the table below, in line with the company's
policy of minimizing the impacts of exchange rate volatility on the result. The adopted Hedge Accounting by CSN correlates the projected
flow of dollar exports with the future maturities of debt in the same currency. With this, the exchange variation of the dollar debt is
temporarily recorded in the shareholders' equity, being taken to the result when the dollar revenues from the referred exports occur.
Quarterly Financial Information – June 30, 2023 – Companhia Siderúrgica Nacional – CSN (CONVENIENCE TRANSLATION INTO ENGLISH FROM THE ORIGINAL PREVIOUSLY ISSUED IN PORTUGUESE) | ![](https://www.sec.gov/Archives/edgar/data/1049659/000129281423003742/siditr2q236k_020.jpg) |
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Investments
A total of BRL 991
million were invested in 2Q23, 33% higher than the amount
invested in 1Q23, with emphasis on repairs to coke batteries
at the UPV plant, as well as advances in studies of new batteries and general maintenance
in steel operations. In the mining segment, the advances in expansion
projects stand out (P15, Tailings Dams Recovery and Tecar),
as well as maintenance to increase productivity, accompanied by current investments in Cement and Energy
operations.
![](https://www.sec.gov/Archives/edgar/data/1049659/000129281423003742/siditr2q236k_032.jpg)
Net Working Capital
The Net Working Capital applied to the business totaled
BRL 3,010 million in 2Q23, with a reduction of 33% compared to 1Q23, due to (i) lower Company's inventories volume, in line with
the increase in recorded sales in the period, and (ii) the reduction in accounts receivable in the foreign market.
The calculation of the Net Working Capital applied
to the business disregards Glencore's advance, as shown in the following table:
Quarterly Financial Information – June 30, 2023 – Companhia Siderúrgica Nacional – CSN (CONVENIENCE TRANSLATION INTO ENGLISH FROM THE ORIGINAL PREVIOUSLY ISSUED IN PORTUGUESE) | ![](https://www.sec.gov/Archives/edgar/data/1049659/000129281423003742/siditr2q236k_020.jpg) |
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![](https://www.sec.gov/Archives/edgar/data/1049659/000129281423003742/siditr2q236k_034.jpg)
¹ Other CCL Assets: Considers
employee advances 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/inventory losses. For the calculation of the SME, the balances of warehouse stocks
are not considered.
Quarterly Financial Information – June 30, 2023 – Companhia Siderúrgica Nacional – CSN (CONVENIENCE TRANSLATION INTO ENGLISH FROM THE ORIGINAL PREVIOUSLY ISSUED IN PORTUGUESE) | ![](https://www.sec.gov/Archives/edgar/data/1049659/000129281423003742/siditr2q236k_020.jpg) |
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Results by Business Segments
Quarterly Financial Information – June 30, 2023 – Companhia Siderúrgica Nacional – CSN (CONVENIENCE TRANSLATION INTO ENGLISH FROM THE ORIGINAL PREVIOUSLY ISSUED IN PORTUGUESE) | ![](https://www.sec.gov/Archives/edgar/data/1049659/000129281423003742/siditr2q236k_020.jpg) |
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![](https://www.sec.gov/Archives/edgar/data/1049659/000129281423003742/siditr2q236k_036.jpg)
2Q23 Results (BRL million) |
Steel |
Mining |
Logistics (Porto) |
Logistics (Rail) |
Energy |
Cement |
Corporate Expenses/Elimination |
Consolidated |
|
|
|
|
|
|
|
|
|
Net Revenue |
5,943 |
3,631 |
54 |
668 |
159 |
1,142 |
(609) |
10,989 |
Domestic Market |
4,368 |
371,74 |
54 |
668 |
159 |
1,142 |
(1,012) |
5,752 |
Foreign Market |
1,574 |
3,260 |
- |
- |
- |
- |
403 |
5,237 |
COGS |
(5,419) |
(2,626) |
(61) |
(352) |
(100) |
(952) |
765 |
(8,746) |
Gross profit |
523 |
1,006 |
(7) |
316 |
59 |
191 |
156 |
2,243 |
DGA/DVE |
(288) |
(147.39) |
(3) |
(51) |
(15) |
(123) |
(455) |
(1,082) |
Depreciation |
318 |
254 |
13 |
98 |
24 |
156 |
(75) |
788 |
Proportional EBITDA of joint contr |
- |
|
- |
- |
- |
- |
313 |
313 |
Adjusted EBITDA |
553 |
1,112 |
3 |
362 |
69 |
224 |
(60) |
2,263 |
|
|
|
|
|
|
|
|
|
1Q23 Results (BRL million) |
Steel |
Mining |
Logistics (Porto) |
Logistics (Rail) |
Energy |
Cement |
Corporate Expenses/Elimination |
Consolidated |
|
|
|
|
|
|
|
|
|
Net Revenue |
5,777 |
4,141 |
70 |
519 |
139 |
1,119 |
(447) |
11,319 |
Domestic Market |
3,946 |
282,28 |
70 |
519 |
139 |
1,119 |
(847) |
5,229 |
Foreign Market |
1,831 |
3,859 |
- |
- |
- |
- |
400 |
6,090 |
COGS |
(5,021) |
(2,247) |
(59) |
(340) |
(124) |
(960) |
677 |
(8,073) |
Gross profit |
756 |
1,895 |
10 |
179 |
16 |
160 |
230 |
3,245 |
DGA/DVE |
(313) |
(126.36) |
(2) |
(43) |
(13) |
(96) |
(427) |
(1,020) |
Depreciation |
311 |
257 |
10 |
98 |
25 |
159 |
(78) |
781 |
Proportional EBITDA of joint contr |
- |
|
- |
- |
- |
- |
197 |
197 |
Adjusted EBITDA |
754 |
2,025 |
19 |
234 |
28 |
222 |
(79) |
3,203 |
|
|
|
|
|
|
|
|
|
Result 2Q22 (BRL million) |
Steel |
Mining |
Logistics (Porto) |
Logistics (Rail) |
Energy |
Cement |
Corporate Expenses/Elimination |
Consolidated |
|
|
|
|
|
|
|
|
|
Net Revenue |
7,706 |
2,608 |
77 |
592 |
47 |
475 |
(940) |
10,566 |
Domestic Market |
5,248 |
411,20 |
77 |
592 |
47 |
475 |
(1,032) |
5,819 |
Foreign Market |
2,458 |
2,196 |
- |
- |
- |
- |
93 |
4,747 |
COGS |
(5,789) |
(1,832) |
(53) |
(386) |
(49) |
(301) |
849 |
(7,560) |
Gross profit |
1,917 |
776 |
24 |
206 |
(2) |
174 |
(90) |
3,005 |
DGA/DVE |
(313) |
(87.03) |
(8) |
(34) |
(8) |
(69) |
(132) |
(651) |
Depreciation |
301 |
242 |
8 |
126 |
4 |
57 |
(95) |
643 |
Proportional EBITDA of joint contr |
- |
|
- |
- |
- |
- |
265 |
265 |
Adjusted EBITDA |
1,905 |
931 |
24 |
298 |
(6) |
163 |
(52) |
3,262 |
Steel Result
Quarterly Financial Information – June 30, 2023 – Companhia Siderúrgica Nacional – CSN (CONVENIENCE TRANSLATION INTO ENGLISH FROM THE ORIGINAL PREVIOUSLY ISSUED IN PORTUGUESE) | ![](https://www.sec.gov/Archives/edgar/data/1049659/000129281423003742/siditr2q236k_020.jpg) |
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Steel Result
According to the World Steel Association (WSA), global
crude steel production totaled 481.8 million tons (Mt) in the second quarter of 2023, representing a 4.9% increase compared to the previous
quarter but a 1.7% reduction compared to the same period in 2022, impacted by lower production in the Chinese and European markets during
the period, partially offset by a strong production rebound in India. In the quarter, the European Union reduced its production by 10.3%
compared to the same period last year, still affected by the negative effects of the Russia-Ukraine war. On the other hand, China accounted
for 56.8% of the global volume (273.8 Mt) in 2Q23, which corresponds to an annual decrease of 2.2%. The outlook for the second half of
2023 remains positive as an increase in incentives by the Chinese government is expected. Brazil, in turn, produced 8.2 Mt in 2Q23, a
6.8% decrease compared to the same period in 2022, impacted by scheduled and unscheduled plant shutdowns, as well as an increase in imported
products in the country. The outlook for the local market in the second half of 2023 is more optimistic with the resumption of production
after the shutdowns and with demand responding to government incentives through programs targeting the automotive, construction, and infrastructure
sectors.
Steel Production (thousand tons)
In the case of CSN, plate production in 2Q23
totaled 732 thousand tons, a performance 2.2% lower than the previous quarter, as a consequence of the lower purchase volume of third-party
plates, since its own production increased with the normalization of the operation verified throughout the quarter. In turn, the production
of flat rolled products, our main market, reached 775 kton, which represents an increase of 10.3% compared to 1Q23, reflecting the normalization
of the production process and bringing production up to numbers closer to previous periods.
Sales Volume (Kton) – Steel
Industry
![](https://www.sec.gov/Archives/edgar/data/1049659/000129281423003742/siditr2q236k_037.jpg)
Total sales reached 1,051 thousand tons in
the second quarter of 2023, volume 1.8% higher than that recorded in 1Q23. When analyzing the behavior in the different markets,
it is noticed that the domestic market was the main responsible for this increase, with a strong performance in hot and zinc plated
products. Domestic sales totaled 739 thousand tons of steel products in 2Q23, which represents an increase of 10.5% compared to 1Q23 and
reinforces the normalization of the operation and the Company's resilience by being able to maintain an assertive commercial strategy
even with strong pressure from imported products. In the foreign market, sales totaled 312 thousand tons in 2Q23 and were 14.3%
lower than in 1Q23, as a result of weaker dynamics in the European market. During the quarter, 5,000 tons were exported directly, and
306,000 tons were sold by subsidiaries abroad, 78,000 tons by LLC, 143,000 tons by SWT and 85,000 tons by Lusosider.
In relation to the total sales volume in 2Q23,
practically all segments showed an increase compared to the previous quarter, with the Home Appliances (+31.4%) and Automotive (+18.7%)
appearing among the main highlights. In the annual comparison, there was an important recovery of flat steels for construction, home appliances,
and distribution, but with declines in general industry and steel packaging.
Quarterly Financial Information – June 30, 2023 – Companhia Siderúrgica Nacional – CSN (CONVENIENCE TRANSLATION INTO ENGLISH FROM THE ORIGINAL PREVIOUSLY ISSUED IN PORTUGUESE) | ![](https://www.sec.gov/Archives/edgar/data/1049659/000129281423003742/siditr2q236k_020.jpg) |
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According
to ANFAVEA (National Association of Motor Vehicle Manufacturers), production in 2Q23 reached 596,000 units, an increase of 11.2%
compared to the previous quarter. The Association also reported that vehicle registrations volume rose by 11.7% in the second quarter.
When we look at the data from the Brazilian Steel
Institute (IABr), the production of Crude Steel in 2Q23 reached 8.16 million tons, a performance 7.9% lower compared to the same period
in 2022 and 4.5% higher than 1Q23. As for Apparent Consumption, it was 5.78 million tons, a reduction of 3.7% in the annual comparison,
and 0.1% lower than 1Q23. The Steel Industry Confidence Indicator (ICIA) for June was 44.1 points, representing an 11.4 p.p. increase
compared to December. Although the indicator remains below the 50-point dividing line, there was a significant improvement in confidence
in the domestic market's prospects for the next six months.
According to data from IBGE, the production
of home appliances in May 2023 increased by 12% compared to the previous year, indicating a recovery in the white goods sector following
weak performance observed last year.
|
Selling by
Market Segment
|
| · | Net revenue at the steel segment reached
BRL 5,943 million in 2Q23, a performance 2.6% higher than in 1Q23, as a result of the higher sales volume presented in the
period and the Company's ability to preserve prices even with greater pressure from imported products. In this sense, the average price
of 2Q23 in the domestic market was 0.3% higher than that presented in 1Q23, which shows the pressure exerted by the imported material
after the adjustment applied at the beginning of the quarter. In turn, the price of the foreign market was 0.1% lower compared to the
last quarter, mainly impacted by a lower dynamism in the European market that was also impacted by greater penetration of imported products.
|
| · | The plate cost in 2Q23 reached BRL 4,113/t,
a reduction of 0.8% compared to the previous quarter, as a result of the resumption of operations, helping to dilute fixed costs, in addition
to the lower volume of plates purchased. |
![](https://www.sec.gov/Archives/edgar/data/1049659/000129281423003742/siditr2q236k_039.jpg)
| · | The steel segment Adjusted EBITDA reached BRL
553 million in 2Q23 and was 26.6% lower than in 1Q23, with an EBITDA margin of 9.3% (- 3.7 p.p.). This result mainly reflects the
cost pressure with operational performance, still in normalization. It is important to highlight
the transitory effect of this lower profitability since it is already possible to observe a much lower cost structure from 3Q23 onwards. |
Quarterly Financial Information – June 30, 2023 – Companhia Siderúrgica Nacional – CSN (CONVENIENCE TRANSLATION INTO ENGLISH FROM THE ORIGINAL PREVIOUSLY ISSUED IN PORTUGUESE) | ![](https://www.sec.gov/Archives/edgar/data/1049659/000129281423003742/siditr2q236k_020.jpg) |
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Adjusted EBITDA and Steel Margin
(BRL MM and %) |
![](https://www.sec.gov/Archives/edgar/data/1049659/000129281423003742/siditr2q236k_040.jpg)
Mining Result
In the mining sector, the quarter was marked by weaker
activity in China, mainly in the real estate sector, weakening expectations of higher demand for iron ore and weighing on the price outlook.
Despite this weaker dynamic of the Chinese economy, steel production remained at high levels, supported by the infrastructure and automobile
sectors, with producers selling the surplus to the international market. While the Chinese economy did not demonstrate the expected pace
of economic activity recovery to justify a price appreciation in iron ore, the product's demand remained strong enough to keep inventories
low and sustain its price at the current level. In this scenario, expectations of stimulus policies by the Chinese government for investments
in civil construction and consumer goods persist, which are expected to boost domestic demand for steel products, reducing the volume
of exports. Amidst this context, the iron ore price ended 2Q23 with an average of US$110.9/dmt (Platts, Fe62%, N. China), 11.6% lower
than 1Q23 (US$125.5/dmt) but 12.1% higher than 4Q22 (US$99.0/dmt).
Regarding sea freight, the BCI-C3 Route (Tubarão-Qingdao)
presented an average of US$ 21.06/wmt in 2Q23, which represents an increase of 15,7% in relation to the freight cost of
the previous quarter, as a reflection of the lower supply of ships in the Atlantic Ocean, due to a greater demand in the Australian market.
| · | Iron ore production totaled a record
volume of 11,157 thousand tons in 2Q23, representing a growth of 25% compared to 1Q23 and an increase of 35% compared to 2Q22. This performance reinforces
the Company's operational improvement, especially after the difficulties experienced in the previous year and puts CSN on track to achieve
the production and purchasing guidance stipulated for 2023 (which is from 39 to 41 Mton). |
Quarterly Financial Information – June 30, 2023 – Companhia Siderúrgica Nacional – CSN (CONVENIENCE TRANSLATION INTO ENGLISH FROM THE ORIGINAL PREVIOUSLY ISSUED IN PORTUGUESE) | ![](https://www.sec.gov/Archives/edgar/data/1049659/000129281423003742/siditr2q236k_020.jpg) |
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| · | Sales volume also showed a record high
of 11,258 thousand tons in 2Q23, a performance 31% higher than in 1Q23 and 49% higher than in the same period last year. In addition to
positive seasonality with a drier weather, 2Q23 sales were boosted by the normalization of railroad operations. |
| · | In 2Q23, adjusted net revenue reached
BRL 3,631 million and was 12.3% lower than in 1Q23, even with the greater volume of shipments. This result reflects the lower price realization
observed in the period, in addition to the negative impact of provisional prices. As a consequence, net unit revenue was US$ 66.06
per wet ton, which represents a reduction of 28.1% compared to 1Q23, in line with the downward trajectory of the Platts price, and with
the appreciation of 5.9% of the Real exchange rate. |
| · | In turn, the cost of products
sold from mining totaled BRL 2,626 million in 2Q23, an increase of 16.9% compared to the previous quarter, impacted by higher
iron ore volume, including higher purchasing volume. On the other hand, the C1 cost reached USD 21.7/t in 2Q23 and was 5.2% lower than
at the beginning of the year, reflecting the higher fixed cost dilution and the lower SG&A unit costs in the period. |
| · | Adjusted EBITDA, in turn, reached BRL 1,112
million in 2Q23, with a quarterly Adjusted EBITDA margin of 30.6% or 18.3p.p. lower than last quarter. This drop in profitability
reflects the reduction in ore prices, aggravated by the negative pressure from provisional prices. |
![](https://www.sec.gov/Archives/edgar/data/1049659/000129281423003742/siditr2q236k_042.jpg)
Cement Result
According to the National Union of the Cement Industry
(SNIC), cement sales in Brazil during the first half of 2023 remained nearly stable compared to the same period of the previous year,
with only an 1.8% decline, despite the high interest rates and uncertainties regarding monetary policy. The construction and infrastructure
sectors, which are the main drivers of cement consumption, experienced a slowdown due to difficulties in accessing credit and a decrease
in real estate launches and financing. Although there has been an improvement in industry and consumer confidence, the high level of household
debt and weak demand still bring some short-term uncertainty. On the other hand, there are already some signs of economic improvement,
with the sector being driven by federal programs such as Minha Casa, Minha Vida, PAC, infrastructure projects' resumption, and a probable
decrease in interest rates.
Despite this stable market, CSN's sales in 2Q23
totaled 3.333 kton, which represents an increase of 9.4% over the previous quarter, in line with the seasonality of
the period and the assertive commercial policy adopted by the Company. In this sense,
it is important to highlight the synergies arising from the acquisitions of the Lafarge Holcim plants, which have provided an increase
in market share, with the entry of CSN Cimentos in new regions.
Quarterly Financial Information – June 30, 2023 – Companhia Siderúrgica Nacional – CSN (CONVENIENCE TRANSLATION INTO ENGLISH FROM THE ORIGINAL PREVIOUSLY ISSUED IN PORTUGUESE) | ![](https://www.sec.gov/Archives/edgar/data/1049659/000129281423003742/siditr2q236k_020.jpg) |
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Sales Volume - Cements (thousand tons) |
![](https://www.sec.gov/Archives/edgar/data/1049659/000129281423003742/siditr2q236k_043.jpg)
* The operations of LafargeHolcim were integrated
in September 2022.
| · | Net revenue reached BRL 1,142 million
in 2Q23, a 2.1% higher performance compared to the previous quarter, with the higher sales volume offsetting the lower prices in the period.
|
| · | In 2Q23, the unit cost of cement decreased
by 13.1% as a result of higher dilution of fixed costs, due to increase in production. |
| · | In turn, the segment's Adjusted EBITDA
increased by 0.7% compared to the previous quarter, reaching BRL 224 million in 2Q23 and with an Adjusted EBITDA margin of 19.6%, practically
stable compared to 1Q23. For the second half, it is already possible to anticipate a consistent improvement in profitability with the
capture of synergies, lower raw material costs and a more favorable price scenario. |
Energy Result
In 2Q23, the high level of water in the reservoirs
has kept energy prices at a level significantly below the average of recent years. As a result, the traded energy volume in the quarter
generated a net revenue of BRL 159 million, which represents an increase of 14.1% compared to the previous quarter. Adjusted
EBITDA increased in the period, reaching BRL 69 million and generating an EBITDA margin of 43.4%, an increase of 147% compared
to the last quarter, positively impacted by the reduction in COGS in the period.
Logistics Result
Railway Logistics: In 2Q23, net revenue reached
BRL 668 million, with an Adjusted EBITDA of BRL 362 million and Adjusted EBITDA margin of 54.2%. Compared to 1Q23, net revenue increased
28.8% due to the seasonality of the operation and the normalization of MRS's operations. In the same line of comparison, Adjusted EBITDA
was 54.7% higher.
Port Logistics: In 2Q23, 221 thousand tons
of steel products were shipped by Sepetiba Tecon, in addition to 15 thousand containers, 2 thousand tons of general cargo and 56 thousand
tons of bulk. In comparison with the previous quarter, the Company had its change in the mix of shipments, with the decrease in the volume
of steel products and the increase in the volume of bulk. On the other hand, the net revenue of the port segment was 22.4% lower
than the previous quarter, reaching BRL 54 million in 2Q23, with a negative impact also on the Adjusted EBITDA of the period, which
was BRL 3 million, with an EBITDA margin of 5%.
Quarterly Financial Information – June 30, 2023 – Companhia Siderúrgica Nacional – CSN (CONVENIENCE TRANSLATION INTO ENGLISH FROM THE ORIGINAL PREVIOUSLY ISSUED IN PORTUGUESE) | ![](https://www.sec.gov/Archives/edgar/data/1049659/000129281423003742/siditr2q236k_020.jpg) |
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ESG – Environmental,
Social & Governance
ESG PERFORMANCE – CSN GROUP
Since the beginning of 2023,
CSN has adopted a new format for disclosing its ESG actions and performance, providing its performance in ESG indicators on an individual
basis. The new model allows stakeholders to have access to the main results and indicators on a quarterly basis and to monitor them effectively
and even more quickly. Access can be made through the results center on CSN's IR website: https://ri.csn.com.br/informacoes-financeiras/central-de-resultados/
The information included in
this release was selected based on relevance and materiality to the company. Quantitative indicators are presented compared to the period
that best represents the metric for monitoring them. Thus, some are compared to the same quarter of the previous year, and others will
be compared to the average of the previous period, ensuring a comparison based on seasonality and periodicity. Additionally, it is important
to highlight that the ESG Performance Report also incorporates the performance indicators of the new assets of CSN Cimentos, acquired
in 2022, so that some absolute indicators will change significantly when compared to the previous period.
More detailed historical data
on CSN's performance and initiatives can be found in the 2022 Integrated Report, released in April 2023 (esg.csn.com.br/nossa-empresa/relatorio-integrado-gri).
ESG indicator assurance occurs annually for the Integrated Report's closing, so the information contained in quarterly releases is subject
to adjustments resulting from this process.
It is also possible to track
CSN's ESG performance in an agile and transparent manner on our website through the following electronic address: esg.csn.com.br.
Quarterly Financial Information – June 30, 2023 – Companhia Siderúrgica Nacional – CSN (CONVENIENCE TRANSLATION INTO ENGLISH FROM THE ORIGINAL PREVIOUSLY ISSUED IN PORTUGUESE) | ![](https://www.sec.gov/Archives/edgar/data/1049659/000129281423003742/siditr2q236k_020.jpg) |
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Capital Markets
In the second
quarter of 2023 CSN shares appreciated by 21.4%, while the Ibovespa Index rose by 15.9%. The daily average value (CSNA3) traded on
B3, in turn, was BRL 117.1 million in 2Q23. On the New York Stock Exchange (NYSE),
the Company's American Depositary Receipts (ADRs) were down 15.6%
in dollars, while the Dow Jones Industrial Average rose 3.4%. The
average daily trading with ADRs (SID) on the NYSE in 2Q23 was US$9.8 million.
|
2Q23 |
Number of shares in thousands |
|
1.326.094 |
Market Value |
|
|
Closing Quote (BRL/share) |
|
12.13 |
Closing Quote (US$/ADR) |
|
2.59 |
Market Value (BRL million) |
|
16,086 |
Market Value (US$ million) |
|
3,435 |
Change in period |
|
|
CSNA3 (BRL) |
|
-21.4% |
SID (USD) |
|
-15.6% |
Ibovespa (BRL) |
|
15.9% |
Dow Jones (USD) |
|
3.4% |
Volume |
|
|
Daily average (thousand shares) |
|
8,768 |
Daily average (BRL thousand) |
|
117,124 |
Daily average (thousand ADRs) |
|
3,578 |
Daily average (US$ thousand) |
|
9,815 |
Source: Bloomberg
|
|
|
|
|
|
Result Conference Call:
Earnings
Presentation Webcast of the 2Q23
|
Investor
Relations Team
|
Conference Call in Portuguese with Simultaneous
Translation into English August 03, 2023 11:30 a.m. (Brasilia time) 9:30 a.m. (New York time) +55 11 3181-8565 / +55 11 4210-1803 Code: CSN Phone Replay: +55 11 4118-5151 Replay code: 219011# Webcast: click here
|
Marcelo Cunha Ribeiro – CFO and IR Executive
Director
Pedro Gomes de Souza (pedro.gs@csn.com.br)
Danilo Dias (danilo.dias.dd1@csn.com.br)
Rafael Byrro (rafael.byrro@csn.com.br)
|
Some of the statements contained herein are forward-looking
statements that express or imply expected results, performance or events. These perspectives include future results that may be influenced
by historical results and the statements made in 'Outlook'. Current results, performance and events may differ materially from assumptions
and prospects and involve risks such as: general and economic conditions in Brazil and other countries; interest and exchange rate levels,
protectionist measures in the U.S., Brazil, and other countries, changes in laws and regulations, and general competitive factors (on
a global, regional, or national basis).
Quarterly Financial Information – June 30, 2023 – Companhia Siderúrgica Nacional – CSN (CONVENIENCE TRANSLATION INTO ENGLISH FROM THE ORIGINAL PREVIOUSLY ISSUED IN PORTUGUESE) | ![](https://www.sec.gov/Archives/edgar/data/1049659/000129281423003742/siditr2q236k_020.jpg) |
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INCOME STATEMENT
CONSOLIDATED – Corporate Law – In Thousands of Reais
![](https://www.sec.gov/Archives/edgar/data/1049659/000129281423003742/siditr2q236k_044.jpg)
Quarterly Financial Information – June 30, 2023 – Companhia Siderúrgica Nacional – CSN (CONVENIENCE TRANSLATION INTO ENGLISH FROM THE ORIGINAL PREVIOUSLY ISSUED IN PORTUGUESE) | ![](https://www.sec.gov/Archives/edgar/data/1049659/000129281423003742/siditr2q236k_020.jpg) |
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BALANCE SHEET
CONSOLIDATED – Corporate Law – In Thousands of Reais
![](https://www.sec.gov/Archives/edgar/data/1049659/000129281423003742/siditr2q236k_045.jpg)
Quarterly Financial Information – June 30, 2023 – Companhia Siderúrgica Nacional – CSN (CONVENIENCE TRANSLATION INTO ENGLISH FROM THE ORIGINAL PREVIOUSLY ISSUED IN PORTUGUESE) | ![](https://www.sec.gov/Archives/edgar/data/1049659/000129281423003742/siditr2q236k_020.jpg) |
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CASH FLOW
CONSOLIDATED – Corporate Law – In Thousands of Reais
![](https://www.sec.gov/Archives/edgar/data/1049659/000129281423003742/siditr2q236k_046.jpg)
Quarterly Financial Information – June 30, 2023 – Companhia Siderúrgica Nacional – CSN (CONVENIENCE TRANSLATION INTO ENGLISH FROM THE ORIGINAL PREVIOUSLY ISSUED IN PORTUGUESE) | ![](https://www.sec.gov/Archives/edgar/data/1049659/000129281423003742/siditr2q236k_020.jpg) |
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EXPLANATORY NOTES TO THE FINANCIAL STATEMENTS
(In thousands of reais, unless otherwise noted)
| 1. | DESCRIPTION OF BUSINESS |
Companhia Siderúrgica Nacional (“CSN”,
also referred to as “Company” or “Parent company”), is a publicly held company incorporated on April 9, 1941,
under the laws of the Federative Republic of Brazil (Companhia Siderúrgica Nacional, its subsidiaries, joint ventures, joint operations
and associates are collectively referred to herein as the "Group”). The Company’s registered office is located in São
Paulo, SP, Brazil.
CSN is listed on the São Paulo Stock Exchange
(B3 S.A. - Brasil, Bolsa, Balcão) and on the New York Stock Exchange (“NYSE”), reporting its information to the Brazilian
Securities and Exchange Commission (“CVM”) and to the U.S. Securities and Exchange Commission (“SEC”).
The Group's main operating activities are divided
into five 5 segments as follows:
The Company’s main industrial facility is
the Presidente Vargas Steelworks (“UPV”), located in the city of Volta Redonda, State of Rio de Janeiro. This segment consolidates
all operations related to the production, distribution and sale of flat steel, long steel, metallic containers and galvanized steel. In
addition to the facilities in Brazil, CSN has commercial operations in the United States and operations in Portugal and Germany in order
to gain markets and provide excellent services to final consumers. Its steel is used in home appliances, civil construction, package and
automobile industries.
The production of iron ore is developed in the
cities of Congonhas, Belo Vale and Ouro Preto, State of Minas Gerais, by its subsidiary CSN Mineração S.A. (“CSN Mineração”).
The Company’s mining activities also include tin exploration in the state of Rondônia by CSN's subsidiary Estanho de Rondônia
S.A. (“ERSA”), to supply the needs of the UPV. The surplus of this raw material is sold to subsidiaries and third parties.
Iron ore is sold basically in the international
market, especially in Europe and Asia. The prices charged in these markets are historically cyclical and subject to significant fluctuations
over short periods of time, driven by several factors related to global demand, strategies adopted by the major steel producers, and the
foreign exchange rate. All these factors are beyond the Company’s control. The ore is transported by rail to the Terminal de Carvão
e Minérios from the Itaguaí Port (“TECAR”), a solid bulk terminal, one of the four terminals that comprise the
Itaguai Port, located in the State of Rio de Janeiro and from TECAR to customers around the world. The imports of coal and coke are also
carried out through this terminal by provision of services by CSN Mineração to CSN.
As a pioneer in the use of technologies that result
in the possibility of stacking the tailings generated in the iron ore production process, the CSN Mineração has its iron
ore production, since January 2020, 100% independent of tailings dams. After significant investments in recent years to raise the level
of reliability, disposal and dry stacking, the CSN Mineração has advanced to a scenario in which 100% of our tailings goes
through a dry filtering process and are stacked in piles, geotechnically controlled, in areas exclusively destined for stacking.
As a consequence of these measures, decommissioning
of dams is the natural path for processing filtered tailings. All of our mining dams are positively certified and comply with the environmental
legislation in force.
CSN entered the cement production market boosted
by the synergy between this activity and CSN’s current business. Beside the UPV facilities, in Volta Redonda/RJ, the Company installed
a business unit, which produces CP-III type cement using the slag produced by the UPV’s own blast furnaces. It also explores limestone
and dolomite at the Arcos/MG unit, to meet the needs of the steel and cement plants. Additionally, in Arcos/MG, the clinker production
operation is located.
On August 31, 2021, the Company completed the acquisition
of control of Elizabeth Cimentos S.A. ("Elizabeth Cimentos") and Elizabeth Mineração S.A. ("Elizabeth Mineração"),
with operations in the Northeast region, especially in Paraíba and Pernambuco. On May 1, 2022, Elizabeth Mineração
was merged into CSN Cimentos S.A.
Quarterly Financial Information – June 30, 2023 – Companhia Siderúrgica Nacional – CSN (CONVENIENCE TRANSLATION INTO ENGLISH FROM THE ORIGINAL PREVIOUSLY ISSUED IN PORTUGUESE) | ![](https://www.sec.gov/Archives/edgar/data/1049659/000129281423003742/siditr2q236k_020.jpg) |
| |
On September 9, 2021, CSN Cimentos entered into
the Agreement for the Sale and Purchase of the Shares in LafargeHolcim (Brasil) S.A., for the acquisition of 100% of the shares issued
by LafargeHolcim (Brasil) S.A. (“LafargeHolcim”). On August 17, 2022, the transaction was approved by the Administrative Council
for Economic Defense ("CADE"), and on September 6, 2022, the acquisition of all shares issued by LafargeHolcim S.A. was completed,
changing LafargeHolcim's name to "CSN Cimentos Brasil S.A.", which is now controlled by CSN Cimentos. The main activities of
the Company are: production, industry and general trade of cement, lime, mortar, minerals and metals in general and complementary products
for civil construction, in natura with industrial plants, warehouses and branches in much of the national territory.
Railroads:
CSN has interests in three railroad companies:
MRS Logística S.A. (“MRS”), which manages the former Southeast Railway System of Rede Ferroviária Federal S.A.
(“RFFSA”), Transnordestina Logística S.A. (“TLSA”) and FTL - Ferrovia Transnordestina Logística
S.A. (“FTL”), which holds the concession to operate the former Northeast Railway System of RFFSA, in the States of Maranhão,
Piauí, Ceará, Rio Grande do Norte, Paraíba, Pernambuco, Alagoas - stretches from São Luís to Altos,
Altos to Fortaleza, Fortaleza to Sousa, Sousa to Recife/Jorge Lins, Recife/Jorge Lins to Salgueiro, Jorge Lins to Propriá, Paula
Cavalcante to Cabedelo, Itabaiana to Macau (Mesh I) and TLSA is responsible for the stretches from Eliseu Martins-Trindade, Trindade-Salgueiro,
Salgueiro-Missão Velha and Missão Velha-Pecém (Mesh II), under construction.
Ports:
The Company operates in the State of Rio de Janeiro,
by means of its subsidiary Sepetiba Tecon S.A., the Container Terminal (“TECON”) and by means of its subsidiary CSN Mineração,
the TECAR, both located at the Itaguaí Port. Established in the harbor of Sepetiba, the mentioned port has a privileged highway,
railroad, and maritime access.
TECON is responsible for the movement and storage
of containers, vehicles, steel products, general cargo, among other products, and TECAR performs the operational activities of loading
and unloading of solid bulk ships, storage and distribution (road and rail) of coal, coke, petroleum coke, clinker, zinc concentrate,
sulfur, iron ore and other bulk, intended for the seaborne market, for our own operation and for different customers.
Since the energy supply is fundamental in CSN”s
production process, the Company has electricity generation assets to mitigate costs, aiming at greater competitiveness.
On June 30, 2022, the Company's subsidiaries, CSN
Cimentos and CSN Energia S.A. ("CSN Energia"), completed the acquisition of Santa Ana Energética S.A. (“Santa Ana”),
as well as Topázio Energética S.A. ("Topázio") and, indirectly, Brasil Central Energia Ltda. ("BCE"),
a subsidiary of Topázio, under the terms of the Share Purchase Agreement entered into on April 8, 2022 with Brookfield Americas
Infrastructure (Brazil Power) Fundo de Investimento em Participações Multiestratégia, managed by Brookfield Brasil
Asset Management Investimentos Ltda. On October 7, 2022, subsidiaries CSN Mineração and CSN Energia S.A. concluded the acquisition
of 100% of the shares of Companhia Energética Chapecó – CEC, holder of the grant of Quebra-Queixo Hydroelectric Power
Plant (“Chapecó”), as provided for in the Agreement for the Purchase and Sale of Shares and Other Covenants and in
the Private Instrument of Assignment of Rights and Obligations entered into on July 1, 2022 and July 25, 2022, respectively.
In July 2022, The Company won the auction held
by the State of Rio Grande do Sul, for the sale of 100% of the shares in its possession, 6,381,908 equivalent to 66.23% of the share capital,
of Companhia Estadual de Energia Elétrica - CEEE-G, as part of the CEEE Group privatization program, in accordance with State Law
15.298/19.On October 21, 2022, the transaction was completed with payment by the company of the auction winning price. On December 22,
2022, the acquisition of Eletrobras' 32.74% interest in CEEE-G was concluded, and the Company currently holds 99% of the share capital
of CEEE-G.
Management understands that the Company has adequate
resources to continue its operations. Accordingly, the Company's interim financial information for the period ended June 30, 2023, have
been prepared on a going concern basis.
Quarterly Financial Information – June 30, 2023 – Companhia Siderúrgica Nacional – CSN (CONVENIENCE TRANSLATION INTO ENGLISH FROM THE ORIGINAL PREVIOUSLY ISSUED IN PORTUGUESE) | ![](https://www.sec.gov/Archives/edgar/data/1049659/000129281423003742/siditr2q236k_020.jpg) |
| |
| 2. | BASIS OF PREPARATION AND STATEMENT OF COMPLIANCE |
| 2.a) | Statement of compliance |
The parent company and consolidated interim financial
information (“interim financial information”) have been prepared and are being presented in accordance with the accounting
practices adopted in Brazil issued by the Brazilian Accounting Pronouncements Committee (“CPC”), approved by the Brazilian
Securities and Exchange Commission (“CVM”) and by the Brazilian Federal Accounting Council (“CFC”), and in accordance
with the International Financial Reporting Standards (“IFRS”) issued by the International Accounting Standard Board (“IASB”)
and disclose all the relevant information of the interim financial information, and only this information, which corresponds to that used
by the Company's management in its activities. The consolidated interim financial information are identified as “Consolidated”
and the parent company's individual interim financial information are identified as “Parent Company”.
| 2.b) | Basis of presentation |
The interim financial statements were prepared based on the historical cost
and were adjusted to reflect: (i) the fair value measurement of certain financial assets and liabilities (including derivative instruments),
as well as pension plan assets; and (ii) impairment losses.
When IFRS and CPCs allows the option between cost or another measurement
criterion, the cost of acquisition criterion was used.
The preparation of these interim financial statements
requires Management to use certain accounting estimates, judgments and assumptions that affect the application of Accounting Polices and
the amounts reported on the balance sheet date of assets, liabilities, income, and expenses may differ from actual future results. The
assumptions used are based on history and other factors considered relevant and are reviewed by the Company’s management.
The interim financial information has been prepared
and is being presented in accordance with CPC 21 (R1) - “Interim Financial Reporting” and IAS 34 - “Interim Financial
Reporting”, consistently with the standards issued by the CVM.
This interim financial information does not include
all requirements of annual or full financial statements and, accordingly, should be read in conjunction with the Company’s financial
statements for the year ended December 31, 2022.
Therefore, in this interim financial information
the following notes are not repeated, either due to redundancy or to the materiality in relation to those already presented in the annual
financial statements:
Note 10 - Basis of consolidation and investments
Note 12 - Intangible assets
Note 18 - Income tax and social contribution
Note 19 - Installment taxes
Note 20 - Tax, social security, labor, civil, environmental
provisions and judicial deposits
Note 29 - Information by business segment
Note 30 - Employee benefits
Note 31 - Commitments
The consolidated financial statements were approved
by Board of Directors on August 2, 2023.
| 2.c) | Functional currency and presentation currency |
The accounting records included in the interim
financial statements of each of the Company’s subsidiaries are measured using the currency of the principal of the economic environment
in which each subsidiary operates (“the functional currency”). The consolidated and parent company interim financial statements
are presented in BRL(reais), which is the Company’s functional and reporting currency.
Foreign currency transactions are translated into
the functional currency using the exchange rates prevailing on the transaction or valuation dates, in which the items are remeasured.
The balances of the asset and liability accounts are converted using the exchange rate on the balance sheet date. As of June 30, 2023,
US$1.00 was equivalent to BRL4.8192 (BRL5.2177 on December 31, 2022) and €1.00 was equivalent to BRL5.2626 (BRL5.5694 on December
31, 2022), according to the rates obtained from Central Bank of Brazil website
Quarterly Financial Information – June 30, 2023 – Companhia Siderúrgica Nacional – CSN (CONVENIENCE TRANSLATION INTO ENGLISH FROM THE ORIGINAL PREVIOUSLY ISSUED IN PORTUGUESE) | ![](https://www.sec.gov/Archives/edgar/data/1049659/000129281423003742/siditr2q236k_020.jpg) |
| |
| 2.d) | Statement of value added |
Pursuant to Law 11,638/07, the presentation
of the statement of added value is required for all publicly held companies. These statements were prepared in accordance with CPC 09
- Added Value Statement, approved by CVM Resolution 557/08. The IFRS does not require the presentation of this statement and for IFRS
purposes is presented as additional information.
| 3. | CASH AND CASH EQUIVALENTS |
|
|
|
Consolidated |
|
|
|
Parent Company |
|
06/30/2023 |
|
12/31/2022 |
|
06/30/2023 |
|
12/31/2022 |
Cash and banks |
|
|
|
|
|
|
|
In Brazil |
71,711 |
|
85,120 |
|
23,469 |
|
49,794 |
Abroad |
8,034,186 |
|
6,310,338 |
|
147,671 |
|
136,756 |
|
8,105,897 |
|
6,395,458 |
|
171,140 |
|
186,550 |
|
|
|
|
|
|
|
|
Investments |
|
|
|
|
|
|
|
In Brazil |
3,329,362 |
|
5,110,749 |
|
1,469,425 |
|
2,652,855 |
Abroad |
540,164 |
|
485,149 |
|
3,602 |
|
|
|
3,869,526 |
|
5,595,898 |
|
1,473,027 |
|
2,652,855 |
|
11,975,423 |
|
11,991,356 |
|
1,644,167 |
|
2,839,405 |
Our investments are basically in private and public
securities with yields linked to the variation of Interbank Deposit Certificates (CDI) and repo operations backed by National Treasury
Notes, respectively. The Company invests part of the funds through exclusive investment funds which have been consolidated in this interim
financial information.
Our investments are in private securities in top-rated
banks and are remunerated at pre-fixed rates.
|
|
|
|
|
|
|
|
Consolidated |
|
|
|
|
|
|
|
Parent Company |
|
|
Current |
|
Non-current |
|
Current |
|
Non-current |
|
|
06/30/2023 |
|
12/31/2022 |
|
06/30/2023 |
|
12/31/2022 |
|
06/30/2023 |
|
12/31/2022 |
|
06/30/2023 |
|
12/31/2022 |
Investments (1) |
|
37,542 |
|
271,590 |
|
16,400 |
|
15,675 |
|
35,688 |
|
22,715 |
|
|
|
|
Usiminas shares (2) |
|
1,167,137 |
|
1,184,895 |
|
|
|
|
|
1,167,137 |
|
1,184,895 |
|
|
|
|
Bonds (3) |
|
|
|
|
|
110,842 |
|
140,510 |
|
|
|
|
|
110,842 |
|
140,510 |
|
|
1,204,679 |
|
1,456,485 |
|
127,242 |
|
156,185 |
|
1,202,825 |
|
1,207,610 |
|
110,842 |
|
140,510 |
| (1) | These are restricted financial investments and
linked to a Bank Deposit Certificate (CDB) to guarantee a letter of guarantee from financial institutions and financial investments in
Public Securities (LFT - Letras Financeiras do Tesouro) managed by their exclusive funds. |
| (2) | A guarantee (fiduciary alienation) was constituted
over a portion of the shares of Usiminas Siderúrgica de Minas Gerais S.A. held by the Company. |
| (3) | Bonds with Banco Fibra maturing in February 2028
(see note 20.a). |
5.
TRADE RECEIVABLES
|
|
|
Consolidated |
|
|
|
Parent Company |
|
06/30/2023 |
|
12/31/2022 |
|
06/30/2023 |
|
12/31/2022 |
Trade receivables |
|
|
|
|
|
|
|
Third parties |
|
|
|
|
|
|
|
Domestic market |
1,542,952 |
|
1,636,804 |
|
862,301 |
|
860,942 |
Foreign market |
1,235,320 |
|
1,720,056 |
|
39,555 |
|
92,679 |
|
2,778,272 |
|
3,356,860 |
|
901,856 |
|
953,621 |
Allowance for doubtful debts |
(216,033) |
|
(232,830) |
|
(114,113) |
|
(122,872) |
|
2,562,239 |
|
3,124,030 |
|
787,743 |
|
830,749 |
Related parties (Note 20 a) |
109,373 |
|
109,134 |
|
757,187 |
|
1,125,782 |
|
2,671,612 |
|
3,233,164 |
|
1,544,930 |
|
1,956,531 |
Quarterly Financial Information – June 30, 2023 – Companhia Siderúrgica Nacional – CSN (CONVENIENCE TRANSLATION INTO ENGLISH FROM THE ORIGINAL PREVIOUSLY ISSUED IN PORTUGUESE) | ![](https://www.sec.gov/Archives/edgar/data/1049659/000129281423003742/siditr2q236k_020.jpg) |
| |
The composition of the gross balance of accounts
receivable from third party consumers is shown as follows:
|
|
|
|
Consolidated |
|
|
|
Parent Company |
|
|
06/30/2023 |
|
12/31/2022 |
|
06/30/2023 |
|
12/31/2022 |
Current |
|
2,482,828 |
|
2,934,057 |
|
739,683 |
|
781,406 |
Past-due up to 30 days |
|
79,666 |
|
163,959 |
|
42,483 |
|
37,036 |
Past-due up to 180 days |
|
23,238 |
|
54,452 |
|
12,418 |
|
28,526 |
Past-due over 180 days |
|
192,540 |
|
204,392 |
|
107,272 |
|
106,653 |
|
|
2,778,272 |
|
3,356,860 |
|
901,856 |
|
953,621 |
The changes in estimated credit losses are as follows:
|
|
|
|
Consolidated |
|
|
|
Parent Company |
|
|
06/30/2023 |
|
12/31/2022 |
|
06/30/2023 |
|
12/31/2022 |
Opening balance |
|
(232,830) |
|
(236,927) |
|
(122,872) |
|
(133,227) |
(Loss)/Reversal estimated |
|
7,964 |
|
(87) |
|
5,293 |
|
1,623 |
Recovery and write-offs of receivables |
|
8,833 |
|
13,197 |
|
3,466 |
|
8,732 |
Consolidation in the acquisition of companies |
|
|
|
(9,013) |
|
|
|
|
Closing balance |
|
(216,033) |
|
(232,830) |
|
(114,113) |
|
(122,872) |
|
|
|
Consolidated |
|
|
|
Parent Company |
|
06/30/2023 |
|
12/31/2022 |
|
06/30/2023 |
|
12/31/2022 |
Finished goods |
3,558,698 |
|
4,421,166 |
|
1,921,276 |
|
2,308,211 |
Work in progress |
3,096,257 |
|
3,501,145 |
|
1,531,503 |
|
2,123,539 |
Raw materials |
2,717,227 |
|
3,297,213 |
|
1,663,188 |
|
2,492,779 |
Storeroom supplies |
1,425,872 |
|
1,174,244 |
|
600,522 |
|
474,846 |
Advances to suppliers |
34,740 |
|
37,619 |
|
8,575 |
|
30,170 |
Provision for losses |
(92,820) |
|
(96,493) |
|
(20,151) |
|
(16,124) |
|
10,739,974 |
|
12,334,894 |
|
5,704,913 |
|
7,413,421 |
|
|
|
|
|
|
|
|
Classified: |
|
|
|
|
|
|
|
Current |
9,508,614 |
|
11,289,229 |
|
5,704,913 |
|
7,413,421 |
Non-current (1) |
1,231,360 |
|
1,045,665 |
|
|
|
|
|
10,739,974 |
|
12,334,894 |
|
5,704,913 |
|
7,413,421 |
| (1) | Long-term iron ore inventories that will be used after the construction of the processing plant, which
will produce pellet feed. |
The changes in estimated losses on inventories
are as follows:
|
|
|
|
Consolidated |
|
|
|
Parent Company |
|
|
06/30/2023 |
|
12/31/2022 |
|
06/30/2023 |
|
12/31/2022 |
Opening balance |
|
(96,493) |
|
(98,730) |
|
(16,124) |
|
(14,426) |
Reversal/(Estimated losses) of inventories with low turnover and obsolescence |
3,673 |
|
3,621 |
|
(4,027) |
|
(1,698) |
Consolidation in the acquisition of companies |
|
|
|
(1,384) |
|
|
|
|
Closing balance |
|
(92,820) |
|
(96,493) |
|
(20,151) |
|
(16,124) |
Quarterly Financial Information – June 30, 2023 – Companhia Siderúrgica Nacional – CSN (CONVENIENCE TRANSLATION INTO ENGLISH FROM THE ORIGINAL PREVIOUSLY ISSUED IN PORTUGUESE) | ![](https://www.sec.gov/Archives/edgar/data/1049659/000129281423003742/siditr2q236k_020.jpg) |
| |
|
|
|
Consolidated |
|
|
|
Parent Company |
|
06/30/2023 |
|
12/31/2022 |
|
06/30/2023 |
|
12/31/2022 |
State Value-Added Tax |
1,205,189 |
|
1,130,843 |
|
864,968 |
|
793,761 |
Brazilian federal contributions (1) |
2,005,140 |
|
1,862,828 |
|
1,111,799 |
|
1,094,392 |
Other taxes |
203,343 |
|
189,087 |
|
119,522 |
|
129,002 |
|
3,413,672 |
|
3,182,758 |
|
2,096,289 |
|
2,017,155 |
|
|
|
|
|
|
|
|
Classified: |
|
|
|
|
|
|
|
Current |
1,986,314 |
|
1,865,626 |
|
1,129,359 |
|
1,137,460 |
Non-current |
1,427,358 |
|
1,317,132 |
|
966,930 |
|
879,695 |
|
3,413,672 |
|
3,182,758 |
|
2,096,289 |
|
2,017,155 |
| (1) | In a judgment finalized on September 24, 2021,
the Federal Supreme Court, with general repercussion, decided for the unconstitutionality of the levy of IRPJ and CSLL on amounts of interest
on arrears at the SELIC rate received because of the repetition of undue tax payment. Although the decision is still pending publication,
and the Company's specific lawsuit is still pending judgment, based on its best estimate to date CSN reassessed the judgment on this lawsuit,
as required by ICPC 22/IFRIC 23 and recorded a credit in the amount of R$229,000. After the final and unappealable court decision of the
Company's legal action, these amounts will be considered in the tax assessments, in accordance with Federal Tax Authorities of Brazil. |
Credits arise mainly from ICMS, PIS and COFINS
on purchases of raw materials and fixed assets, in accordance with current legislation. These credits are naturally realized through offsetting
with debts of the same nature or with other federal taxes, in the cases authorized by law. Based on analyses and projections made by Management,
the Company does not expect risks of non-realization of these tax credits.
| 8. | OTHER CURRENT AND NON-CURRENT ASSETS |
Other current and non-current assets are as follows:
|
|
|
|
|
|
|
Consolidado |
|
|
|
|
|
|
|
Controladora |
|
Circulante |
|
Não Circulante |
|
Circulante |
|
Não Circulante |
|
6/30/2023 |
|
12/31/2022 |
|
6/30/2023 |
|
12/31/2022 |
|
6/30/2023 |
|
12/31/2022 |
|
6/30/2023 |
|
12/31/2022 |
Judicial deposits (note 18) |
|
|
|
|
537,525 |
|
533,664 |
|
|
|
|
|
218,218 |
|
231,627 |
Derivative financial instruments (note 13) |
140,928 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends receivables (note 20 a) |
77,377 |
|
77,377 |
|
|
|
|
|
235,782 |
|
295,480 |
|
|
|
|
Prepaid expenses |
382,556 |
|
347,870 |
|
80,208 |
|
82,586 |
|
237,446 |
|
244,416 |
|
60,229 |
|
58,950 |
Prepaid expenses |
294,862 |
|
311,087 |
|
44,731 |
|
47,109 |
|
237,446 |
|
244,416 |
|
32,157 |
|
30,878 |
Prepaid expenses with sea freight |
87,694 |
|
36,783 |
|
|
|
|
|
|
|
|
|
|
|
|
Actuarial asset (note 20 a) |
|
|
|
|
35,477 |
|
35,477 |
|
|
|
|
|
28,072 |
|
28,072 |
Receivables from related parties |
85,601 |
|
7,241 |
|
3,168,120 |
|
2,869,532 |
|
237,891 |
|
107,078 |
|
3,641,847 |
|
3,377,049 |
Loans with related parties (note 20 a ) |
5,340 |
|
5,383 |
|
1,572,739 |
|
1,384,773 |
|
5,340 |
|
5,383 |
|
1,943,894 |
|
1,668,382 |
Other receivables from related parties (note 20 a) |
80,261 |
|
1,858 |
|
1,595,381 |
|
1,484,759 |
|
232,551 |
|
101,695 |
|
1,697,953 |
|
1,708,667 |
Other assets |
249,935 |
|
344,012 |
|
1,262,520 |
|
1,263,936 |
|
44,418 |
|
63,216 |
|
1,223,036 |
|
1,222,894 |
Trading securities |
8,325 |
|
9,596 |
|
|
|
|
|
8,203 |
|
9,488 |
|
|
|
|
Compulsory loans from Eletrobrás |
|
|
|
|
59,606 |
|
58,030 |
|
|
|
|
|
56,885 |
|
55,336 |
Employee debts |
71,512 |
|
59,578 |
|
|
|
|
|
36,215 |
|
28,101 |
|
|
|
|
Receivables by indemnity (1) |
37,486 |
|
|
|
1,165,066 |
|
1,166,353 |
|
|
|
|
|
1,165,066 |
|
1,166,353 |
Term of Agreement GSF DFESA |
14,264 |
|
14,264 |
|
23,774 |
|
30,906 |
|
|
|
|
|
|
|
|
Advances from Suppliers |
17,132 |
|
12,335 |
|
|
|
|
|
|
|
|
|
|
|
|
Others |
101,216 |
|
248,239 |
|
14,074 |
|
8,647 |
|
|
|
25,627 |
|
1,085 |
|
1,205 |
|
936,397 |
|
776,500 |
|
5,048,373 |
|
4,749,718 |
|
755,537 |
|
710,190 |
|
5,143,330 |
|
4,890,520 |
| (1) | In April 2023, the subsidiary CEEE-G recognized the amount of R$ 37,486, referring to the Taxes and Contributions
Amounts (VIC) of the Hydroelectric Plants committed to Physical Guarantee Quota Contracts (CCGFs).In the 3rd quarter of 2022,
the uncontroversial amount of R$422,254 was recognized in the same account, as a refund of the amounts overpaid for railroad freight from
April 1994 to March 1994 and March 1996 to the company RFFSA, and that after its extinction, the Federal Government became a defendant.
Additionally, in 2020, a credit was recognized, which is a net, certain and payable amount, arising from the final and unappealable decision
of a court in favor of the Company, due to losses and damages arising from voltage sinking in the energy supply in the periods from January/1991
to June/2002, in the amount of R$ 561,466. |
| 9. | BASIS OF CONSOLIDATION AND INVESTMENTS |
The information related to the activities of jointly
controlled subsidiaries, joint operations, associates and other investments did not change in relation to what was disclosed in the Company's
financial statements as of December 31, 2022. Therefore, Management decided not to repeat them in the accounting information interim of
June 30, 2023.
Quarterly Financial Information – June 30, 2023 – Companhia Siderúrgica Nacional – CSN (CONVENIENCE TRANSLATION INTO ENGLISH FROM THE ORIGINAL PREVIOUSLY ISSUED IN PORTUGUESE) | ![](https://www.sec.gov/Archives/edgar/data/1049659/000129281423003742/siditr2q236k_020.jpg) |
| |
|
|
Equity interests (%) |
|
|
Companies |
|
06/30/2023 |
|
12/31/2022 |
|
Core business |
Direct interest in subsidiaries: full consolidation |
|
|
|
|
|
|
CSN Islands VII Corp. |
|
100.00 |
|
100.00 |
|
Financial transactions |
CSN Inova Ventures |
|
100.00 |
|
100.00 |
|
Equity interests and Financial transactions |
CSN Islands XII Corp. |
|
100.00 |
|
100.00 |
|
Financial transactions |
CSN Steel S.L.U. |
|
100.00 |
|
100.00 |
|
Equity interests and Financial transactions |
TdBB S.A (*) |
|
100.00 |
|
100.00 |
|
Equity interests |
Sepetiba Tecon S.A. |
|
99.99 |
|
99.99 |
|
Port services |
Minérios Nacional S.A. |
|
99.99 |
|
99.99 |
|
Mining and Equity interests |
Companhia Florestal do Brasil |
|
99.99 |
|
99.99 |
|
Reforestation |
Estanho de Rondônia S.A. |
|
99.99 |
|
99.99 |
|
Tin Mining |
Companhia Metalúrgica Prada |
|
99.89 |
|
99.89 |
|
Manufacture of containers and distribution of steel products |
CSN Mineração S.A. |
|
79.75 |
|
79.75 |
|
Mining |
CSN Energia S.A. |
|
99.99 |
|
99.99 |
|
Sale of electric power |
FTL - Ferrovia Transnordestina Logística S.A. |
|
92.71 |
|
92.71 |
|
Railroad logistics |
Nordeste Logística S.A. |
|
99.99 |
|
99.99 |
|
Port services |
CSN Inova Ltd. |
|
100.00 |
|
100.00 |
|
Advisory and implementation of new development projec |
CBSI - Companhia Brasileira de Serviços de Infraestrutura |
|
99.99 |
|
99.99 |
|
Equity interests and product sales and iron ore |
CSN Cimentos S.A. |
|
99.99 |
|
99.99 |
|
Manufacturing and sale of cement |
Berkeley Participações e Empreendimentos S.A. |
|
100.00 |
|
100.00 |
|
Electric power generation and equity interests |
CSN Inova Soluções S.A. |
|
99.99 |
|
99.99 |
|
Equity interests |
CSN Participações I |
|
99.99 |
|
99.99 |
|
Equity interests |
Circula Mais Serviços de Intermediação Comercial S.A. |
|
0.01 |
|
0.01 |
|
Commercial intermediation for the purchase and sale of assets and materials in general |
CSN Participações III |
|
99.99 |
|
99.99 |
|
Equity interests |
CSN Participações IV |
|
99.99 |
|
99.99 |
|
Equity interests |
CSN Participações V |
|
99.99 |
|
99.99 |
|
Equity interests |
|
|
|
|
|
|
|
Indirect interest in subsidiaries: full consolidation |
|
|
|
|
|
|
Lusosider Projectos Siderúrgicos S.A. |
|
100.00 |
|
100.00 |
|
Equity interests and product sales |
Lusosider Aços Planos, S. A. |
|
99.99 |
|
99.99 |
|
Steel and Equity interests |
CSN Resources S.A. |
|
100.00 |
|
100.00 |
|
Financial transactions and Equity interests |
Companhia Brasileira de Latas |
|
99.88 |
|
99.88 |
|
Sale of cans and containers in general and Equity interests |
Companhia de Embalagens Metálicas MMSA |
|
99.87 |
|
99.87 |
|
Production and sale of cans and related activities |
Companhia de Embalagens Metálicas - MTM |
|
99.87 |
|
99.87 |
|
Production and sale of cans and related activities |
CSN Productos Siderúrgicos S.L. |
|
100.00 |
|
100.00 |
|
Financial transactions, product sales and Equity interests |
Stalhwerk Thüringen GmbH |
|
100.00 |
|
100.00 |
|
Production and sale of long steel and related activities |
CSN Steel Sections Polska Sp.Z.o.o |
|
100.00 |
|
100.00 |
|
Financial transactions, product sales and Equity interests |
CSN Mining Holding, S.L.U. |
|
79.75 |
|
79.75 |
|
Financial transactions, product sales and Equity interests |
CSN Mining GmbH |
|
79.75 |
|
79.75 |
|
Financial transactions, product sales and Equity interests |
CSN Mining Asia Limited |
|
79.75 |
|
79.75 |
|
Commercial representation |
Lusosider Ibérica S.A. |
|
100.00 |
|
100.00 |
|
Steel, commercial and industrial activities and equity interests |
CSN Mining Portugal, Unipessoal Lda. |
|
79.75 |
|
79.75 |
|
Commercial and representation of products |
Companhia Siderúrgica Nacional, LLC |
|
100.00 |
|
100.00 |
|
Import and distribution/resale of products |
Elizabeth Cimentos S.A. |
|
99.98 |
|
99.98 |
|
Manufacturing and sale of cement |
Santa Ana Energética S.A. |
|
99.99 |
|
99.99 |
|
Electric power generation |
Topázio Energética S.A. |
|
99.99 |
|
99.99 |
|
Electric power generation |
Brasil Central Energia Ltda. |
|
99.99 |
|
99.99 |
|
Electric power generation |
Circula Mais Serviços de Intermediação Comercial S.A. |
|
99.99 |
|
99.99 |
|
Commercial intermediation for the purchase and sale of assets and materials in general |
CSN Cimentos Brasil S.A. |
|
99.99 |
|
99.99 |
|
Manufacturing and sale of cement |
Metalgráfica Iguaçu S.A |
|
99.89 |
|
99.89 |
|
Metal packaging manufacturing |
Companhia Energética Chapecó |
|
79.75 |
|
79.75 |
|
Electric power generation |
Companhia Estadual de Geração de Energia Elétrica - CEEE-G |
|
98.96 |
|
98.96 |
|
Electric power generation |
Ventos de Vera Cruz S.A. |
|
98.95 |
|
98.95 |
|
Electric power generation |
Ventos de Curupira S.A |
|
98.95 |
|
98.95 |
|
Electric power generation |
Ventos de Povo Novo S.A. |
|
98.95 |
|
98.95 |
|
Electric power generation |
MAZET - Maschinenbau Zerspanungstechnik GmbH (1) |
|
100.00 |
|
|
|
Production and sale of long steel and related activities |
|
|
|
|
|
|
|
Direct interest in joint operations: proportionate consolidation |
|
|
|
|
|
|
Itá Energética S.A. |
|
48.75 |
|
48.75 |
|
Electric power generation |
Consórcio da Usina Hidrelétrica de Igarapava |
|
17.92 |
|
17.92 |
|
Electric power consortium |
Consórcio Itaúba(2) |
|
36.60 |
|
|
|
Electric power generation |
Consórcio Passo Real (2) |
|
46.97 |
|
|
|
Electric power generation |
|
|
|
|
|
|
|
Direct interest in joint ventures: equity method |
|
|
|
|
|
|
MRS Logística S.A. |
|
18.64 |
|
18.64 |
|
Railroad transportation |
Aceros Del Orinoco S.A. (*) |
|
31.82 |
|
31.82 |
|
Dormant company |
Transnordestina Logística S.A. |
|
48.04 |
|
47.26 |
|
Railroad logistics |
Equimac S.A |
|
50.00 |
|
50.00 |
|
Rental of commercial and industrial machinery and equipment |
Consórcio Itaúba(2) |
|
63.40 |
|
|
|
Electric power generation |
Consórcio Passo Real (2) |
|
53.03 |
|
|
|
Electric power generation |
|
|
|
|
|
|
|
Indirect interest in joint ventures: equity method |
|
|
|
|
|
|
MRS Logística S.A. |
|
14.86 |
|
14.86 |
|
Railroad transportation |
|
|
|
|
|
|
|
Direct interest in associates: equity method |
|
|
|
|
|
|
Arvedi Metalfer do Brasil S.A. |
|
20.00 |
|
20.00 |
|
Metallurgy and Equity interests |
|
|
|
|
|
|
|
Indirect interest in affiliates: equity method |
|
|
|
|
|
|
Ventos da Lagoa Energia S.A. (3) |
|
|
|
10.00 |
|
Electric power generation |
Jaguari Energética S.A. |
|
10.50 |
|
10.50 |
|
Electric power generation |
Chapecoense Geração S.A. |
|
9.00 |
|
9.00 |
|
Electric power generation |
Parques Eólicos Palmares S.A. (3) |
|
|
|
10.00 |
|
Electric power generation |
Ventos do Litoral Energia S.A. (3) |
|
|
|
10.00 |
|
Electric power generation |
Ventos dos índios Energia S.A. (3) |
|
|
|
10.00 |
|
Electric power generation |
Companhia Energética Rio das Antas - Ceran |
|
30.00 |
|
30.00 |
|
Electric power generation |
Ventos do Sul S.A. |
|
10.00 |
|
10.00 |
|
Electric power generation |
Foz Chapecó Energia S.A. |
|
8.91 |
|
8.91 |
|
Electric power generation |
|
|
|
|
|
|
|
Exclusive funds: full consolidation |
|
|
|
|
|
|
Diplic II - Private credit balanced mutual fund |
|
100.00 |
|
100.00 |
|
Investment fund |
Caixa Vértice - Private credit balanced mutual fund |
|
100.00 |
|
100.00 |
|
Investment fund |
VR1 - Private credit balanced mutual fund |
|
100.00 |
|
100.00 |
|
Investment fund |
(*) Dormant companies.
(1) On June 1, 2023,
MAZET - Maschinenbau Zerspanungstechnik GmbH was acquired by the indirect subsidiary Stalhwerk Thüringen GmbH.
(2) On December
26, 2022, the Itaúba Consortium was formed, with Companhia Siderúrgica Nacional S.A., with a 63.4% stake, and CSN Cimentos
Brasil S.A., with a 36.6% stake. Additionally, on January 17, 2023, the Passo Real Consortium was formed, with the consortium members
Companhia Siderúrgica Nacional S.A., Elizabeth Cimentos S.A., CSN Mineração S.A. and Minérios Nacional S.A.,
with stakes of 46.97%, 28.18%, 23.29% and 1.56%, respectively.
(3) CEEE-G sold
its ownership interest in affiliated companies Ventos Lagoa Energia S.A., Parques Eólicos Palmares S.A., Ventos do Litoral Energia
S.A. and Ventos dos Índios Energia S.A.
Quarterly Financial Information – June 30, 2023 – Companhia Siderúrgica Nacional – CSN (CONVENIENCE TRANSLATION INTO ENGLISH FROM THE ORIGINAL PREVIOUSLY ISSUED IN PORTUGUESE) | ![](https://www.sec.gov/Archives/edgar/data/1049659/000129281423003742/siditr2q236k_020.jpg) |
| |
| 9.a) | Changes in investments in subsidiaries, joint ventures, joint operations,
associates and other investments |
The positions presented as of June 30, 2023 and
the changes refer to the interest held by CSN in these companies:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated |
Companies |
|
Final balance on 12/31/2022 |
|
Capital increase |
|
Dividends |
|
Equity Income (2) |
|
Comprehensive income |
|
Others |
|
Final balance on 06/30/2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments under the equity method |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Joint-venture, Joint-operation and Affiliate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MRS Logistica |
|
2,054,898 |
|
|
|
|
|
179,367 |
|
8 |
|
|
|
2,234,273 |
Fair Value MRS |
|
480,622 |
|
|
|
|
|
|
|
|
|
|
|
480,622 |
Fair Value MRS amortization |
|
(82,225) |
|
|
|
|
|
(5,870) |
|
|
|
|
|
(88,095) |
Transnordestina Logística S.A. |
|
1,184,514 |
|
|
|
|
|
(11,163) |
|
|
|
|
|
1,173,351 |
Fair Value -Transnordestina |
|
659,106 |
|
|
|
|
|
|
|
|
|
|
|
659,106 |
Arvedi Metalfer do Brasil (affiliate) |
|
25,782 |
|
11,037 |
|
|
|
(1,373) |
|
|
|
|
|
35,446 |
Equimac S.A |
|
18,482 |
|
|
|
|
|
1,306 |
|
|
|
|
|
19,788 |
Indirect interest in affiliates - CEEE-G (1) |
|
216,307 |
|
|
|
(33,608) |
|
24,732 |
|
|
|
(44,396) |
|
163,035 |
Fair Value indirect participation CEEE-G (2) |
|
359,024 |
|
|
|
|
|
(39,314) |
|
|
|
|
|
319,710 |
Fair Value amortization indirect participation CEEE-G |
|
(25,889) |
|
|
|
|
|
11,303 |
|
|
|
|
|
(14,586) |
|
|
4,890,621 |
|
11,037 |
|
(33,608) |
|
158,988 |
|
8 |
|
(44,396) |
|
4,982,650 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity interests evaluated by the cost method (3) |
|
41,093 |
|
9,000 |
|
|
|
|
|
|
|
|
|
50,093 |
Investments at fair value through profit or loss (note 13) |
|
94,700 |
|
|
|
|
|
|
|
|
|
|
|
94,700 |
Other (4) |
|
33,588 |
|
21,747 |
|
|
|
|
|
|
|
(32,293) |
|
23,042 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total shareholdings |
|
5,060,002 |
|
41,784 |
|
(33,608) |
|
158,988 |
|
8 |
|
(76,689) |
|
5,150,485 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Classification of investments in the balance sheet |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity interests |
|
5,060,002 |
|
|
|
|
|
|
|
|
|
|
|
5,150,485 |
Investment Property |
|
159,080 |
|
|
|
|
|
|
|
|
|
|
|
157,547 |
Total investments in the asset |
|
5,219,082 |
|
|
|
|
|
|
|
|
|
|
|
5,308,032 |
(1) Refers mainly to the alienation by CEEE-G
in the first quarter of its equity interest in affiliates Ventos Lagoa Energia S.A., Parques Eólicos Palmares S.A., Ventos do
Litoral Energia S.A. and Ventos dos Índios Energia S.A., consequently, there was a write-off of these investments in the amount
of (R$47,611), the effect of the operation was classified under the category of other operating expenses and revenues;
(2) The balance of R$359,024 refers to the Fair
Value generated in the acquisition of the company CEEE-G, with the disposals mentioned in the item above, the Fair Value was written
off in the amount of (R$39,314) referring to the capital gains of the companies sold, the effect of the write-off was classified under
the equity method category;
(3) These are strategic investments in startups
made by the subsidiary CSN Inova Ventures, which are valued using the cost method, in the following companies: Alinea Health Holdings
Ltda. I.Systems Aut. Ind., 2D Materials, H2Pro Ltda, 1S1 Energy, Traive INC., OICO Holdings, Clarke Software and Global Dot, the latter
acquired on June 5, 2023;
(4)
On June 1, 2023, Stalhwerk Thüringen GmbH acquired the company from MAZET - Maschinenbau Zerspanungstechnik GmbH, for the amount
of R$ 21,747, an investment that is currently being evaluated;
Quarterly Financial Information – June 30, 2023 – Companhia Siderúrgica Nacional – CSN (CONVENIENCE TRANSLATION INTO ENGLISH FROM THE ORIGINAL PREVIOUSLY ISSUED IN PORTUGUESE) | ![](https://www.sec.gov/Archives/edgar/data/1049659/000129281423003742/siditr2q236k_020.jpg) |
| |
The reconciliation of equity in earnings of companies
with shared control classified as joint ventures and associates and the amount presented in the income statement is presented below and
results from the elimination of the results of CSN's transactions with these companies:
|
|
|
Consolidated |
|
06/30/2023 |
|
06/30/2022 |
|
|
Equity in results of affiliated companies |
|
|
|
MRS Logística S.A. |
179,367 |
|
114,541 |
Transnordestina |
(11,163) |
|
(15,872) |
Arvedi Metalfer do Brasil |
(1,373) |
|
2,514 |
Equimac S.A |
1,306 |
|
1,369 |
Indirect interest in affiliates - CEEE-G |
24,732 |
|
- |
Fair Value Amortization |
(33,881) |
|
(5,873) |
|
158,988 |
|
96,679 |
Other adjustments |
|
|
|
Cost of sales |
(47,716) |
|
(33,968) |
To taxes |
16,223 |
|
11,549 |
Others |
1,316 |
|
(595) |
Equity in results |
128,811 |
|
73,665 |
(1) The operating margin of intercompany transactions
with group companies classified as joint ventures, which are not consolidated, are reclassified in the Statement of Income from the Investment
group to the costs and income tax and social contribution groups.
The changes in the Parent Company's investment
are presented below:
Quarterly Financial Information – June 30, 2023 – Companhia Siderúrgica Nacional – CSN (CONVENIENCE TRANSLATION INTO ENGLISH FROM THE ORIGINAL PREVIOUSLY ISSUED IN PORTUGUESE) | ![](https://www.sec.gov/Archives/edgar/data/1049659/000129281423003742/siditr2q236k_020.jpg) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
Parent Company |
Companies |
|
Final balance on 12/31/2022 |
|
Capital increase |
|
Dividends |
|
Equity Income |
|
Comprehensive income |
|
Final balance on 06/30/2023 |
|
|
|
|
|
|
|
|
|
|
|
|
Investments under the equity method |
|
|
|
|
|
|
|
|
|
|
|
|
Subsidiaries |
|
|
|
|
|
|
|
|
|
|
|
|
CSN Steel S.L.U. |
|
5,028,262 |
|
|
|
|
|
(97,735) |
|
(198,091) |
|
4,732,436 |
Sepetiba Tecon S.A. |
|
294,460 |
|
|
|
|
|
(13,142) |
|
|
|
281,318 |
Minérios Nacional S.A. |
|
121,242 |
|
|
|
6,390 |
|
19,263 |
|
|
|
146,895 |
Fair Value - Minérios Nacional |
|
2,123,507 |
|
|
|
|
|
|
|
|
|
2,123,507 |
Companhia Metalúrgica Prada |
|
424,317 |
|
|
|
|
|
(41,413) |
|
|
|
382,904 |
Goodwill - Companhia Metalúrgica Prada |
|
63,509 |
|
|
|
|
|
|
|
|
|
63,509 |
CSN Mineração S.A. |
|
9,086,716 |
|
|
|
(1,963,023) |
|
805,499 |
|
416,784 |
|
8,345,976 |
CSN Energia S.A. |
|
56,736 |
|
|
|
|
|
(13,371) |
|
|
|
43,365 |
FTL - Ferrovia Transnordestina Logística S.A. |
|
163,740 |
|
|
|
|
|
(13,398) |
|
|
|
150,342 |
Companhia Florestal do Brasil |
|
1,300,726 |
|
|
|
(4,270) |
|
(6,028) |
|
1,333 |
|
1,291,761 |
CBSI - Companhia Brasileira de Serviços de Infraestrutura |
|
29,057 |
|
|
|
(933) |
|
4,347 |
|
|
|
32,471 |
Goodwill - CBSI - Companhia Brasileira de Serviços de Infraestrutura |
|
15,225 |
|
|
|
|
|
|
|
|
|
15,225 |
CSN Cimentos S.A. |
|
6,938,822 |
|
|
|
|
|
(62,314) |
|
|
|
6,876,508 |
Others |
|
120 |
|
160 |
|
|
|
(1,691) |
|
|
|
(1,411) |
|
|
25,646,439 |
|
160 |
|
(1,961,836) |
|
580,017 |
|
220,026 |
|
24,484,806 |
Joint-venture, Joint-operation and Affiliate |
|
|
|
|
|
|
|
|
|
|
|
|
Itá Energética S.A. |
|
189,513 |
|
|
|
|
|
5,317 |
|
|
|
194,830 |
MRS Logística S.A. |
|
1,027,709 |
|
|
|
|
|
89,706 |
|
4 |
|
1,117,419 |
Transnordestina Logística S.A. |
|
1,184,512 |
|
|
|
|
|
(11,163) |
|
|
|
1,173,349 |
Fair Value -Transnordestina |
|
659,106 |
|
|
|
|
|
|
|
|
|
659,106 |
Equimac S.A |
|
18,482 |
|
|
|
|
|
1,306 |
|
|
|
19,788 |
Arvedi Metalfer do Brasil (affiliate) |
|
25,783 |
|
11,037 |
|
|
|
(1,372) |
|
|
|
35,448 |
|
|
3,105,105 |
|
11,037 |
|
|
|
83,794 |
|
4 |
|
3,199,940 |
Other participations |
|
|
|
|
|
|
|
|
|
|
|
|
Investments at fair value through profit or loss (note 13) |
|
94,700 |
|
|
|
|
|
|
|
|
|
94,700 |
Profits on subsidiaries' inventories |
|
(67,640) |
|
|
|
|
|
81,478 |
|
|
|
13,838 |
Other investments |
|
28 |
|
|
|
|
|
(3) |
|
|
|
25 |
|
|
27,088 |
|
|
|
|
|
81,475 |
|
|
|
108,563 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total shareholdings |
|
28,778,632 |
|
11,197 |
|
(1,961,836) |
|
745,286 |
|
220,030 |
|
27,793,309 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Subsidiaries with unsecured liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
CSN Islands VII Corp. |
|
(2,661,734) |
|
|
|
|
|
188,642 |
|
|
|
(2,473,092) |
CSN Inova Ventures |
|
(1,755,949) |
|
|
|
|
|
(110,669) |
|
|
|
(1,866,618) |
CSN Islands XII Corp. |
|
(3,340,129) |
|
|
|
|
|
170,253 |
|
|
|
(3,169,876) |
Estanho de Rondônia S.A. |
|
(76,295) |
|
|
|
|
|
(15,366) |
|
|
|
(91,661) |
Total subsidiaries with unsecured liabilities |
|
(7,834,107) |
|
|
|
|
|
232,860 |
|
|
|
(7,601,247) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity Income |
|
|
|
|
|
|
|
978,146 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Classification of investments in the balance sheet |
|
|
|
|
|
|
|
|
|
|
|
|
Equity interests |
|
28,778,632 |
|
|
|
|
|
|
|
|
|
27,793,309 |
Investment Property |
|
140,143 |
|
|
|
|
|
|
|
|
|
138,944 |
Total active investments |
|
28,918,775 |
|
|
|
|
|
|
|
|
|
27,932,253 |
Provision for Investments with Unsecured Liabilities (liabilities) |
|
(7,834,107) |
|
|
|
|
|
|
|
|
|
(7,601,247) |
Total active and passive investments |
|
21,084,668 |
|
|
|
|
|
|
|
|
|
20,331,006 |
| 9.b) | Joint ventures and joint operations financial information |
The balance sheet and income statement balances
of the companies with shared control are shown below and refer to 100% of the companies’ results:
Quarterly Financial Information – June 30, 2023 – Companhia Siderúrgica Nacional – CSN (CONVENIENCE TRANSLATION INTO ENGLISH FROM THE ORIGINAL PREVIOUSLY ISSUED IN PORTUGUESE) | ![](https://www.sec.gov/Archives/edgar/data/1049659/000129281423003742/siditr2q236k_020.jpg) |
| |
|
|
|
|
|
|
|
|
06/30/2023 |
|
|
|
|
|
|
|
12/31/2022 |
|
|
Joint-Venture |
|
Joint-Operation |
|
Joint-Venture |
|
Joint-Operation |
Equity interest (%) |
|
MRS Logística |
|
Transnordestina Logística |
|
Equimac S.A. |
|
Itá Energética |
|
MRS Logística |
|
Transnordestina Logística |
|
Equimac S.A. |
|
Itá Energética |
|
37.27% |
|
48.04% |
|
50.00% |
|
48.75% |
|
37.27% |
|
48.04% |
|
50.00% |
|
48.75% |
Balance sheet |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
1,225,069 |
|
1,800 |
|
8,730 |
|
84,824 |
|
867,937 |
|
1,164 |
|
8,983 |
|
46,946 |
Advances to suppliers |
|
87,300 |
|
3,689 |
|
26 |
|
1,290 |
|
29,500 |
|
21,036 |
|
1,384 |
|
1,273 |
Other current assets |
|
977,999 |
|
71,293 |
|
13,194 |
|
20,856 |
|
1,351,335 |
|
78,777 |
|
11,648 |
|
30,735 |
Total current assets |
|
2,290,368 |
|
76,782 |
|
21,950 |
|
106,970 |
|
2,248,772 |
|
100,977 |
|
22,015 |
|
78,954 |
Non-current Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other non-current assets |
|
660,569 |
|
222,898 |
|
599 |
|
18,039 |
|
887,987 |
|
255,367 |
|
1,643 |
|
19,007 |
Investments, PP&E and intangible assets |
|
11,826,172 |
|
11,563,307 |
|
44,023 |
|
310,372 |
|
11,541,779 |
|
11,029,525 |
|
41,709 |
|
325,911 |
Total non-current assets |
|
12,486,741 |
|
11,786,205 |
|
44,622 |
|
328,411 |
|
12,429,766 |
|
11,284,892 |
|
43,352 |
|
344,918 |
Total Assets |
|
14,777,109 |
|
11,862,987 |
|
66,572 |
|
435,381 |
|
14,678,538 |
|
11,385,869 |
|
65,367 |
|
423,872 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Borrowings and financing |
|
934,842 |
|
173,048 |
|
8,034 |
|
|
|
735,231 |
|
142,073 |
|
5,497 |
|
|
Lease liabilities |
|
491,369 |
|
|
|
1,235 |
|
|
|
472,129 |
|
|
|
701 |
|
|
Other current liabilities |
|
1,378,452 |
|
69,518 |
|
6,230 |
|
16,509 |
|
1,682,928 |
|
150,268 |
|
5,777 |
|
14,326 |
Total current liabilities |
|
2,804,663 |
|
242,566 |
|
15,499 |
|
16,509 |
|
2,890,288 |
|
292,341 |
|
11,975 |
|
14,326 |
Non-current Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Borrowings and financing |
|
3,544,456 |
|
7,504,241 |
|
9,417 |
|
|
|
3,604,793 |
|
7,142,895 |
|
14,446 |
|
|
Lease liabilities |
|
1,679,058 |
|
|
|
253 |
|
|
|
1,928,931 |
|
|
|
630 |
|
|
Other non-current liabilities |
|
754,004 |
|
1,673,672 |
|
1,827 |
|
19,221 |
|
740,892 |
|
1,484,884 |
|
1,353 |
|
18,914 |
Total non-current liabilities |
|
5,977,518 |
|
9,177,913 |
|
11,497 |
|
19,221 |
|
6,274,616 |
|
8,627,779 |
|
16,429 |
|
18,914 |
Shareholders’ equity |
|
5,994,928 |
|
2,442,508 |
|
39,576 |
|
399,651 |
|
5,513,634 |
|
2,465,749 |
|
36,963 |
|
390,632 |
Total liabilities and shareholders’
equity |
|
14,777,109 |
|
11,862,987 |
|
66,572 |
|
435,381 |
|
14,678,538 |
|
11,385,869 |
|
65,367 |
|
423,872 |
|
|
|
|
|
|
|
|
01/01/2023 a 06/30/2023 |
|
|
|
|
|
|
|
01/01/2022 a 06/30/2022 |
|
|
Joint-Venture |
|
Joint-Operation |
|
|
|
Joint-Venture |
|
Joint-Operation |
Equity interest (%) |
|
MRS Logística |
|
Transnordestina Logística |
|
Equimac S.A. |
|
Itá Energética |
|
MRS Logística |
|
Transnordestina Logística |
|
Equimac S.A. |
|
Itá Energética |
|
37.27% |
|
48.04% |
|
50.00% |
|
48.75% |
|
37.27% |
|
48.04% |
|
50.00% |
|
48.75% |
Statements of Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenue |
|
2,873,214 |
|
499 |
|
22,926 |
|
96,010 |
|
2,543,969 |
|
340 |
|
16,639 |
|
94,428 |
Cost of sales and services |
|
(1,589,318) |
|
|
|
(13,006) |
|
(42,394) |
|
(1,673,615) |
|
|
|
(10,417) |
|
(46,173) |
Gross profit |
|
1,283,896 |
|
499 |
|
9,920 |
|
53,616 |
|
870,354 |
|
340 |
|
6,222 |
|
48,255 |
Operating (expenses) income |
|
(227,070) |
|
(21,842) |
|
(2,128) |
|
(39,463) |
|
(69,477) |
|
(22,861) |
|
(1,587) |
|
(36,376) |
Financial income (expenses), net |
|
(325,469) |
|
(1,895) |
|
(1,402) |
|
2,510 |
|
(333,712) |
|
(11,063) |
|
(1,308) |
|
(139) |
Income before income tax and social
contribution |
|
731,357 |
|
(23,238) |
|
6,390 |
|
16,663 |
|
467,165 |
|
(33,584) |
|
3,327 |
|
11,740 |
Current and deferred income tax
and social contribution |
|
(250,085) |
|
|
|
(626) |
|
(5,756) |
|
(159,831) |
|
|
|
(590) |
|
(4,242) |
Profit / (loss) for the period |
|
481,272 |
|
(23,238) |
|
5,764 |
|
10,907 |
|
307,334 |
|
(33,584) |
|
2,737 |
|
7,498 |
| 9.c) | TRANSNORDESTINA LOGÍSTICA S.A. (“TLSA”) |
TSA is primarily engaged in the public service
operation and development of a railroad network in the Northeast of Brazil, comprising the rail links Velha-Salgueiro, Salgueiro-Trindade,
Trindade-Eliseu Martins, Salgueiro- Porto de Suape, and Missão Velha-Porto de Pecém (“Malha II”). On December
23, 2022, after extensive negotiations involving ANTT, TCU and the then Ministry of Infrastructure, signed first amendment to the Concession
Agreement , which redefined the scope and deadlines for completion of the TLSA sections, notably to provide for the return of the section
Salgueiro-Porto de Suape, which results in a project with the current 1,206 km of rail network and completion deadline up to December
2029.
Management relies on resources from its shareholders
and third parties to complete the work, which is expected to be available, based on previously conducted agreements and recent discussions
between the parties involved. After evaluating this matter, Management concluded that the use of the project’s business continuity
accounting basis in the preparation of the interim financial information was considered appropriate.
| 9.d) | Investment properties |
The balance of investment properties is shown below:
Quarterly Financial Information – June 30, 2023 – Companhia Siderúrgica Nacional – CSN (CONVENIENCE TRANSLATION INTO ENGLISH FROM THE ORIGINAL PREVIOUSLY ISSUED IN PORTUGUESE) | ![](https://www.sec.gov/Archives/edgar/data/1049659/000129281423003742/siditr2q236k_020.jpg) |
| |
|
|
|
|
|
|
Consolidated |
|
|
|
|
|
Parent Company |
|
|
Land |
|
Buildings |
|
Total |
|
Land |
|
Buildings |
|
Total |
Balance at December 31, 2022 |
|
101,513 |
|
57,567 |
|
159,080 |
|
94,257 |
|
45,886 |
|
140,143 |
Cost |
|
101,513 |
|
87,977 |
|
189,490 |
|
94,257 |
|
74,392 |
|
168,649 |
Accumulated depreciation |
|
|
|
(30,410) |
|
(30,410) |
|
|
|
(28,506) |
|
(28,506) |
Balance at December 31, 2022 |
|
101,513 |
|
57,567 |
|
159,080 |
|
94,257 |
|
45,886 |
|
140,143 |
Depreciation (note 24) |
|
|
|
(1,533) |
|
(1,533) |
|
|
|
(1,199) |
|
(1,199) |
Balance at June 30, 2023 |
|
101,513 |
|
56,034 |
|
157,547 |
|
94,257 |
|
44,687 |
|
138,944 |
Cost |
|
101,513 |
|
87,977 |
|
189,490 |
|
94,257 |
|
74,392 |
|
168,649 |
Accumulated depreciation |
|
|
|
(31,943) |
|
(31,943) |
|
|
|
(29,705) |
|
(29,705) |
Balance at June 30, 2023 |
|
101,513 |
|
56,034 |
|
157,547 |
|
94,257 |
|
44,687 |
|
138,944 |
The Company’s estimate of the fair value of investment
properties was made for December 31, 2022. The fair value of investment property in the consolidated balance as of June 30, 2023, and
December 31, 2022 is R$2,163,610 and in the parent company R$2,097,290.
The average estimated useful lives for the periods
are as follows (in years):
|
|
|
Consolidated |
|
|
|
Parent Company |
|
06/30/2023 |
|
12/31/2022 |
|
06/30/2023 |
|
12/31/2022 |
Buildings |
27 |
|
27 |
|
28 |
|
28 |
| 10. | PROPERTY, PLANT AND EQUIPMENT |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated |
|
Land |
|
Buildings and Infrastructure |
|
Machinery, equipment and facilities |
|
Furniture and fixtures |
|
Construction in progress |
|
Right of use (i) |
|
Other (4) |
|
Total |
Balance at December 31, 2022 |
485,107 |
|
4,451,114 |
|
16,525,293 |
|
40,882 |
|
4,025,550 |
|
644,880 |
|
197,619 |
|
26,370,445 |
Cost |
485,107 |
|
8,741,911 |
|
36,373,386 |
|
284,863 |
|
4,025,550 |
|
1,057,566 |
|
643,304 |
|
51,611,687 |
Accumulated depreciation |
|
|
(4,290,797) |
|
(19,848,093) |
|
(243,981) |
|
|
|
(412,686) |
|
(445,685) |
|
(25,241,242) |
Balance at December 31, 2022 |
485,107 |
|
4,451,114 |
|
16,525,293 |
|
40,882 |
|
4,025,550 |
|
644,880 |
|
197,619 |
|
26,370,445 |
Effect of foreign exchange differences |
(5,054) |
|
(7,268) |
|
(23,607) |
|
(508) |
|
(3,440) |
|
(3,638) |
|
(108) |
|
(43,623) |
Acquisitions |
39,694 |
|
35,022 |
|
65,665 |
|
861 |
|
1,586,309 |
|
65,997 |
|
8,277 |
|
1,801,825 |
Capitalized interest (1) (notes 26) |
|
|
|
|
|
|
|
|
94,342 |
|
|
|
|
|
94,342 |
Write-offs (note 25) |
(575) |
|
(10) |
|
(68) |
|
(26) |
|
|
|
|
|
(46) |
|
(725) |
Depreciation (note 24) |
|
|
(137,833) |
|
(1,244,533) |
|
(4,938) |
|
|
|
(74,169) |
|
(26,730) |
|
(1,488,203) |
Transfers to other asset categories |
951 |
|
48,443 |
|
1,692,804 |
|
209 |
|
(2,008,525) |
|
|
|
266,118 |
|
|
Transfers to intangible assets |
|
|
|
|
|
|
|
|
(2,713) |
|
|
|
|
|
(2,713) |
Right of use - Remesurement |
|
|
|
|
|
|
|
|
|
|
68,613 |
|
|
|
68,613 |
Others |
|
|
(90) |
|
(688) |
|
|
|
13,353 |
|
|
|
|
|
12,575 |
Balance at June 30, 2023 |
520,123 |
|
4,389,378 |
|
17,014,866 |
|
36,480 |
|
3,704,876 |
|
701,683 |
|
445,130 |
|
26,812,536 |
Cost |
520,123 |
|
8,599,991 |
|
37,355,497 |
|
282,891 |
|
3,704,876 |
|
1,168,256 |
|
1,729,238 |
|
53,360,872 |
Accumulated depreciation |
|
|
(4,210,613) |
|
(20,340,631) |
|
(246,411) |
|
|
|
(466,573) |
|
(1,284,108) |
|
(26,548,336) |
Balance at June 30, 2023 |
520,123 |
|
4,389,378 |
|
17,014,866 |
|
36,480 |
|
3,704,876 |
|
701,683 |
|
445,130 |
|
26,812,536 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Parent Company |
|
|
Land |
|
Buildings and Infrastructure |
|
Machinery, equipment and facilities |
|
Furniture and fixtures |
|
Construction in progress |
|
Right of use (i) |
|
Other (4) |
|
Total |
Balance at December 31, 2022 |
|
25,618 |
|
287,746 |
|
6,533,142 |
|
10,201 |
|
900,421 |
|
11,433 |
|
17,924 |
|
7,786,485 |
Cost |
|
25,618 |
|
520,372 |
|
15,233,464 |
|
100,323 |
|
900,421 |
|
38,133 |
|
132,073 |
|
16,950,404 |
Accumulated depreciation |
|
|
|
(232,626) |
|
(8,700,322) |
|
(90,122) |
|
|
|
(26,700) |
|
(114,149) |
|
(9,163,919) |
Balance at December 31, 2022 |
|
25,618 |
|
287,746 |
|
6,533,142 |
|
10,201 |
|
900,421 |
|
11,433 |
|
17,924 |
|
7,786,485 |
Acquisitions |
|
|
|
|
|
51,316 |
|
|
|
666,128 |
|
3,906 |
|
75 |
|
721,425 |
Capitalized interest (1) (note 26) |
|
|
|
|
|
|
|
|
|
38,810 |
|
|
|
|
|
38,810 |
Write-offs (note 25) |
|
|
|
|
|
1,314 |
|
|
|
|
|
|
|
|
|
1,314 |
Depreciation (note 24) |
|
|
|
(8,790) |
|
(534,017) |
|
(908) |
|
|
|
(4,340) |
|
(3,343) |
|
(551,398) |
Transfers to other asset categories |
|
|
|
393 |
|
997,704 |
|
|
|
(1,008,054) |
|
|
|
9,957 |
|
|
Transfers to intangible assets |
|
|
|
|
|
|
|
|
|
(408) |
|
|
|
|
|
(408) |
Others |
|
|
|
|
|
(34) |
|
|
|
|
|
|
|
|
|
(34) |
Balance at June 30, 2023 |
|
25,618 |
|
279,349 |
|
7,049,425 |
|
9,293 |
|
596,897 |
|
10,999 |
|
24,613 |
|
7,996,194 |
Cost |
|
25,618 |
|
520,765 |
|
16,283,791 |
|
100,323 |
|
596,897 |
|
41,997 |
|
142,104 |
|
17,711,495 |
Accumulated depreciation |
|
|
|
(241,416) |
|
(9,234,366) |
|
(91,030) |
|
- |
|
(30,998) |
|
(117,491) |
|
(9,715,301) |
Balance at June 30, 2023 |
|
25,618 |
|
279,349 |
|
7,049,425 |
|
9,293 |
|
596,897 |
|
10,999 |
|
24,613 |
|
7,996,194 |
(*) Refer substantially to: i) in the consolidated
table: assets for railway use, such as yards, rails, mines, and sleepers; and ii) in the parent company's table: improvements to
third-party assets, vehicles and hardware.
(1) The costs of capitalized
borrowing are basically determined for the projects in Steelmaking and Mining and refer substantially, to:
Quarterly Financial Information – June 30, 2023 – Companhia Siderúrgica Nacional – CSN (CONVENIENCE TRANSLATION INTO ENGLISH FROM THE ORIGINAL PREVIOUSLY ISSUED IN PORTUGUESE) | ![](https://www.sec.gov/Archives/edgar/data/1049659/000129281423003742/siditr2q236k_020.jpg) |
| |
- CSN: Technological updates and acquisition of
new equipment for maintenance of the production capacity of UPV Plant (RJ);
- CSN Mineração: Expansion of Casa
de Pedra (MG) and TECAR (RJ).
Below are the movements of the right of use:
|
|
|
|
|
|
|
|
|
Consolidated |
|
Land |
|
Buildings and Infrastructure |
|
Machinery, equipment and facilities |
|
Others |
|
Total |
Balance at December 31, 2022 |
465,048 |
|
62,431 |
|
83,161 |
|
34,240 |
|
644,880 |
Cost |
548,756 |
|
107,782 |
|
277,865 |
|
123,164 |
|
1,057,567 |
Accumulated depreciation |
(83,708) |
|
(45,351) |
|
(194,704) |
|
(88,924) |
|
(412,687) |
Balance at December 31, 2022 |
465,048 |
|
62,431 |
|
83,161 |
|
34,240 |
|
644,880 |
Effect of foreign exchange differences |
|
|
(2,716) |
|
124 |
|
(1,046) |
|
(3,638) |
Addition |
65,081 |
|
|
|
|
|
917 |
|
65,998 |
Remesurement |
4,264 |
|
41,977 |
|
19,131 |
|
3,240 |
|
68,612 |
Depreciation |
(14,427) |
|
(9,358) |
|
(38,426) |
|
(11,958) |
|
(74,169) |
Transfers to other asset categories |
(2,701) |
|
2,340 |
|
2,296 |
|
(1,935) |
|
|
Balance at June 30, 2023 |
517,265 |
|
94,674 |
|
66,286 |
|
23,458 |
|
701,683 |
Cost |
617,729 |
|
143,484 |
|
294,582 |
|
112,461 |
|
1,168,256 |
Accumulated depreciation |
(100,464) |
|
(48,810) |
|
(228,296) |
|
(89,003) |
|
(466,573) |
Balance at June 30, 2023 |
517,265 |
|
94,674 |
|
66,286 |
|
23,458 |
|
701,683 |
|
|
|
|
|
|
|
|
Parent Company |
|
|
Land |
|
Machinery, equipment and facilities |
|
Others |
|
Total |
Balance at December 31, 2022 |
|
9,400 |
|
1,870 |
|
163 |
|
11,433 |
Cost |
|
33,307 |
|
2,639 |
|
2,187 |
|
38,133 |
Accumulated depreciation |
|
(23,907) |
|
(769) |
|
(2,024) |
|
(26,700) |
Balance at December 31, 2022 |
|
9,400 |
|
1,870 |
|
163 |
|
11,433 |
Remesurement |
|
3,906 |
|
|
|
|
|
3,906 |
Depreciation |
|
(3,828) |
|
(389) |
|
(123) |
|
(4,340) |
Transfers to other asset categories |
|
202 |
|
(204) |
|
2 |
|
|
Balance at June 30, 2023 |
|
9,680 |
|
1,277 |
|
42 |
|
10,999 |
Cost |
|
37,414 |
|
2,392 |
|
2,191 |
|
41,997 |
Accumulated depreciation |
|
(27,734) |
|
(1,115) |
|
(2,149) |
|
(30,998) |
Balance at June 30, 2023 |
|
9,680 |
|
1,277 |
|
42 |
|
10,999 |
The average estimated useful lives are as follows
(in years):
|
|
|
Consolidated |
|
|
|
Parent Company |
|
06/30/2023 |
|
12/31/2022 |
|
06/30/2023 |
|
12/31/2022 |
Buildings and Infrastructure |
34 |
|
34 |
|
31 |
|
31 |
Machinery, equipment and facilities |
18 |
|
18 |
|
19 |
|
20 |
Furniture and fixtures |
12 |
|
12 |
|
13 |
|
13 |
Others |
11 |
|
9 |
|
11 |
|
12 |
Quarterly Financial Information – June 30, 2023 – Companhia Siderúrgica Nacional – CSN (CONVENIENCE TRANSLATION INTO ENGLISH FROM THE ORIGINAL PREVIOUSLY ISSUED IN PORTUGUESE) | ![](https://www.sec.gov/Archives/edgar/data/1049659/000129281423003742/siditr2q236k_020.jpg) |
| |
11.
INTANGIBLE ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated |
|
|
|
Parent Company |
|
Goodwill |
|
Customer relationships |
|
Software |
|
Trademarks
and
patents |
|
Rights and licenses (*) |
|
Others |
|
Total |
|
Software |
|
Total |
Balance at December 31, 2022 |
4,131,483 |
|
152,484 |
|
87,846 |
|
225,187 |
|
6,188,654 |
|
2,400 |
|
10,788,054 |
|
59,499 |
|
59,499 |
Cost |
4,371,890 |
|
753,307 |
|
296,456 |
|
226,581 |
|
6,400,593 |
|
2,400 |
|
12,051,227 |
|
178,747 |
|
178,747 |
Accumulated amortization |
(131,077) |
|
(600,823) |
|
(208,610) |
|
(1,394) |
|
(211,939) |
|
|
|
(1,153,843) |
|
(119,248) |
|
(119,248) |
Adjustment for accumulated recoverable value |
(109,330) |
|
|
|
|
|
|
|
|
|
|
|
(109,330) |
|
|
|
|
Balance at December 31, 2022 |
4,131,483 |
|
152,484 |
|
87,846 |
|
225,187 |
|
6,188,654 |
|
2,400 |
|
10,788,054 |
|
59,499 |
|
59,499 |
Effect of foreign exchange differences |
|
|
(5,643) |
|
(185) |
|
(10,368) |
|
|
|
(132) |
|
(16,328) |
|
|
|
|
Acquisitions |
|
|
|
|
995 |
|
|
|
|
|
|
|
995 |
|
|
|
|
Transfer of property, plant and equipment |
|
|
|
|
2,630 |
|
83 |
|
|
|
|
|
2,713 |
|
408 |
|
408 |
Amortization (note 24) |
|
|
(38,641) |
|
(10,090) |
|
(1,569) |
|
(74,827) |
|
|
|
(125,127) |
|
(6,164) |
|
(6,164) |
Others |
|
|
|
|
281 |
|
|
|
|
|
|
|
281 |
|
|
|
|
Balance at June 30, 2023 |
4,131,483 |
|
108,200 |
|
81,477 |
|
213,333 |
|
6,113,827 |
|
2,268 |
|
10,650,588 |
|
53,743 |
|
53,743 |
Cost |
4,371,890 |
|
713,759 |
|
298,899 |
|
216,296 |
|
6,400,610 |
|
2,268 |
|
12,003,722 |
|
179,155 |
|
179,155 |
Accumulated amortization |
(131,077) |
|
(605,559) |
|
(217,422) |
|
(2,963) |
|
(286,783) |
|
|
|
(1,243,804) |
|
(125,412) |
|
(125,412) |
Adjustment for accumulated recoverable value |
(109,330) |
|
|
|
|
|
|
|
|
|
|
|
(109,330) |
|
|
|
|
Balance at June 30, 2023 |
4,131,483 |
|
108,200 |
|
81,477 |
|
213,333 |
|
6,113,827 |
|
2,268 |
|
10,650,588 |
|
53,743 |
|
53,743 |
(*) Composed mainly of: (i) mining rights whose amortization
is based on production volume and (ii) Concession agreement for the use of water resources in the acquisition of control of Companhia
Estadual de Geração de Energia Elétrica, amortized over the agreement term (note 3.c).
The average estimated useful lives are as follows
(in years):
|
|
|
Consolidated |
|
|
|
Parent Company |
|
06/30/2023 |
|
12/31/2022 |
|
06/30/2023 |
|
12/31/2022 |
Software |
9 |
|
10 |
|
10 |
|
10 |
Customer relationships |
13 |
|
13 |
|
|
|
|
| 11.a) | Goodwill impairment test |
Goodwill arising from expected future profitability
of acquired companies and intangible assets with indefinite useful lives (brands) were allocated to CSN’s cash generating units
(CGUs) which represent the lowest level of assets or group of assets of the Company. According to NBC
TG 01(R4)/IAS36, when a CGU has an intangible asset with no defined useful life allocated, the Company must perform an impairment
test.
The assumptions used for impairment assessment
in December 2022 remain in place and there is no event that would justify recording impairment on June 30, 2023.
| 12. | BORROWINGS, FINANCING AND DEBENTURES |
The balances of borrowings, financing and debentures
that are recorded at amortized cost are as follows:
Quarterly Financial Information – June 30, 2023 – Companhia Siderúrgica Nacional – CSN (CONVENIENCE TRANSLATION INTO ENGLISH FROM THE ORIGINAL PREVIOUSLY ISSUED IN PORTUGUESE) | ![](https://www.sec.gov/Archives/edgar/data/1049659/000129281423003742/siditr2q236k_020.jpg) |
| |
|
|
|
|
|
|
|
|
|
Consolidated |
|
|
|
|
|
|
Parent Company |
|
|
|
Current Liabilities |
|
Non-current Liabilities |
|
Current Liabilities |
Non-current Liabilities |
|
|
|
06/30/2023 |
|
12/31/2022 |
|
06/30/2023 |
|
12/31/2022 |
|
06/30/2023 |
|
12/31/2022 |
06/30/2023 |
|
12/31/2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign Debt |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Floating Rates: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Prepayment |
|
|
489,163 |
|
1,571,208 |
|
6,114,697 |
|
5,474,359 |
|
194,770 |
|
956,219 |
1,874,669 |
|
1,147,894 |
Fixed Rates: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bonds, Perpetual bonds, Facility, CCE and ACC |
|
|
1,557,143 |
|
1,189,717 |
|
16,110,769 |
|
16,790,284 |
|
1,290,314 |
|
616,954 |
1,323,532 |
|
782,655 |
Intercompany |
|
|
|
|
|
|
|
|
|
|
685,701 |
|
43,196 |
6,588,755 |
|
8,216,508 |
Fixed interest in EUR |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Intercompany |
|
|
|
|
|
|
|
|
|
|
1,043,337 |
|
858 |
657,375 |
|
1,767,536 |
Facility |
|
|
650,314 |
|
62,187 |
|
134,556 |
|
166,302 |
|
|
|
|
|
|
|
|
|
|
2,696,620 |
|
2,823,112 |
|
22,360,022 |
|
22,430,945 |
|
3,214,122 |
|
1,617,227 |
10,444,331 |
|
11,914,593 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt agreements in Brazil |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Floating Rate Securities in R$: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BNDES/FINAME/FINEP, Debentures, NCE and CCB |
|
|
3,006,222 |
|
2,446,840 |
|
14,191,551 |
|
13,740,051 |
|
2,723,521 |
|
1,827,077 |
6,596,736 |
|
6,110,174 |
|
|
|
3,006,222 |
|
2,446,840 |
|
14,191,551 |
|
13,740,051 |
|
2,723,521 |
|
1,827,077 |
6,596,736 |
|
6,110,174 |
Total Borrowings and Financing |
|
|
5,702,842 |
|
5,269,952 |
|
36,551,573 |
|
36,170,996 |
|
5,937,643 |
|
3,444,304 |
17,041,067 |
|
18,024,767 |
Transaction Costs and Issue Premiums |
|
|
(87,249) |
|
(76,316) |
|
(497,379) |
|
(445,890) |
|
(22,470) |
|
(25,285) |
(26,735) |
|
(30,518) |
Total Borrowings and Financing + Transaction cost |
|
|
5,615,593 |
|
5,193,636 |
|
36,054,194 |
|
35,725,106 |
|
5,915,173 |
|
3,419,019 |
17,014,332 |
|
17,994,249 |
| 12.a) | Borrowing and amortization, financing, and debentures |
The following table shows amortization and funding
during the period:
|
|
|
|
Consolidated |
|
|
|
Parent Company |
|
|
06/30/2023 |
|
12/31/2022 |
|
06/30/2023 |
|
12/31/2022 |
Opening balance |
|
40,918,742 |
|
32,507,522 |
|
21,413,268 |
|
20,432,844 |
New debts |
|
7,352,557 |
|
20,248,223 |
|
5,279,322 |
|
9,922,074 |
Repayment |
|
(4,435,867) |
|
(10,782,858) |
|
(2,876,581) |
|
(8,270,606) |
Payments of charges |
|
(1,672,086) |
|
(2,315,586) |
|
(741,416) |
|
(1,128,874) |
Accrued charges (note 26) |
|
1,755,515 |
|
2,595,011 |
|
838,367 |
|
1,270,946 |
Consolidation of companies |
|
|
|
81,978 |
|
|
|
|
Others (1) |
|
(2,249,074) |
|
(1,415,548) |
|
(983,455) |
|
(813,116) |
Closing balance |
|
41,669,787 |
|
40,918,742 |
|
22,929,505 |
|
21,413,268 |
| (1) | Including unrealized exchange and monetary variations and funding cost. |
The Company raised and amortized borrowings, financing
and debentures during 2023, as shown below:
|
|
|
|
|
|
|
|
Consolidated |
|
|
|
|
|
|
|
|
06/30/2023 |
Nature |
|
New debts |
|
Maturities |
|
Repayment |
|
Interest payment |
Pre-Payment |
|
1,220,733 |
|
2023 to 2028 |
|
(1,012,370) |
|
(210,226) |
Bonds, ACC, CCE and Facility |
|
2,765,126 |
|
2023 to 2024 |
|
(1,162,595) |
|
(479,424) |
BNDES/FINAME/FINEP, Debentures, NCE, Facility and CCB |
|
3,366,698 |
|
2023 to 2025 |
|
(2,260,902) |
|
(982,436) |
|
|
7,352,557 |
|
|
|
(4,435,867) |
|
(1,672,086) |
Quarterly Financial Information – June 30, 2023 – Companhia Siderúrgica Nacional – CSN (CONVENIENCE TRANSLATION INTO ENGLISH FROM THE ORIGINAL PREVIOUSLY ISSUED IN PORTUGUESE) | ![](https://www.sec.gov/Archives/edgar/data/1049659/000129281423003742/siditr2q236k_020.jpg) |
| |
| 12.b) | Maturities of borrowings, financing and debentures presented in current and non-current liabilities |
|
|
|
|
|
|
Consolidated |
|
|
|
|
|
Parent Company |
|
|
|
|
|
|
06/30/2023 |
|
|
|
|
|
06/30/2023 |
|
|
Borrowings and financing in foreign currency |
|
Borrowings and financing in national currency |
|
Total |
|
Borrowings and financing in foreign currency |
|
Borrowings and financing in national currency |
|
Total |
Average rate |
|
in Dollar 6.79%in Euro 5.12% |
|
in Real 15.57% |
|
|
in Dollar 4.06%in Euro 3.41% |
|
in Real 15.82% |
|
2023 |
|
1,495,825 |
|
1,742,702 |
|
3,238,527 |
|
1,116,454 |
|
1,499,560 |
|
2,616,014 |
2024 |
|
2,047,296 |
|
3,857,504 |
|
5,904,800 |
|
2,777,174 |
|
1,758,585 |
|
4,535,759 |
2025 |
|
3,085,184 |
|
1,706,466 |
|
4,791,650 |
|
3,097,818 |
|
1,237,101 |
|
4,334,919 |
2026 |
|
2,695,451 |
|
2,284,861 |
|
4,980,312 |
|
740,706 |
|
1,729,101 |
|
2,469,807 |
2027 |
|
854,569 |
|
2,527,949 |
|
3,382,518 |
|
87,709 |
|
1,999,101 |
|
2,086,810 |
2028 to 2031 |
|
12,090,409 |
|
2,673,492 |
|
14,763,901 |
|
3,196,212 |
|
1,003,186 |
|
4,199,398 |
After 2031 |
|
2,787,908 |
|
2,404,799 |
|
5,192,707 |
|
2,642,380 |
|
93,623 |
|
2,736,003 |
|
|
25,056,642 |
|
17,197,773 |
|
42,254,415 |
|
13,658,453 |
|
9,320,257 |
|
22,978,710 |
·
Covenants
The Company maintains contracts that provide for
the fulfillment of certain non-financial obligations, as well as the maintenance of certain parameters and performance indicators, such
as the equity ratio disclosure of its audited interim financial information according to regulatory deadlines or payment of commission
for risk assumption, if the indicator of net debt to EBITDA reaches the levels foreseen in those contracts.
To the moment, the Company is compliant with the
financial and non-financial obligations (covenants) of its existing contracts.
13.
FINANCIAL INSTRUMENTS
| 13.a) | Identification and valuation of financial instruments |
The Company may operate with several financial
instruments, with emphasis on cash and cash equivalents, including financial investments, marketable securities, accounts receivable from
customers, accounts payable to suppliers and borrowings and financing. Additionally, we may also operate with derivative financial instruments,
such as swap exchange rate swap, swap interest and derivatives with commodities.
Considering the nature of these instruments, their
fair value is basically determined by the use of quotations in the capital markets in Brazil and the Mercantile and Futures Exchange.
The amounts recorded in current assets and liabilities have immediate liquidity or maturity, mostly in the short term. Considering the
terms and characteristics of these instruments, the carrying amounts approximate the fair values.
Quarterly Financial Information – June 30, 2023 – Companhia Siderúrgica Nacional – CSN (CONVENIENCE TRANSLATION INTO ENGLISH FROM THE ORIGINAL PREVIOUSLY ISSUED IN PORTUGUESE) | ![](https://www.sec.gov/Archives/edgar/data/1049659/000129281423003742/siditr2q236k_020.jpg) |
| |
| · | Classification of financial
instruments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated |
Consolidated |
|
|
|
|
|
06/30/2023 |
|
|
|
12/31/2022 |
|
Notes |
|
Fair value through other comprehensive income |
|
Fair value through profit or loss |
|
Measured at amortized cost |
|
Balances |
|
Fair value through other comprehensive income |
|
Fair value through profit or loss |
|
Measured at amortized cost |
|
Balances |
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
3 |
|
|
|
|
|
11,975,423 |
|
11,975,423 |
|
|
|
|
|
11,991,356 |
|
11,991,356 |
Short-term investments |
|
4 |
|
|
|
1,167,137 |
|
37,542 |
|
1,204,679 |
|
|
|
1,184,895 |
|
271,590 |
|
1,456,485 |
Trade receivables |
|
5 |
|
|
|
|
|
2,671,612 |
|
2,671,612 |
|
|
|
|
|
3,233,164 |
|
3,233,164 |
Dividends and interest on equity |
|
8 |
|
|
|
|
|
77,377 |
|
77,377 |
|
|
|
|
|
77,377 |
|
77,377 |
Derivative financial instruments |
|
8 |
|
140,928 |
|
|
|
|
|
140,928 |
|
|
|
|
|
|
|
|
Trading securities |
|
8 |
|
|
|
8,325 |
|
|
|
8,325 |
|
|
|
9,596 |
|
|
|
9,596 |
Loans - related parties |
|
8 |
|
|
|
|
|
5,340 |
|
5,340 |
|
|
|
|
|
5,383 |
|
5,383 |
Total |
|
|
|
140,928 |
|
1,175,462 |
|
14,767,294 |
|
16,083,684 |
|
|
|
1,194,491 |
|
15,578,870 |
|
16,773,361 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-current |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments |
|
4 |
|
|
|
|
|
127,242 |
|
127,242 |
|
|
|
|
|
156,185 |
|
156,185 |
Other trade receivables |
|
8 |
|
|
|
|
|
12,967 |
|
12,967 |
|
|
|
|
|
8,059 |
|
8,059 |
Eletrobrás compulsory loan |
|
8 |
|
|
|
|
|
59,606 |
|
59,606 |
|
|
|
|
|
58,030 |
|
58,030 |
Receivables by indemnity |
|
8 |
|
|
|
|
|
983,720 |
|
983,720 |
|
|
|
|
|
974,863 |
|
974,863 |
Loans - related parties |
|
8 |
|
|
|
|
|
1,572,739 |
|
1,572,739 |
|
|
|
|
|
1,384,773 |
|
1,384,773 |
Investments |
|
9 |
|
|
|
94,700 |
|
|
|
94,700 |
|
|
|
94,700 |
|
|
|
94,700 |
Total |
|
|
|
|
|
94,700 |
|
2,756,274 |
|
2,850,974 |
|
|
|
94,700 |
|
2,581,910 |
|
2,676,610 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Assets |
|
|
|
140,928 |
|
1,270,162 |
|
17,523,568 |
|
18,934,658 |
|
|
|
1,289,191 |
|
18,160,780 |
|
19,449,971 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Borrowings and financing |
|
12 |
|
|
|
|
|
5,702,842 |
|
5,702,842 |
|
|
|
|
|
5,269,952 |
|
5,269,952 |
Leases |
|
14 |
|
|
|
|
|
163,355 |
|
163,355 |
|
|
|
|
|
177,010 |
|
177,010 |
Trade payables |
|
15 |
|
|
|
|
|
6,248,846 |
|
6,248,846 |
|
|
|
|
|
6,596,915 |
|
6,596,915 |
Trade payables - drawee risk |
|
16 |
|
|
|
|
|
2,878,420 |
|
2,878,420 |
|
|
|
|
|
5,709,069 |
|
5,709,069 |
Dividends and interest on capital |
|
16 |
|
|
|
|
|
4,955 |
|
4,955 |
|
|
|
|
|
611,307 |
|
611,307 |
Derivative financial instruments (note 16) |
|
|
|
|
|
30,998 |
|
|
|
30,998 |
|
416,935 |
|
|
|
|
|
416,935 |
Total |
|
|
|
|
|
30,998 |
|
14,998,418 |
|
15,029,416 |
|
416,935 |
|
|
|
18,364,253 |
|
18,781,188 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-current |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Borrowings and financing |
|
12 |
|
|
|
|
|
36,551,573 |
|
36,551,573 |
|
|
|
|
|
36,170,996 |
|
36,170,996 |
Leases |
|
14 |
|
|
|
|
|
596,036 |
|
596,036 |
|
|
|
|
|
516,836 |
|
516,836 |
Trade payables |
|
15 |
|
|
|
|
|
27,916 |
|
27,916 |
|
|
|
|
|
46,269 |
|
46,269 |
Derivative financial instruments (note 16) |
|
16 |
|
|
|
68,399 |
|
|
|
68,399 |
|
|
|
69,472 |
|
|
|
69,472 |
Total |
|
|
|
|
|
68,399 |
|
37,175,525 |
|
37,243,924 |
|
|
|
69,472 |
|
36,734,101 |
|
36,803,573 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities |
|
|
|
|
|
99,397 |
|
52,173,943 |
|
52,273,340 |
|
416,935 |
|
69,472 |
|
55,098,354 |
|
55,584,761 |
Quarterly Financial Information – June 30, 2023 – Companhia Siderúrgica Nacional – CSN (CONVENIENCE TRANSLATION INTO ENGLISH FROM THE ORIGINAL PREVIOUSLY ISSUED IN PORTUGUESE) | ![](https://www.sec.gov/Archives/edgar/data/1049659/000129281423003742/siditr2q236k_020.jpg) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Parent Company |
Parent Company |
|
|
|
|
|
06/30/2023 |
|
|
|
12/31/2022 |
|
Notes |
|
Fair value through profit or loss |
|
Measured at amortized cost |
|
Balances |
|
Fair value through profit or loss |
|
Measured at amortized cost |
|
Balances |
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
3 |
|
|
|
1,644,167 |
|
1,644,167 |
|
|
|
2,839,405 |
|
2,839,405 |
Short-term investments |
|
4 |
|
1,167,137 |
|
35,688 |
|
1,202,825 |
|
1,184,895 |
|
22,715 |
|
1,207,610 |
Trade receivables |
|
5 |
|
|
|
1,544,930 |
|
1,544,930 |
|
|
|
1,956,531 |
|
1,956,531 |
Dividends and interest on equity |
|
8 |
|
|
|
235,782 |
|
235,782 |
|
|
|
295,480 |
|
295,480 |
Trading securities |
|
8 |
|
8,203 |
|
|
|
8,203 |
|
9,488 |
|
|
|
9,488 |
Loans - related parties |
|
8 |
|
|
|
5,340 |
|
5,340 |
|
|
|
5,383 |
|
5,383 |
Total |
|
|
|
1,175,340 |
|
3,465,907 |
|
4,641,247 |
|
1,194,383 |
|
5,119,514 |
|
6,313,897 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-current |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments |
|
4 |
|
|
|
110,842 |
|
110,842 |
|
|
|
140,510 |
|
140,510 |
Other trade receivables |
|
8 |
|
|
|
1,003 |
|
1,003 |
|
|
|
1,003 |
|
1,003 |
Eletrobrás compulsory loan |
|
8 |
|
|
|
56,885 |
|
56,885 |
|
|
|
55,336 |
|
55,336 |
Receivables by indemnity |
|
8 |
|
|
|
983,720 |
|
983,720 |
|
|
|
974,863 |
|
974,863 |
Loans - related parties |
|
8 |
|
|
|
1,943,894 |
|
1,943,894 |
|
|
|
1,668,382 |
|
1,668,382 |
Investments |
|
9 |
|
94,700 |
|
|
|
94,700 |
|
94,700 |
|
|
|
94,700 |
Total |
|
|
|
94,700 |
|
3,096,344 |
|
3,191,044 |
|
94,700 |
|
2,840,094 |
|
2,934,794 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Assets |
|
|
|
1,270,040 |
|
6,562,251 |
|
7,832,291 |
|
1,289,083 |
|
7,959,608 |
|
9,248,691 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Borrowings and financing |
|
12 |
|
|
|
5,937,643 |
|
5,937,643 |
|
|
|
3,444,304 |
|
3,444,304 |
Leases |
|
14 |
|
|
|
11,216 |
|
11,216 |
|
|
|
8,451 |
|
8,451 |
Trade payables |
|
15 |
|
|
|
3,080,122 |
|
3,080,122 |
|
|
|
3,684,793 |
|
3,684,793 |
Trade payables - drawee risk |
|
16 |
|
|
|
2,519,299 |
|
2,519,299 |
|
|
|
5,318,425 |
|
5,318,425 |
Dividends and interest on capital |
|
16 |
|
|
|
4,644 |
|
4,644 |
|
|
|
598,267 |
|
598,267 |
Derivative financial instruments (note 16) |
|
|
|
30,998 |
|
|
|
30,998 |
|
|
|
|
|
|
Total |
|
|
|
30,998 |
|
11,552,924 |
|
11,583,922 |
|
|
|
13,054,240 |
|
13,054,240 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-current |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Borrowings and financing |
|
12 |
|
|
|
17,041,067 |
|
17,041,067 |
|
|
|
18,024,767 |
|
18,024,767 |
Derivative financial instruments (note 16) |
|
16 |
|
|
|
|
|
|
|
58,005 |
|
|
|
58,005 |
Leases |
|
14 |
|
|
|
1,216 |
|
1,216 |
|
|
|
4,729 |
|
4,729 |
Trade payables |
|
15 |
|
|
|
19,737 |
|
19,737 |
|
|
|
14,352 |
|
14,352 |
Total |
|
|
|
|
|
17,062,020 |
|
17,062,020 |
|
58,005 |
|
18,043,848 |
|
18,101,853 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities |
|
|
|
30,998 |
|
28,614,944 |
|
28,645,942 |
|
58,005 |
|
31,098,088 |
|
31,156,093 |
The following table shows the financial instruments
recorded at fair value by classifying them according to the fair value hierarchy:
Quarterly Financial Information – June 30, 2023 – Companhia Siderúrgica Nacional – CSN (CONVENIENCE TRANSLATION INTO ENGLISH FROM THE ORIGINAL PREVIOUSLY ISSUED IN PORTUGUESE) | ![](https://www.sec.gov/Archives/edgar/data/1049659/000129281423003742/siditr2q236k_020.jpg) |
| |
Consolidated |
|
|
|
|
|
06/30/2023 |
|
|
|
|
|
12/31/2022 |
|
Level 1 |
|
Level 2 |
|
Balances |
|
Level 1 |
|
Level 2 |
|
Balances |
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
Current |
|
|
|
|
|
|
|
|
|
|
|
|
Financial investments |
|
1,167,137 |
|
|
|
1,167,137 |
|
1,184,895 |
|
|
|
1,184,895 |
Derivative financial instruments |
|
140,928 |
|
|
|
140,928 |
|
|
|
|
|
|
Trading securities |
|
8,325 |
|
|
|
8,325 |
|
9,596 |
|
|
|
9,596 |
Non-current |
|
|
|
|
|
|
|
|
|
|
|
|
Investments |
|
94,700 |
|
|
|
94,700 |
|
94,700 |
|
|
|
94,700 |
Total Assets |
|
1,411,090 |
|
- |
|
1,411,090 |
|
1,289,191 |
|
- |
|
1,289,191 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
Current |
|
|
|
|
|
|
|
|
|
|
|
|
Derivative financial instruments |
|
|
|
30,998 |
|
30,998 |
|
|
|
416,935 |
|
416,935 |
Non-current |
|
|
|
|
|
|
|
|
|
|
|
|
Derivative financial instruments |
|
|
|
68,399 |
|
68,399 |
|
|
|
69,472 |
|
69,472 |
Total Liabilities |
|
- |
|
99,397 |
|
99,397 |
|
- |
|
486,407 |
|
486,407 |
Level 1
- Data prices are quoted in an active market for items identical to the assets and liabilities being measured.
Level 2
- Consider inputs observable in the market, such as interest rates, exchange rates, etc., but are not prices negotiated in active markets.
Level 3 - There
are no assets and liabilities classified as level 3.
| 13.b) | Financial risk management |
The Company uses risk management strategies with
guidance on the risks incurred by us.
The nature and general position of financial risks
are regularly monitored and managed in order to assess results and the financial impact on cash flow. Credit limits and hedge quality
of counterparties are also reviewed periodically.
Market risks are hedged when we consider necessary
to support the corporate strategy or when it is necessary to maintain the level of financial flexibility.
We are exposed to exchange rate, interest rate,
market price and liquidity risks.
The Company may manage some of the risks through
the use of derivative instruments not associated with any speculative trading or short selling.
The exposure arises from the existence of assets
and liabilities denominated in Dollar or Euro, since the Company’s functional currency is substantially the Real and is referred
to as natural exchange exposure. The net exposure is the result of the offsetting of the natural exchange exposure by the instruments
of hedge adopted by CSN.
The consolidated net exposure as of June 30, 2023,
is shown below.
Quarterly Financial Information – June 30, 2023 – Companhia Siderúrgica Nacional – CSN (CONVENIENCE TRANSLATION INTO ENGLISH FROM THE ORIGINAL PREVIOUSLY ISSUED IN PORTUGUESE) | ![](https://www.sec.gov/Archives/edgar/data/1049659/000129281423003742/siditr2q236k_020.jpg) |
| |
|
|
06/30/2023 |
12/31/2022 |
Foreign Exchange Exposure |
|
(Amounts in US$’000) |
|
(Amounts in US$’000) |
Cash and cash equivalents overseas |
|
1,601,595 |
|
1,191,036 |
Trade receivables |
|
216,743 |
|
315,920 |
Financial investments |
|
15,669 |
|
26,930 |
Borrowings and financing |
|
(4,971,631) |
|
(4,594,471) |
Trade payables |
|
(338,881) |
|
(366,149) |
Others |
|
(21,762) |
|
(23,079) |
Natural Gross Foreign Exchange Exposure (assets - liabilities) |
|
(3,498,267) |
|
(3,449,813) |
Cash flow hedge accounting |
|
4,193,480 |
|
4,409,760 |
Exchange rate swap CDI x Dollar |
|
(67,000) |
|
(67,000) |
Exchange rate swap Real x Dollar |
|
(115,000) |
|
(115,000) |
Net foreign exchange exposure |
|
513,213 |
|
777,947 |
CSN uses Hedge Accounting strategy, as well as
derivative financial instruments to protect future cash flows.
Sensitivity analysis of Derivative Financial
Instruments and Consolidated Foreign Exchange Exposure
The
Company considered scenarios 1 and 2 to be 25% and 50% deterioration for currency volatility, using the exchange rate closing rate as
of June 30, 2023, as a reference.
The currencies used in the sensitivity analysis and their respective
scenarios are shown below:
|
|
|
|
|
|
|
|
06/30/2023 |
Currency |
|
Exchange rate |
|
Probable scenario |
|
Scenario 1 |
|
Scenario 2 |
USD |
|
4.8192 |
|
4.7457 |
|
6.0240 |
|
7.2288 |
EUR |
|
5.2626 |
|
5.2606 |
|
6.5783 |
|
7.8939 |
USD x EUR |
|
1.0920 |
|
1.1085 |
|
1.3650 |
|
1.6380 |
The effects on the result,
considering scenarios 1 and 2, are shown below:
|
|
|
|
|
|
|
|
|
|
06/30/2023 |
Instruments |
|
Notional |
|
Risk |
|
Probable scenario (*) R$ |
|
Scenario 1 R$ |
|
Scenario 2 R$ |
|
|
|
|
|
|
|
|
|
|
|
Gross exchange position |
|
(3,498,267) |
|
Dollar |
|
257,123 |
|
(4,214,712) |
|
(8,429,424) |
|
|
|
|
|
|
|
|
|
|
|
Cash flow hedge accounting |
|
4,193,480 |
|
Dollar |
|
(308,221) |
|
5,052,305 |
|
10,104,609 |
|
|
|
|
|
|
|
|
|
|
|
Exchange rate swap CDI x Dollar |
|
(67,000) |
|
Dollar |
|
4,925 |
|
(80,722) |
|
(161,443) |
|
|
|
|
|
|
|
|
|
|
|
Exchange rate swap Real x Dollar |
|
(115,000) |
|
Dollar |
|
8,453 |
|
(138,552) |
|
(277,104) |
|
|
|
|
|
|
|
|
|
|
|
Net exchange position |
|
513,213 |
|
Dollar |
|
(37,720) |
|
618,319 |
|
1,236,638 |
(*) The probable scenarios were calculated considering
the following variations for the risks: Real x Dollar – valuation of the Real by 0.63% / Real x Euro - devaluation of the Real by
1.33% / Euro x Dollar – devaluation of the dollar by 2.0%. Source: Central Bank of Brazil and European Central Bank quotations on
July 20, 2023.
This risk arises from financial investments, borrowings
and financing and debentures linked to the fixed and floating interest rates of the CDI, TLP, LIBOR and SOFR, exposing these financial
assets and liabilities to interest rate fluctuations as shown in the sensitivity analysis table below.
Quarterly Financial Information – June 30, 2023 – Companhia Siderúrgica Nacional – CSN (CONVENIENCE TRANSLATION INTO ENGLISH FROM THE ORIGINAL PREVIOUSLY ISSUED IN PORTUGUESE) | ![](https://www.sec.gov/Archives/edgar/data/1049659/000129281423003742/siditr2q236k_020.jpg) |
| |
With the modification of the global financial market
in recent years and in line with the recommendations of international regulatory bodies, the market began to transition from the Libor
rate (London Interbank Offered Rate) to the SOFR (Secured Overnight Financing Rate) as of 2022. The Company has not yet migrated its contracts
to SOFR, as it is awaiting guidance from the financial market to transition the rate of its contracts.
Sensitivity analysis of changes in interest
rates
We present below the sensitivity analysis for interest
rate risks. The Company considered scenarios 1 and 2 to be 25% and 50% deterioration for interest rate volatility using the closing rate
as of June 30, 2023, as a reference.
The interest rates used in the sensitivity analysis
and their scenarios are shown below:
|
|
|
|
|
|
Consolidated |
|
|
|
|
|
|
06/30/2023 |
Interest |
|
Interest rate |
|
Scenario 1 |
|
Scenario 2 |
CDI |
|
13.65% |
|
17.06% |
|
20.48% |
TJLP |
|
7.28% |
|
9.10% |
|
10.92% |
LIBOR |
|
5.76% |
|
7.20% |
|
8.64% |
SELIC |
|
13.75% |
|
17.19% |
|
20.63% |
SOFR |
|
5.39% |
|
6.74% |
|
8.09% |
The effects on balances, considering scenarios
1 and 2, are shown below:
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated |
Changes in interest rates |
|
% p.a |
|
Assets |
|
Liabilities |
|
Probable scenario (*)
|
|
Scenario 1 |
|
Scenario 2 |
CDI |
|
13.65 |
|
3,319,162 |
|
(15,667,530) |
|
(14,033,920) |
|
(14,455,308) |
|
(14,876,696) |
TJLP |
|
7.28 |
|
|
|
(1,110,749) |
|
(1,191,612) |
|
(1,211,827) |
|
(1,232,043) |
Libor |
|
5.76 |
|
|
|
(2,329,987) |
|
(2,464,248) |
|
(2,497,813) |
|
(2,531,378) |
Selic |
|
13.75 |
|
|
|
(15,438) |
|
(17,561) |
|
(18,091) |
|
(18,622) |
SOFR |
|
5.39 |
|
|
|
(4,730,045) |
|
(4,985,025) |
|
(5,048,770) |
|
(5,112,515) |
(*) The sensitivity analysis is based on the premise
of maintaining the market values as of June 30, 2023 as a probable scenario recorded in the company´s assets and liabilities.
The Company is also exposed to market risks related
to the volatility of commodity and input prices. In line with its risk management policy, risk mitigation strategies involving commodities
can be used to reduce cash flow volatility. These mitigation strategies may incorporate derivative instruments, predominantly forward
transactions, futures, and options.
Below are the instruments for price risk protection,
as shown in the following topics:
a) Cash flow hedge accounting
- “Platts” index
The Company had derivative operations for iron
ore, contracted by the subsidiary CSN Mineração, with the objective of reducing the volatility of its exposure to the commodity.
In order to better reflect the accounting effects
of the Platts hedge strategy in the result, CSN Mineração opted to make the formal designation of the hedge and consequently
adopted hedge accounting of the iron ore derivative as a hedge accounting instrument of its highly probable future iron ore sales. With
this, the mark-to-market resulting from the volatility of Platts will be temporarily recorded in shareholders' equity and will be taken
to the result when the referred sales occur according to the contracted period of assessment, thus allowing the recognition of the volatility
of Platts on the sales of iron ore to be recognized at the same moment.
The table below shows the result of the derivative
instrument until June 30, 2023:
Quarterly Financial Information – June 30, 2023 – Companhia Siderúrgica Nacional – CSN (CONVENIENCE TRANSLATION INTO ENGLISH FROM THE ORIGINAL PREVIOUSLY ISSUED IN PORTUGUESE) | ![](https://www.sec.gov/Archives/edgar/data/1049659/000129281423003742/siditr2q236k_020.jpg) |
| |
|
|
|
|
|
|
|
|
06/30/2023 |
|
06/30/2023 |
|
06/30/2022 |
|
06/30/2023 |
|
06/30/2022 |
|
06/30/2023 |
|
06/30/2022 |
|
|
|
|
Appreciation (R$) |
|
Fair value (market) |
|
Other income and expenses (note 25) |
|
Other comprehensive income |
|
Exchange variation |
Maturity |
|
Notional |
|
Asset position |
|
Liability position |
|
Amounts receivable / (payable) |
|
|
|
05/31/2022 (Settled) |
|
Platts |
|
|
|
|
|
|
|
|
|
23,374 |
|
|
|
|
|
|
|
(1,087) |
01/01/2023 to 01/31/2023 (Settled) |
|
Platts |
|
|
|
|
|
|
|
(196,908) |
|
|
|
|
|
|
|
(1,107) |
|
|
02/01/2023 to 02/28/2023 (Settled) |
|
Platts |
|
|
|
|
|
|
|
(212,418) |
|
|
|
|
|
|
|
2,423 |
|
|
03/01/2023 to 03/31/2023 (Settled) |
|
Platts |
|
|
|
|
|
|
|
(158,699) |
|
|
|
|
|
|
|
1,982 |
|
|
04/01/2023 to 04/30/2023 (Settled) |
|
Platts |
|
|
|
|
|
|
|
21,394 |
|
|
|
|
|
|
|
65 |
|
|
05/01/2023 to 05/31/2023 (Settled) |
|
Platts |
|
|
|
|
|
|
|
186,366 |
|
|
|
|
|
|
|
(3,629) |
|
|
06/01/2023 to 06/30/2023 (*) |
|
Platts |
|
1,180,864 |
|
(1,126,385) |
|
54,479 |
|
19,090 |
|
|
|
|
|
|
|
(4,801) |
|
|
07/01/2023 to 07/31/2023 |
|
Platts |
|
339,961 |
|
(304,581) |
|
35,380 |
|
|
|
|
|
38,598 |
|
|
|
(3,218) |
|
|
08/01/2023 to 08/31/2023 |
|
Platts |
|
182,334 |
|
(157,689) |
|
24,645 |
|
|
|
|
|
26,964 |
|
|
|
(2,319) |
|
|
09/01/2023 to 09/30/2023 |
|
Platts |
|
181,539 |
|
(155,115) |
|
26,424 |
|
|
|
|
|
28,910 |
|
|
|
(2,486) |
|
|
|
|
|
|
1,884,698 |
|
(1,743,770) |
|
140,928 |
|
(341,175) |
|
23,374 |
|
94,472 |
|
- |
|
(13,090) |
|
(1,087) |
(*) The operation matured on June 30, 2023 and was settled in early July 2023.
The changes in the amounts related to cash flow
hedge accounting - Platts index recorded in shareholders' equity on June 30, 2023, are shown as follows:
|
12/31/2022 |
|
Movement |
|
Realization |
|
06/30/2023 |
Cash flow hedge accounting – “Platts” |
(341,269) |
|
94,566 |
|
341,175 |
|
94,472 |
Income tax and social contribution on cash flow hedge accounting |
116,031 |
|
(32,152) |
|
(116,000) |
|
(32,121) |
Fair Value of cash flow accounting - Platts, net |
(225,238) |
|
62,414 |
|
225,176 |
|
62,351 |
The cash flow hedge accounting - Platts index -
has been fully effective since the derivative instruments were contracted.
To support the above-mentioned designations, the
Company prepared formal documentation indicating how the designation of cash flow hedge accounting - Platts index is aligned with CSN's
risk management objective and strategy, identifying the hedge instruments used, the hedge object, the nature of the risk to be protected
and demonstrating the expectation of high effectiveness of the relations designated. Iron ore derivative instruments (“Platts”
index) were designated in amounts equivalent to the portion of future sales, comparing the amounts designated with the amounts expected
and approved in the Management and Board budgets.
Sensitivity analysis for Platts price risks
We present below the sensitivity analysis for Platts
price risks. The Company considered scenarios 1 and 2 to be 25% and 50% devaluation in the share price using the closing rate on June
30, 2023, as a reference.
The effects on the result, considering probable
scenarios 1 and 2, are shown below:
Maturity |
|
Probable scenario (*) R$ |
|
Scenario 1 R$ |
|
Scenario 2 R$ |
07/01/2023 to 07/31/2023 |
|
33,653 |
|
(50,820) |
|
(135,293) |
08/01/2023 to 08/31/2023 |
|
20,725 |
|
(23,912) |
|
(68,549) |
09/01/2023 to 09/30/2023 |
|
22,463 |
|
(21,522) |
|
(65,508) |
|
|
76,841 |
|
(96,254) |
|
(269,350) |
(*) The probable scenario was calculated considering the Platts quotation
on July 24,2023.
Quarterly Financial Information – June 30, 2023 – Companhia Siderúrgica Nacional – CSN (CONVENIENCE TRANSLATION INTO ENGLISH FROM THE ORIGINAL PREVIOUSLY ISSUED IN PORTUGUESE) | ![](https://www.sec.gov/Archives/edgar/data/1049659/000129281423003742/siditr2q236k_020.jpg) |
| |
b) Cash flow hedge accounting
Foreign exchange hedge
The Company and its subsidiary CSN Mineração
formally designates relations of hedge of cash flows to protect highly probable future flows exposed to the dollar related to sales made
in dollars.
With the objective of better reflecting the accounting
effects of the hedge exchange rate in the result, CSN and its subsidiary CSN Mineração designated part of their dollar liabilities
as an instrument of future hedge exports. As a result, the exchange rate variation resulting from the designated liabilities will be temporarily
recorded in shareholders’ equity and will be reflected in the income statement when said exports occur, thus allowing the recognition
of dollar fluctuations on liabilities and on exports to be recorded at the same time. It is noteworthy that the adoption of this hedge
accounting does not imply the contracting of any financial instrument.
The table below presents a summary of the relations
of hedge as of June 30, 2023:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
06/30/2023 |
Designation Date |
|
Hedging Instrument |
|
Hedged item |
|
Type of hedged risk |
|
Hedged period |
|
Exchange rate on designation |
|
Designated amounts (US$’000) |
|
Amortizated part (USD'000) |
|
Effect on Result (*) (R$'000) |
|
Impact on Shareholders' equity (R$'000) |
04/02/2018 |
|
Bonds |
|
Part of the highly probable future monthly iron ore exports |
|
Foreign exchange - R$ vs. US$ spot rate |
|
July 2018 - February 2023 |
|
3.3104 |
|
1,170,045 |
|
(1,170,045) |
|
(281,258) |
|
- |
07/31/2019 |
|
Bonds and Export prepayments in US$ to third parties |
|
Part of the highly probable future monthly iron ore exports |
|
Foreign exchange - R$ vs. US$ spot rate |
|
January 2020 - April 2026 |
|
3.7649 |
|
1,342,761 |
|
(871,761) |
|
(57,873) |
|
(496,575) |
01/10/2020 |
|
Bonds |
|
Part of the highly probable future monthly iron ore exports |
|
Foreign exchange - R$ vs. US$ spot rate |
|
March 2027 - January 2028 |
|
4.0745 |
|
1,416,000 |
|
(1,287,000) |
|
- |
|
(1,310,666) |
01/28/2020 |
|
Bonds |
|
Part of the highly probable future monthly iron ore exports |
|
Foreign exchange - R$ vs. US$ spot rate |
|
March 2027 - January 2028 |
|
4.2064 |
|
1,000,000 |
|
- |
|
- |
|
(612,800) |
06/01/2022 |
|
Bonds and Export prepayments in US$ to third parties |
|
Part of the highly probable future monthly iron ore exports |
|
Foreign exchange - R$ vs. US$ spot rate |
|
June 2022 - April 2032 |
|
4.7289 |
|
1,145,300 |
|
(123,300) |
|
(22,731) |
|
(92,287) |
06/01/2022 |
|
Export prepayments in US$ to third parties |
|
Part of the highly probable future monthly iron ore exports |
|
Foreign exchange - R$ vs. US$ spot rate |
|
June 2022 - May 2033 |
|
4.7289 |
|
878,640 |
|
(87,160) |
|
(9,841) |
|
(71,471) |
12/01/2022 |
|
Advance on foreign exchange contract |
|
Part of the highly probable future monthly iron ore exports |
|
Foreign exchange - R$ vs. US$ spot rate |
|
December 2022 - November 2023 |
|
5.1643 |
|
60,000 |
|
|
|
|
|
20,706 |
12/01/2022 |
|
Advance on foreign exchange contract |
|
Part of the highly probable future monthly iron ore exports |
|
Foreign exchange - R$ vs. US$ spot rate |
|
December 2022 - December 2025 |
|
5.2565 |
|
100,000 |
|
|
|
|
|
43,730 |
12/01/2022 |
|
Advance on foreign exchange contract |
|
Part of the highly probable future monthly iron ore exports |
|
Foreign exchange - R$ vs. US$ spot rate |
|
December 2022 - January 2024 |
|
5.2660 |
|
50,000 |
|
|
|
|
|
22,340 |
12/01/2022 |
|
Advance on foreign exchange contract |
|
Part of the highly probable future monthly iron ore exports |
|
Foreign exchange - R$ vs. US$ spot rate |
|
December 2022 - November 2023 |
|
5.3270 |
|
20,000 |
|
|
|
|
|
10,156 |
12/01/2022 |
|
Bonds |
|
Part of the highly probable future monthly iron ore exports |
|
Foreign exchange - R$ vs. US$ spot rate |
|
December 2022 - June 2031 |
|
5.0360 |
|
490,000 |
|
(10,000) |
|
(1,373) |
|
104,064 |
12/01/2022 |
|
Export prepayments in US$ to third parties |
|
Part of the highly probable future monthly iron ore exports |
|
Foreign exchange - R$ vs. US$ spot rate |
|
December 2022 - June 2027 |
|
5.0360 |
|
70,000 |
|
|
|
|
|
15,176 |
Total |
|
|
|
|
|
|
|
|
|
|
|
7,742,746 |
|
(3,549,266) |
|
(373,076) |
|
(2,367,627) |
(*) The realization of Hedge accounting cash flow
is recognized in Other operating income and expenses, note 25.
The net balance of amounts designated and already
amortized in dollars totals US$2,096,740.
In the hedging relationships described above, the
amounts of the debt instruments were fully designated for equivalent iron ore export portions.
As of June 30, 2023, the hedging relationships
established by the Company were effective according to the retrospective and prospective tests performed. Thus, no reversal for cash flow
hedge accounting ineffectiveness was recognized.
c) Net investment hedge in
foreign subsidiaries
The information related to the net investment hedge
did not change in relation to that disclosed in the Company's interim financial information as of December 31, 2022. The balance recorded
as of June 30, 2023 and December 31, 2022 is R$6,293.
Quarterly Financial Information – June 30, 2023 – Companhia Siderúrgica Nacional – CSN (CONVENIENCE TRANSLATION INTO ENGLISH FROM THE ORIGINAL PREVIOUSLY ISSUED IN PORTUGUESE) | ![](https://www.sec.gov/Archives/edgar/data/1049659/000129281423003742/siditr2q236k_020.jpg) |
| |
d) Hedge accounting movements
The changes in the amounts related to cash flow
hedge accounting recorded in shareholders’ equity as of June 30, 2023 are shown as follows:
|
|
|
|
|
|
|
Consolidated |
|
12/31/2022 |
|
Movement |
|
Realization |
|
06/30/2023 |
Cash flow hedge accounting |
(4,434,697) |
|
1,693,994 |
|
373,076 |
|
(2,367,627) |
Income tax and social contribution on cash flow hedge accounting |
1,507,797 |
|
(575,958) |
|
(126,846) |
|
804,993 |
Fair Value of cash flow accounting, net taxes |
(2,926,900) |
|
1,118,036 |
|
246,230 |
|
(1,562,634) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Parent Company |
|
12/31/2022 |
|
Movement |
|
Realization |
|
06/30/2023 |
Cash flow hedge accounting |
(4,022,353) |
|
1,347,786 |
|
363,235 |
|
(2,311,332) |
Income tax and social contribution on cash flow hedge accounting |
1,367,600 |
|
(458,247) |
|
(123,500) |
|
785,853 |
Fair Value of cash flow accounting, net taxes |
(2,654,753) |
|
889,539 |
|
239,735 |
|
(1,525,479) |
The exposure to credit risks of financial institutions
considers the parameters established in the financial policy. The Company practices a detailed analysis of the financial situation of
its customers and suppliers, the determination of a credit limit and the permanent monitoring of its outstanding balance.
With regard to financial investments, the Company
only invests in institutions with low credit risk assessed by credit rating agencies. Since part of the funds is invested in repo operations
that are backed by Brazilian government bonds, there is also exposure to the credit risk of the country.
As for the exposure to credit risk in accounts
receivable and other receivables, the Company has a credit risk committee, in which each new customer is analyzed individually regarding
their financial condition, before granting the credit limit and payment terms, and periodically reviewed based on procedures and circumstances
of each business area.
It is the risk that the Company may not have sufficient
net funds to honor its financial commitments as a result of the mismatch of term or volume between expected receipts and payments.
Future receipt and payment premises are established
to manage cash liquidity in domestic and foreign currencies, which are monitored on a day-to-day basis by the Treasury Department. The
payment schedules for long-term installments of borrowings, financing and debentures are shown in note 12.
The following are the contractual maturities of
financial liabilities including interest.
|
|
|
|
|
|
|
|
|
Consolidated |
At June 30, 2023 |
Less than one year |
|
From one to two years |
|
From two to five years |
|
Over five years |
|
Total |
Borrowings, financing and debentures (note 12) |
5,702,842 |
|
8,232,136 |
|
15,988,353 |
|
12,331,084 |
|
42,254,415 |
Lease Liabilities (note 14) |
163,355 |
|
201,448 |
|
148,089 |
|
246,499 |
|
759,391 |
Derivative financial instruments (note 13 a) |
30,998 |
|
68,399 |
|
|
|
|
|
99,397 |
Trade payables (note 15) |
6,248,846 |
|
14,089 |
|
12,861 |
|
966 |
|
6,276,762 |
Trade payables - Drawee Risk (note 16) |
2,878,420 |
|
|
|
|
|
|
|
2,878,420 |
Dividends and interest on equity (note 16) |
4,955 |
|
|
|
|
|
|
|
4,955 |
|
15,029,416 |
|
8,516,072 |
|
16,149,303 |
|
12,578,549 |
|
52,273,340 |
IV - Fair values of assets and liabilities in
relation to the book value
Financial assets and liabilities measured at fair
value through profit or loss are recorded in current and non-current assets and liabilities and gains and losses are recorded as financial
income and expenses, respectively.
Quarterly Financial Information – June 30, 2023 – Companhia Siderúrgica Nacional – CSN (CONVENIENCE TRANSLATION INTO ENGLISH FROM THE ORIGINAL PREVIOUSLY ISSUED IN PORTUGUESE) | ![](https://www.sec.gov/Archives/edgar/data/1049659/000129281423003742/siditr2q236k_020.jpg) |
| |
The amounts are recorded in the interim financial
information at their book values, which are substantially similar to those that would be obtained if they were traded on the market. The
fair values of other long-term assets and liabilities do not differ significantly from their book values, except for the amounts below.
The estimated fair value for certain consolidated
long-term borrowings and financing was calculated at current market rates, considering the nature, term and risks similar to those of
the registered contracts, as follows:
|
|
|
06/30/2023 |
|
|
|
12/31/2022 |
|
Closing Balance |
|
Fair value |
|
Closing Balance |
|
Fair value |
Fixed Rate Notes (*) |
14,460,360 |
|
12,332,359 |
|
15,656,088 |
|
13,782,836 |
(*) Source: Bloomberg
| 13.c) | Protection instruments: Derivatives |
· Derivative
financial instruments portfolio position
Swap exchange rate CDI x Dollar
The Company has derivative transactions to protect
its debt in NCE raised in September 2019 with maturity in October 2023 in the amount of US$67.000 (equivalent to R$278.000) at a cost
compatible with that usually practiced by the Company.
Swap exchange rate Real x Dollar
The subsidiary CSN Cimentos, after contracting
a borrowing in foreign currency of US$115,000, contracted derivative operations to protect its exposure to the dollar, maturing on June
10, 2027.
Swap exchange rate CDI x IPCA
The subsidiaries CSN Mineração and
CSN Cimentos issued debentures during 2021 and 2022, respectively, and entered derivative transactions to hedge their exposure to the
IPCA. CSN Mineração's contracts have maturities scheduled from 2031 to 2037, while CSN Cimentos' contracts mature in 2032.
Below is the position of the derivatives:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
06/30/2023 |
|
06/30/2022 |
|
|
|
|
|
|
|
|
Appreciation (R$) |
|
Fair value (market) |
|
Impact on financial income (expenses) (note 26) |
Instrument |
|
Maturity |
|
Functional Currency |
|
Notional amount |
|
Asset position |
|
Liability position |
|
Amounts receivable / (payable) |
|
Exchange rate swap |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exchange rate swap Dollar x Real |
|
Settled |
|
Dollar |
|
|
|
|
|
|
|
|
|
|
|
45,162 |
Exchange rate swap CDI x Dollar |
|
10/02/2023 |
|
Dollar |
|
67,000 |
|
292,145 |
|
(323,143) |
|
(30,998) |
|
42,347 |
|
46,444 |
Exchange rate swap Real x Dollar |
|
06/10/2027 |
|
Dollar |
|
115,000 |
|
575,315 |
|
(643,714) |
|
(68,399) |
|
(82,377) |
|
(25,238) |
Total Swap |
|
|
|
|
|
182,000 |
|
867,460 |
|
(966,857) |
|
(99,397) |
|
(40,030) |
|
66,368 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate swap |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate (Debentures) CDI x IPCA |
|
07/15/2031 |
|
Real |
|
576,448 |
|
672,432 |
|
(649,730) |
|
22,702 |
|
41,478 |
|
(3,564) |
Interest rate (Debentures) CDI x IPCA |
|
07/15/2032 |
|
Real |
|
745,000 |
|
832,180 |
|
(790,637) |
|
41,543 |
|
45,467 |
|
|
Interest rate (Debentures) CDI x IPCA |
|
07/15/2036 |
|
Real |
|
423,552 |
|
458,425 |
|
(453,773) |
|
4,652 |
|
47,142 |
|
(9,878) |
Interest rate (Debentures) CDI x IPCA |
|
07/15/2037 |
|
Real |
|
655,382 |
|
734,812 |
|
(722,934) |
|
11,878 |
|
(4,189) |
|
|
Interest rate (Debentures) CDI x IPCA |
|
02/16/2032 |
|
Real |
|
600,000 |
|
677,405 |
|
(622,343) |
|
55,062 |
|
39,377 |
|
13,070 |
Interest rate (Debentures) CDI x IPCA |
|
02/12/2032 |
|
Real |
|
600,000 |
|
715,391 |
|
(660,354) |
|
55,037 |
|
55,247 |
|
9,991 |
Total interest rate (Debentures) CDI x IPCA |
|
|
|
|
|
3,600,382 |
|
4,090,645 |
|
(3,899,771) |
|
190,874 |
|
224,522 |
|
9,619 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,958,105 |
|
(4,866,628) |
|
91,477 |
|
184,492 |
|
75,987 |
Quarterly Financial Information – June 30, 2023 – Companhia Siderúrgica Nacional – CSN (CONVENIENCE TRANSLATION INTO ENGLISH FROM THE ORIGINAL PREVIOUSLY ISSUED IN PORTUGUESE) | ![](https://www.sec.gov/Archives/edgar/data/1049659/000129281423003742/siditr2q236k_020.jpg) |
| |
| · | Classification of derivatives in the balance sheet and income statement |
|
|
|
|
|
|
|
|
|
|
06/30/2023 |
|
06/30/2022 |
Instruments |
|
Assets |
|
Liabilities |
|
Financial income (expenses), net (note 26) |
|
Current |
|
Total |
|
Non-current |
|
Total |
|
Exchange rate swap (NDF) Dollar x euro (settled) |
|
|
|
|
|
|
|
|
|
|
|
45,162 |
Exchange rate swap Real x Dollar |
|
|
|
|
|
(68,399) |
|
(68,399) |
|
(82,377) |
|
(25,238) |
Exchange rate swap CDI x Dollar |
|
|
|
|
|
(30,998) |
|
(30,998) |
|
42,347 |
|
46,444 |
Iron ore derivative |
|
140,928 |
|
140,928 |
|
|
|
|
|
(13,090) |
|
(1,087) |
Interest rate swap CDI x IPCA |
|
|
|
|
|
190,874 |
|
190,874 |
|
224,522 |
|
9,619 |
|
|
140,928 |
|
140,928 |
|
91,477 |
|
91,477 |
|
171,402 |
|
74,900 |
Derivative instruments Swap CDI x IPCA are fully
classified in the borrowings and financing group, since they are linked to debentures in order to protect exposure to the IPCA.
| 13.d) | Investments in securities measured at fair value through profit or
loss |
The Company has common shares (USIM3), preferred
shares (USIM5) of Siderúrgica de Minas Gerais S.A. (“Usiminas”) and shares of Panatlântica S.A. (PATI3), which
are designated as fair value through profit or loss.
Usiminas shares are classified as current assets
in financial investments and Panatlântica shares are classified as non-current assets under the investment line item. They are recorded
at fair value, based on the market price quote in B3.
In accordance with the Company’s policy,
the gains and losses arising from the variation in the share price are recorded directly in the income statement as financial result in
the case of financial investments, or as other operating income and expenses in the case of long-term investments.
Class of shares |
|
06/30/2023 |
|
12/31/2022 |
|
06/30/2023 |
|
06/30/2022 |
|
Quantity |
|
Equity interest (%) |
|
Share price |
|
Closing Balance |
|
Quantity |
|
Equity interest (%) |
|
Share price |
|
Closing Balance |
|
Profit or loss (notes 25 and 26) |
USIM3 |
|
106,620,851 |
|
15.12% |
|
7.29 |
|
777,266 |
|
106,620,851 |
|
15.12% |
|
7.41 |
|
790,061 |
|
(12,795) |
|
(671,712) |
USIM5 |
|
55,144,456 |
|
10.07% |
|
7.07 |
|
389,871 |
|
55,144,456 |
|
10.07% |
|
7.16 |
|
394,834 |
|
(4,963) |
|
(358,990) |
|
|
|
|
|
|
|
|
1,167,137 |
|
|
|
|
|
|
|
1,184,895 |
|
(17,758) |
|
(1,030,702) |
PATI3 |
|
2,705,726 |
|
11.31% |
|
35.00 |
|
94,700 |
|
2,705,726 |
|
11.31% |
|
35.00 |
|
94,700 |
|
|
|
(2,354) |
|
|
|
|
|
|
|
|
1,261,837 |
|
|
|
|
|
|
|
1,279,595 |
|
(17,758) |
|
(1,033,056) |
| · | Stock market price risks |
The Company is exposed to the risk of changes in
the stock price due to the investments measured at fair value through profit or loss that have their quotations based on the market price
on the B3.
Sensitivity analysis for stock price risks
We present below the sensitivity analysis for the
stock price risks. The Company considered scenarios 1 and 2 with 25% and 50% devaluation in the stock price using as reference the closing
price on June 30, 2023. The probable scenario considered a 5% devaluation in the stock price.
The effects on the result, considering probable
scenarios, 1 and 2 are demonstrated below:
|
|
|
|
06/30/2023 |
Class of shares |
|
Probable scenario |
|
Scenario 1 |
|
Scenario 2 |
|
|
5% |
|
25% |
|
50% |
USIM3 |
|
(38,863) |
|
(194,317) |
|
(388,633) |
USIM5 |
|
(19,494) |
|
(97,468) |
|
(194,936) |
PATI3 |
|
(4,735) |
|
(23,675) |
|
(47,350) |
Quarterly Financial Information – June 30, 2023 – Companhia Siderúrgica Nacional – CSN (CONVENIENCE TRANSLATION INTO ENGLISH FROM THE ORIGINAL PREVIOUSLY ISSUED IN PORTUGUESE) | ![](https://www.sec.gov/Archives/edgar/data/1049659/000129281423003742/siditr2q236k_020.jpg) |
| |
The Company seeks to optimize its capital structure
in order to reduce its financial costs and maximize the return to its shareholders. The table below shows the evolution of the Company’s
consolidated capital structure, with financing by equity and third-party capital:
Thousands of reais |
|
06/30/2023 |
|
12/31/2022 |
Shareholder's equity (equity) |
|
20,619,583 |
|
21,816,044 |
Borrowings and Financing (Third-party capital) |
|
41,669,787 |
|
40,918,742 |
Gross Debit/Shareholder's equity |
|
2.02 |
|
1.88 |
14.
LEASE LIABILITIES
Lease liabilities are
shown below:
|
|
|
Consolidated |
|
|
|
Parent Company |
|
06/30/2023 |
|
12/31/2022 |
|
06/30/2023 |
|
12/31/2022 |
Leases |
2,062,578 |
|
1,916,636 |
|
13,182 |
|
14,306 |
Present value adjustment - Leases |
(1,303,187) |
|
(1,222,790) |
|
(750) |
|
(1,126) |
|
759,391 |
|
693,846 |
|
12,432 |
|
13,180 |
Classified: |
|
|
|
|
|
|
|
Current |
163,355 |
|
177,010 |
|
11,216 |
|
8,451 |
Non-current |
596,036 |
|
516,836 |
|
1,216 |
|
4,729 |
|
759,391 |
|
693,846 |
|
12,432 |
|
13,180 |
The Company has lease
agreements for port terminals in Itaguaí, the Solid Bulk Terminal - TECAR, used for loading and unloading iron ores and others
and the Container Terminal - TECON, with remaining terms of 24 and 27 years, respectively, and lease agreement for railway operation using
the Northeast network with a remaining term of 7 years.
Additionally, the Company
has operating equipment lease agreements, used mainly in the mining and steel operations, and real estate, used as operating facilities
and administrative and sales offices, in several locations where the Company operates, with remaining terms of 1 to 12 years.
The present value of the
future obligations was measured using the implicit rate observed in the contracts and for the contracts that did not have a rate, the
Company applied the incremental borrowing rate - IBR, both in nominal terms.
The movement of lease
liabilities is shown in the table below:
|
|
|
Consolidated |
|
|
|
Parent Company |
|
06/30/2023 |
|
12/31/2022 |
|
06/30/2023 |
|
12/31/2022 |
Opening balance |
693,846 |
|
611,551 |
|
13,180 |
|
17,941 |
New leases |
180,977 |
|
29,633 |
|
|
|
2,808 |
Present Value Adjustments - New leases |
(114,980) |
|
(3,300) |
|
|
|
(508) |
Contract review |
68,613 |
|
99,419 |
|
3,906 |
|
201 |
Write-off |
|
|
(781) |
|
|
|
|
Payments |
(102,123) |
|
(155,995) |
|
(5,282) |
|
(8,836) |
Interest appropriated |
35,528 |
|
69,510 |
|
628 |
|
1,574 |
Acquisition of companies |
|
|
45,352 |
|
|
|
|
Exchange variation |
(2,470) |
|
(1,543) |
|
|
|
|
Net balance |
759,391 |
|
693,846 |
|
12,432 |
|
13,180 |
The estimated future minimum
payments for the lease agreements include determinable variable payments, which are certain to occur, based on minimum performance and
contractually fixed rates.
As of June 30, 2023, the
expected minimum payments are the following:
Quarterly Financial Information – June 30, 2023 – Companhia Siderúrgica Nacional – CSN (CONVENIENCE TRANSLATION INTO ENGLISH FROM THE ORIGINAL PREVIOUSLY ISSUED IN PORTUGUESE) | ![](https://www.sec.gov/Archives/edgar/data/1049659/000129281423003742/siditr2q236k_020.jpg) |
| |
|
|
|
|
|
|
|
Consolidated |
|
Less than one year |
|
Between one and five years |
|
Over five years |
|
Total |
Leases |
170,142 |
|
487,423 |
|
1,405,013 |
|
2,062,578 |
Present value adjustment - Leases |
(6,787) |
|
(137,886) |
|
(1,158,514) |
|
(1,303,187) |
|
163,355 |
|
349,537 |
|
246,499 |
|
759,391 |
| · | Recoverable PIS / COFINS |
Lease liabilities were
measured at the amount of consideration with suppliers, that is, without considering the tax credits incurred after payment. The potential
right of PIS and COFINS embedded in the lease liability is shown below.
|
|
|
Consolidated |
|
|
|
Parent Company |
|
06/30/2023 |
|
12/31/2022 |
|
06/30/2023 |
|
12/31/2022 |
Leases |
1,771,505 |
|
1,835,101 |
|
12,818 |
|
13,466 |
Present value adjustment - Leases |
(1,187,523) |
|
(1,221,378) |
|
(729) |
|
(1,066) |
Potencial PIS and COFINS credit |
163,864 |
|
169,747 |
|
1,186 |
|
1,246 |
Present value adjustment – Potential PIS and COFINS credit |
(109,846) |
|
(112,977) |
|
(67) |
|
(99) |
| · | Lease payments not recognized as a liability: |
The Company chose not
to recognize lease liabilities in contracts with a term of less than 12 months and for low value assets. Payments made for these contracts
are recognized as expenses when incurred.
The Company has contracts
for the right to use ports (TECAR) and railways (FTL) which, even if they establish minimum performance, it is not possible to determine
its cash flow since these payments are fully variable and will only be known when they occur. In such cases, payments will be recognized
as expenses when incurred.
The expenses related to
payments not included in the measurement of the lease liability during the period are:
|
|
|
|
|
|
|
Consolidated |
|
Six months ended |
|
Three months ended |
|
06/30/2023 |
|
06/30/2022 |
|
06/30/2023 |
|
06/30/2022 |
Contract less than 12 months |
1,615 |
|
839 |
|
85 |
|
373 |
Lower Assets value |
6,872 |
|
1,904 |
|
3,662 |
|
1,024 |
Variable lease payments |
196,550 |
|
178,702 |
|
106,426 |
|
96,866 |
|
205,037 |
|
181,445 |
|
110,173 |
|
98,263 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Parent Company |
|
Six months ended |
|
Three months ended |
|
06/30/2023 |
|
06/30/2022 |
|
06/30/2023 |
|
06/30/2022 |
Lower Assets value |
2,921 |
|
511 |
|
1,253 |
|
256 |
Variable lease payments |
|
|
808 |
|
|
|
495 |
|
2,921 |
|
1,319 |
|
1,253 |
|
751 |
|
|
|
Consolidated |
|
|
|
Parent Company |
|
06/30/2023 |
|
12/31/2022 |
|
06/30/2023 |
|
12/31/2022 |
Trade payables |
6,352,868 |
|
6,723,077 |
|
3,155,382 |
|
3,750,724 |
(-) Adjustment present value |
(76,106) |
|
(79,893) |
|
(55,523) |
|
(51,579) |
|
6,276,762 |
|
6,643,184 |
|
3,099,859 |
|
3,699,145 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Classified: |
|
|
|
|
|
|
|
Current |
6,248,846 |
|
6,596,915 |
|
3,080,122 |
|
3,684,793 |
Non-current |
27,916 |
|
46,269 |
|
19,737 |
|
14,352 |
|
6,276,762 |
|
6,643,184 |
|
3,099,859 |
|
3,699,145 |
Quarterly Financial Information – June 30, 2023 – Companhia Siderúrgica Nacional – CSN (CONVENIENCE TRANSLATION INTO ENGLISH FROM THE ORIGINAL PREVIOUSLY ISSUED IN PORTUGUESE) | ![](https://www.sec.gov/Archives/edgar/data/1049659/000129281423003742/siditr2q236k_020.jpg) |
| |
The other payables classified in current and non-current
liabilities are comprised as follows:
|
Consolidated |
|
Parent Company |
|
Current |
Non-current |
|
Current |
Non-current |
|
06/30/2023 |
|
12/31/2022 |
|
06/30/2023 |
|
12/31/2022 |
|
06/30/2023 |
|
12/31/2022 |
|
06/30/2023 |
|
12/31/2022 |
Payables to related parties (note 20 a) |
41,367 |
|
109,087 |
|
35,510 |
|
53,356 |
|
379,204 |
|
406,583 |
|
239 |
|
41,694 |
Derivative financial instruments (note 13 a) |
30,998 |
|
416,935 |
|
68,399 |
|
69,472 |
|
30,998 |
|
|
|
|
|
58,005 |
Dividends and interest on capital |
4,955 |
|
611,307 |
|
|
|
|
|
4,644 |
|
598,267 |
|
|
|
|
Advances from customers (1) |
1,467,095 |
|
1,120,072 |
|
3,833,205 |
|
943,919 |
|
83,318 |
|
83,300 |
|
|
|
|
Taxes in installments |
197,150 |
|
280,721 |
|
206,018 |
|
184,106 |
|
15,070 |
|
9,173 |
|
56,765 |
|
|
Profit sharing - employees |
170,033 |
|
266,705 |
|
|
|
|
|
82,781 |
|
136,909 |
|
|
|
|
Taxes payable |
|
|
|
|
9,226 |
|
10,925 |
|
|
|
|
|
9,226 |
|
8,962 |
Provision for consumption and services |
190,261 |
|
241,965 |
|
|
|
|
|
94,465 |
|
110,910 |
|
|
|
|
Third party materials in our possession |
214,891 |
|
303,858 |
|
|
|
|
|
198,213 |
|
286,805 |
|
|
|
|
Trade payables - Drawee Risk and forfaiting (2) |
2,878,420 |
|
5,709,069 |
|
|
|
|
|
2,519,299 |
|
5,318,425 |
|
|
|
|
Trade payables (note 15) |
|
|
|
|
27,916 |
|
46,269 |
|
|
|
|
|
19,737 |
|
14,352 |
Lease Liabilities (note 14) |
163,355 |
|
177,010 |
|
596,036 |
|
516,836 |
|
11,216 |
|
8,451 |
|
1,216 |
|
4,729 |
Other payables |
86,080 |
|
81,922 |
|
375,418 |
|
391,535 |
|
7,785 |
|
2,358 |
|
57,841 |
|
21,248 |
|
5,444,605 |
|
9,318,651 |
|
5,151,728 |
|
2,216,418 |
|
3,426,993 |
|
6,961,181 |
|
145,024 |
|
148,990 |
(1) Advances from Customers: On December
31, 2022 the subsidiaries CSN Mineração and CSN Cimentos entered into advance contracts for the sale of electricity with
national operators in the sector to be executed up to 8 years. Additionally, the subsidiary CSN Mineração S.A. received
in advance the total amount of US$500.000 (R$2,599,300) referring to supply contracts of approximately 13 million tons of iron ore signed
with a major international player, to be executed within 4 years, with supply expected to begin in 2024. On June 30, 2023, the subsidiary
CSN Mineração entered into an amendment to the advance contract, signed on January 16, 2023, in the amount of US$300,000
for additional supply of 6.3 million tons of iron ore. From this amendment, the Company received on June 30, 2023 the amount of US$205,000
(R$987,936), the remaining balance of US$95,000 will be received until July 31, 2023.
(2) The Company classifies drawee risk and forfaiting
transactions with suppliers under other liabilities. These transactions are negotiated with financial institutions by which suppliers
to anticipate receivables arising from sales of goods and, consequently, lengthen the payment terms of the Company's own obligations.
The actual anticipation of receivables depends on the acceptance by its suppliers, since their participation is not compulsory. The Company
is not reimbursed and/or benefited by the financial institution for discounts for payment executed before the due date agreed with the
supplier, there is no alteration in the degree of subordination of the title in the case of judicial execution and no alteration in the
existing commercial conditions between the Company and its suppliers.
| 17. | INCOME TAX AND SOCIAL CONTRIBUTION |
| 17.a) | Income tax and social contribution recognized in profit or loss: |
The income tax and social contribution recognized
in net income for the period are as follows:
|
|
|
|
|
|
|
Consolidated |
|
Six months ended |
|
Three months ended |
|
06/30/2023 |
|
06/30/2022 |
|
06/30/2023 |
|
06/30/2022 |
Income tax and social contribution income (expense) |
|
|
|
|
|
|
Current |
(258,262) |
|
(1,270,201) |
|
99,131 |
|
(692,486) |
Deferred |
373,063 |
|
(307,888) |
|
229,112 |
|
180,551 |
|
114,801 |
|
(1,578,089) |
|
328,243 |
|
(511,935) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Parent Company |
|
Six months ended |
|
Three months ended |
|
06/30/2023 |
|
06/30/2022 |
|
06/30/2023 |
|
06/30/2022 |
Income tax and social contribution income (expense) |
|
|
|
|
|
|
Current |
181,446 |
|
(237,397) |
|
195,434 |
|
(125,014) |
Deferred |
407,589 |
|
(305,085) |
|
319,529 |
|
200,100 |
|
589,035 |
|
(542,482) |
|
514,963 |
|
75,086 |
Quarterly Financial Information – June 30, 2023 – Companhia Siderúrgica Nacional – CSN (CONVENIENCE TRANSLATION INTO ENGLISH FROM THE ORIGINAL PREVIOUSLY ISSUED IN PORTUGUESE) | ![](https://www.sec.gov/Archives/edgar/data/1049659/000129281423003742/siditr2q236k_020.jpg) |
| |
The reconciliation of income tax and social contribution
expenses and income of the consolidated and parent company and the product of the current tax rate on income before income tax and social
contribution are shown below:
|
|
|
|
|
|
|
Consolidated |
|
Six months ended |
|
Three months ended |
|
06/30/2023 |
|
06/30/2022 |
|
06/30/2023 |
|
06/30/2022 |
Income before income tax and social contribution |
(654,051) |
|
3,311,363 |
|
(44,945) |
|
881,266 |
Tax rate |
34% |
|
34% |
|
34% |
|
34% |
Income tax and social contribution at combined statutory rate |
222,377 |
|
(1,125,863) |
|
15,281 |
|
(299,630) |
Adjustment to reflect the effective rate: |
|
|
|
|
|
|
|
Equity in results of affiliated companies |
78,855 |
|
35,150 |
|
54,336 |
|
23,265 |
Difference Tax Rate in companies abroad |
(18,123) |
|
6,811 |
|
56,459 |
|
(243,683) |
Tax incentives |
6,415 |
|
20,732 |
|
1,248 |
|
11,196 |
Interest on equity |
19,235 |
|
|
|
19,235 |
|
|
Recognition/(reversal) of tax credits |
(141,484) |
|
(530,171) |
|
223,349 |
|
(24,920) |
Other permanent deductions (additions) |
(52,474) |
|
15,252 |
|
(41,665) |
|
21,837 |
Income tax and social contribution in net income for the period |
114,801 |
|
(1,578,089) |
|
328,243 |
|
(511,935) |
Effective tax rate |
18% |
|
48% |
|
730% |
|
58% |
|
|
|
|
|
|
|
Parent Company |
|
Six months ended |
|
Three months ended |
|
06/30/2023 |
|
06/30/2022 |
|
06/30/2023 |
|
06/30/2022 |
Profit before income tax and social contribution |
(1,331,828) |
|
1,946,210 |
|
(331,360) |
|
122,240 |
Tax rate |
34% |
|
34% |
|
34% |
|
34% |
Income tax and social contribution at combined statutory rate |
452,822 |
|
(661,711) |
|
112,662 |
|
(41,562) |
Adjustment to reflect the effective rate: |
|
|
|
|
|
|
|
Equity in results of affiliated companies |
332,570 |
|
619,074 |
|
254,473 |
|
108,814 |
Indebtdness limit |
|
|
(4,324) |
|
|
|
(966) |
Interest on equity |
(75,772) |
|
|
|
(75,772) |
|
|
Recognition/(reversal) of tax credits |
(159,857) |
|
(516,675) |
|
181,445 |
|
(14,380) |
Other permanent deductions (additions) |
39,272 |
|
21,154 |
|
42,155 |
|
23,180 |
Income tax and social contribution in net income for the period |
589,035 |
|
(542,482) |
|
514,963 |
|
75,086 |
Effective tax rate |
44% |
|
28% |
|
155% |
|
-61.4% |
| 17.b) | Deferred income tax and social contribution: |
Deferred income tax and social contribution balances
are as follows:
|
|
|
|
Consolidated |
|
|
|
Parent Company |
|
|
06/30/2023 |
|
12/31/2022 |
|
06/30/2023 |
|
12/31/2022 |
Deferred |
|
|
|
|
|
|
|
|
Income tax losses |
|
2,910,820 |
|
2,679,028 |
|
1,509,879 |
|
1,279,792 |
Social contribution tax losses |
|
980,434 |
|
894,183 |
|
565,852 |
|
482,104 |
Temporary differences |
|
522,273 |
|
1,305,557 |
|
1,006,378 |
|
1,494,816 |
Tax, social security, labor, civil and environmental provisions |
|
579,164 |
|
584,834 |
|
212,416 |
|
205,440 |
Estimated losses on assets |
|
329,137 |
|
369,826 |
|
127,656 |
|
143,926 |
Gains/(Losses) on financial assets |
|
481,215 |
|
468,813 |
|
464,216 |
|
442,333 |
Actuarial Liabilities (Pension and Health Plan) |
|
228,479 |
|
226,875 |
|
222,745 |
|
222,745 |
Provision for consumption and services |
|
204,744 |
|
205,880 |
|
185,649 |
|
172,566 |
Cash Flow Hedge Accounting and Unrealized Exchange Variations |
|
678,678 |
|
1,459,012 |
|
711,370 |
|
1,206,064 |
(Gain) on loss of control of Transnordestina |
|
(224,096) |
|
(224,096) |
|
(224,096) |
|
(224,096) |
Fair Value SWT/CBL Acquisition |
|
(138,018) |
|
(149,489) |
|
|
|
|
Business combination |
|
(1,617,179) |
|
(1,632,370) |
|
(721,992) |
|
(721,992) |
Others |
|
149 |
|
(3,728) |
|
28,414 |
|
47,830 |
Total |
|
4,413,527 |
|
4,878,768 |
|
3,082,109 |
|
3,256,712 |
|
|
|
|
|
|
|
|
|
Total Deferred Assets |
|
4,977,852 |
|
5,095,718 |
|
4,039,360 |
|
4,219,717 |
Total Deferred Liabilities |
|
(564,325) |
|
(216,950) |
|
(957,251) |
|
(963,005) |
Total Deferred |
|
4,413,527 |
|
4,878,768 |
|
3,082,109 |
|
3,256,712 |
Quarterly Financial Information – June 30, 2023 – Companhia Siderúrgica Nacional – CSN (CONVENIENCE TRANSLATION INTO ENGLISH FROM THE ORIGINAL PREVIOUSLY ISSUED IN PORTUGUESE) | ![](https://www.sec.gov/Archives/edgar/data/1049659/000129281423003742/siditr2q236k_020.jpg) |
| |
The
Company has in its corporate structure subsidiaries abroad, whose income is taxed by the income tax in the respective countries where
they were constituted at rates lower than those in force in Brazil. In the period between 2019 and 2023, these subsidiaries generated
income in the amount of R$156,367. If the Brazilian tax authorities understand that this income is subject to additional taxation in
Brazil for income tax and social contribution, these, if due, would reach approximately R$53,165. The Company, based on the position
of its legal advisors, assessed only the likelihood of loss as possible in the event of possible tax questioning and, therefore, no provision
was recognized in the interim financial information.
In addition, management evaluated the precepts
of IFRIC 23 - “Uncertainty Over Income Tax Treatments” and recognized in 2021 the credit for the unconstitutionality of the
levy of the IRPJ and CSLL on the amounts of default interest referring to the SELIC rate received due to the repetition of tax undue payment.
| 17.c) | Changes in deferred income tax and social contribution |
The changes in deferred taxes is shown below:
|
|
Consolidated |
|
Parent Company |
Balance at January 1, 2022 |
|
4,569,011 |
|
4,843,653 |
Recognized in the result |
|
(420,773) |
|
(988,588) |
Recognized in other comprehensive income |
|
(322,876) |
|
(598,353) |
Acquisition of companies |
|
1,053,406 |
|
|
Balance at December 31, 2022 |
|
4,878,768 |
|
3,256,712 |
Recognized in the result |
|
373,063 |
|
407,589 |
Recognized in other comprehensive income |
|
(837,860) |
|
(581,748) |
Use of tax credit in installment program |
|
(444) |
|
(444) |
Balance at June 30, 2023 |
|
4,413,527 |
|
3,082,109 |
| 17.d) | Income tax and social contribution recognized in equity: |
The income tax and social contribution recognized
directly in equity are shown below:
|
|
|
Consolidated |
|
|
|
Parent Company |
|
06/30/2023 |
|
12/31/2022 |
|
06/30/2023 |
|
12/31/2022 |
Income tax and social contribution |
|
|
|
|
|
|
|
Actuarial gains on defined benefit pension plan |
101,481 |
|
100,139 |
|
99,288 |
|
99,288 |
Exchange differences on translating foreign operations |
(325,350) |
|
(325,350) |
|
(325,350) |
|
(325,350) |
Cash flow hedge accounting |
775,501 |
|
1,571,953 |
|
785,853 |
|
1,367,601 |
|
551,632 |
|
1,346,742 |
|
559,791 |
|
1,141,539 |
| 18. | PROVISIONS FOR TAX, SOCIAL SECURITY, LABOR, CIVIL AND ENVIRONMENTAL RISKS
AND JUDICIAL DEPOSITS |
Claims of different nature are being challenged
at the appropriate courts. Details of the accrued amounts and related judicial deposits are as follows:
|
|
|
|
|
|
|
|
Consolidated |
|
|
|
|
|
|
|
Parent Company |
|
|
Accrued liabilities |
|
Judicial deposits |
|
Accrued liabilities |
|
Judicial deposits |
|
|
06/30/2023 |
|
12/31/2022 |
|
06/30/2023 |
|
12/31/2022 |
|
06/30/2023 |
|
12/31/2022 |
|
06/30/2023 |
|
12/31/2022 |
Tax |
|
215,702 |
|
219,196 |
|
182,052 |
|
184,687 |
|
86,024 |
|
96,865 |
|
57,088 |
|
57,316 |
Social security |
|
1,626 |
|
1,567 |
|
4 |
|
|
|
1,596 |
|
1,549 |
|
|
|
|
Labor |
|
387,625 |
|
375,416 |
|
306,496 |
|
297,507 |
|
171,353 |
|
177,902 |
|
145,790 |
|
160,983 |
Civil |
|
782,709 |
|
851,305 |
|
26,680 |
|
25,502 |
|
158,810 |
|
130,250 |
|
14,187 |
|
12,174 |
Environmental |
|
45,927 |
|
37,341 |
|
2,791 |
|
2,859 |
|
16,902 |
|
15,250 |
|
1,153 |
|
1,154 |
Deposit of a guarantee |
|
|
|
|
|
19,502 |
|
23,109 |
|
|
|
|
|
|
|
|
|
|
1,433,589 |
|
1,484,825 |
|
537,525 |
|
533,664 |
|
434,685 |
|
421,816 |
|
218,218 |
|
231,627 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Classified: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current |
|
40,425 |
|
73,089 |
|
|
|
|
|
24,216 |
|
31,371 |
|
|
|
|
Non-current |
|
1,393,164 |
|
1,411,736 |
|
537,525 |
|
533,664 |
|
410,469 |
|
390,445 |
|
218,218 |
|
231,627 |
|
|
1,433,589 |
|
1,484,825 |
|
537,525 |
|
533,664 |
|
434,685 |
|
421,816 |
|
218,218 |
|
231,627 |
Quarterly Financial Information – June 30, 2023 – Companhia Siderúrgica Nacional – CSN (CONVENIENCE TRANSLATION INTO ENGLISH FROM THE ORIGINAL PREVIOUSLY ISSUED IN PORTUGUESE) | ![](https://www.sec.gov/Archives/edgar/data/1049659/000129281423003742/siditr2q236k_020.jpg) |
| |
The changes in tax, social security, labor, civil
and environmental provisions in the year ended June 30, 2023 can be summarized as follows:
|
|
|
|
|
|
|
|
|
|
Consolidated |
|
|
|
|
|
|
|
|
|
|
Current + Non-current |
Nature |
|
12/31/2022 |
|
Additions |
|
Accrued charges |
|
Net utilization of reversal |
|
06/30/2023 |
Tax |
|
219,196 |
|
1,771 |
|
7,144 |
|
(12,409) |
|
215,702 |
Social security |
|
1,567 |
|
|
|
62 |
|
(3) |
|
1,626 |
Labor |
|
375,416 |
|
21,891 |
|
33,314 |
|
(42,996) |
|
387,625 |
Civil |
|
851,305 |
|
13,397 |
|
34,080 |
|
(116,073) |
|
782,709 |
Environmental |
|
37,341 |
|
3,266 |
|
19,089 |
|
(13,769) |
|
45,927 |
|
|
1,484,825 |
|
40,325 |
|
93,689 |
|
(185,250) |
|
1,433,589 |
|
|
|
|
|
|
|
|
|
|
Parent Company |
|
|
|
|
|
|
|
|
|
|
Current + Non-current |
Nature |
|
12/31/2022 |
|
Additions |
|
Accrued charges |
|
Net utilization of reversal |
|
06/30/2023 |
Tax |
|
96,865 |
|
845 |
|
410 |
|
(12,096) |
|
86,024 |
Social security |
|
1,549 |
|
|
|
50 |
|
(3) |
|
1,596 |
Labor |
|
177,902 |
|
7,414 |
|
13,920 |
|
(27,883) |
|
171,353 |
Civil |
|
130,250 |
|
1,070 |
|
29,614 |
|
(2,124) |
|
158,810 |
Environmental |
|
15,250 |
|
1,655 |
|
68 |
|
(71) |
|
16,902 |
|
|
421,816 |
|
10,984 |
|
44,062 |
|
(42,177) |
|
434,685 |
The provision for tax, social security, labor,
civil and environmental risks was estimated by Management and is mainly based on the legal advisors’ assessment. Only lawsuits for
which the risk is classified as probable loss are provisioned. Additionally, tax liabilities from actions initiated by the Company is
included in this provision and is subject to SELIC (Central Bank’s policy rate).
| § | Possible administrative and judicial proceedings |
The Company does not make provisions for lawsuits,
which Management’s expectations, based on the opinion of legal counsel, is a possible loss. The following table shows a summary
of the balance of the main matters classified as possible risk compared to the balance as of June 30, 2023 and December 31, 2022.
Quarterly Financial Information – June 30, 2023 – Companhia Siderúrgica Nacional – CSN (CONVENIENCE TRANSLATION INTO ENGLISH FROM THE ORIGINAL PREVIOUSLY ISSUED IN PORTUGUESE) | ![](https://www.sec.gov/Archives/edgar/data/1049659/000129281423003742/siditr2q236k_020.jpg) |
| |
|
|
|
|
Consolidated |
|
|
06/30/2023 |
|
12/31/2022 |
Notice of Violation and Imposition of Fine (AIIM) / Tax Foreclosure - RFB - IRPJ/CSLL - Capital Gain for alleged sale of equity interest in subsidiary NAMISA |
|
14,976,052 |
|
14,174,838 |
|
|
|
|
|
Notice of Violation and Imposition of Fine (AIIM) / Tax Foreclosure - RFB - IRPJ/CSLL - Disallowance of goodwill deductions generated in the reverse incorporation of Big Jump by Namisa |
|
5,211,018 |
|
4,920,177 |
|
|
|
|
|
Notice of Violation and Imposition of Fine (AIIM) / Tax Enforcement - RFB - IRPJ/CSLL - Disallowance of prepayment interest arising from iron ore supply and port services contracts |
|
2,556,876 |
|
2,388,423 |
|
|
|
|
|
Infraction and Fine Imposition Notices (AIIM) / Writ of Mandamus - RFB - IRPJ/CSLL - Profits earned abroad in 2008, 2010, 2011, 2012, 2014, 2015, 2016 and 2017 |
|
4,297,496 |
|
4,104,626 |
|
|
|
|
|
Unapproved compensation - RFB - IRPJ/CSLL, PIS/COFINS and IPI |
|
2,238,921 |
|
2,138,608 |
|
|
|
|
|
ICMS - SEFAZ/RJ - Assessment Notice - questions about sales for incentive area |
|
1,333,282 |
|
1,255,251 |
|
|
|
|
|
Notice of Violation and Imposition of Fine (AIIM) - RFB - Disallowance of PIS/COFINS Credits for inputs and freight |
|
1,322,886 |
|
1,238,018 |
|
|
|
|
|
CFEM – difference of understanding between CSN and ANM on the calculation basis |
|
1,217,334 |
|
1,143,275 |
|
|
|
|
|
Notice of Infraction and Imposition of Fine (AIIM) - RFB - Collection IRRF - Business Combinations CMIN 2015 |
|
1,053,800 |
|
986,196 |
|
|
|
|
|
ICMS - SEFAZ/RJ - Electricity Credits |
|
1,015,363 |
|
950,469 |
|
|
|
|
|
Notice of Violation and Imposition of Fine (AIIM) - IRPJ/CSLL - Disallowance of deductions of goodwill generated in the acquisition of Cimentos Mauá (1) |
|
767,656 |
|
715,152 |
|
|
|
|
|
ICMS - SEFAZ/RJ - Disallowance of the ICMS credits - Transfer of iron ore |
|
702,966 |
|
666,816 |
|
|
|
|
|
ICMS - SEFAZ/RJ - Disallowance of credits on purchases of intermediate products |
|
420,289 |
|
623,748 |
|
|
|
|
|
Disallowance of tax loss and negative calculation base resulting from adjustments in SAPLI - RFB |
|
706,942 |
|
663,594 |
|
|
|
|
|
Infraction and Fine Imposition Notices (AIIM) - RFB - IRPJ/CSLL - Transfer Pricing |
|
347,809 |
|
|
|
|
|
|
|
ICMS - SEFAZ/RJ - Transfer of imported raw material for a value lower than the TECAR import document |
|
378,191 |
|
357,006 |
|
|
|
|
|
Notice of Violation and Imposition of Fine (AIIM) / Annulment Action - RFB - IRRF - Capital gain of CFM company sellers located abroad |
|
305,140 |
|
289,406 |
|
|
|
|
|
Other tax lawsuits (federal, state, and municipal) (1) |
|
5,849,305 |
|
5,579,232 |
|
|
|
|
|
Social security lawsuits |
|
197,326 |
|
187,338 |
|
|
|
|
|
Action to discuss the balance of the construction contract – Tebas |
|
593,716 |
|
560,638 |
|
|
|
|
|
Action related to power supply payment’s charge - Light |
|
427,358 |
|
386,834 |
|
|
|
|
|
Action that discusses Negotiation of energy sales - COPEN - CEEE-G (1) |
|
196,174 |
|
193,469 |
|
|
|
|
|
Collection of defaulted amounts of contracts for the execution of the Presidente Médici Thermoelectric Power Plant - SACE - CEEE-G (1) |
|
197,660 |
|
192,212 |
|
|
|
|
|
Enforcement action applied by Brazilian antitrust authorities (CADE) |
|
116,441 |
|
109,206 |
|
|
|
|
|
Other civil lawsuits (1) |
|
1,368,834 |
|
1,168,591 |
|
|
|
|
|
Labor and social security lawsuits (1) |
|
1,916,073 |
|
1,726,517 |
|
|
|
|
|
Tax foreclosures – Fine – Volta Redonda IV |
|
134,421 |
|
122,639 |
|
|
|
|
|
ACP landfill Márcia |
|
306,389 |
|
306,389 |
|
|
|
|
|
Other environmental lawsuits (1) |
|
604,089 |
|
539,410 |
|
|
|
|
|
|
|
50,759,807 |
|
47,688,078 |
Quarterly Financial Information – June 30, 2023 – Companhia Siderúrgica Nacional – CSN (CONVENIENCE TRANSLATION INTO ENGLISH FROM THE ORIGINAL PREVIOUSLY ISSUED IN PORTUGUESE) | ![](https://www.sec.gov/Archives/edgar/data/1049659/000129281423003742/siditr2q236k_020.jpg) |
| |
In the first quarter of 2021, the Company was notified
of an arbitration proceeding based on an alleged unfulfillment of iron ore supply contracts. The counterparty asks for approximately US$1
billion, and the Company has no knowledge of the basis for the estimates of the amount asked. Finally, the Company informs that has responded
the arbitration requirements in conjunction with its legal counselors and is currently at the initial stage of its defense. The Company
expects the arbitration will be concluded in 2 years. The relevance of the arbitration to the Company is related to the amount attributed
to the cause and its eventual financial impact. The discussion involves arbitration disputes initiated by both parties.
The Company has been offering judicial guarantees
(Guarantee Insurance/Letter of Guarantee) in the total amount updated to June 30, 2023, of R$7,974,276 (December 31, 2022, R$4,939,419),
as determined by the procedural legislation in force.
The assessments made by legal advisors define these
administrative and judicial proceedings as a possible risk of loss and, consequently, no loss provisions have been recognized in accordance
with Management's judgment and with the accounting practices adopted in Brazil.
| 19. | PROVISION FOR ENVIRONMENTAL LIABILITIES AND ASSET RETIREMENT OBLIGATIONS |
The balance of provisions for environmental liabilities
and asset retirement obligation is as follows:
|
|
|
Consolidated |
|
|
|
Parent Company |
|
06/30/2023 |
|
12/31/2022 |
|
06/30/2023 |
|
12/31/2022 |
Environmental liabilities |
180,578 |
|
172,574 |
|
165,600 |
|
158,213 |
Asset retirement obligations |
809,709 |
|
765,083 |
|
|
|
|
|
990,287 |
|
937,657 |
|
165,600 |
|
158,213 |
| 20. | RELATED-PARTY BALANCES AND TRANSACTIONS |
| 20.a) | Transactions with subsidiaries, jointly controlled entities, associates, exclusive funds and other
related parties |
|
|
Consolidated |
|
|
06/30/2023 |
|
12/31/2022 |
|
|
Subsidiaries and associates |
|
Joint-ventures and Joint Operation |
|
Other related parties |
|
Total |
|
Subsidiaries and associates |
|
Joint-ventures and Joint Operation |
|
Other related parties |
|
Total |
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments |
(1) |
|
|
|
|
1,645,154 |
|
1,645,154 |
|
|
|
|
|
1,768,915 |
|
1,768,915 |
Trade receivables (note 5) |
(2) |
41,501 |
|
3,054 |
|
64,818 |
|
109,373 |
|
48,236 |
|
1,182 |
|
59,716 |
|
109,134 |
Dividends (note 8) |
(3) |
|
|
77,377 |
|
|
|
77,377 |
|
|
|
77,377 |
|
|
|
77,377 |
Loans (note 8) |
(4) |
|
|
5,340 |
|
|
|
5,340 |
|
|
|
5,383 |
|
|
|
5,383 |
Other receivables (note 8) |
|
|
|
1 |
|
80,260 |
|
80,261 |
|
30 |
|
|
|
1,828 |
|
1,858 |
|
|
41,501 |
|
85,772 |
|
1,790,232 |
|
1,917,505 |
|
48,266 |
|
83,942 |
|
1,830,459 |
|
1,962,667 |
Non-current Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments |
(1) |
|
|
|
|
110,842 |
|
110,842 |
|
|
|
|
|
140,510 |
|
140,510 |
Loans (note 8) |
(4) |
3,704 |
|
1,569,035 |
|
|
|
1,572,739 |
|
3,678 |
|
1,381,095 |
|
|
|
1,384,773 |
Actuarial asset (note 8) |
|
|
|
|
|
35,477 |
|
35,477 |
|
|
|
|
|
35,477 |
|
35,477 |
Other receivables (note 8) |
(5) |
|
|
1,595,381 |
|
|
|
1,595,381 |
|
|
|
1,484,759 |
|
|
|
1,484,759 |
|
|
3,704 |
|
3,164,416 |
|
146,319 |
|
3,314,439 |
|
3,678 |
|
2,865,854 |
|
175,987 |
|
3,045,519 |
|
|
45,205 |
|
3,250,188 |
|
1,936,551 |
|
5,231,944 |
|
51,944 |
|
2,949,796 |
|
2,006,446 |
|
5,008,186 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade payables |
|
|
|
129,079 |
|
10,566 |
|
139,645 |
|
|
|
93,115 |
|
37,448 |
|
130,563 |
Accounts payable |
|
|
|
22,166 |
|
16,556 |
|
38,722 |
|
|
|
23,555 |
|
24,134 |
|
47,689 |
Provision for consumption |
|
|
|
2,645 |
|
|
|
2,645 |
|
|
|
61,398 |
|
|
|
61,398 |
|
|
|
|
153,890 |
|
27,122 |
|
181,012 |
|
|
|
178,068 |
|
61,582 |
|
239,650 |
Non-current Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts payable |
|
|
|
35,510 |
|
|
|
35,510 |
|
|
|
53,356 |
|
|
|
53,356 |
|
|
|
|
35,510 |
|
|
|
35,510 |
|
|
|
53,356 |
|
|
|
53,356 |
|
|
|
|
189,400 |
|
27,122 |
|
216,522 |
|
|
|
231,424 |
|
61,582 |
|
293,006 |
Quarterly Financial Information – June 30, 2023 – Companhia Siderúrgica Nacional – CSN (CONVENIENCE TRANSLATION INTO ENGLISH FROM THE ORIGINAL PREVIOUSLY ISSUED IN PORTUGUESE) | ![](https://www.sec.gov/Archives/edgar/data/1049659/000129281423003742/siditr2q236k_020.jpg) |
| |
|
|
Consolidated |
|
|
06/30/2023 |
|
06/30/2022 |
|
|
Subsidiaries and associates |
|
Joint-ventures and Joint Operation |
|
Other related parties |
|
Total |
|
Subsidiaries and associates |
|
Joint-ventures and Joint Operation |
|
Other related parties |
|
Total |
P&L |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales |
|
21,702 |
|
9,582 |
|
800,677 |
|
831,961 |
|
118,975 |
|
9,931 |
|
1,368,032 |
|
1,496,938 |
Cost and expenses |
|
(92) |
|
(875,713) |
|
(116,599) |
|
(992,404) |
|
|
|
(632,606) |
|
(50,069) |
|
(682,675) |
Financial income (expenses) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest (note 26) |
|
|
|
87,887 |
|
14,178 |
|
102,065 |
|
|
|
64,564 |
|
11,261 |
|
75,825 |
Exchange rate variations and monetary, net |
|
|
|
|
|
(49,975) |
|
(49,975) |
|
|
|
|
|
|
|
|
Financial investments (1) |
|
|
|
|
|
(17,758) |
|
(17,758) |
|
|
|
|
|
(1,030,702) |
|
(1,030,702) |
|
|
21,610 |
|
(778,244) |
|
630,523 |
|
(126,111) |
|
118,975 |
|
(558,111) |
|
298,522 |
|
(140,614) |
|
|
Parent Company |
|
|
06/30/2023 |
|
12/31/2022 |
|
|
Subsidiaries and associates |
|
Joint-ventures and Joint Operation |
|
Other related parties and exclusive funds |
|
Total |
|
Subsidiaries and associates |
|
Joint-ventures and Joint Operation |
|
Other related parties and exclusive funds |
|
Total |
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments |
(1) |
|
|
|
|
1,246,872 |
|
1,246,872 |
|
|
|
|
|
1,125,578 |
|
1,125,578 |
Trade receivables (note 5) |
(2) |
695,728 |
|
|
|
61,459 |
|
757,187 |
|
1,066,375 |
|
|
|
59,407 |
|
1,125,782 |
Loans (note 8) |
(4) |
|
|
5,340 |
|
|
|
5,340 |
|
|
|
5,383 |
|
|
|
5,383 |
Dividends (note 8) |
(3) |
196,161 |
|
39,621 |
|
|
|
235,782 |
|
255,859 |
|
39,621 |
|
|
|
295,480 |
Other receivables (note 8) |
|
230,721 |
|
1 |
|
1,829 |
|
232,551 |
|
99,866 |
|
|
|
1,829 |
|
101,695 |
|
|
1,122,610 |
|
44,962 |
|
1,310,160 |
|
2,477,732 |
|
1,422,100 |
|
45,004 |
|
1,186,814 |
|
2,653,918 |
Non-current Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments |
(1) |
|
|
|
|
110,842 |
|
110,842 |
|
|
|
|
|
140,510 |
|
140,510 |
Loans (note 8) |
(4) |
472,195 |
|
1,471,699 |
|
|
|
1,943,894 |
|
380,913 |
|
1,287,469 |
|
|
|
1,668,382 |
Actuarial asset (note 8) |
|
|
|
|
|
28,072 |
|
28,072 |
|
|
|
|
|
28,072 |
|
28,072 |
Other receivables (note 8) |
(5) |
102,572 |
|
1,595,381 |
|
|
|
1,697,953 |
|
223,908 |
|
1,484,759 |
|
|
|
1,708,667 |
|
|
574,767 |
|
3,067,080 |
|
138,914 |
|
3,780,761 |
|
604,821 |
|
2,772,228 |
|
168,582 |
|
3,545,631 |
|
|
1,697,377 |
|
3,112,042 |
|
1,449,074 |
|
6,258,493 |
|
2,026,921 |
|
2,817,232 |
|
1,355,396 |
|
6,199,549 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Intercompany Loans (note 12) |
(6) |
1,729,038 |
|
|
|
|
|
1,729,038 |
|
43,806 |
|
|
|
|
|
43,806 |
Trade payables |
|
441,349 |
|
37,396 |
|
9,311 |
|
488,056 |
|
269,264 |
|
41,654 |
|
36,289 |
|
347,207 |
Accounts payable |
|
80,843 |
|
|
|
16,555 |
|
97,398 |
|
103,012 |
|
|
|
24,134 |
|
127,146 |
Provision for consumption |
|
281,806 |
|
|
|
|
|
281,806 |
|
279,437 |
|
|
|
|
|
279,437 |
|
|
2,533,036 |
|
37,396 |
|
25,866 |
|
2,596,298 |
|
695,519 |
|
41,654 |
|
60,423 |
|
797,596 |
Non-current Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Intercompany Loans (note 12) |
(6) |
7,246,130 |
|
|
|
|
|
7,246,130 |
|
9,984,044 |
|
|
|
|
|
9,984,044 |
Accounts payable |
|
239 |
|
|
|
|
|
239 |
|
41,694 |
|
|
|
|
|
41,694 |
|
|
7,246,369 |
|
|
|
|
|
7,246,369 |
|
10,025,738 |
|
|
|
|
|
10,025,738 |
|
|
9,779,405 |
|
37,396 |
|
25,866 |
|
9,842,667 |
|
10,721,257 |
|
41,654 |
|
60,423 |
|
10,823,334 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Parent Company |
|
|
06/30/2023 |
|
06/30/2022 |
|
|
Subsidiaries and associates |
|
Joint-ventures and Joint Operation |
|
Other related parties and exclusive funds |
|
Total |
|
Subsidiaries and associates |
|
Joint-ventures and Joint Operation |
|
Other related parties and exclusive funds |
|
Total |
Net revenue and cost |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales |
|
2,182,944 |
|
(15) |
|
795,985 |
|
2,978,914 |
|
2,364,250 |
|
70 |
|
1,367,842 |
|
3,732,162 |
Cost and expenses |
|
(1,360,701) |
|
(210,368) |
|
(135,814) |
|
(1,706,883) |
|
(1,213,824) |
|
(234,829) |
|
(55,828) |
|
(1,504,481) |
Financial income (expenses) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest (note 26) |
|
(89,727) |
|
86,431 |
|
13,910 |
|
10,614 |
|
(24,216) |
|
64,346 |
|
10,300 |
|
50,430 |
Exclusive funds (note 26) |
|
|
|
|
|
8,819 |
|
8,819 |
|
|
|
|
|
6,492 |
|
6,492 |
Financial investments (1) |
|
677,308 |
|
|
|
(9,166) |
|
668,142 |
|
|
|
|
|
(1,030,702) |
|
(1,030,702) |
Exchange rate variations and monetary, net |
|
|
|
|
|
(17,758) |
|
(17,758) |
|
608,608 |
|
|
|
|
|
608,608 |
|
|
1,409,824 |
|
(123,952) |
|
655,976 |
|
1,941,848 |
|
1,734,818 |
|
(170,413) |
|
298,104 |
|
1,862,509 |
Consolidated and Parent Company Information:
| (1) | Financial investments: Refers mainly to
investments in Usiminas shares, cash and cash equivalents and Bonds with Banco Fibra and government bonds and CDBs with the exclusive
funds. |
| (2) | Accounts receivables: refers mainly to
sales transactions of steel products from the Parent Company to related parties. |
Quarterly Financial Information – June 30, 2023 – Companhia Siderúrgica Nacional – CSN (CONVENIENCE TRANSLATION INTO ENGLISH FROM THE ORIGINAL PREVIOUSLY ISSUED IN PORTUGUESE) | ![](https://www.sec.gov/Archives/edgar/data/1049659/000129281423003742/siditr2q236k_020.jpg) |
| |
| (3) | Dividends receivable: In the Parent Company
as of June 30, 2023, are interest on own capital from Mineração Nacional S.A in the amount of R$9,353 (R$14,785 in December
2022) and dividends from the subsidiary CSN Cimentos S. A in the amount of R$178,343 as of June 30, 2023 (R$178,345 as of December 31,
2022). A in the amount of R$178,348 on June 30, 2023 (R$178,348 on December 31, 2022) and in Consolidated dividends from MRS Logística
S.A in the amount of R$77,377 (R$77,377 in December 2022). |
Long term:
In Consolidated refers mainly to loan agreements with Transnordestina Logística amounting to R$1,578,078 as of June 30,2023 (R$1,384,773
as of December 31, 2022) with an average rate of 125.0% to 130.0% of CDI.
| (5) | Others (Assets): In Consolidated as of June 30, 2023, refers advance
for future capital increase with Transnordestina Logística S.A. in the amount of R$1,595,380 (R$1,484,759 as of December 31, 2022). |
| (6) | Borrowings (Liabilities): |
Foreign currency: In the Parent
Company these are intercompany contracts amounting to R$8,975,168 as of June 30, 2023 (R$10,027,850 as of December 31, 2022).
| 20.b) | Key management personnel |
The key management personnel with authority and
responsibility for planning, directing, and controlling the Company’s activities include members of the Board of Directors and statutory
officers. The following is information on the compensation of such personnel and the related balances as of June 30, 2023, and 2022.
|
|
06/30/2023 |
|
06/30/2022 |
|
|
P&L |
Short-term benefits for employees and officers |
|
40,292 |
|
37,608 |
Post-employment benefits |
|
227 |
|
128 |
|
|
40,519 |
|
37,736 |
The Company is liable for guarantees of its subsidiaries
and jointly controlled entities as follows:
|
Currency |
|
Maturities |
|
Borrowings |
Tax foreclosure |
Others |
Total |
|
|
|
|
|
06/30/2023 |
|
12/31/2022 |
|
06/30/2023 |
|
12/31/2022 |
|
06/30/2023 |
|
12/31/2022 |
|
06/30/2023 |
|
12/31/2022 |
Transnordestina Logísitca |
R$ |
|
Up to 09/19/2056 and Indefinite |
|
2,096,291 |
|
2,096,291 |
|
9,365 |
|
9,365 |
|
3,853 |
|
3,853 |
|
2,109,509 |
|
2,109,509 |
Controladas do Grupo |
R$ |
|
Up to 12/21/2024 and indefinite |
|
1,900,000 |
|
|
|
|
|
197 |
|
131,920 |
|
2,163 |
|
2,031,920 |
|
2,360 |
CSN Mineração |
R$ |
|
Up to 12/21/2024 |
|
|
|
540,946 |
|
|
|
|
|
|
|
|
|
|
|
540,946 |
Total in R$ |
|
|
|
|
3,996,291 |
|
2,637,237 |
|
9,365 |
|
9,562 |
|
135,773 |
|
6,016 |
|
4,141,429 |
|
2,652,815 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CSN Inova Ventures |
US$ |
|
01/28/2028 |
|
1,300,000 |
|
1,300,000 |
|
|
|
|
|
|
|
|
|
1,300,000 |
|
1,300,000 |
CSN Resources |
US$ |
|
Up to 04/17/2026 |
|
1,150,000 |
|
1,150,000 |
|
|
|
|
|
|
|
|
|
1,150,000 |
|
1,150,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CSN Cimentos |
US$ |
|
Indefinite |
|
115,000 |
|
115,000 |
|
|
|
|
|
|
|
|
|
115,000 |
|
115,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total in US$ |
|
|
|
|
2,565,000 |
|
2,565,000 |
|
|
|
|
|
|
|
|
|
2,565,000 |
|
2,565,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lusosider Aços Planos |
EUR |
|
Indefinite |
|
|
|
|
|
|
|
|
|
75,000 |
|
75,000 |
|
75,000 |
|
75,000 |
Total in EUR |
|
|
|
|
|
|
|
|
|
|
|
|
75,000 |
|
75,000 |
|
75,000 |
|
75,000 |
Total in R$ |
|
|
|
|
12,361,248 |
|
13,867,929 |
|
|
|
|
|
394,695 |
|
396,780 |
|
12,755,943 |
|
14,264,709 |
|
|
|
|
|
16,357,539 |
|
16,505,166 |
|
9,365 |
|
9,562 |
|
530,468 |
|
402,796 |
|
16,897,372 |
|
16,917,524 |
The fully subscribed and paid-up capital as of
June 30, 2023, is R$10,240,000, divided into 1,326,093,947 common and book-entry shares (as of December 31, 2022, R$10,240,000 divided
into 1, 326,093,947 common and book-entry shares), with no par value. Each common share entitles to one vote in the resolutions of the
General Meeting.
The Company’s bylaws in effect on June 30,
2023, define that the share capital may be increased to up to 2,400,000,000 shares, by decision of the Board of Directors, regardless
of amendments to the bylaws.
Quarterly Financial Information – June 30, 2023 – Companhia Siderúrgica Nacional – CSN (CONVENIENCE TRANSLATION INTO ENGLISH FROM THE ORIGINAL PREVIOUSLY ISSUED IN PORTUGUESE) | ![](https://www.sec.gov/Archives/edgar/data/1049659/000129281423003742/siditr2q236k_020.jpg) |
| |
It is constituted at the rate of 5% of the net
income calculated in each fiscal year, before any other allocation, pursuant to art. 193 of Law 6,404/86, up to a limit of 20% of the
capital stock.
As of June 30, 2023, and December 31, 2022, the
Company’s ownership structure was as follows:
|
|
|
|
|
|
06/30/2023 |
|
|
|
|
|
12/31/2022 |
|
|
Number of common shares |
|
% of total shares |
|
% of voting capital |
|
Number of common shares |
|
% of total shares |
|
% of voting capital |
Vicunha Aços S.A. |
|
543,617,803 |
|
40.99% |
|
40.99% |
|
679,522,254 |
|
51.24% |
|
51.24% |
Rio Iaco Participações S.A. |
|
45,706,242 |
|
3.45% |
|
3.45% |
|
45,706,242 |
|
3.45% |
|
3.45% |
CFL Participações S.A. |
|
135,904,451 |
|
10.25% |
|
10.25% |
|
0 |
|
0.00% |
|
0.00% |
NYSE (ADRs) |
|
269,650,326 |
|
20.33% |
|
20.33% |
|
254,520,040 |
|
19.19% |
|
19.19% |
Other shareholders |
|
331,215,125 |
|
24.98% |
|
24.98% |
|
346,345,411 |
|
26.12% |
|
26.12% |
Outstanding shares |
|
1,326,093,947 |
|
100.00% |
|
100.00% |
|
1,326,093,947 |
|
100.00% |
|
100.00% |
As of June 30, 2023, an Asset Restructuring Agreement
was entered into between Rio Purus Participações S.A. and CFL Participações S.A. ("CFL"), the shareholders
that directly and indirectly hold all the shares of Vicunha Aços S.A. ("Vicunha Aços"). Thus, the implementation
of this Transaction results in CFL Ana Participações S.A. ("CFL Ana"), a subsidiary of CFL, holding 135,904,451
common shares, book-entry and without par value issued by CSN, representing on this date 10.25% of its capital stock.
On June 30, 2023, the Company did not have an open
treasury share buyback program, below is the movement of the programs that were closed:
Program |
|
Board’s Authorization |
|
Authorized quantity |
|
Program period |
|
Average buyback price |
|
Minimum and maximum buyback price |
|
Number bought back |
|
Share cancelation |
|
Sale of shares |
|
Balance in treasury |
|
|
04/20/2018 |
|
30,391,000 |
|
From 4/20/2018 to 4/30/2018 |
|
Not applicable |
|
Not applicable |
|
|
|
|
|
22,981,500 |
|
7,409,500 |
1º |
|
06/21/2021 |
|
24,154,500 |
|
From 06/22/2021 to 12/22/2021 |
|
R$ 21.82 |
|
R$20,06 and R$23,22 |
|
24,082,000 |
|
|
|
|
|
31,491,500 |
2º |
|
6/12/2021 |
|
30,000,000 |
|
From 12/07/2021 to 6/30/2022 |
|
R$ 25.00 |
|
R$17,20 and R$26,76 |
|
29,938,600 |
|
|
|
|
|
61,430,100 |
|
|
05/18/2022 |
|
|
|
|
|
Not applicable |
|
Not applicable |
|
|
|
61,430,100 |
|
|
|
|
3º |
|
05/18/2022 |
|
58,000,000 |
|
From 05/19/2022 to 05/18/2023 |
|
|
|
|
|
|
|
|
|
|
|
|
The earnings per share are shown below:
|
|
|
|
|
|
|
Parent Company |
|
Six months ended |
|
Three months ended |
|
06/30/2023 |
|
06/30/2022 |
|
06/30/2023 |
|
06/30/2022 |
|
Common Shares |
|
Common Shares |
(Loss)/profit for the period |
(742,793) |
|
1,403,728 |
|
183,603 |
|
197,326 |
Weighted average number of shares |
1,326,093,947 |
|
1,327,901,762 |
|
1,326,093,947 |
|
1,326,412,628 |
Basic and diluted (loss)/earnings per share |
(0.56014) |
|
1.05710 |
|
0.13845 |
|
0.14877 |
| 22. | COMPENSATION TO SHAREHOLDERS |
On May 17, 2023, the Company paid its shareholders
interest on equity in the amount of R$700,000, corresponding to a gross amount of R$0.52786606981 per share. Considering the incidence
of Withholding Income Tax at the rate of 15%, the net amount of Income Tax will be paid of R$595,000 equivalent to R$0.44868615934 per
share and dividends in the amount of R$1,614,000 equivalent to R$1.21710833810 per share.
Quarterly Financial Information – June 30, 2023 – Companhia Siderúrgica Nacional – CSN (CONVENIENCE TRANSLATION INTO ENGLISH FROM THE ORIGINAL PREVIOUSLY ISSUED IN PORTUGUESE) | ![](https://www.sec.gov/Archives/edgar/data/1049659/000129281423003742/siditr2q236k_020.jpg) |
| |
| 23. | NET REVENUE FROM SALES |
Net sales revenue is comprised as follows:
|
|
|
|
|
|
|
|
Consolidated |
|
|
Six months ended |
|
Three months ended |
|
|
06/30/2023 |
|
06/30/2022 |
|
06/30/2023 |
|
06/30/2022 |
Gross revenue |
|
|
|
|
|
|
|
|
Domestic market |
|
14,075,756 |
|
14,569,774 |
|
7,365,764 |
|
7,352,587 |
Foreign market |
|
11,474,848 |
|
11,011,254 |
|
5,302,548 |
|
4,808,001 |
|
|
25,550,604 |
|
25,581,028 |
|
12,668,312 |
|
12,160,588 |
Deductions |
|
|
|
|
|
|
|
|
Sales returns, discounts and rebates |
|
(236,068) |
|
(121,425) |
|
(115,522) |
|
(47,419) |
Taxes on sales |
|
(3,006,735) |
|
(3,123,815) |
|
(1,563,679) |
|
(1,547,247) |
|
|
(3,242,803) |
|
(3,245,240) |
|
(1,679,201) |
|
(1,594,666) |
Net revenue |
|
22,307,801 |
|
22,335,788 |
|
10,989,111 |
|
10,565,922 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Parent Company |
|
|
Six months ended |
|
Three months ended |
|
|
06/30/2023 |
|
06/30/2022 |
|
06/30/2023 |
|
06/30/2022 |
Gross revenue |
|
|
|
|
|
|
|
|
Domestic market |
|
10,261,565 |
|
13,077,910 |
|
5,377,734 |
|
6,524,208 |
Foreign market |
|
1,158,928 |
|
2,189,565 |
|
562,971 |
|
955,727 |
|
|
11,420,493 |
|
15,267,475 |
|
5,940,705 |
|
7,479,935 |
Deductions |
|
|
|
|
|
|
|
|
Sales returns, discounts and rebates |
|
(152,297) |
|
(131,412) |
|
(50,310) |
|
(70,974) |
Taxes on sales |
|
(1,920,053) |
|
(2,598,474) |
|
(1,012,319) |
|
(1,269,874) |
|
|
(2,072,350) |
|
(2,729,886) |
|
(1,062,629) |
|
(1,340,848) |
Net revenue |
|
9,348,143 |
|
12,537,589 |
|
4,878,076 |
|
6,139,087 |
|
|
|
|
|
|
|
|
Consolidated |
|
|
Six months ended |
|
Three months ended |
|
|
06/30/2023 |
|
06/30/2022 |
|
06/30/2023 |
|
06/30/2022 |
Raw materials and inputs |
|
(6,159,484) |
|
(7,170,325) |
|
(3,076,510) |
|
(3,471,864) |
Outsourcing material |
|
(2,671,361) |
|
(1,636,020) |
|
(1,444,078) |
|
(946,187) |
Labor cost |
|
(1,983,497) |
|
(1,492,006) |
|
(1,038,106) |
|
(807,745) |
Supplies |
|
(2,017,484) |
|
(1,510,099) |
|
(1,085,244) |
|
(826,767) |
Maintenance cost (services and materials) |
|
(200,892) |
|
(576,794) |
|
(100,845) |
|
(277,516) |
Outsourcing services |
|
(1,667,020) |
|
(974,819) |
|
(895,033) |
|
(499,360) |
Freight |
|
(1,996,645) |
|
(1,001,069) |
|
(1,003,201) |
|
(506,636) |
Depreciation, amortization and depletion |
|
(1,569,427) |
|
(1,278,361) |
|
(788,151) |
|
(642,891) |
Others |
|
(655,451) |
|
(446,413) |
|
(396,223) |
|
(232,329) |
|
|
(18,921,261) |
|
(16,085,906) |
|
(9,827,391) |
|
(8,211,295) |
Classified as: |
|
|
|
|
|
|
|
|
Cost of sales |
|
(16,819,136) |
|
(14,847,726) |
|
(8,745,660) |
|
(7,560,441) |
Selling expenses |
|
(1,740,455) |
|
(947,928) |
|
(879,942) |
|
(503,932) |
General and administrative expenses |
|
(361,670) |
|
(290,252) |
|
(201,789) |
|
(146,922) |
|
|
(18,921,261) |
|
(16,085,906) |
|
(9,827,391) |
|
(8,211,295) |
Quarterly Financial Information – June 30, 2023 – Companhia Siderúrgica Nacional – CSN (CONVENIENCE TRANSLATION INTO ENGLISH FROM THE ORIGINAL PREVIOUSLY ISSUED IN PORTUGUESE) | ![](https://www.sec.gov/Archives/edgar/data/1049659/000129281423003742/siditr2q236k_020.jpg) |
| |
|
|
|
|
|
|
|
|
Parent Company |
|
|
Six months ended |
|
Three months ended |
|
|
06/30/2023 |
|
06/30/2022 |
|
06/30/2023 |
|
06/30/2022 |
Raw materials and inputs |
|
(5,270,113) |
|
(6,683,951) |
|
(2,733,559) |
|
(3,296,556) |
Labor cost |
|
(799,401) |
|
(702,023) |
|
(431,515) |
|
(362,092) |
Supplies |
|
(1,455,163) |
|
(1,061,181) |
|
(803,020) |
|
(579,565) |
Maintenance cost (services and materials) |
|
(106,357) |
|
(252,996) |
|
(54,835) |
|
(102,201) |
Outsourcing services |
|
(611,818) |
|
(567,699) |
|
(339,258) |
|
(281,918) |
Freight |
|
(368,903) |
|
(396,058) |
|
(174,327) |
|
(204,064) |
Depreciation, amortization and depletion |
|
(554,763) |
|
(513,079) |
|
(282,303) |
|
(262,279) |
Others |
|
(68,557) |
|
(159,310) |
|
(59,901) |
|
(87,893) |
|
|
(9,235,075) |
|
(10,336,297) |
|
(4,878,718) |
|
(5,176,568) |
Classified as: |
|
|
|
|
|
|
|
|
Cost of sales |
|
(8,702,487) |
|
(9,762,356) |
|
(4,611,523) |
|
(4,894,623) |
Selling expenses |
|
(395,967) |
|
(463,615) |
|
(184,478) |
|
(221,285) |
General and administrative expenses |
|
(136,621) |
|
(110,326) |
|
(82,717) |
|
(60,660) |
|
|
(9,235,075) |
|
(10,336,297) |
|
(4,878,718) |
|
(5,176,568) |
The depreciation, amortization and depletion for
the period were distributed as follows.
|
|
|
|
|
|
|
Consolidated |
|
Six months ended |
|
Three months ended |
|
06/30/2023 |
|
06/30/2022 |
|
06/30/2023 |
|
06/30/2022 |
Production costs (1) |
(1,547,467) |
|
(1,257,473) |
|
(776,557) |
|
(632,619) |
Selling expenses |
(8,087) |
|
(6,440) |
|
(4,251) |
|
(3,230) |
General and administrative expenses |
(13,873) |
|
(14,448) |
|
(7,343) |
|
(7,042) |
|
(1,569,427) |
|
(1,278,361) |
|
(788,151) |
|
(642,891) |
Other operational (2) |
(41,558) |
|
(38,236) |
|
(21,656) |
|
(17,569) |
|
(1,610,985) |
|
(1,316,597) |
|
(809,807) |
|
(660,460) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Parent Company |
|
Six months ended |
|
Three months ended |
|
06/30/2023 |
|
06/30/2022 |
|
06/30/2023 |
|
06/30/2022 |
Production costs (1) |
(542,438) |
|
(502,187) |
|
(274,923) |
|
(256,811) |
Selling expenses |
(4,692) |
|
(4,121) |
|
(2,539) |
|
(2,084) |
General and administrative expenses |
(7,633) |
|
(6,771) |
|
(4,841) |
|
(3,384) |
|
(554,763) |
|
(513,079) |
|
(282,303) |
|
(262,279) |
Other operational (2) |
(3,607) |
|
(3,240) |
|
(1,836) |
|
(1,551) |
|
(558,370) |
|
(516,319) |
|
(284,139) |
|
(263,830) |
(1) The cost of production includes
PIS and COFINS credits on lease agreements as of June 30, 2023, in the amount of R$3,878 in the consolidated (R$3,453 as of June 30, 2022)
and R$391 in the parent company (R$401 as of June 30, 2022).
(2) They mainly refer to the depreciation of investment
properties, paralyzed equipment and amortization of the SWT customer portfolio, classified in other operating expenses, see note 25.
Quarterly Financial Information – June 30, 2023 – Companhia Siderúrgica Nacional – CSN (CONVENIENCE TRANSLATION INTO ENGLISH FROM THE ORIGINAL PREVIOUSLY ISSUED IN PORTUGUESE) | ![](https://www.sec.gov/Archives/edgar/data/1049659/000129281423003742/siditr2q236k_020.jpg) |
| |
| 25. | OTHER OPERATING INCOME AND EXPENSES |
|
|
|
|
|
|
|
|
Consolidated |
|
|
Six months ended |
|
Three months ended |
|
|
06/30/2023 |
|
06/30/2022 |
|
06/30/2023 |
|
06/30/2022 |
Other operating income |
|
|
|
|
|
|
|
|
Receivables by indemnity |
|
5,466 |
|
9,031 |
|
1,511 |
|
3,671 |
Rentals and leases |
|
11,349 |
|
4,522 |
|
7,822 |
|
2,847 |
Contractual fines |
|
2,115 |
|
2,019 |
|
1,165 |
|
1,631 |
Updated shares – Fair value through profit or loss (Note 13) |
|
|
|
(2,354) |
|
(42,210) |
|
(14,962) |
Other revenues |
|
22,242 |
|
36,398 |
|
(21,845) |
|
33,028 |
|
|
41,172 |
|
49,616 |
|
(53,557) |
|
26,215 |
|
|
- |
|
- |
|
- |
|
- |
Other operating expenses |
|
|
|
|
|
|
|
|
Taxes and fees |
|
(62,151) |
|
(59,156) |
|
(30,752) |
|
(45,619) |
Expenses/reversal with environmental liabilities, net |
|
(4,366) |
|
740 |
|
(1,247) |
|
225 |
Write-off/(Provision) of judicial lawsuits |
|
4,511 |
|
(44,643) |
|
85,725 |
|
(16,098) |
Depreciation and amortization (note 24) |
|
(41,558) |
|
(38,236) |
|
(21,656) |
|
(17,569) |
Reversal/(Write-off) of estimated losses on property, plant and equipment, intangible assets and PPI, net of reversal (notes 9.d, 10 and 11) |
(725) |
|
(6,612) |
|
(2,900) |
|
1,351 |
Estimated (Loss)/reversal in inventories (1) |
|
(488,740) |
|
(118,222) |
|
(84,367) |
|
(88,955) |
Idleness in stocks and paralyzed equipment (2) |
|
(267,014) |
|
(94,628) |
|
(122,821) |
|
|
Studies and project engineering expenses |
|
(25,109) |
|
(25,885) |
|
(16,169) |
|
(12,123) |
Healthcare plan expenses |
|
(53,188) |
|
(51,159) |
|
(26,483) |
|
(24,977) |
Cash flow hedge accounting realized (note 13) (3) |
|
(714,251) |
|
(397,656) |
|
216,272 |
|
(318,360) |
Other expenses |
|
(182,447) |
|
(211,094) |
|
(70,103) |
|
(141,845) |
|
|
(1,835,038) |
|
(1,046,551) |
|
(74,501) |
|
(663,970) |
Other operating income (expenses), net |
|
(1,793,866) |
|
(996,935) |
|
(128,058) |
|
(637,755) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Parent Company |
|
|
Six months ended |
|
Three months ended |
|
|
06/30/2023 |
|
06/30/2022 |
|
06/30/2023 |
|
06/30/2022 |
Other operating income |
|
|
|
|
|
|
|
|
Receivables by indemnity |
|
4,704 |
|
7,379 |
|
953 |
|
2,020 |
Rentals and leases |
|
6,641 |
|
4,176 |
|
5,339 |
|
2,661 |
Contractual fines |
|
1,282 |
|
1,312 |
|
624 |
|
1,304 |
Updated shares – Fair value through profit or loss (Note 13) |
|
|
|
(2,354) |
|
(42,210) |
|
(14,962) |
Other revenues |
|
(87) |
|
27,079 |
|
(113) |
|
26,999 |
|
|
12,540 |
|
37,592 |
|
(35,407) |
|
18,022 |
|
|
|
|
|
|
|
|
|
Other operating expenses |
|
|
|
|
|
|
|
|
Taxes and fees |
|
(34,548) |
|
(33,924) |
|
(16,024) |
|
(26,525) |
Expenses with environmental liabilities, net |
|
(1,673) |
|
1,514 |
|
(145) |
|
469 |
Write-off/(Provision) of judicial lawsuits |
|
(46,720) |
|
(26,714) |
|
(3,337) |
|
(7,707) |
Depreciation of investment property, equipment paralyzed and amortization of intangible assets (note 24) |
(3,607) |
|
(3,240) |
|
(1,836) |
|
(1,551) |
Write-offs and estimated losses of PPE, intangible assets and investment properties, net of reversal (notes 10 and 11) |
|
1,314 |
|
(282) |
|
(588) |
|
(126) |
Estimated (Loss)/reversal in inventories (1) |
|
(230,861) |
|
(77,455) |
|
(74,848) |
|
(65,219) |
Idleness in stocks and paralyzed equipment (2) |
|
(261,740) |
|
|
|
(117,547) |
|
|
Studies and project engineering expenses |
|
(8,298) |
|
(9,481) |
|
(4,618) |
|
(5,400) |
Healthcare plan expenses |
|
(51,191) |
|
(50,653) |
|
(24,809) |
|
(24,703) |
Cash flow hedge accounting realized (note 13) (3) |
|
(363,235) |
|
(421,030) |
|
(10,032) |
|
(341,734) |
Other expenses |
|
(101,453) |
|
(130,564) |
|
(57,743) |
|
(99,879) |
|
|
(1,102,012) |
|
(751,829) |
|
(311,527) |
|
(572,375) |
Other operating income (expenses), net |
|
(1,089,472) |
|
(714,237) |
|
(346,934) |
|
(554,353) |
(1) In the Parent
Company, refers substantially to losses incurred in the production process at the Presidente Vargas Plant ("UPV") and in Consolidated,
losses in inventories in the amount of (R$213,490);
(2) In 2023, unused
capacity due to lower than normal production volume at Presidente Vargas Plant ("UPV");
(3) In the Parent
Company this is the realization of a Cash Flow Hedge in the amount of (R$353,203) and in Consolidated the realization of a Cash Flow Hedge
in the amount of (R$9,841) and a Hedge of Platts in the amount of (R$341,175).
Quarterly Financial Information – June 30, 2023 – Companhia Siderúrgica Nacional – CSN (CONVENIENCE TRANSLATION INTO ENGLISH FROM THE ORIGINAL PREVIOUSLY ISSUED IN PORTUGUESE) | ![](https://www.sec.gov/Archives/edgar/data/1049659/000129281423003742/siditr2q236k_020.jpg) |
| |
| 26. | FINANCIAL INCOME (EXPENSES) |
|
|
|
|
|
|
|
|
Consolidated |
|
|
Six months ended |
|
Three months ended |
|
|
06/30/2023 |
|
06/30/2022 |
|
06/30/2023 |
|
06/30/2022 |
Financial income |
|
|
|
|
|
|
|
|
Related parties (Note 20 a) |
|
106,189 |
|
80,701 |
|
51,760 |
|
52,223 |
Income from financial investments |
|
386,940 |
|
315,046 |
|
192,395 |
|
188,523 |
Updated shares – Fair value through profit or loss (Note 13.d) |
|
(17,758) |
|
(1,030,702) |
|
(84,634) |
|
(808,347) |
Interest and fines |
|
51,961 |
|
14,172 |
|
28,073 |
|
7,924 |
Other income |
|
66,502 |
|
76,807 |
|
61,421 |
|
51,560 |
|
|
593,834 |
|
(543,976) |
|
249,015 |
|
(508,117) |
Financial expenses |
|
|
|
|
|
|
|
|
Borrowings and financing - foreign currency (note 12) |
|
(709,062) |
|
(600,218) |
|
(406,836) |
|
(306,640) |
Borrowings and financing - local currency (note 12) |
|
(1,046,453) |
|
(585,791) |
|
(543,664) |
|
(313,089) |
Capitalised interest (note 10) |
|
94,342 |
|
62,863 |
|
50,144 |
|
34,786 |
Related parties |
|
(4,124) |
|
(4,876) |
|
(2,062) |
|
(2,302) |
Lease liabilities |
|
(36,395) |
|
(31,584) |
|
(19,123) |
|
(16,621) |
Interest and fines |
|
(117,794) |
|
(49,718) |
|
(16,898) |
|
71,766 |
Interest on drawn/forfaiting risk operations |
|
(257,865) |
|
(197,542) |
|
(119,502) |
|
(197,542) |
(-) Adjustment present value of trade payables |
|
(167,513) |
|
(222,409) |
|
(86,517) |
|
(125,674) |
Commission, bank fees, Guarantee and bank fees |
|
(99,053) |
|
(104,819) |
|
(54,021) |
|
(54,917) |
PIS/COFINS over financial income |
|
(34,636) |
|
(56,972) |
|
(16,346) |
|
(49,839) |
Other financial expenses |
|
(263,559) |
|
(187,791) |
|
(140,139) |
|
(50,731) |
|
|
(2,642,112) |
|
(1,978,857) |
|
(1,354,964) |
|
(1,010,803) |
Others financial items, net |
|
|
|
|
|
|
|
|
Foreign exchange and monetary variation, net |
|
(511,750) |
|
431,597 |
|
(242,587) |
|
580,437 |
Gains and (losses) on exchange derivatives (*) |
|
184,492 |
|
75,987 |
|
162,627 |
|
48,471 |
|
|
(327,258) |
|
507,584 |
|
(79,960) |
|
628,908 |
|
|
(2,969,370) |
|
(1,471,273) |
|
(1,434,924) |
|
(381,895) |
|
|
|
|
|
|
|
|
|
Financial income (expenses), net |
|
(2,375,536) |
|
(2,015,249) |
|
(1,185,909) |
|
(890,012) |
|
|
|
|
|
|
|
|
|
(*) Statement of gains and (losses) on derivative transactions (note 13.c) |
|
|
|
|
|
|
|
|
Dollar - to - real NDF |
|
|
|
45,162 |
|
|
|
45,162 |
Exchange rate swap Real x Dollar |
|
(82,377) |
|
(25,238) |
|
(42,205) |
|
55,510 |
Interest rate swap CDI x IPCA |
|
224,522 |
|
9,619 |
|
181,378 |
|
(33,249) |
Exchange rate swap CDI x Dollar |
|
42,347 |
|
46,444 |
|
23,454 |
|
(18,952) |
|
|
184,492 |
|
75,987 |
|
162,627 |
|
48,471 |
Quarterly Financial Information – June 30, 2023 – Companhia Siderúrgica Nacional – CSN (CONVENIENCE TRANSLATION INTO ENGLISH FROM THE ORIGINAL PREVIOUSLY ISSUED IN PORTUGUESE) | ![](https://www.sec.gov/Archives/edgar/data/1049659/000129281423003742/siditr2q236k_020.jpg) |
| |
|
|
|
|
|
|
|
|
Parent Company |
|
|
Six months ended |
|
Three months ended |
|
|
06/30/2023 |
|
06/30/2022 |
|
06/30/2023 |
|
06/30/2022 |
Financial income |
|
|
|
|
|
|
|
|
Related parties (Note 20 a) |
|
141,275 |
|
98,802 |
|
68,860 |
|
53,537 |
Income from financial investments |
|
43,450 |
|
97,309 |
|
12,893 |
|
72,325 |
Interest and fines |
|
38,110 |
|
7,267 |
|
21,093 |
|
3,624 |
Updated shares – Fair value through profit or loss (Note 13.d) |
|
(17,758) |
|
(1,030,702) |
|
(84,634) |
|
(808,347) |
Other income |
|
58,799 |
|
105,447 |
|
55,340 |
|
81,746 |
|
|
263,876 |
|
(721,877) |
|
73,552 |
|
(597,115) |
Financial expenses |
|
|
|
|
|
|
|
|
Borrowings and financing - foreign currency (note 12) |
|
(94,540) |
|
(68,899) |
|
(57,984) |
|
(19,795) |
Borrowings and financing - local currency (note 12) |
|
(621,985) |
|
(473,931) |
|
(338,524) |
|
(247,090) |
Related parties (note 12) |
|
(121,842) |
|
(41,880) |
|
(60,548) |
|
(25,357) |
Lease liabilities |
|
(541) |
|
(768) |
|
(285) |
|
(412) |
Capitalised interest (note 10) |
|
38,810 |
|
17,527 |
|
21,305 |
|
9,920 |
Interest and fines |
|
(81,493) |
|
(2,736) |
|
3,710 |
|
88,245 |
Interest on drawn/forfaiting risk operations |
|
(257,865) |
|
(197,542) |
|
(119,502) |
|
(197,542) |
(-) Adjustment present value of trade payables |
|
(127,644) |
|
(191,741) |
|
(65,274) |
|
(111,936) |
Commission, bank fees, Guarantee and bank fees |
|
(47,924) |
|
(50,110) |
|
(26,640) |
|
(21,156) |
PIS/COFINS over financial income |
|
(6,969) |
|
(12,780) |
|
(3,395) |
|
(11,054) |
Other financial expenses |
|
(38,983) |
|
(24,643) |
|
(9,109) |
|
(12,278) |
|
|
(1,360,976) |
|
(1,047,503) |
|
(656,246) |
|
(548,455) |
Others financial items, net |
|
|
|
|
|
|
|
|
Foreign exchange and monetary variation, net |
|
(278,817) |
|
361,284 |
|
(172,992) |
|
565,255 |
Gains and (losses) on exchange derivatives (*) |
|
42,347 |
|
46,444 |
|
23,454 |
|
(25,652) |
|
|
(236,470) |
|
407,728 |
|
(149,538) |
|
539,603 |
|
|
|
|
|
|
|
|
|
Financial income (expenses), net |
|
(1,333,570) |
|
(1,361,652) |
|
(732,232) |
|
(605,967) |
|
|
|
|
|
|
|
|
|
(*) Statement of gains and (losses) on derivative transactions (note 13 c) |
|
|
|
|
|
|
|
|
Exchange rate swap CDI x Dollar |
|
42,347 |
|
46,444 |
|
23,454 |
|
(25,652) |
|
|
42,347 |
|
46,444 |
|
23,454 |
|
(25,652) |
The financial information related to the business
segments is not changed from that disclosed in the Company's financial statements as of December 31, 2022. Accordingly, management has
decided not to repeat them in this condensed interim financial information.
Results by segment
For the purpose of preparing and presenting the
information by business segment, Management decided to maintain the proportional consolidation of the jointly controlled entities as historically
presented. For purposes of reconciliation of the consolidated result, the amounts recorded by these companies are not included in the
“Corporate expenses/elimination” column.
Quarterly Financial Information – June 30, 2023 – Companhia Siderúrgica Nacional – CSN (CONVENIENCE TRANSLATION INTO ENGLISH FROM THE ORIGINAL PREVIOUSLY ISSUED IN PORTUGUESE) | ![](https://www.sec.gov/Archives/edgar/data/1049659/000129281423003742/siditr2q236k_020.jpg) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
06/30/2023 |
P&L |
|
Steel |
|
Mining |
|
Logistics |
|
Energy |
|
Cement |
|
Corporate expenses/elimination |
|
Consolidated |
|
|
|
Port |
|
Railroads |
|
|
|
|
Net revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic market |
|
8,314,109 |
|
654,019 |
|
124,172 |
|
1,187,234 |
|
298,561 |
|
2,261,494 |
|
(1,858,647) |
|
10,980,942 |
Foreign market |
|
3,405,442 |
|
7,118,726 |
|
|
|
|
|
|
|
|
|
802,691 |
|
11,326,859 |
Cost of sales and services (note 24) |
|
(10,440,349) |
|
(4,872,511) |
|
(120,852) |
|
(692,025) |
|
(223,195) |
|
(1,911,436) |
|
1,441,232 |
|
(16,819,136) |
Gross profit |
|
1,279,202 |
|
2,900,234 |
|
3,320 |
|
495,209 |
|
75,366 |
|
350,058 |
|
385,276 |
|
5,488,665 |
General and administrative expenses (note 24) |
|
(600,778) |
|
(273,748) |
|
(4,903) |
|
(94,197) |
|
(27,402) |
|
(219,275) |
|
(881,822) |
|
(2,102,125) |
Other operating (income) expenses, net (note 25) |
|
(935,095) |
|
(456,320) |
|
1,848 |
|
(992) |
|
101,724 |
|
(76,432) |
|
(428,599) |
|
(1,793,866) |
Equity in results of affiliated companies (note 9) |
|
|
|
|
|
|
|
|
|
|
|
|
|
128,811 |
|
128,811 |
Operating result before Financial Income and Taxes |
|
(256,671) |
|
2,170,166 |
|
265 |
|
400,020 |
|
149,688 |
|
54,351 |
|
(796,334) |
|
1,721,485 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales by geographic area |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asia |
|
|
|
6,771,687 |
|
|
|
|
|
|
|
|
|
|
|
6,771,687 |
North America |
|
845,735 |
|
|
|
|
|
|
|
|
|
|
|
802,691 |
|
1,648,426 |
Latin America |
|
84,062 |
|
|
|
|
|
|
|
|
|
|
|
|
|
84,062 |
Europe |
|
2,475,645 |
|
347,039 |
|
|
|
|
|
|
|
|
|
|
|
2,822,684 |
Foreign market |
|
3,405,442 |
|
7,118,726 |
|
|
|
|
|
|
|
|
|
802,691 |
|
11,326,859 |
Domestic market |
|
8,314,109 |
|
654,019 |
|
124,172 |
|
1,187,234 |
|
298,561 |
|
2,261,494 |
|
(1,858,647) |
|
10,980,942 |
Total |
|
11,719,551 |
|
7,772,745 |
|
124,172 |
|
1,187,234 |
|
298,561 |
|
2,261,494 |
|
(1,055,956) |
|
22,307,801 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
06/30/2023 |
P&L |
|
Steel |
|
Mining |
|
Logistics |
|
Energy |
|
Cement |
|
Corporate expenses/elimination |
|
Consolidated |
|
|
|
Port |
|
Railroads |
|
|
|
|
Net revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic market |
|
4,368,460 |
|
371,743 |
|
54,269 |
|
668,226 |
|
159,124 |
|
1,142,363 |
|
(1,011,959) |
|
5,752,226 |
Foreign market |
|
1,574,231 |
|
3,259,563 |
|
|
|
|
|
|
|
|
|
403,091 |
|
5,236,885 |
Cost of sales and services (note 24) |
|
(5,419,308) |
|
(2,625,677) |
|
(61,374) |
|
(352,333) |
|
(99,677) |
|
(951,813) |
|
764,522 |
|
(8,745,660) |
Gross profit |
|
523,383 |
|
1,005,629 |
|
(7,105) |
|
315,893 |
|
59,447 |
|
190,550 |
|
155,654 |
|
2,243,451 |
General and administrative expenses (note 24) |
|
(287,702) |
|
(147,389) |
|
(2,888) |
|
(51,377) |
|
(14,773) |
|
(123,001) |
|
(454,601) |
|
(1,081,731) |
Other operating (income) expenses, net (note 25) |
|
(307,620) |
|
180,134 |
|
(1,650) |
|
(11,559) |
|
110,235 |
|
(38,169) |
|
(59,429) |
|
(128,058) |
Equity in results of affiliated companies (note 9) |
|
|
|
|
|
|
|
|
|
|
|
|
|
107,301 |
|
107,301 |
Operating result before Financial Income and Taxes |
|
(71,939) |
|
1,038,374 |
|
(11,643) |
|
252,957 |
|
154,909 |
|
29,380 |
|
(251,075) |
|
1,140,963 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales by geographic area |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asia |
|
|
|
3,002,538 |
|
|
|
|
|
|
|
|
|
|
|
3,002,538 |
North America |
|
443,244 |
|
|
|
|
|
|
|
|
|
|
|
403,091 |
|
846,335 |
Latin America |
|
37,303 |
|
|
|
|
|
|
|
|
|
|
|
|
|
37,303 |
Europe |
|
1,093,684 |
|
257,025 |
|
|
|
|
|
|
|
|
|
|
|
1,350,709 |
Foreign market |
|
1,574,231 |
|
3,259,563 |
|
|
|
|
|
|
|
|
|
403,091 |
|
5,236,885 |
Domestic market |
|
4,368,460 |
|
371,743 |
|
54,269 |
|
668,226 |
|
159,124 |
|
1,142,363 |
|
(1,011,959) |
|
5,752,226 |
Total |
|
5,942,691 |
|
3,631,306 |
|
54,269 |
|
668,226 |
|
159,124 |
|
1,142,363 |
|
(608,868) |
|
10,989,111 |
Quarterly Financial Information – June 30, 2023 – Companhia Siderúrgica Nacional – CSN (CONVENIENCE TRANSLATION INTO ENGLISH FROM THE ORIGINAL PREVIOUSLY ISSUED IN PORTUGUESE) | ![](https://www.sec.gov/Archives/edgar/data/1049659/000129281423003742/siditr2q236k_020.jpg) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
06/30/2022 |
P&L |
|
Steel |
|
Mining |
|
Logistics |
|
Energy |
|
Cement |
|
Corporate expenses/elimination |
|
Consolidated |
|
|
|
Port |
|
Railroads |
|
|
|
|
Net revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic market |
|
10,432,496 |
|
926,572 |
|
153,189 |
|
1,050,682 |
|
91,457 |
|
860,977 |
|
(2,023,517) |
|
11,491,856 |
Foreign market |
|
5,155,563 |
|
5,542,431 |
|
|
|
|
|
|
|
|
|
145,938 |
|
10,843,932 |
Cost of sales and services (note 24) |
|
(11,615,879) |
|
(3,427,030) |
|
(108,159) |
|
(727,501) |
|
(96,176) |
|
(572,764) |
|
1,699,783 |
|
(14,847,726) |
Gross profit |
|
3,972,180 |
|
3,041,973 |
|
45,030 |
|
323,181 |
|
(4,719) |
|
288,213 |
|
(177,796) |
|
7,488,062 |
General and administrative expenses (note 24) |
|
(640,112) |
|
(149,426) |
|
(17,293) |
|
(64,915) |
|
(16,907) |
|
(137,430) |
|
(212,097) |
|
(1,238,180) |
Other operating (income) expenses, net (note 25) |
|
(331,845) |
|
(198,987) |
|
(9,926) |
|
24,160 |
|
(903) |
|
(23,435) |
|
(455,999) |
|
(996,935) |
Equity in results of affiliated companies (note 9) |
|
|
|
|
|
|
|
|
|
|
|
|
|
73,665 |
|
73,665 |
Operating result before Financial Income and Taxes |
|
3,000,223 |
|
2,693,560 |
|
17,811 |
|
282,426 |
|
(22,529) |
|
127,348 |
|
(772,227) |
|
5,326,612 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales by geographic area |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asia |
|
|
|
4,698,621 |
|
|
|
|
|
|
|
|
|
145,938 |
|
4,844,559 |
North America |
|
1,191,869 |
|
|
|
|
|
|
|
|
|
|
|
|
|
1,191,869 |
Latin America |
|
172,446 |
|
|
|
|
|
|
|
|
|
|
|
|
|
172,446 |
Europe |
|
3,790,182 |
|
843,810 |
|
|
|
|
|
|
|
|
|
|
|
4,633,992 |
Others |
|
1,066 |
|
|
|
|
|
|
|
|
|
|
|
|
|
1,066 |
Foreign market |
|
5,155,563 |
|
5,542,431 |
|
|
|
|
|
|
|
|
|
145,938 |
|
10,843,932 |
Domestic market |
|
10,432,496 |
|
926,572 |
|
153,189 |
|
1,050,682 |
|
91,457 |
|
860,977 |
|
(2,023,517) |
|
11,491,856 |
Total |
|
15,588,059 |
|
6,469,003 |
|
153,189 |
|
1,050,682 |
|
91,457 |
|
860,977 |
|
(1,877,579) |
|
22,335,788 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
06/30/2022 |
|
|
Steel |
|
Mining |
|
Logistics |
|
Energy |
|
Cement |
|
Corporate expenses/elimination |
|
Consolidated |
|
|
|
|
Port |
|
Railroads |
|
|
|
|
Net revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic market |
|
5,247,692 |
|
411,196 |
|
77,298 |
|
592,238 |
|
47,320 |
|
474,996 |
|
(1,032,156) |
|
5,818,584 |
Foreign market |
|
2,458,294 |
|
2,196,493 |
|
|
|
|
|
|
|
|
|
92,551 |
|
4,747,338 |
Cost of sales and services (note 24) |
|
(5,789,150) |
|
(1,831,888) |
|
(53,379) |
|
(385,864) |
|
(49,139) |
|
(300,518) |
|
849,497 |
|
(7,560,441) |
Gross profit |
|
1,916,836 |
|
775,801 |
|
23,919 |
|
206,374 |
|
(1,819) |
|
174,478 |
|
(90,108) |
|
3,005,481 |
General and administrative expenses (note 24) |
|
(312,832) |
|
(87,027) |
|
(7,585) |
|
(34,172) |
|
(8,354) |
|
(68,509) |
|
(132,375) |
|
(650,854) |
Other operating (income) expenses, net (note 25) |
|
(230,017) |
|
(48,729) |
|
(8,896) |
|
11,530 |
|
(454) |
|
(3,462) |
|
(357,727) |
|
(637,755) |
Equity in results of affiliated companies (note 9) |
|
|
|
|
|
|
|
|
|
|
|
|
|
54,406 |
|
54,406 |
Operating result before Financial Income and Taxes |
|
1,373,987 |
|
640,045 |
|
7,438 |
|
183,732 |
|
(10,627) |
|
102,507 |
|
(525,804) |
|
1,771,278 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales by geographic area |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asia |
|
|
|
1,615,360 |
|
|
|
|
|
|
|
|
|
92,551 |
|
1,707,911 |
North America |
|
654,147 |
|
|
|
|
|
|
|
|
|
|
|
|
|
654,147 |
Latin America |
|
67,874 |
|
|
|
|
|
|
|
|
|
|
|
|
|
67,874 |
Europe |
|
1,736,273 |
|
581,133 |
|
|
|
|
|
|
|
|
|
|
|
2,317,406 |
Foreign market |
|
2,458,294 |
|
2,196,493 |
|
|
|
|
|
|
|
|
|
92,551 |
|
4,747,338 |
Domestic market |
|
5,247,692 |
|
411,196 |
|
77,298 |
|
592,238 |
|
47,320 |
|
474,996 |
|
(1,032,156) |
|
5,818,584 |
Total |
|
7,705,986 |
|
2,607,689 |
|
77,298 |
|
592,238 |
|
47,320 |
|
474,996 |
|
(939,605) |
|
10,565,922 |
| 28. | ADDITIONAL INFORMATION TO CASH FLOWS |
The following table provides additional information
about transactions related to the statement of cash flows:
|
|
|
Consolidated |
|
|
|
Parent Company |
|
06/30/2023 |
|
06/30/2022 |
|
06/30/2023 |
|
06/30/2022 |
Income tax and social contribution paid |
502,464 |
|
2,338,584 |
|
|
|
126,103 |
Addition to PP&E with interest capitalization (notes 10 and 26) |
94,342 |
|
62,863 |
|
38,810 |
|
17,527 |
Remeasurement and addition – Right of use (note 10 i) |
134,610 |
|
51,614 |
|
3,906 |
|
2,501 |
Addition to PP&E without adding cash |
81,860 |
|
|
|
|
|
|
Capitalization in associate with no cash effect |
11,037 |
|
|
|
11,037 |
|
|
|
824,313 |
|
2,453,061 |
|
53,753 |
|
146,131 |
Quarterly Financial Information – June 30, 2023 – Companhia Siderúrgica Nacional – CSN (CONVENIENCE TRANSLATION INTO ENGLISH FROM THE ORIGINAL PREVIOUSLY ISSUED IN PORTUGUESE) | ![](https://www.sec.gov/Archives/edgar/data/1049659/000129281423003742/siditr2q236k_020.jpg) |
| |
| 29. | STATEMENT OF COMPREHENSIVE INCOME |
![](https://www.sec.gov/Archives/edgar/data/1049659/000129281423003742/siditr2q236k_047.jpg)
Debentures:
On July 19, 2023, the Company announced the closing
of the public distribution offering ("Offering") of 700,000 simple, non-convertible debentures, unsecured, in three series
of its 14th issue ("Debentures"), with a nominal unit value of R$1, totaling R$700,000 ("Issue"), of which (i) 320,000
Debentures of the 1st series ("First Series Debentures"), corresponding to R$320,000; (ii) 180,000 Debentures of the 2nd series
("Second Series Debentures"), corresponding to R$180,000; and (iii) 200,000 Debentures of the 3rd series ("Third Series
Debentures"), corresponding to R$200,000.
Quarterly Financial Information – June 30, 2023 – Companhia Siderúrgica Nacional – CSN (CONVENIENCE TRANSLATION INTO ENGLISH FROM THE ORIGINAL PREVIOUSLY ISSUED IN PORTUGUESE) | ![](https://www.sec.gov/Archives/edgar/data/1049659/000129281423003742/siditr2q236k_020.jpg) |
| |
Advances from customers:
After the close of the second quarter of 2023,
the Company entered into three new energy advance agreements with prominent national players. The transactions involve advances totaling
R$1,000,000 with realizations expected to take place from July 2023 to December 2028.
On July 28, 2023, the subsidiary CSN Mineração
concluded negotiations for a long-term iron ore supply contract with an international trading company. The transaction involves an advance
payment of US$200,000 for the supply of approximately 4.3 million tons of iron ore, to be executed over a period of 4 years, with supply
starting in 2024.
Quarterly Financial Information – June 30, 2023 – Companhia Siderúrgica Nacional – CSN (CONVENIENCE TRANSLATION INTO ENGLISH FROM THE ORIGINAL PREVIOUSLY ISSUED IN PORTUGUESE) | ![](https://www.sec.gov/Archives/edgar/data/1049659/000129281423003742/siditr2q236k_020.jpg) |
| |
11.1 Projections
The Company clarifies that the information disclosed
in this item represents a mere estimation, with hypothetical data and in no way constitute a promise of performance on behalf of the Company
and/or its directors. The projections presented below involve market factors beyond the Company's control and, therefore, may change.
The Company estimates the following variables below:
![](https://www.sec.gov/Archives/edgar/data/1049659/000129281423003742/siditr2q236k_048.jpg)
| b) | Projected period and the validity
of the projection. |
The projected period and expiration dates can be viewed
in the table above in item 11.1 a), and the numbers are always presented at the end of the fiscal year and duly published in the Standardized
Financial Statements (DFP) of each fiscal year.
| c) | Assumptions of the projection,
with the indication of which ones can be influenced by the administration of the issuer and which escape its control. |
All the premises of the projections mentioned above
are subject to external influence factors, which are outside the control of the Company's management. Therefore, in the event of any material
change in these assumptions, the Company may revise its estimates, changing them compared to those originally presented.
The main premise that can be influenced by the Company's
management would be its production and sales volumes, along with the associated costs.
The volume of ore production always considers our 2022
mining plan, with increased pellet feed production. However, key factors such as sales prices and raw material inputs are outside the
Company's control.
| d) | Values of the indicators that
are the subject of the forecast. |
The values can be found above in item 11.1 a).
11.2 In the event that the issuer has disclosed,
during the last 3 fiscal years, projections on the evolution of its indicators:
a) inform which
ones are being replaced by new projections included and which are being repeated.
Estimates maintained:
![](https://www.sec.gov/Archives/edgar/data/1049659/000129281423003742/siditr2q236k_049.jpg)
Quarterly Financial Information – June 30, 2023 – Companhia Siderúrgica Nacional – CSN (CONVENIENCE TRANSLATION INTO ENGLISH FROM THE ORIGINAL PREVIOUSLY ISSUED IN PORTUGUESE) | ![](https://www.sec.gov/Archives/edgar/data/1049659/000129281423003742/siditr2q236k_020.jpg) |
| |
Estimates replaced in the last 3 fiscal years:
CSN replaced in Dec/21 the estimated volume of iron
ore production in 2021 to 36-37Mton, against previous expectation of 38-40Mton.
CSN replaced in Dec/21 Mining Cash Cost in 2021 to $19.00,
against a previous expectation of $16.00.
CSN replaced in Dec/21 Mining Expansion Capex in 2021
to BRL560 million, against a previous expectation of BRL1,000 million.
CSN replaced in Dec/21 the estimated Mining Expansion
Capex between 2022-2026 to BRL12,000 million, against a previous expectation of BRL14,000 million between 2021-2025.
CSN replaced in Dec/21 the Steel Capex estimates between
2022-2026 to BRL6,300 million, against a previous expectation of BRL6.100 million between 2021-2025.
CSN replaced in Aug/22 Mining Cash Cost in 2022 between
$20.00 - $22.00, against a previous expectation of $18.00.
CSN replaced in Aug/22 estimated volume of iron ore
production in 2022 to 36-38Mton, against previous expectation of 39-41Mton.
The Company replaced in October/22 estimated Consolidated
CAPEX in 2022 to the amount of BRL3,000 million, against a previous expectation of BRL 4,100 million.
The Company replaced in October/22 the leverage projection,
measured by the Indicator Adjusted Net Debt/EBITDA from 1.0x in 2022 to a level between 1.75x and 2.0x between the closings of the annual
balance sheets for 2022 and 2023.
The Company replaced in October/22 estimated iron ore
production volume in 2022 to 34Mton, against previous expectation of 36-38Mton.
The Company replaced in December 2022, the projected
steel sales volume of 4,480Kton for 2022 with the projection of 4,670Kton for 2023.
The Company replaced in December 2022, the projected
expansion Capex in mining of approximately BRL 13.8 billion for the period of 2023-2027, related to phase 1 of the capacity addition project.
The Company, in December 2022, added the projected mining
cash cost to a range between US$19/ton and US$21/ton in 2023.
The Company, in December 2022, added the projected volume
of production and purchases of third-party ores to be between 39-41 Mton in 2023.
The Company, in December 2022, added the projected EBITDA
in the Energy segment of BRL 23 million for 2022.
The Company replaced in December 2022, the projected
Consolidated Capex in the range of BRL 5.5 - BRL 6.5 billion for the period of 2024-2027 with the projection of BRL 4.4 billion for 2023.
b) regarding the projections related to periods already
elapsed, compare the projected data with the effective performance of the indicators, clearly indicating the reasons that led to deviations
in the projections.
2021
![](https://www.sec.gov/Archives/edgar/data/1049659/000129281423003742/siditr2q236k_050.jpg)
Regarding the major deviations above and below the expectation,
our evaluations are as follows:
Quarterly Financial Information – June 30, 2023 – Companhia Siderúrgica Nacional – CSN (CONVENIENCE TRANSLATION INTO ENGLISH FROM THE ORIGINAL PREVIOUSLY ISSUED IN PORTUGUESE) | ![](https://www.sec.gov/Archives/edgar/data/1049659/000129281423003742/siditr2q236k_020.jpg) |
| |
The increase in net debt, in millions of reais, compared
to the guidance was mainly tied by the share repurchase programs, in addition to the exchange variation observed in the period. However,
even with the increase in net debt, the company's leverage was still below the 1.0x Net Debt/EBITDA level.
The steel Sales Volume was impacted by the lower sales
volume during the third quarter, which was marked by the commercial strategy of prioritizing price, without the application of discounts,
to the detriment of the sold volume. This strategy proved to be assertive for the Company's financial results.
The company's dollarized Cash Cost annual average was
$2.6/t, worse than the guidance presented due to a one-off pressure in November, impacted by the scheduled halts and heavy rainfall in
the period, causing a lower dilution of the mine’s and port’s fixed cost. If we discount the month of November from the calculation
of the average of the year, the average cash cost would be $19.00, which is in line with what was expected by The Company.
2022
Regarding the major deviations above and below the expectation,
our evaluations are as follows:
The volume of ore production was impacted by above-normal
rainfall in the Company's operations, which affected the mining and transportation capacity of the ore, and the ramp-up of projects connected
to the Central Plant (CMAI 3, spirals, and regrinding).
The increase in Capex expenditures, which were above
expectations, mainly occurred in the fourth quarter with the integration of Cimentos Brasil's operations.
The increase in net debt, in millions of reais, compared
to the guidance, was mainly caused by large cash expenditures related to the Company's acquisitions, with the aim of diversifying its
business portfolio.
c) as of projections for periods still in progress,
to inform whether the projections remain valid on the date of delivery of the form and, where appropriate, to explain why they were abandoned
or replaced.
Current and valid estimates:
Monitoring and changes in projections disclosed
Replaced estimates:
CSN replaced in Aug/22 Mining Cash Cost in 2022 between
$20.00 - $22.00, against a previous expectation of $18.00.
CSN replaced in Aug/22 estimated volume of iron ore
production in 2022 to 36-38Mton, against previous expectation of 39-41Mton.
The Company replaced in October/22 estimated Consolidated
CAPEX in 2022 to the amount of BRL3,000 million, against a previous expectation of BRL 4,100 million.
The Company replaced in October/22 the leverage projection,
measured by the Indicator Adjusted Net Debt/EBITDA from 1.0x in 2022 to a level between 1.75x and 1.95x between the closings of the annual
balance sheets for 2022 and 2023.
The Company replaced in October/22 estimated iron ore
production volume in 2022 to 34Mton, against previous expectation of 36-38Mton.
Quarterly Financial Information – June 30, 2023 – Companhia Siderúrgica Nacional – CSN (CONVENIENCE TRANSLATION INTO ENGLISH FROM THE ORIGINAL PREVIOUSLY ISSUED IN PORTUGUESE) | ![](https://www.sec.gov/Archives/edgar/data/1049659/000129281423003742/siditr2q236k_020.jpg) |
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The Company replaced in December 2022, the projected
steel sales volume of 4,480Kton for 2022 with the projection of 4,670Kton for 2023.
The Company replaced in December 2022, the projected
expansion Capex in mining of approximately BRL 13.8 billion for the period of 2023-2027, related to phase 1 of the capacity addition project.
The Company, in December 2022, added the projected mining
cash cost to a range between US$19/ton and US$21/ton in 2023.
The Company, in December 2022, added the projected volume
of production and purchases of third-party ores to be between 39-41 Mton in 2023.
The Company, in December 2022, added the projected EBITDA
in the Energy segment of BRL 23 million for 2022.
The Company replaced in December 2022, the projected
Consolidated Capex in the range of BRL 5.5 - BRL 6.5 billion for the period of 2024-2027 with the projection of BRL 4.4 billion for 2023.
Quarterly Financial Information – June 30, 2023 – Companhia Siderúrgica Nacional – CSN (CONVENIENCE TRANSLATION INTO ENGLISH FROM THE ORIGINAL PREVIOUSLY ISSUED IN PORTUGUESE) | ![](https://www.sec.gov/Archives/edgar/data/1049659/000129281423003742/siditr2q236k_020.jpg) |
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To the Shareholders, Directors and Managers of
Companhia Siderúrgica Nacional
Sao Paulo-SP
Introduction
We have reviewed the parent company and consolidated
interim financial information of Companhia Siderúrgica Nacional ("Company"), contained in the Quarterly Information Form
- ITR for the quarter ended June 30, 2023, which comprises the balance sheet as of June 30, 2023 and the related statements of income,
comprehensive income for the three and six-month periods then ended, the statement of changes in equity and cash flows for the six month
period then ended, including a summary of significant accounting policies and notes.
The Company's management is responsible for preparing
and presenting the parent company and consolidated interim financial information, in accordance with NBC TG 21 - Interim Financial Statements
and with the International Accounting Standard IAS 34 - Interim Financial Reporting, issued by the International Accounting Standards
Board (IASB), as well as the presentation of this information in accordance with the standards issued by the Brazilian Securities Commission,
applicable to the preparation of the Quarterly Information - ITR. Our responsibility is to express a conclusion on this interim financial
information based on our review.
Scope of review
We conducted our review in accordance with Brazilian
and International Standards for Reviews of Interim Financial information (NBC TR 2410 - Review of Interim Financial Information Performed
by the Independent Auditor of the Entity and ISRE 2410 - Review of Interim Financial Information Performed by the Independent Auditor
of the Entity, respectively). A review of interim information consists of making inquiries, primarily of persons responsible for financial
and accounting matters, and applying analytical and other review procedures. The scope of a review is significantly less than that of
an audit conducted in accordance with auditing standards and, consequently does not enable us to obtain assurance that we would become
aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Conclusion on the parent company and consolidated
interim financial information
Based on our review, we are not aware of any fact
which leads us to believe that the parent company and consolidated interim financial information included in the aforementioned quarterly
information was not prepared, in all material respects, in accordance with NBC TG 21 and IAS 34, applicable to the preparation of the
Quarterly Information - ITR, and presented in accordance with the standards issued by the Brazilian Securities and Exchange Commission.
Quarterly Financial Information – June 30, 2023 – Companhia Siderúrgica Nacional – CSN (CONVENIENCE TRANSLATION INTO ENGLISH FROM THE ORIGINAL PREVIOUSLY ISSUED IN PORTUGUESE) | ![](https://www.sec.gov/Archives/edgar/data/1049659/000129281423003742/siditr2q236k_020.jpg) |
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Other matters
Statement of Value Added
The aforementioned quarterly information includes the
parent company and consolidated Statements of Value Added (DVA), referring to the six-month period ended June 30, 2023, prepared under
the responsibility of the Company's management and presented as supplementary information for IAS purposes 34. These statements have been
submitted to review procedures performed together with the review of the Company's quarterly information - ITR -, in order to conclude
whether they are reconciled with the interim financial information and accounting records, as applicable, and if their form and content
are in accordance with the criteria defined in NBC TG 09 - "Demonstration of Added Value". Based on our review, we are not aware
of any facts that lead us to believe that these statements of value added have not been prepared, in all material respects, in accordance
with the criteria defined in this standard and in a manner consistent with the parent company and consolidated interim financial information
taken as a whole.
Barueri, August 02, 2023.
Mazars Auditores Independentes – Sociedade Simples
Ltda.
CRC 2 SP023701/O-8
Éverton Araken Paetzold
Contador CRC 1PR 047.959/O-9
Quarterly Financial Information – June 30, 2023 – Companhia Siderúrgica Nacional – CSN (CONVENIENCE TRANSLATION INTO ENGLISH FROM THE ORIGINAL PREVIOUSLY ISSUED IN PORTUGUESE) | ![](https://www.sec.gov/Archives/edgar/data/1049659/000129281423003742/siditr2q236k_020.jpg) |
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Opinions and Statements / Officers Statement
on the Financial Statement
As Executive Officers of Companhia Siderúrgica Nacional, we declare
pursuant to Article 27, paragraph 1º, item VI, and Article 31, paragraph 1º, item II of CVM Instruction 80, of March 29, 2022,
that we reviewed, discussed and agreed with the Company’s Financial Statements for the quarter ended June 30,2023.
São Paulo, August 02, 2023.
Benjamin Steinbruch
CEO
Marcelo Cunha Ribeiro
Executive Officer – CFO and Investors Relations
David Moise Salama
Executive Officer
Luis Fernando Barbosa Martinez
Executive Officer
Stephan Heinz Josef Victor Weber
Executive Officer
Alexandre de Campos Lyra
Executive Officer
Quarterly Financial Information – June 30, 2023 – Companhia Siderúrgica Nacional – CSN (CONVENIENCE TRANSLATION INTO ENGLISH FROM THE ORIGINAL PREVIOUSLY ISSUED IN PORTUGUESE) | ![](https://www.sec.gov/Archives/edgar/data/1049659/000129281423003742/siditr2q236k_020.jpg) |
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Opinions and Statements / Officers Statement
on Auditor’s Report
As Executive Officers of Companhia Siderúrgica Nacional, we declare
pursuant to Article 27, paragraph 1º, item V and Article 31, paragraph 1º, item II of CVM Instruction 80, of March 29,2022,
that we reviewed, discussed and agreed with the opinion expressed on the Independent Auditors’ Report related to the Company’s
Financial Statements for the quarter ended June 30,2023.
São Paulo, August 02, 2023
Benjamin Steinbruch
CEO
Marcelo Cunha Ribeiro
Executive Officer – CFO and Investors Relations
David Moise Salama
Executive Officer
Luis Fernando Barbosa Martinez
Executive Officer
Stephan Heinz Josef Victor Weber
Executive Officer
Alexandre de Campos Lyra
Executive Officer
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Date: August 25, 2023
COMPANHIA SIDERÚRGICA NACIONAL |
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By: |
/S/ Benjamin Steinbruch
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Benjamin Steinbruch
Chief Executive Officer
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By: |
/S/ Marcelo Cunha Ribeiro
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Marcelo Cunha Ribeiro
Chief Financial and Investor Relations Officer
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FORWARD-LOOKING STATEMENTS
This press release may contain forward-looking statements. These statements are statements that are not historical facts, and are based on management's current view and estimates of future economic circumstances, industry conditions, company performance and financial results. The words "anticipates", "believes", "estimates", "expects", "plans" and similar expressions, as they relate to the company, are intended to identify forward-looking statements. Statements regarding the declaration or payment of dividends, the implementation of principal operating and financing strategies and capital expenditure plans, the direction of future operations and the factors or trends affecting financial condition, liquidity or results of operations are examples of forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. There is no guarantee that the expected events, trends or results will actually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.
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