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Corporate Presentation April 2010

Corporate Presentation April 2010. 1. Timeline. CSN – Share Ownership - December 31, 2009. 2008 Sale of 40% of NAMISA. BNDESPAR. 3%. CBS. 5%. 2007 Acquisition of CFM. 2007 First iron ore export shipment. Bovespa. Vicunha. 21%. 48%. 2005

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Corporate Presentation April 2010

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  1. Corporate PresentationApril 2010 1

  2. Timeline CSN – Share Ownership - December 31, 2009 2008 Sale of40% ofNAMISA BNDESPAR 3% CBS 5% 2007 Acquisition of CFM 2007 First ironore exportshipment Bovespa Vicunha 21% 48% 2005 Casa de Pedraand Itaguaí Terminalexpansions begin 1996/2002 CSN investedUS$4 Billionin technologicaladvances ADR´s 1993/1994 CSN privatization 23% 1974/1989 Three Expansionsin UPV 1946 Operational start-up 1941 CSN is founded 2 2

  3. Competitive Advantages Fully integrated business model: high quality mining operations with transport infrastructure and self-sufficiency in energy generation Low cost structure and high profitability High barriers to entry Pricing power with large buyers Diverse product portfolio and product mix Strong presence in Brazilian market, location in high-growthmarkets and presence in mature markets Strong liquidity with large cash balance Resilient performance in adverse market conditions Experienced management team 3

  4. CSN - Key Business Areas Mining Steel Cement Logistics Energy Thermal & Hydro Electric Plants Flat Steel Long Steel (*) Casa de Pedra & NAMISA MRS Railway & Transnordestina Itaguaí Logistics Platform Cement Plant Net Revenues % of 2009 72% 16% 12% 55% 30% 5% 10% Expected Net Revenues by 2016 Key Business Highlights • 5.6 mt of flat steel (2009 capacity) • # 2 flat steel producer in Brazil • Focus on high margin products • # 6 globally in iron ore production (23 Mt in 2009) • CSN is self-sufficient in iron ore production • Operations started in May 2009 • The by-products generated by CSN’s blast furnaces and CSN’s limestone reserves will be utilized to produce 6.4MT of cement. • Developed transport infrastructure, from iron ore mines to steel mills and ports • MRS Railway connects the Presidente Vargas steelworks to Casa de Pedra and terminals at Itaguaí Port, which handles steel exports • CSN has concessions to operate two deep-sea water terminals (TECON and TECAR) from which CSN exports its products and imports coal and coke • CSN is self-sufficient in energy production • CSN total energy Capacity: 428 MW * Operation expected to start up by 2011 4 4

  5. CSN, a Fully Integrated Company Brasil MG ES SP RJ Self-sufficiency in practically all relevant raw materials for steel production, in special, captives iron ore mines and power plants, along with equity participation or operating concessions of outstanding infrastructure assets, positions CSN not only as a truly low-cost producer but also one of the most independent and profitable steel producer worldwide Iron Ore mines (Casa de Pedra & NAMISA) 200 miles Lime & Dolomite mine (Arcos) 260 miles MRS railway (equity of 33%) FCA railway CSN mill (UPV) Rio de Janeiro FCA MRS São Paulo (Brazilian largest market) 270 miles Rio de Janeiro Port 80 miles Angra Port Sepetiba Port 60 miles Iron ore & Coal Terminal and Conteiners terminal (controled by CSN) 5

  6. Steel 6 6

  7. 24,048 22,060 18,541 18,535 18,316 10,118 16,812 8,670 7,294 7,413 7,809 6,644 13,930 13,390 11,022 11,122 10,732 10,168 2004 2005 2006 2007 2008 2009 Flat Products Long Products Brazilian Steel Market Overview Market Share Long Products 2009 Apparent Steel Use * Others 12% Gerdau Arcelor Mittal 49% 39% Market Share Flat Products 2009** ArcelorMittal 19% 45% Usiminas 36% • (*) IABR CSN ** estimated 7

  8. Domestic Market Export Steel – Sales Volume and Net RevenuesCSN is Domestically Focused Net Revenues Sales Volume (BRL MM) (000 Tons) 5,378 10,566 4,891 9,545 4,864 13% 8,890 4,384 7,894 4,110 15% 33% 7,766 28% 14% 41% 36% 21% 35% 33% 86% 87% 85% 79% 67% 72% 59% 64% 65% 67% 2009 2005 2006 2007 2008 2005 2006 2007 2008 2009 8

  9. Increase of the Steel Capacity • Production of 500,000 tons/year of long steel, such as CA50 rod bar (400Kt) wire rod (100Kt); • CSN will benefit from the existing infrastructure and utilities in Volta Redonda steel mill; • Operations expected to start by the 1st half 2011; • The total investment in long steel production will be of approximately US$340 million, including expansion and acquisition of an electric furnace; • The company plans to build two new long steel plants with annual capacity of 500,000 tons besides a long steel cold rolling unit aiming the expansion of its product portfolio (CA60 rod bar, lattice and wire) in order to better meet construction segment demand; • Flat steel expansion will be executed in 1.5 million tons modules. 9

  10. Mining 13 10 10

  11. Iron Ore – Sales Volume and Net Revenues 49% 51% Net Revenues (2) Sales Volume (1) (BRL MM) (MM Tons) 22.4 2,085 18.4 1,814 82% 80% 95% 10.5 97% 721 56% 3.2 166 20% 18% 100% 44% 5% 100% 3% 2006 2007 2008 2009 2006 2007 2008 2009 (2) Net revenues are consolidated (according to BRGAAP), considering 60% of NAMISA sales since Dec/08, given the NAMISA acquisition of 40% by the Asian Consortium. (1) Total sales volume reflects 100% of NAMISA sales. Domestic Market Export 11

  12. Iron Ore Project Expansion Mining and Logistics Mining Casa de Pedra Mine • Current capacity : 21 Mtpy • CSN Consumption: ~8.5 Mtpy • Future capacity (by 2016): 70 Mtpy • Mineral resources of ~8.4 billion ton • Reserves : 1.6 billion ton NAMISA (60%) • Current capacity: 6.8 Mtpy • Future capacity: 33 Mtpy • Acquisition from third-parties: 6.0 Mtpy • Future sales (by 2014): 39 Mtpy Logistics Itaguaí Port • Current capacity: 30 Mtpy • Future capacity (by 2016): 130 Mtpy Railway • MRS 100 km 0 km Facilities CSN/NAMISA LOADING TERMINALS VALE’S MINES CITIES BELO NAMISA / SARZEDO HORIZONTE STEELWORKS USIMINAS ACESITA Sarzedo Multicargo Railway Terminal NOVA Souza Noschese Railway Terminal CST LIMA VIT Ó RIA NAMISA / FERNANDINHO NAMISA / ENGENHO GERDAU- AÇOMINAS CSN CASA DE PEDRA Central Line – MRS JUIZ DE FORA CSN PRESIDENTE – Steel Railway – MRS VARGAS STEEL WORKS ATLANTIC OCEAN COSIGUA RESENDE ' S Ã O PAULO RIO DE JANEIRO COSIPA CSN – PORT OF ITAGUAI Í SANTOS 12

  13. Cement 13 13

  14. Cement Production • CSN started the production and sale of cement in May/09, operating with current capacity of 1 million tonnes; • 2009 sales totaled 338,000 tonnes; • Capex (cement/clinker): US$ 410 million (US$ 279 million already invested); • Takes advantage of the slag generated by CSN´s blast furnaces, own production of clinker and CSN´s limestone reserves; • CSN will use its own infrastructure: • - MRS Logística S/A; • - Distribution centers; • Current grinding capacity of 2.8 million tonnes: • - Capacity expansion of grinding may reach 6.4 million tonnes; • Current clinker capacity of 800,000 tonnes (Dec/2010): • - Capacity expansion of clinker may reach 4.6 million tonnes. 14

  15. Logistics 15 15

  16. Logistics – Railways and Port MRS Railway Itaguaí Port Nova Transnordestina • MRS Logística is a publicly held company with a concession to operate Brazil’s Southeastern railway system until the year 2026 • CSN holds directly and indirectly 33.27% of MRS’ total share capital, sharing control with Vale and Usiminas (as of December 31, 2009) • Net Revenues: R$ 2,276m in 2009 • EBITDA: R$ 1,230m in 2009 • EBITDA Margin of 54.0% in 2009 • Net Income: R$ 606m in 2009 • Total carloads: 129mt in 2009 • Concession: November 1996 • Maturity: October 2026 (30 years) • Renewable • TECAR: exports iron ore and imports coke and coal • Current capacity: iron ore shipments of 30 Mtpy and coal and coke unloading capacity of 4 Mtpy; • Future capacity: iron ore shipments of 130 Mtpy by 2016 and coal and coke unloading capacity of 8.5 Mtpy; • TECON: exports CSN’s steel products and export third-party containers • Current capacity: general cargo and steel products (2 Mtpy) and containers (480 K TEUpy); • Future capacity: general cargo and steel products (6 Mtpy) and containers (610 K TEUpy). • CSN owns 81.6% of the share capital • 1,728 km of track will be built creating the Nova Transnordestina • When completed, the railroad will connect the northeastern cerrado to Pecém/CE and Suape/PE Ports • The railroad will transport mainly grains, fertilizers, ores and fuels • Locos: 94 (current) + 56 (2010) • Cars: 1,700 (current) + 2,400 (2010) Source: MRS Logística website 16

  17. Energy 17

  18. Self-sufficiency in Energy % % % Thermoelectric Power Plant • CSN owns a thermoelectric power plant at Presidente Vargas mill, which provides approximately 60% of CSN’s electric energy needs. The plant processes steam and blown air from CSN’s blast furnaces. • Currently CSN is building a Top Recovery Turbine, which will start operating in 2011 and will provide additional capacity of 17MW. Total CAPEX: US$30 million. Hydroelectric Power Plants • CSN owns indirectly 29.5% of Itá hydroelectric facility, which has an installed capacity of 1,450 MW. • Additionally, CSN owns 17.9% of a consortium that operates Igarapava hydroelectric facility with an installed capacity of 210 MW. Average Utilized Capacity CSN Total Capacity: 428 MW Thermoeletric Power Plant 238 MW Itá Hydroelectric Power Plant 167 MW * 30 years Igarapava Hydro Power Plant 23 MW 18

  19. 34,695.8 11,423.5 8,806.8 1,880.7 6,229.2 6,355.6 CSN’s Investments Projects for 2010 to 2016 Total Investments (2010 to 2016) R$ million Mining Casa de Pedra Expansion up to 50 mtpa (1) (2) NAMISA expansion up to 39 mtpa (1) TECAR expansion up to 84 mtpa Steel Long Steel expansion Flat Steel expansion Other Projects (such as distribution, packaging) Cement Conclusion of Volta Redonda plant (2.8 mpta) Expansion (0.6 mtpa) 3 greenfield plants (3 mtpa) Others (such as Chalk and Clinker) Logistics (2) Transnordestina TECON OPERATIONAL EXCELLENCE / CONTINUITY (1) Potential production expansions of Casa de Pedra to 70 mtpa and TECAR to 130 mtpa are in process of development; (2) Amount equivalent to 100% of the project, regardless of equity interest.

  20. Financials 20 20

  21. Strong Revenue Growth Net Revenue by Business Segment Net Revenue by Market (BRL MM) (BRL MM) 16.000 16.000 14,003 14,003 14.000 14.000 15% 11,441 23% 11,441 12.000 12.000 10,978 10,978 10% 6% 10% 16% 10.000 10.000 28% 9,040 9,040 26% 2% 12% 12% 8.000 8.000 29% 6.000 6.000 77% 75% 84% 72% 74% 4.000 4.000 72% 86% 71% 2.000 2.000 - - 2006 2007 2008 2009 2006 2007 2008 2009 Other Mining Export Steel Domestic Market All Figures in charts are BRGAAP 21

  22. 2009 Performance Gross Profit (R$ MM) and Gross Margin (%) EBITDA (R$ MM) and EBITDA Margin (%) 45% 39% 39% 33% 33% 34% 29% 28% 1,376 1,204 1,177 992 836 802 683 728 2Q09 3Q09 4Q09 1Q09 1Q09 2Q09 3Q09 4Q09 EBITDA EBITDA Margin Gross Profit Gross Margin 22

  23. Debt Trends 35,000 4.0 4.0 3.5 30,000 3.0 25,000 2.5 2.5 20,000 1.9 2.0 1.8 1.8 1.8 1.7 1.7 15,000 1.5 1.3 1.0 1.0 10,000 1.0 0.4 5,000 0.5 8,470 8,799 9,425 8,759 11,635 14,363 0 0.0 2004 2005 2006(1) 2007 2008 2009 Debt Trends (x) (BRL MM) Total Debt Total Debt / LTM EBITDA Net Debt / LTM EBITDA Note: (1) EBITDA adjusted for earnings losses 23

  24. Market Cap Ranking US$ Billion In terms of Market Cap, CSN is ranked 8th among the main steel and mining companies worldwide 208.1 156.3 132.8 70.8 55.7 54.2 41.6 28.9 26.5 25.6 24.6 23.9 23.0 Vale CSN Posco Xstrata Rio Tinto Tenaris JFE Holdings BHP Billiton Nippon Steel Arcelormittal Anglo American Teck Resources Eurasian Natural Source: Bloomberg, March 26, 2010 24

  25. CSN’s shares performance 25

  26. Visit our website: www.csn.com.br/ir 26

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