a) general equity and financial conditions

CSN is a diversified industrial group that operates by means of business units that are integrated and supplementary, creating synergies and vertical and horizontal integration in their chains of industrial operation. CSN’s principal activities are concentrated in the exploration and sale of iron ore, production of flat and long steel, manufacture of cement, among other products, which are integrated by means of logistics assets such as participations in railway and harbor assets and in the energy segment. The high quality of the assets and products, coupled with the strong costs management and the integration of productive units in Brazil and abroad, enable generation of value that is greater than that of the sectorial competitors and reduces the volatility of its results.

The information shown in this item 10 of the Management Proposal must be read and analyzed jointly with our consolidated financial statements, which are available on our site (www.csn.com.br) and on the site of the Brazilian Securities Commission (www.cvm.gov.br).

On December 31, 2015 the Company showed a current ratio of 3.35, compared to 2.50 on December 31, 2014 and 2.95 on December 31, 2013. The variation in the current ratio on December 31, 2015 of 43% is explained by the lengthening of the terms of a portion of its debts, while on December 31, 2014 the variation was of 22%, which is explained by the short-term maturities of the Fixed Rate Notes transactions.

On December 31, 2015 the net indebtedness of the Company totaled R$26.4 billion, compared to R$21.7 billion on December 31, 2014, representing an increase of 22%, mainly deriving from the devaluation of the Real in relation to the U.S. dollar, applicable to its loans and financing that are pegged to the dollar. Also contributing to the increase were the funding for the period that amounted to R$978 million, as shown in Note No. 12 - Loans and Financing. On December 31, 2014 and 2013 the net indebtedness totaled R$21.7 billion and R$17.8 billion, respectively, when the increase of 22% observed between the mentioned fiscal years derived from the devaluation of the Real versus the U.S. dollar.

The table below reflects the financial condition of the Company in the last three fiscal years:

* Note: the loans and borrowings amount in the chart above includes the transactions costs, as per chart of item 10.1 (f).

b) capital structure and possibility of redeeming shares or quotas

The Company seeks optimization of its capital structure with the purpose of reducing its financial costs and maximizing the return for its shareholders. The chart below shows the evolution of the Company’s capital structure over the last three fiscal years, with financing through equity and debt:

Referring to the eventual redemption of shares, the Company, depending on the market’s conditions, may implement share buyback programs. The Company and its subsidiaries did not issue redeemable preferred shares over the last three fiscal years.

c) capacity of payment in relation to the financial commitments assumed

Currently, the Company has a significant liquidity position. Hence, the Board of Executive Officers understands that the Company has capacity of payment to meet its financial commitments assumed.

The graphs below show the cash and cash equivalents compared to the maturities of loans and financing on December 31, 2015, December 31, 2014 and December 31,2013.

* Amounts referring to loans and borrowings include the transaction costs.

d) funding sources for working capital and investments in non-current assets

The funding sources for working capital and investment in non-current assets used by the Company are lines of trade finance, lines of development banks, bonds issued in foreign markets, debentures and bank credit certificates (CCB), besides own funds. These funding sources in the domestic and foreign markets are described in item 10.1(f).

e) funding sources for working capital and investments in non-current assets the Company plans to apply to cover liquidity deficiencies

The Board of Executive Officers understands if it is necessary to cover any liquidity deficiency, the Company may take out special lines of credit, credit facility with banks and negotiate with its suppliers.

f) indebtedness levels and characteristics of debts, also describing:

(i)                   Relevant loan and credit facility agreements

a)       Relevant loan and credit facility agreements as at December 31, 2015

In thousands of R$

The balances of forfaiting and drawee risk transactions totaled R$372,835 on December 31, 2015 (R$470,679 thousand on December 31, 2014).

Prepayment balances with the Company’s related parties totaled R$5,929,037 thousand on December 31, 2015 (R$5,302,985 thousand on December 31, 2014) and the balances of Fixed Rate Notes and Intercompany Loans totaled R$4,088,749 thousand on December 31, 2015 (R$2,781,330 thousand on December 31, 2014).

·         Maturities of loans, borrowings and debentures recorded under non-current liabilities

On December 31, 2015, the principal amount updated to reflect interest and monetary adjustment of loans, borrowings and long-term debentures were as follows, per year of maturity:

·       Reconvention of Loans

In September 2015 the Company completed the lengthening of the term of a portion its debts with the Caixa Econômica Federal (Federal Savings Bank), amounting to R$2,570,000 thousand, and with the Banco do Brasil S.A., amounting to R$2,208,000 thousand, moving the maturities expected for 2016 and 2017 to the period comprised between 2018 and 2022, in equally distributed installments.

·       Amortization and raising of loans, borrowings and debentures

The table below shows the amortization and funding during the fiscal year ended December 31, 2015:

1.  Including interest, foreign exchange variations and unrealized monetary variations.

2.  Including interest, foreign exchange variations and unrealized monetary variations (sic).

In 2015 the CSN Group funded and repaid loans as shown below. The Company's loans and credit facility agreements provides for restrictive covenants, usual in agreements of this nature, which were fully met as at December 31, 2015.

·       Funding

a) Company’s results of operations, especially

(i) Description of any relevant revenue component

The Company is highly integrated, operating in the entire steel production chain, from the extraction of iron ore until the production and trade of coils, tin-coated for packages, shapes. The Company also holds equity participation in railroads, harbor terminals and energy generation companies, as well as operating in the production of cement.

The Company’s production integrated system, combined to the quality of management, makes the Company to have one of the world’s steel lowest production costs.

The Company seeks to maximize the return to its shareholders through a concentrated performance in five key activities: (i) mining; (ii) steel; (iii) logistics; (iv) cement; and (v) electricity.

1. Mining

1.1. Iron Ore

Congonhas Minérios, a company that results from the combination of the correlated mining and logistics business of CSN with Namisa, is positioned as the second largest exporter of iron ore in Brazil, considering the totality of the sales of finished goods from iron ore, having sold in 2015 approximately 27 million tons. Furthermore, 5.5 million tons of iron ore were sent to the Presidente Vargas Mill. In turn, Tecar, the harbor terminal operated by the Company located in the Port of Itaguaí, shipped approximately 28.2 million tons of iron ore in 2015.

In 2016 Congonhas Minérios will continue with the plan already in action of reduction of operating costs in order to deal with the current scenario of iron ore prices. The readequacy of its operating model will give rise also to more capture of synergies with the combination of the correlated mining and logistic business of CSN and Namisa.

The highest amount of the Company’s net revenues referring to the trading of iron ore derive from exports, mainly to Asia, especially China.

In 2015 28.9 million tons of iron ore were sold by CSN and 5 million tons were allocated to steel mill production up to November/15. In December/15, after the combination of the correlated mining and logistics business of CSN and of Namisa in Congonhas Minérios, 0.4 million tons were sold by Congonhas Minérios to CSN.

CSN traded 28.9 million tonnes of iron ore in 2014, of which 9.1 million tonnes were traded by Namisa. In addition, in 2014, the Company produced and destined to own consumption 6.0 million tonnes of iron ore.

Ion ore sales of Casa de Pedra mine and Namisa totaled 25.7 million tonnes in 2013, of which 10.3 million tonnes were traded by Namisa. In addition, in 2013, the Company produced and destined to own consumption 5.7 million tonnes of iron ore.

1.2. Limestone and Dolomite

The Bocaina mine, a limestone mine located in Arcos/MG (State of Minas Gerais), is responsible for the supply of limestone and dolomite, which are raw materials consumed by the Company for production of steel and cement.

In 2015 the Bocaina mine produced 3.489 million tons of limestone and dolomite, having supplied (i) approximately 1.727 million tons of steel mill fluxes (limestone and dolomite) to the UPV (Presidente Vargas Mill); (ii) 0.940 million tons of non-steel-mill limestone for the manufacture clinker in Arcos; (iii) 0.042 million tons of non-steel-mill limestone for production of cement in the Milling Unit located in the UPV, in Volta Redonda/RJ (State of Rio de Janeiro); and (iv) 0.303 million tons of sub-products from the production of limestone sold as input for industries that produce agricultural limestone. In addition, 0.477 million tons of sub-products from the production of limestone were kept in stock for future use in the production of clinker, after the implementation of the new clinker furnace.

In 2014, the Bocaina mine supplied to UPV approximately 1.77 million tonnes/year of steel limestone and 0.97 million tonnes/year of non-steel limestone to produce clinker in Arcos.

In 2013, the Bocaina mine supplied to UPV approximately 1.89 million tonnes/year of steel limestone and 0.92 million tonnes/year of non-steel limestone to produce clinker in Arcos/MG.

The clinker plant, main raw material to produce cement supplied 0.6 million, 0.7 million and 0.7 million tonnes of clinker in 2015, 2014 and 2013, respectively for the milling unit located in Volta Redonda.

1.3. Tin

One of the essential raw materials to produce tin plates is tin, produced by Estanho de Rondônia S.A (“ERSA”), a CSN’s subsidiary, with installed production capacity of approximately 3.6 thousand tonnes/year of tin. ERSA is composed of Mineração Santa Bárbara, Itapuã do Oeste, from where cassiterite is extracted, and tin works in Ariquemes, from where tin is obtained, both in the state of Rondônia.

The tin produced by ERSA is consumed by the Company in the production of tin plate at Presidente Vargas steel. In 2015 251 tons of tin were transferred to the UPV, while in 2014 and 2013 172 and 470 tons were shipped, respectively.

1.4. Tecar

The Solid Bulk Terminal (Tecar) is liable for the shipment of entire iron ore transacted by the Company in the overseas market. In addition, other products are unloaded at Tecar, such as coal, oil coke, sulfur and zinc concentrate for own consumption and several clients.

In 2015 28.2 million tons were shipped by Tecar of own and third party iron and 3.1 million tons of coal, coke and other reducers were unloaded.

In 2014, Tecar shipped 32.8 million tonnes of own and third parties iron ore and 3.4 million tonnes of coal, coke and other reducers.

In 2013, Tecar shipped 28.9 million tonnes of own and third parties iron ore and 3.1 million tonnes of coal, coke and other reducers were unloaded, besides 55,000 tonnes of clinker for own consumptio.

2. Steel

Dominating the entire steel production chain, the Company serves several industry segments, with a diversified line of high added-value line of products. The Company produces the most varied types of galvanized covered anti-corrosion materials and less susceptible to price fluctuations in the international market.

The main markets serviced by the Company are: automotive, civil construction, large chains (distribution), white goods (household appliances). OEM (capital goods) and metal packages.

The Company has five lines of galvanization in Brazil, thus distributed: three lines in Presidente Vargas steel mill, in Volta Redonda/RJ, one line in Porto Real, state of Rio de Janeiro and another one in CSN branch located in the state of Paraná, in Araucária, where it operates cold strip mill and pre-painting processes.

CSN also relies on three foreign subsidiaries: (i) CSN LLC (“CSN LLC”), installed in Terre Haute, in the State of Indiana, USA, which operates cold strip mill and galvanization, (ii) Lusosider (“Lusosider”), installed in Paio Pires, Portugal, which produces covered rolled steel and (iii) Stahlwerk Thüringen GmbH (“SWT”), installed in Unterwellenborn, Germany, which produces steel shapes.

CSN has an installed capacity of 1 million tonnes/year of tin plate, largely used in the package sector. The Company also produces the Galvalume, steel covered with zinc and aluminum, which combines brightness and durability, besides pre-painted steel, both largely applied in the civil construction and white goods sectors.

At the end of 2013, a unit in Volta Redonda was inaugurated, which manufacturers, long steel, with annual production capacity of 500,000 tonnes, among concrete reinforcing bars and wire rod.

2.1 - Presidente Vargas steel mill

The Company’s main steel unit, the Presidente Vargas steel mill has an annual installed capacity of 5.6 million tonnes of raw steel. In 2015 the production of raw steel reached 3.3 million tons and the production of rolled steel showed 4.0 million tons. In 2014, the production of raw steel amounted to 4.5 million tonnes, while production of rolled steel totaled 4.3 million tonnes. In 2013, the production of raw steel reached 4.5 million tonnes and the production of rolled steel reached 4.6 million tonnes.

2.2- Porto Real Branch

CSN’s branch in Porto Real/RJ is strategically located between the cities of Rio de Janeiro and São Paulo, mainly serving the automotive sector, with a wide range of international standard products and services. It relies on one line of hot galvanization, cutting services and a modern laser solder center. Production by the Porto Real branch came to 293, 333 and 354 thousand tonnes in 2015, 2014 and 2013, respectively.

2.3 –Paraná Branch

The CSN Paraná branch produces Galvalume®, which is mainly used in open-air constructions due to its high resistance to corrosion. The branch also produces pre-painted flat steel, which is a high value added product that is used in civil construction and in the production of white line goods. CSN Paraná has an annual capacity of 100 thousand tonnes of pre-painted steels and 220 thousand tonnes of hot-rolled pickled steel. The Paraná branch’s production totaled 509, 457 and 537 thousand tonnes in 2015, 2014 and 2013, respectively.

2.4 – Cia. Metalic Nordeste

CSN’s subsidiary, Cia. Metalic Nordeste, with head offices in the state of Ceará, produces two piece steel beverage cans, besides aluminum cover caps for beverage cans.

In 2015, Cia Metalic Nordeste sold 456 million cans and 471 million caps, while in 2014, Cia Metalic Nordeste sold 415 million cans and 517 million caps. In 2013, 507 million cans and 681 million caps were sold.

2.5- Companhia Metalúrgica Prada

Founded in 1936, Companhia Metalúrgica Prada (“Prada”) was acquired by CSN in 2006. Aimed to the production of steel packages and lithograph services, Prada has two plants located in São Paulo where its lithographic complex is located and the manufacturing of packages for chemical aerosol products and one in Uberlândia-MG concerned with food packages, representing a relevant tin mill steel client of CSN. Prada also operates in the distribution and services market. Currently, in the Southeast region, it owns a Services Center and six distribution centers of productions, including: sheets, blanks, coils, UDC shapes, welded tubes, steel deck and metal roof for the most diverse industry segments.

Its lines are capable of meeting volumes and technical specifications required by food, chemistry, aerosol and services industries.

In 2015, Prada by means of the distribution segment, sold 563 thousand tonnes of steel. In 2014 and 2013, 303 thousand and 386 thousand tonnes were sold, respectively, through the distribution segment.

2.6- Companhia Siderúrgica Nacional, LLC

Companhia Siderúrgica Nacional LLC located in the United States administers a cold rolled steel and galvanization mill, installed in Terre Haute, the State of Indiana. In 2015, 247,000 tonnes of cold rolled and galvanized coils were produced in CSN LLC. While in 2014 and 2013, this unit produced 262,000 tonnes and 297,000 tonnes, respectively of these same products.

2.7- Lusosider Projectos Siderurgicos S.A.

Installed in Paio Pires, Portugal, Lusosider Projectos Siderúrgicos, S.A. operates the cold rolling and hot galvanization. In 2015, Lusosider sold 321,000 tonnes of galvanized products, cold rolled steel and pickled oil/oiled coil, while in 2014 and 2013, these volumes reached 289,000 and 276,000 tonnes, respectively.

2.8- Stahlwerk Thüringen GmbH (SWT)

In 2012, CSN acquired Stahlwerk Thüringen GmbH, consolidating its results as of February 2012. Located in Unterwellenborn, Germany, the plant is specialized in the production of steel shapes employed in construction. In 2015, SWT sold 743,000 tonnes of steel shapes and in 2014 this volume added 746,000 tonnes of shapes.

3. Logistics

3.1 Port

Tecon, containers and general cargo terminal, administered by Sepetiba Tecon S.A., a CSN’s subsidiary. In 2015, it handled 152,000 containers, of which 926,000 tonnes of steel products and 206,000 tonnes of general cargo. In 2014, Tecon handled 173,000 containers, of which 364,000 tonnes of steel products and 110,000 tonnes of general cargo. In 2013, Tecon hadled over 257,000 containers, of which 116,000 tonnes of steel products and 22,000 tonnes of general cargo.

3.2 Railway

CSN holds interest in three railway companies: MRS Logística S.A. (“MRS”), FTL – Ferrovia Transnordestina Logística S.A. (“FTL”) and Transnordestina Logística S.A. (“TLSA”).

MRS

CSN directly and indirectly holds 37.27% of MRS Logística’s capital, which operates the former Southeast Network of Rede Ferroviária Federal S.A (RFFSA), in the Rio de Janeiro – São Paulo - Belo Horizonte connection.

MRS’s main performance segment is those clients referred to as heavy haul (ore, coal and coke loads), carrying approximately 124 million tonnes in 2015, corresponding to 74% of total amount carried by the Company, as well as long-term agreements.

In the containers sector, MRS maintained its position among the largest domestic railway sector carriers, by carrying 1.5 million tonnes containers in 2015, by comparison with a volume of 1.2 million tonnes in 2014 and 1.0 million tonnes in 2013.

The railway transportation services rendered by MRS are essential in the supply of raw materials and flow of final products. The total amount of iron ore, coal and coke consumed by Presidente Vargas steel mill is carried by MRS, as well as part of steel produced by CSN.

FTL

CSN holds 89.79% interest in FTL, operator of RFFSA’s former northeast network, which crosses seven states: Maranhão, Piauí, Ceará, Rio Grande do Norte, Paraíba, Pernambuco and Alagoas, with total extension of 4,534 km, with current transportation capacity of approximately 2 million tonnes/year, pointing out the transportation of cement, aluminum and ore, among other products.

In 2015, 2.4 million tonnes were transported, while in 2014, 2 million tonnes was transported, mainly fuel, cement, aluminum and ore, along with other products, particularly in the stretch between São Luís, Teresina and Fortaleza. In December 2013, first month of FTL operation, 100,000 tonnes were carried, pointing out the transportation of fuel, cement, aluminum and ore, among other products, especially in the stretch between São Luís, Teresina and Fortaleza.

TLSA

The railway project has an extension of 1,728 km, which will connect the railway terminal in Eliseu Martins (PI) to the Ports of Suape (PE) and Pecém (CE), crossing several cities in the states of Piauí, Pernambuco and Ceará.

The railway’s projected operation capacity is 30 million tonnes/year which must play an important role in the development of the Northeast region and create a logistics option for the local economic development, in the oil and byproducts, grains, mining, agriculture and other sectors. On December 31, 2015 CSN’s stake in TLSA was 56.91%.

4. Energy

CSN is one of Brazil’s largest electricity industrial consumers, which ranks it in an outstanding position together with other large Electro-intensive Groups. Thus, since 1999, CSN has been investing in electricity generation project that ensure to CSN a generation capacity sufficient to meet the group’s electricity needs.

Its assets in this segment are (i) the Itá hydroelectric power plant, in Santa Catarina, where the Company holds a 29.5% indirect interest by means of 48.75% equity interst in Itá Energética S. A., corresponding to an average 167 MW; (ii) the Igarapava hydroelectric power plant, in Minas Gerais, with an average 23.37 MW, and a 17.92% share of total capital; and (iii) the Thermoelectric co-generation center, at the Presidente Vargas steel mil, in Volta Redonda, with installed capacity of 235 MW. This unit uses own residual gases from steel production as fuel. 

In 2014, the top rotor shaft came into operation with a capacity of 21MW, installed in Blast Furnace 3 of the Presidente Vargas Steel Mill, which is located in Volta Redonda/RJ.

5. Cement

The cement industry is complementary to steel industry and supplies the entire civil construction segment, a sector of essential relevance for the country’s economic development.

In 2015 the new cement crushing operations located in Arcos/MG went into production, producing in that year 227 thousand tons. The capacity of the new crushing operations is of 2 million tons per year.

In 2015 there was production of 2.0 million tons of cement, 2.2 million in 2014 and 2.0 million tons of cement in 2013.

CSN currently commercializes cement of the CP-II and CP-III types, sold in the Baixada Fluminense region, in the South of the State of Rio de Janeiro, in the Paraíba Valley and in Greater São Paulo, in addition to the State of Minas Gerais.

Company’s Net Revenues

Tables and graphs below show the Company’s consolidated net revenue:

(ii) Factors materially affecting the operating results

The most relevant sources of the Company’s revenues derive from the production and trading of steel products and iron ore. Thus, Brazil’s and the world’s economic activity level has strong influence on its results.

The Company sells steel mill products mainly in the domestic market, however its sales of steel in the export market have been increasing. Therefore, one of the factors of influence on results is the domestic economy’s growth pace, especially the most intensive sectors in the use of steel, such as the automotive, while goods sectors and civil construction. These sectors are directly influenced by the availability and cost of credit to consumer. The macroeconomic politics decision, such as the level of interest rates, or which affect credit, such as taxes or other mechanisms are continuously monitored. The impact of infrastructure works is also a relevant factor, whether related to events, such as the Olympic Games or the growth of productive sectors, such as oil or civil construction, PAC works (Brazilian Growth Acceleration Program), amongst others.

Another factor of influence is the balance between world’s steel supply and demand, which determines the price levels and also influences the imports level.

In the mining sector, results are directly influenced by the balance between world’s iron ore supply and demand. The highest amount of the Company’s net revenues refers to the sale of iron ore deriving from exports mainly to Asia, especially China.

Referring to costs, metal coal and coke prices, metals such as aluminum, zinc and tin, as well as the foreign exchange rates, are relevant factors in steel production. In case of mining and logistics (railway transportation), the cost of fuel is a relevant componente. Additionally, as the Company has expansion projects, the cost of equipment and services is an essential variable to be monitored.

b) revenue variation attributable to changes in prices, exchange rates, inflation, changes in volumes and the introduction of new products and services

In the steel industry, besides the international prices, other factors may affect the prices of our products, such as foreign exchange rates, import duties, domestic supply and demand. In addition, the effects of inflation and of exchange rates affect the costs and the revenues, which could impact the profitability of the business.

Referring to mining, most of our sales derive from iron ore exports, therefore, pegged to the international demands. The foreign exchange component is the critical factor for determination of the competitiveness of costs and determination of the revenue.

In case of cement, revenue is denominated in Reais and inflationary variations may impact results. In this way the foreign exchange component is less representative in this segment.

Since most of the Company’s revenues derive from steel and mining sectors, the Company quantifies below the effects of changing volumes and prices over its revenues in these two segments.

In 2015 net revenue reached R$15.3 billion, 5% less in relation to that recorded in 2014, mainly due to the drop in revenue of the mining sector. The net revenue from the steel mill totaled R$11.2 billion, or 68.2% of the consolidated net revenue, with sales of 5.0 million tons of steel, of which 3.0 million in the domestic market and 2.0 in the export market (considering exports and sales abroad by means of the Lusosider, CSN LLC and SWT subsidiaries). The net revenue from mining totaled R$3.2 billion, representing 19.4% of the consolidated net revenue, with sales of 25.7 million tons of iron ore, predominantly in the export market.

In 2014, net revenue totaled R$16.1 billion, 7% lower than in 2013, mainly on account of the lower revenues from the mining and steel making segments. Net steel revenues amounted to R$11.5 billion, or 65% of consolidated net revenue, with sales of 5.2 million tonnes of steel, 3.7 million of which went to the domestic market and 1.5 million to the external market (taking into account exports and foreign sales by the company’s subsidiaries Lusosider, CSN LLC and SWT). Net mining revenues totaled R$4.1 billion, which represents 23.3% of consolidated net revenue, with sales of 28.9 million tonnes of finished iron ore products, mainly to the foreign market.

In 2013, the net revenue reached R$17.3 billion. 14% higher than that recorded in previous year, mainly due to higher revenue from steel and mining segments. The steel net revenues totaled R$12.4 billion or 63% of consolidated net revenues, with sales of 6.1 million of tonnes of steel, 4.6 billion in the domestic market and 1.5 million in the foreign market (including exports and foreign sales through the subsidiaries Lusosider, and CSN LLC and SWT). The mining net revenues totaled R$5.3 billion or 27% of consolidated net revenues, with sales of 25.7 million tonnes of iron ore finished products, mainly for the foreign market.

c) impact of inflation, price variation of main inputs and products, foreign exchange and interest rates on the Company’s operating and financial results

Part of the Company's costs and expenses is pegged to the Brazilian Real, with inflation adjustment clause in the agreements.

As mentioned in item (a), the prices of certain inputs directly influence the Company’s results, especially:

• Coal, coke, pellets and metals, in case of steel industry, pegged to the U.S. dollar;
• Fuel in case of mining and railway transportation; and
• Clinker in case of cement.

Besides production inputs, another relevant factor is the price of equipment and services, since the Company has a substantial portfolio of investment projects in all its business areas.

The Company is exposed to interest and foreign exchange rate risks on its loans, financing and short-term financial investments.

The financial resources that are available are invested in investment funds, which include committed transactions backed by private and government securities with pre-fixed earnings and having immediate liquidity. The private instruments are short-term financial investments in Bank Deposit Certificates (CDBs) with earnings pegged to the variation of the Interbank Deposit Certificates (CDIs) and the government securities are basically committed transactions backed by National Treasury Notes. In addition, the Company also invests a portion of its financial resources abroad in Time Deposits with pre-fixed rates.

CSN has debts in foreign currency and Brazilian currency, which are both pre- and post-fixed.

On December 31, 2015 47% of the debt was denominated in Reais, and the remaining 53% denominated in other currencies. On December 31, 2014 54% of the debt was denominated in Reais and the other 46% denominated in other currencies. On December 31, 2013 59% of the debt was denominated in Reais, and the remaining 41% denominated in other currencies.

The debt is pegged to the Libor (London Interbank Offered Rate), to the CDI (Interbank Deposit Certificate) and to the TJLP (Long-term Interest Rate). On December 31, 2015 approximately 47% of the debt was pegged to the floating interest rate (Libor, TJLP and CDI), compared with 49% on December 31, 2014 and 52% on December 31, 2013.

The consolidated net foreign exchange exposure on December 31, 2015 is shown in the table below:

It is stressed that CSN uses a number of instruments for protection from foreign exchange risk and from interest rate risk.

Effects on the Company’s operating results

In 2015 the cost of good sold totaled R$11,800 million, 2% more than in 2014, mainly due to the foreign exchange impact on the steel mill segment.

In 2014, the consolidated cost of products sold came out to a figure of R$11,592 millions, 7% lower than the comparable figure recorded in 2013, basically due to the lower cost of products sold in the steel segment.

In 2013, the consolidated cost of products sold reached R$12,423 million, 10% up over cost of products sold in 2012, basically due to the higher volume sold by steel industry and an increase of production costs in the steel industry.

Effects on the Company’s financial result

In 2015 the managerial net financial result was a negative R$3,889 million, as opposed to a net financial result in 2014 of R$3,081 million.

In 2014, the Company’s net financial result was a negative R$3,081 million by comparison with a negative net financial result of R$2,512 million in 2013.

In 2013, the Company’s net financial result was negative at R$2,512 million compared to a negative net financial result in 2012 of R$2,151 million.

a) introduction or disposal of operating segment

In 2013 and 2014 no operational segments were introduced or disposed of.

On December 11, 2014, CSN’s Board of Directors approved the establishment of a strategic aliance with an Asian consortium composed of ITOCHU Corporation, JFE Steel Corporation, POSCO, Ltd., Kobe Steel, Ltd., Nisshin Steel Co, Ltd. and China Steel Corp. (“Asian Consortium”). The transaction was concluded on November 30, 2015.

The transaction consists of the combination of the correlated mining and logistics business of the Company and of Namisa in a new company, Congonhas Minérios, including the commercial establishment relative to the Casa de Pedra iron ore mine, 18.63% of equity participation in MRS and the rights for operation of the Tecar harbor terminal, in Itaguaí (RJ).

The following stages were fulfilled for completion of the transaction:

• Payment of dividends by Namisa amounting to US$1.4 billion, equivalent to R$5.4 billion, which were paid prior to the closing of the transaction;

• Restructuring of Congonhas with the transfer by CSN, of the CNS assets and liabilities relative to Casa de Pedra, the rights to operate the Tecar, 60% of the shares of Namisa, 8.63% of the shares of MRS and US$850 million in debts, equivalent to R$3,370 million, as disclosed in note 9 c;

• Acquisition by Congonhas of 40% of the shares of Namisa held by the Asian Consortium, with the merger of the latter into Congonhas;

• Execution of the new shareholders agreement of Congonhas;

• Payment by CSN of US$680 million relative to the acquisition of 4% of the shares held by the Asian Consortium in Congonhas as well as an additional US$27 million relative to the acquisition of 0.16% of the shares likewise held by the Asian Consortium in Congonhas, totaling US$707 million, equivalent to R$2.7 billion; and

• Settlement of the pre-existing agreements with Namisa for supply of ROM (high and low silica), harbor services and iron ore processing.

Considering the position of the Congonhas assets, the capital contributions of the Asian Consortium in the transaction, as well as the adjustment deriving from the negotiations between the parties, adjustments of debt, cash and working capital difference, CSN and the Asian Consortium held, respectively, 87.52% and 12.48% of the capital stock of Congonhas Minérios at the end of the transaction.

The transaction also includes an earn-out mechanism, which, in the event of qualified liquidity that could occur within the given valuation parameters and within a agreed period of time agreed upon after the closing of the transaction, could dilute, at the exclusive discretion CSN, the participation of the Asian Consortium in Congonhas Minérios of 12.48% up to 8.21%. This mechanism was considered to be a contingent asset and no related asset was booked.

A portion of the production of Congonhas Minérios’ iron ore will be sold to the members of the Asian Consortium and to CSN. These rights are reflected in long-term supply agreements executed on November 30, 2015, the terms of which were negotiated on usual market conditions. The Company also ensured the use of the TECAR for import of raw materials by means of execution of a long-term agreement.

The impacts of the above event on the financial statements of the Company are summarized in the table below:

Events

R$ (million)

Accounting

Effect

DRE

PL

Gain in the assessment of the 60% of participation in Namisa at fair value - item 3.3 (a) iii

2,792

2,792

Gain in the settlement of the pre-existing relations - item 3.3 (c)

622

622

Deferred IR/CSLL (Income Tax/Social Contribution on Net Income) on the recorded earnings

(529)

(529)

Gain in the transaction between shareholders - item 3.4

1,945

Total impact of the business combination

2,885

4,830

For more information see explanatory note 3 of the Standardized Financial Statement for the fiscal year ended December 31, 2015.

b) creation, acquisition or disposal of equity interest

There was no establishment, acquisition or disposal of material shareholdings in 2013 and 2014.

As mentioned in item 10.3 “a” above, within the context of the strategic alliance established between the Company and the Asian Consortium, the Company acquired 4% of the shares of Congonhas Minérios held by the Asian Consortium for US$680 million and 0.16% for US$27 million, which resulted in final participations in the capital stock of Congonhas Minérios of 87.52% for the Company and 12.48% for the Asian Consortium.

c) non-usual events or operations

In the last three fiscal years there were no unusual events or operations which materially affected the Company’s business.

a) relevant changes in the accounting practices

New standards and interpretations not yet adopted

Standard

Description

Effective Date

IAS 16 and IAS 38

“Property, plant and equipment” and “Intangible assets” – in May 2014, the aforementioned accounting rules were revised, clarifying that the revenue based method will not be allowed for depreciation or amortization.

2016

IFRS 10 and IAS 28

“Consolidated financial statements” and “Investment in Affiliated Companies, Subsidiary Companies and in Jointly Controlled Enterprises” – in September 2014, a revised version was issued in which it was proposed that gains or losses as a result of the sale or contribution from a subsidiary which does not constitute a transaction, as defined in IFRS 3, between an investor and its subsidiary or jointly controlled subsidiary, is only recognized in the participation of the unrelated investors in the subsidiary or jointly controlled subsidiary.

2016

IFRS 7

“Financial instruments: Disclosure” – in September 2014, the IASB revised rule IFRS 7, with guidance on when a service contract has continuous involvement and establishing that the additional disclosure requirements do not only apply to interim periods. This rule has not yet been published by the CPC and should come into force with effect from 2016.

2016

IFRS 9

" Financial Instruments". IFRS 9 maintains but simplifies the combined measurement model and establishes two main measurement categories for financial assets: amortized cost and fair value. The basis of classification depends on the entity’s business model and the characteristics of financial asset's contractual cash flow.

For financial liabilities the rule retains most of the requirements of IAS 39.

The main change relates to those cases where the fair value calculated for financial liabilities should be segregated so that the part of the fair value related to the credit risk of the entity itself is recognized in “Other comprehensive income” and not in the result for the period.

IAS 39 guidance on the impairment of financial assets and hedge accounting is still applicable.

2018

IFRS 11

The amendments to IFRS 11 provide instructions on how to book a joint acquisition of a business that represents a “business” that apply the applicable principles of IFRS 3 for business combination (sic). The amendments also make it clear that an equity participation previously held in a joint transaction is not re-measured on the acquisition of additional participation in the same joint transaction for as long as the joint control is maintained.

2016

IFRS15

“Revenue from contracts with clients”. This new rule establishes the principles that an entity is to apply in order to determine the measurement of revenue and when it should be recognized.

This rule replaces IAS 11 – Construction Contracts, IAS 18 – Revenues and corresponding interpretations.

2018

IFRS16

Defines the principles for recognition, measurement, presentation and divulgement of leases. IFRS 16 substitutes IAS17 – Leases and related interpretations.

2019

There are no other regulations, changes in regulations or interpretations not yet in force that the Company expects to have a material impact when applied to its financial statements.

b) significant effects of the alterations in accounting practices

There was no alteration of accounting practice.

c) provisos and emphases that are present in the opinion of the auditor:

There are no provisos in the opinions of the independent auditors relative to fiscal years 2015, 2014 and 2013.

Emphases:

The opinion of the auditors emphasized, for the year 2013, that the individual financial statements of the Company were prepared in accordance with the accounting practices adopted in Brazil when they diverged from the IFRS, applicable to the segregated financial statement, only as regards the valuation of instruments in control subsidiaries, related companies and joint transactions by the equity accounting method.

In 2014 and 2015 there are emphases in the auditors opinion.

The Company’s critical accounting policies:

The preparation of the financial statements in accordance with the International Financial Reporting Standards (IFRS) and the rules issued by the Brazilian Accounting Pronouncements Committee (CPC) requires the use of certain accounting estimates and also the judgment by the Company’s management in the process of adoption of the Company’s accounting policies.

The estimates are based on the best knowledge existing in each fiscal year. Changes in facts and circumstances may lead to a revision on these estimates. Therefore, actual results may vary in relation to the estimates presented.

The significant assumptions and estimates, which are considered by the Company’s Management as requiring a higher judgment level and having greater complexity for the preparation of financial statements are presented as follows:

(a)     Fair value of business combination

The identifiable assets acquired and liabilities undertaken in a business combination are measured at fair value on the acquisition date, in compliance with CPC 15(R1) “Business Combination”. Consequently, when we determine the allocation of the acquisition price, there is an adjustment to the fair value of certain items—such as inventories, property, plant and equipment, mines, present value of noncurrent assets and liabilities—in accordance with valuation reports prepared by independent appraisers. The Company has 12 months (measurement term), as of the acquisition date, to additionally recognize better information on the fair value recognized on the acquisition date. The acquisition method is applied to account for each Company’s business combination. The Company recognizes non-controlling interest in its financial statements by the proportional amount of the fair value of the acquired company’s net assets.

Goodwill is represented by the positive difference between paid and/or payable value for the purchase of a business and the net amount of fair value of assets and liabilities of the subsidiary acquired. If there is a gain from an advantageous purchase, the Company must recognize it immediately in the period’s results on the acquisition date.

(b) Useful life of assets

Depreciation is calculated by the straight-line method, based on the remaining economic useful life of the assets in accordance with Note 10 to the consolidated financial statements. The useful lives initially established by independent experts are revised at least once per year for all units.

If some components of property, plant and equipment have different useful life, these components are separately recognized as property, plant and equipment items.

(c) Mineral reserves and useful life of mines

The estimates of proven and probable mineral reserves are regularly evaluated and updated. These reserves are determined using generally accepted estimation techniques. Calculating the reserves requires the use of several assumptions by the mining team, and any changes in these assumptions can have a significant impact on recorded proven and probable reserves and useful life of mines.

(d) Impairment of tangible and intangible assets

Assets with an indefinite useful life, such as goodwill, are not subject to amortization and are tested on an annual basis to verify impairment. Assets subject to amortization or depreciation are revised for impairment purposes whenever events or changes in circumstances show that the book value may not be recoverable. The value recognized as impairment loss corresponds to the book value of the asset exceeding its recoverable value. The latter is the highest value between an asset fair value net of sale costs and its value in use. For the purposes of impairment valuation, assets are divided into the lowest levels for which there are identifiable cash inflows separately (CGUs). Non-financial assets, except for goodwill, which have been impaired, are subsequently reviewed to analyze a possible impairment reversal on the reporting date.

In the case of equity securities (shares) classified as available-for-sale, a significant or prolonged decline in the fair value of an investment in an equity instrument below its cost is also objective evidence of impairment. To determine what is considered a “significant” or “prolonged” decline requires judgment, which includes the assessment of several factors such as the historical changes in the equity prices, the duration and proportion in which the fair value of the investment is lower than its cost, and the financial health and short-term prospects of the business for the investee, including industry and segment performance, changes in technology, and operating and financial cash flows.

(e) Post-employment and pension benefits

The pension plans granted by the Company cover essentially all its employees. The amounts recorded depend on several assumptions, determined by actuarial calculation, in accordance with CPC 33(R1) – Employee Benefits. These assumptions are described in Note 27 to the Company’s consolidated financial statements and include, among others, internal rate of return and nominal wage growth. When the benefits of a plan are increased, the increased benefit portion relating to employee’s previous service is recognized in the statement of income at the straight-line method during the average period until benefits become vested. Under the condition that benefits become immediately vested, expense is instantly recognized in the income.

The Company opted to account for all actuarial gains and losses resulting from defined benefit plans directly in other comprehensive income, which later are transferred to retained profits or losses. If the plan is extinguished, all the accumulated actuarial gains and losses are recorded in the income.

The parent company and some subsidiaries offered a post-retirement healthcare benefit to its employees. The expected costs of these benefits are accumulated during the employment period, being calculated through the same accounting method used for defined benefit pension plans.

These obligations are annually evaluated jointly with qualified independent actuaries.

(f) Provisions

Provisions for legal proceedings are recorded only when the expectation of loss is considered probable and an amount can be safely estimated. This determination is carried out jointly by the Company’s Management and legal advisors. The estimates are duly recognized in the financial statements in accordance with CPC 25 – Provisions, Contingent Liabilities and Contingent Assets.

The Company is party to legal suits and administrative proceedings involving tax issues which are deemed as unconstitutional, therefore the Company believes these taxes should not be paid. The amounts recorded for such tax disputes and other contingencies can undergo future changes due to developments in each case, including changes in the legislation, final court decisions specific for the Company, which in the uncertain legal Brazilian environment, as well as in other jurisdictions, require significant estimates and judgments to be made by the Company’s Management regarding the results of future events. More details on provisions can be found in Note 17 to the Company’s consolidated financial statements.

(g) Income tax and social contribution

The current and deferred income tax and social contribution are calculated based on the enacted tax laws on the date of the balance sheet, including in countries in which the entities of the Group operate and generate taxable income. Management assesses periodically the positions assumed in the calculation of taxes on income in relation to the situations in which the applicable tax regulations give margin for construals. The Company accrues provisions, when appropriate, based on the estimated amounts of payment to the tax authorities. The current and deferred taxes are recognized in the results, unless they are related to the business combination, or items that are directly recognized in the stockholders equity. 

The current tax is the event that is expected to be payable or receivable on the taxable profit or loss of the fiscal year, at rates that are decreed on the date of presentation of the financial statements and any adjustment to taxes payable in relation to previous fiscal years. 

Deferred tax is recognized based on temporary differences arising between the book values of assets and liabilities for accounting purposes and corresponding amounts applied for tax purposes.  The deferred tax is not recognized for temporary differences that derive from the initial recognition of assets and liabilities in a transaction that is not a business combination and that does not affect either the book profit not the tax profit or loss, and differences related to investments in subsidiaries and controlled entities when it is probable that they will not revert within a predictable future.

Furthermore, liability deferred tax is not recognized for temporary tax differences resulting from the initial recognition of a premium. The deferred tax is measured by applying the tax rates that are expected to be applied to the temporary differences when they are reverted, based on the laws enacted up to the date of presentation of the financial statements.

Current income tax and social contribution are shown net, by taxpaying entity, in liabilities when there are amounts payable, or in assets when the amounts paid in advance exceed the total payable on the date of the report.

Deferred tax assets and liabilities are offset when there is a legal right to set off current tax assets against current tax liabilities and when they relate to income taxes levied by the same taxation authority on the same entity subject to taxation.

A deferred income tax and social contribution asset is recognized for all tax losses, tax credits, and temporary differences to the extent that it is probable that taxable profits will be available against which those tax losses, tax credits, and deductible temporary differences can be utilized. Annually a review is conducted to verify the existence of future taxable profits and a provision is recognized for loss when the realization of such credits is not probable within a period of less than 10 years.

(h) Allowance for doubtful accounts

The allowance for doubtful accounts was established in an amount considered sufficient to support possible losses. Management’s assessment of these provisions takes into account the client’s history and financial situation and the opinion of our legal advisors regarding the receipt of these credits for the recording of this provision.

(i) Fair value of derivative financial instruments

·         Derivative instruments

The Company recognizes in its balance sheet all derivative financial instruments at fair value. Certain derivative instruments do not qualify for hedge accounting. Changes in the fair value of any of these derivative instruments are immediately recognized in the income statement under “Financial result”.

With regard to fair value measurement, it is necessary to consider factors such as future foreign exchange and interest rates. To better understand the possible impacts caused by fluctuations of exchange and interest rates on the Company’s main instruments and positions, see Note 13 to the Company’s consolidated financial statements.

·         Hedging activities

The Company uses hedge accounting and designates certain financial liabilities as instruments for hedging foreign exchange risks in conjunction with the cash flows from forecast and highly probable exports (cash flow hedge).

At the start of the operation the Company registers the ratios between the hedge instruments and the items protected by hedge (forecast exports), as well as the objectives of risk management and the strategy for carrying out various hedge operations. The Company also registers its assessment, both at the start of and throughout the hedge operation, that the transaction is effective in offsetting variations in the cash-flows of the items protected by the hedge.

The effective part of the changes in the fair value of financial liabilities, designated and qualified as cash-flow hedge is recognized in shareholders’ equity, under the heading “Hedge Accounting”. The gains or losses related to the non-effective part are recognized in the financial result, when applicable.

The cumulative values in shareholders’ equity are shown in the income statement in the periods in which the forecast exports affect the result.

When a hedge instrument lapses or is settled in advance, or the hedge ratio no longer meets the accounting criteria for Hedge Accounting, or when Management decides to discontinue hedge accounting, all cumulative gains or losses that are in shareholders’ equity at that moment remain registered in shareholders’ equity. When the forecast transaction is carried out, the gain or loss will be reclassified, and be transferred to the result. When it is no longer expected that a forecast operation will take place, the cumulative gain or loss which had been shown in shareholders’ equity is immediately transferred to the result under the heading “Financial Result”.

The movements of the hedge values denominated are shown in note 13.b.

a) assets and liabilities directly or indirectly held by the Company that are not included in its balance sheet (off-balance sheet items), such as:

(i) operating leases, taken and extended;

(ii) receivable portfolio write-offs that create any risks or responsibilities for the Company, plus all relevant liabilities where applicable;

(iii) future goods and services purchase and sale agreements;

(iv) incomplete building agreements;

(v) contratos de recebimentos futuros de financiamentos.

The Company has the following relevant liabilities that are not included in its financial statements (amounts in R$ thousand):

Take-or-Pay Agreements

On December 31, 2015 and 2014 the Company had take-or-pay agreements, as shown in the table below:

Concession Agreements

The future minimum payments relative to the governmental concessions, on December 31, 2015, expire as shown in the table below:

b) other items not included in the financial statements:

Not applicable.

a) how such items change, or may change in the future, the revenues, expenses, operating result, financial expenses or other items in the Company’s financial statements:

See item 10.6

b) the nature and purpose of the operation:

See item 10.6

c) the nature and amount of the obligations assumed and rights created in favor of the Company as a result of the operation:

See item 10.6

a) investments, including:

(i) a quantitative and qualitative description of investments in progress and estimated investments;

(ii) sources of investment funding; and

(iii) material divestments in progress and estimated divestments.

b) acquisitions already announced of plants, equipment, patents or other assets that may materially affect the Company’s production capacity;

Quantitative and qualitative description of investments in progress and estimated investments

The Company’s Investment Budget for 2016 contemplates finalization of capital projects in progress and projects of current investments that are fundamental for maintenance of the conditions of operational capacity, environment and safety. New investments will be assessed considering the merchandising conditions, financial capability and perspective of generation of additional cash of each project.

Considering these guidelines, the investments projected for 2016 are in the order of R$1.4 billion, detailed below:

·         Cement: R$529 million, for finalization of the new clinker furnace in Arcos;

·         Steel Mill: R$500 million, particularly for current investment projects in the UPV coking plants, environmental projects (TAC UPV), projects for technological modernization in the UPV, completion of the expansion of the Service Center in Mogi das Cruzes and maintenance projects in the remaining units;

·         Mining: R$111 million, particularly for balance of payment for mining equipment, projects in progress for the processing of iron ore, studies for Phase 60 Mtpa in the Tecar and current investment projects in the units;

·         Other investments: R$72 million for current investments in the other operations (such as FTL and Tecon) and of a corporate nature (such as TI); and

·         Spare parts: R$180 million.

In 2015, the investments made by the Company came to a total of R$2,2 billion, mainly in the following sectors:

·         Cement: R$438 million for completion of two new crushing operations and implementation of the new clinker furnace;

·         Steel Mill: R$345 million, particularly for current investment projects in the UPV coking plants, environmental projects (TAC UPV), projects for energy efficiency (TG20), projects for technological modernization in the UPV, expansion of the Service Center in Mogi das Cruzes and maintenance projects in the remaining units;

·         Mining: R$898 million, particularly for acquisition of new mining equipment, conduction of projects in the processing of iron ore, balance of payments for expansion of the Tecar and current investment projects in the units;

·         Other investments: R$117 million for current investments in the other operations (such as FTL and Tecon) and of a corporate nature (such as TI); and

·         Spare parts: R$360 million.

The Company’s main planned investments are detailed below:

Mining (iron ore)

Considering the marketing conditions, financial capability and perspective of generation of additional cash of the project, in a first phase one assesses the expansion of the production capacity of the Casa de Pedra mine to 40 million tons per year and expansion of the capacity of the Harbor in Itaguaí/RJ (Tecar) from 45 million tons (capacity expanded in 2013) to 60 million tons.

Steel

The investments plan for the coming years gives priority to current investment projects with efficiency gains, such as the revamping of the coking plants, steelworks, picking, casting, in addition to implementation of environmental projects (TAC UPV), projects for technological modernization in the UPV, completion of the expansion of the Service Center of Mogi das Cruzes and maintenance projects in the remaining units.

Cement

CSN is implementing a cement windmill and clinker furnace in Arcos, where the Company already operates a clinker furnace using own-mine limestone. With this project, annual cement production capacity in the Southeast Region should rise to roughly 4.4 million tonnes. In a subsequent phase the Company evaluates the implementation of an advanced crushing, adding an additional 1 million tons.

FTL - Ferrovia Transnordestina Logística S.A.

Recently created company with the purpose of incorporating the spun-off portion of Transnordestina Logística S.A. and operating the former Northeastern Network. Concession of a 30-year term, granted on December 31, 1997, renewable for an additional 30 years, to operate the Northeastern Brazil railroad system. This railway system covers 4,238 kilometers of railroads in the states of Maranhão, Piauí, Ceará, Paraíba, Pernambuco, Alagoas and Rio Grande do Norte. The planned investments are projects of current investments and modernization of the infrastructure of the permanent railway, rolling stock and operational management, in order to increase the competitiveness of the railway and attract new volumes of cargo.

Ports (Tecon)

The container terminal (Tecon), managed by Sepetiba Tecon S.A., CSN’s subsidiary, is a hub port. According to the Brazilian Association of Public Use Container Terminals (ABRATEC), Tecon is the largest container terminal in Rio de Janeiro and one of the largest in its segment in Brazil.

The Tecon was recently expanded by means of implementation of the project of equalization of berth 301, giving rise to a continual dock for simultaneous operation of large vessels. Within this project the capacity of the terminal was raised to approximately 440 thousand containers per year.

The planned investments are receiving priority for current investment projects, aiming at operational modernization.

Sources of Funding for Investments

The Company expects to finance these investments through its own cash, public or private financing, and/or strategic partnership.

Material Divestments in Progress and Estimated Divestments

With the primary objective of reducing the financial leveraging of the Company, management is committed to executing a plan of disposal of a combination of assets and believes that a portion of such assets can be sold, however, it is not possible to confirm that the sale, within a period of 12 months, is highly probable for any one of the contemplated assets. The Company considers a number of sales scenarios that vary on account of the different macro-economic and operational assumptions. In this context, the Company did not segregate or reclassify such assets in the financial statements as discontinued operations, pursuant to CPC 31 (IFRS 5).

c) new products and services, including:

(i) description of research in progress that has already been disclosed;

(ii) total amounts spent by the Company on research to develop new products or services;

(iii) projects under development already disclosed; and

(iv) total amounts spent by the Company on the development of new products or services.

CSN invests in research and development to improve its products and processes, aiming to meet market demands and expectations of its clients. Among the products developed, the following stand out:

Consolidation in the Brazilian automobile market of dual-phase High Resistance Advanced Galvanized Steel class DP600;

• Beginning of supply in the Brazilian automotive market of Ferritic-Bainitic Advanced High-Resistance Galvanized Steel of the FB590 class;
• Consolidation in the Brazilian civil construction, standing out the manufactuer of silos, of High Resistance Galvanized Steel class ZAR400;
• Consolidation in the Brazilian automotive market of the IF (Interstitial Free) High-Resistance Galvanized Steel of the IF 180 and 200 classes.
• High Carbon Hot Rolled Steel containing Ni, Cr and Mo for application in Chainsaw chains (SAE 8660 MOD).
• New applications of tinned steel in the Brazilian Market (aerosol and easy-opening lid).

Expenses on research for innovation of new products and services totaled R$3,662 thousand in 2015.

The following projects are in the development phase:

• Advanced Dual Phase High-Resistance Galvanized Steel of the DP800 class for application on structural parts of automobile bodies;
• PHS1500 Galvanized Steel for Hotpressing for application on structural parts of automobile bodies;
• IF (Interstitial Free) Galvanized High-Resistance Steel of IF 260 and 300 classes for application on structural parts of the automobile bodies, when high-resistance and good formability are required;
• High-resistance Structural Galvanized Steel of the G450, G500 and G550 classes for application in the Civil Construction segment, mainly for the silos market.
• High Carbon Hotrolled Steel for Chainsaws (SAE 8660), projected for the U.S. market.
• New applications of tin plated steel in the Brazilian Market (aerosol and easy-opening containers).
• High-Resistance and Low Alloy Coldrolled Steel, HSLA 420 and 500 for the automotive industry.
• Development of CHQ (Cold Heading Quality) Wire Rod;

The total expenses on the development of new products and services came to R$16,116 thousand in 2015.

10.09 Other factors significantly impacting operating performance that were not identified or commented on in other items of this section.

All relevant and pertinent information was identified or commented on in the other items in this section.

Name

Benjamin Steinbruch

Date of birth

6/28/1953

Profession

Business Administrator

CPF

618.266.778-87

Position to be occupied

Permanent member of the Board of Directors

Other positions or functions exercised in the issuer

Chief Executive Officer

If designated by the controlling shareholder or not

Yes

If an independent member and, if positive, what was the criterion used by the issuer to determine the independence

Not applicable

Number of consecutive terms of office

23

Information on:

i. principal professional experiences during the last 5 years, designating:

• name and sector of activity of the company

• position

• if the company is a member (i) of the economic group of the issuer or (ii) is controlled by a shareholder of the issuer that detains direct or indirect participation equal to or greater than 5% of one same class or kind of security of the issuer

ii. designation of all of the administrative positions held in other companies or organizations of the third sector

Mr. Steinbruch has been a member of the Board of Directors since April 23, 1993, and it’s Chairman since April 28, 1995. He has also been CSN’s CEO since April 30, 2002. Currently, he serves as a member of the Board of Directors of Câmara Portuguesa, the first Vice-Chairman of FIESP, a position he has held since September 2004, a member of FIESP's Superior Strategic Council, a board member of Instituto Roberto Simonsen and a member of the CCI – Inter-Institutional Advisory Board of the Court of Justice of the State of São Paulo. In the last five years, Mr. Steinbruch was Chairman of the Board of Directors and CEO of Vicunha Siderurgia S.A., Vice Chairman of the Board of Directors of Textília S.A., Chairman of the Board of Directors of Vicunha Aços S.A., Vicunha S.A., Fibra Cia. Securitizadora de Créditos Financeiros, Fibra Cia. Securitizadora de Créditos Imobiliários and Banco Fibra S.A., member of the Board of Directors of Elizabeth S.A. – Indústria Têxtil, Vicunha Participações S.A. and Vicunha Steel S.A., Executive Officer of Rio Purus Participações S.A. and Rio Iaco Participações S.A., Administrator of Fazenda Alvorada de Bragança Agro-Pastoril Ltda., Ibis Agrária Ltda., Ibis II Empreendimentos Ltda., Ibis Participações e Serviços Ltda. and Haras Phillipson Ltda. (all of which are part of CSN’s controlling group), Chairman of the Board of Directors of Transnordestina Logística S.A. and Nacional Minérios S.A. (both jointly controlled by CSN), FTL – Ferrovia Transnordestina Logística S.A. and Companhia Metalúrgica Prada (both controlled by CSN) and CEO of the Advisory Board of Fundação CSN. He earned a Business Administration degree from Escola de Administração de Empresas da Fundação Getúlio Vargas – SP, and completed a post-graduate program in Marketing and Finance at Fundação Getúlio Vargas - SP.

Description of any one of the following events that have occurred during the last 5 years:

i. any criminal conviction

ii. any conviction in an administrative proceeding of the CVM and the penalties applied

iii. any final and unappealable conviction in the judicial or administrative sphere, which may have suspended or made him ineligible for the practice of any professional or commercial activity

Mr. Benjamin Steinbruch declared, for all legal purposes, that over the past 5 years, he has not been subject to any criminal conviction, any convictions or penalty in administrative proceedings before the CVM or any final and unappealable decision, whether legal or administrative, suspending or disqualifying him from practicing any professional or business activity.

Name

Fernando Perrone

Date of birth

5/6/1947

Profession

Attorney

CPF

181.062.347-20

Position to be occupied

Permanent member of the Board of Directors

Other positions or functions exercised in the issuer

Member of the Audit Committee

If designated by the controlling shareholder or not

Yes

If an independent member and, if positive, what was the criterion used by the issuer to determine the independence

Independent member according to the following criteria: (i) does not have any entailment with the Company; (ii) is not the controlling shareholder, spouse or relative up to the second degree of the controlling shareholder, and is not entailed to a company or entity that is related to the controlling shareholder; (iii) was never an employee or executive officer of the company, of the controlling shareholder or of a company controlled by the Company in the last 5 years; (iv) is not a supplier or buyer, either direct or indirect, of services and/or products of the Company, in a magnitude that could imply loss of independence; (v) is not an employee or executive officer of a company or entity that is offering or claiming services and/or products to/from the Company; (vi) is not a spouse or a relative up to the second degree of any administrative officer of the Company; and (vii) does not receive any remuneration from the Company other than the remuneration received as a result of acting in the function of board member and member of the Audit Committee of the Company.

Number of consecutive terms of office

14

Information on:

i. principal professional experiences during the last 5 years, designating:

• name and sector of activity of the company

• position

• if the company is a member (i) of the economic group of the issuer, or (ii) is controlled by a shareholder of the issuer that detains direct or indirect participation equal to or greater than 5% of one same class or kind of security of the issuer

ii. designation of all of the administrative positions held in other companies or organizations of the third sector

Mr. Perrone has been a member of the Company’s Board of Directors since September 26, 2002 and member of the Audit Committee since June 24, 2005. He served as the Infrastructure and Energy Officer of the Company from July 10, to October 2, 2002. He is a member fo the Board of Directors of Profarma - Distribuidora de Fármacos S.A, where he acts as Chairman, João Fortes Engenharia S.A., Energia Sustentável S.A., Libra Aeroportos - Aeroporto de Cabo Frio and FTL – Ferrovia Transnordestina Logística S.A. (controlled by CSN) and alternate member of the Board of Directors of Transnordestina Logística S.A. (jointly-controlled by CSN). He also operates as an independente consultant in the infrastructure area. He earned a Business Administration degree in a program sponsored by "Chimica" Bayer S.A., in Law from Universidade Federal Fluminense and a post-graduate program in Economics in the Capital Market area from Fundação Getúlio Vargas.

Description of any one of the following events that have occurred during the last 5 years:

i. any criminal conviction

ii. any conviction in an administrative proceeding of the CVM and the penalties applied

iii. any final and unappealable conviction in the judicial or administrative sphere, which may have suspended or made him ineligible for the practice of any professional or commercial activity

Mr. Fernando Perrone declared, for all legal purposes, that over the past 5 years, he has not been subject to any criminal conviction, any convictions or penalty in administrative proceedings before the CVM or any final and unappealable decision, whether legal or administrative, suspending or disqualifying him from practicing any professional or business activity.

Name

Yoshiaki Nakano

Date of birth

8/30/1944

Profession

Business Administrator

CPF

049.414.548-04

Position to be occupied

Permanent member of the Board of Directors

Other positions or functions exercised in the issuer

Member of the Audit Committee

If designated by the controlling shareholder or not

Yes

If an independent member and, if positive, what was the criterion used by the issuer to determine the independence

Independent member according to the following criteria: (i) does not have any entailment with the Company; (ii) is not the controlling shareholder, spouse or relative up to the second degree of the controlling shareholder, and is not entailed to a company or entity that is related to the controlling shareholder; (iii) was never an employee or executive officer of the company, of the controlling shareholder or of a company controlled by the Company; (iv) is not a supplier or buyer, either direct or indirect, of services and/or products of the Company, in a magnitude that could imply loss of independence; (v) is not an employee or executive officer of a company or entity that is offering or claiming services and/or products to/from the Company; (vi) is not the spouse or a relative up to the second degree of any administrative officer of the Company; and (vii) does not receive any other remuneration from the Company other than the remuneration received as a result of acting in the function of board member and member of the Audit Committee of the Company.

Number of consecutive terms of office

12

Information on:

i. principal professional experiences during the last 5 years, designating:

• name and sector of activity of the company

• position

• if the company is a member (i) of the economic group of the issuer or (ii) is controlled by a shareholder of the issuer that detains direct or indirect participation equal to or greater than 5% of one same class or kind of security of the issuer

ii. designation of all of the administrative positions held in other companies or organizations of the third sector

Mr. Nakano has been a member of the Company’s Board of Directors since April 29, 2004 and a member of the Audit Committee since June 24, 2005. He i salso a member of the Board of Directors of Transnordestina Logística S.A. (jointly-controlled by CSN) and in the past five years, he has been a professor of Economics at Fundação Getúlio Vargas and Director of the Escola de Economia da Fundação Getúlio Vargas de São Paulo, a member of the Superior Economic Council (COSEC) of FIESP/IRS and was a member of the Board of Directors of Fundação de Amparo à Pesquisa do Estado de São Paulo – FAPESP until 2015. Previously, he served as the special Secretary of Economic Issues for the Ministry of Finance and the Secretary of Finance of the State of São Paulo. He has a degree in Business Administration from Fundação Getulio Vargas and a Master’s and Doctorate from Cornell University, in the United States.

Description of any one of the following events that have occurred during the last 5 years:

i. any criminal conviction

ii. any conviction in an administrative proceeding of the CVM and the penalties applied

iii. any final and unappealable conviction in the judicial or administrative sphere, which may have suspended or made him ineligible for the practice of any professional or commercial activity

Mr. Yoshiaki Nakano declared, for all legal purposes, that over the past 5 years, he has not been subject to any criminal conviction, any convictions or penalty in administrative proceedings before the CVM or any final and unappealable decision, whether legal or administrative, suspending or disqualifying him from practicing any professional or business activity.

Name

Antonio Bernardo Vieira Maia

Date of birth

7/15/1959

Profession

Business Administrator

CPF

510.578.677-72

Position to be occupied

Permanent member of the Board of Directors

Other positions or functions exercised in the issuer

Member of the Audit Committee and of the Finance Committee

If designated by the controlling shareholder or not

Yes

If an independent member and, if positive, what was the criterion used by the issuer to determine the independence

Independent member according to the following criteria: (i) does not have any entailment with the Company; (ii) is not the controlling shareholder, spouse or relative up to the second degree of the controlling shareholder, and is not entailed to a company or entity that is related to the controlling shareholder; (iii) was never an employee or executive officer of the company, of the controlling shareholder or of a company controlled by the Company; (iv) is not a supplier or buyer, either direct or indirect, of services and/or products of the Company, in a magnitude that could imply loss of independence; (v) is not an employee or executive officer of a company or entity that is offering or claiming services and/or products to/from the Company; (vi) is not the spouse or a relative up to the second degree of any administrative officer of the Company; and (vii) does not receive any other remuneration from the Company other than the remuneration received as a result of acting in the function of board member and member of the Audit Committee of the Company.

Number of consecutive terms of office

3

Information on:

i. principal professional experiences during the last 5 years, designating:

• name and sector of activity of the company

• position

• if the company is a member (i) of the economic group of the issuer or (ii) is controlled by a shareholder of the issuer that detains direct or indirect participation equal to or greater than 5% of one same class or kind of security of the issuer

ii. designation of all of the administrative positions held in other companies or organizations of the third sector

Mr. Maia has been a member of the Company’s Board of Directors since April 30, 2013 and has also been a member of its Audit Committee since August 8, 2013, and has held the position of Chairman of the Audit Committee since May 6, 2014 and the Finance Committee since October 7, 2014. He has been CEO of BRG Capital Ltda. since July 2005 and a member of the Board of Directors of Transnordestina Logística S.A. (jointly-controlled by CSN) and FTL – Ferrovia Transnordestina Logística S.A. (controlled by CSN). Previously, he served as executive officer of Credit Suisse / Banco Garantia de Investimentos S.A. from April 1995 to May 2005. He began his career in Citibank Brazil as a trainee in 1982 and moved to Citibank New York in 1986, where he acted as Institutional Investment Analyst of Citigroup in Latin America until he became an executive officer. He was also an associate of Banco Bozano Simonsen de Investimentos from August, 1979 to December, 1981 and a member of the Board of Directors of Banque Bénédict Hentsch & Cie S.A, Geneve, Switzerland from April to December, 2006. He earned a degree in Public Administration and Business in 1981 from Fundação Getúlio Vargas.

Description of any one of the following events that have occurred during the last 5 years:

i. any criminal conviction

ii. any conviction in an administrative proceeding of the CVM and the penalties applied

iii. any final and unappealable conviction in the judicial or administrative sphere, which may have suspended or made him ineligible for the practice of any professional or commercial activity

Mr. Antonio Bernardo Vieira Maia declared, for all legal purposes, that over the past 5 years, he has not been subject to any criminal conviction, any convictions or penalty in administrative proceedings before the CVM or any final and unappealable decision, whether legal or administrative, suspending or disqualifying him from practicing any professional or business activity.

Name

Léo Steinbruch

Date of birth

5/16/1968

Profession

Businessman

CPF

110.885.048-09

Position to be occupied

Permanent member of the Board of Directors

Other positions or functions exercised in the issuer

Not applicable

If designated by the controlling shareholder or not

Yes

If an independent member and, if positive, what was the criterion used by the issuer to determine the independence

Not applicable

Number of consecutive terms of office

1

Information on:

i. principal professional experiences during the last 5 years, designating:

• name and sector of activity of the company

• position

• if the company is a member (i) of the economic group of the issuer or (ii) is controlled by a shareholder of the issuer that detains direct or indirect participation equal to or greater than 5% of one same class or kind of security of the issuer

ii. designation of all of the administrative positions held in other companies or organizations of the third sector

Is a member of the Board of Directors of the Company since April 28, 2015 and a member of the Board of Directors of Elizabeth S.A. Indústria Têxtil, Vicunha Aços S.A., Vicunha Participações S.A., Vicunha Steel S.A. and Textília S.A., acts as Executive Officer of CFL Participações S.A. and Taquari Participações S.A. and is an administrative officer of Fazenda Santa Otília Agropecuária Ltda. (all of such companies are part of the controlling group of CSN).

Description of any one of the following events that have occurred during the last 5 years:

i. any criminal conviction

ii. any conviction in an administrative proceeding of the CVM and the penalties applied

iii. any final and unappealable conviction in the judicial or administrative sphere, which may have suspended or made him ineligible for the practice of any professional or commercial activity

Mr. Léo Steinbruch declared, for all legal purposes, that over the past 5 years, he has not been subject to any criminal conviction, any convictions or penalty in administrative proceedings before the CVM or any final and unappealable decision, whether legal or administrative, suspending or disqualifying him from practicing any professional or business activity.

Total compensation for the fiscal year ended December 31, 2013 – Annual Amounts

Board of Directors

Statutory Board

Fiscal Council

Total

No. of members ¹

7.00

6.00

N/A

13.00

Number of Remunerated Members

7.00

6.00

N/A

13.00

Fixed annual compensation

R$1,641,600

R$10,860,312

N/A

R$12,501,912

Salary or pro labore

R$1,008,000

R$7,154,018

N/A

R$8,162,018

Direct and indirect benefits

N/A

R$2,275,490

N/A

R$2,275,490

Participation in committees

R$360,000

R$ 0

N/A

R$360,000

Other

R$273,600

R$1,430,804

N/A

R$1,704,404

Variable compensation

N/A

R$17,038,199

N/A

R$17,038,199

Bonus

N/A

R$14,198,499

N/A

R$14,198,499

Profit sharing

N/A

R$ 0

N/A

R$ 0

Participation in meetings

N/A

R$ 0

N/A

R$ 0

Commissions

N/A

R$ 0

N/A

R$ 0

Other

N/A

R$2,839,700

N/A

R$2,839,700

Post-employment benefits

N/A

R$117,712

N/A

R$117,712

Benefits due to interruption of position

N/A

R$ 0

N/A

R$ 0

Share-based compensation

N/A

R$ 0

N/A

R$ 0

Total compensation

R$1,641,600

R$28,016,222

R$0

R$29,657,822

Total compensation for the fiscal year ended December 31, 2014 – Annual Amounts

Board of Directors

Statutory Board

Fiscal Council

Total

No. of members ¹

6.92

4.67

N/A

11.59

Number of Remunerated Members

6.92

4.67

N/A

11.59

Fixed annual compensation

R$,606,080

R$9,447,575

N/A

R$11,053,655

Salary or pro labore

R$978,400

R$5,956,969

N/A

R$6,935,369

Direct and indirect benefits

N/A

R$2,299,311

N/A

R$2,299,311

Participation in committees

R$360,000

R$0

N/A

R$360,000

Other

R$267,680

R$1,191,294

N/A

R$1,458,974

Variable compensation

N/A

R$23,807,218

N/A

R$23,807,218

Bonus

N/A

R$19,939,348

N/A

R$19,939,348

Profit sharing

N/A

R$0

N/A

R$0

Participation in meetings

N/A

R$0

N/A

R$0

Commissions

N/A

R$0

N/A

R$0

Other

N/A

R$3,867,870

N/A

R$3,867,870

Post-employment benefits

N/A

R$115,763

N/A

R$115,763

Benefits due to interruption of position

N/A

0

N/A

R$0

Share-based compensation

N/A

0

N/A

R$0

Total compensation

R$1,606,080

R$33,370,555

R$0

R$34,976,635

Total Compensation for the fiscal year ended December 31, 2015 – Annual Amounts

Board of Directors

Statutory Board

Fiscal Council

Total

No. of members¹

6.67

6.17

N/A

12.83

Number of Remunerated Members

6.67

6.17

N/A

12.83

Fixed annual compensation

R$1,585,440

R$14,004,454

N/A

R$15,589,894

Salary or pro labore

R$961,200

R$9,759,385

N/A

R$10,720,585

Direct and indirect benefits

N/A

R$2,293,192

N/A

R$2,293,192

Participation in Committees

R$360,000

R$0

N/A

R$360,000

Other

R$264,240

R$1,951,877

N/A

R$2,216,117

Variable compensation

N/A

R$31,987,610

N/A

R$31,987,610

Bonus

N/A

R$26,656,342

N/A

R$26,656,342

Profit sharing

N/A

R$0

N/A

R$0

Participation in meetings

N/A

R$0

N/A

R$0

Comissions

N/A

R$0

N/A

R$0

Other

N/A

R$5,331,268

N/A

R$5,331,268

Post-employment benefits

N/A

R$310,625

N/A

R$310,625

Benefits due to interruption of position

N/A

R$0

N/A

R$0

Share-based compensation

N/A

R$0

N/A

R$0

Total compensation

R$1,585,440

R$46,302,689

R$0

R$47,888,129

Total compensation – 2016 Projection

Board of Directors

Statutory Board

Fiscal Council

Total

No. of members ¹

9.67

7.67

N/A

17.33

Number of Remunerated Members

9.67

7.67

N/A

17.33

Fixed annual compensation

R$2,102,400

R$21,631,044

N/A

R$23,733,444

Salary or pro labore

R$1,392,000

R$15,957,706

N/A

R$17,349,706

Direct and indirect benefits

N/A

R$2,481,796

N/A

R$2,481,796

Participation in Committees

R$360,000

R$0

N/A

R$360,000

Other

R$350,400

R$3,191,541

N/A

R$3,541,941

Variable compensation

N/A

R$64,560,261

N/A

R$64,560,261

Bonus

N/A

R$53,800,217

N/A

R$53,800,217

Profit sharing

N/A

R$0

N/A

R$0

Participation in meetings

N/A

R$0

N/A

R$0

Comissions

N/A

R$0

N/A

R$0

Other

N/A

R$10,760,043

N/A

R$10,760,043

Post-employment benefits

N/A

R$522,342

N/A

R$522,342

Benefits due to interruption of position

N/A

R$0

N/A

R$0

Share-based compensation

N/A

R$0

N/A

R$0

Total compensation

R$2,102,400

R$86,713,647

R$0

R$88,816,047

Variable compensation – fiscal year ended December 31, 2013

Board of Directors

Statutory Board

Fiscal Council

Total

Number of members

N/A

6.00

N/A

6.00

Bonus

Minimum amount expected for the compensation plan²

N/A

R$0

N/A

R$0

Maximum amount expected for the compensation plan ¹

N/A

R$19,139,762

N/A

R$19,139,762

Amount expected for the compensation plan – goals achieved

N/A

R$19,139,762

N/A

R$19,139,762

Actual amount booked

N/A

R$14,198,499

N/A

R$14,198,499

Profit sharing

Minimum amount expected for the compensation plan

N/A

N/A

N/A

N/A

Maximum amount expected for the compensation plan

N/A

N/A

N/A

N/A

Amount expected for the compensation plan – goals achieved

N/A

N/A

N/A

N/A

Actual amount booked

N/A

N/A

N/A

N/A

Variable compensation – fiscal year ended December 31, 2014

Board of Directors

Statutory Board

Fiscal Council

Total

Number of members

N/A

4.67

N/A

4.67

Bonus

Minimum amount expected for the compensation plan²

N/A

R$0

N/A

R$0

Maximum amount expected for the compensation plan ¹

N/A

R$18,201,207

N/A

R$18,201,207

Amount expected for the compensation plan – goals achieved

N/A

R$18,201,207

N/A

R$18,201,207

Actual amount booked

N/A

R$19,939,348

N/A

R$19,939,348

Profit sharing

Minimum amount expected for the compensation plan²

N/A

N/A

N/A

N/A

Maximum amount expected for the compensation plan ¹

N/A

N/A

N/A

N/A

Amount expected for the compensation plan – goals achieved

N/A

N/A

N/A

N/A

Actual amount booked

N/A

N/A

N/A

N/A

Variable compensation – fiscal year ended December 31, 2015

Conselho de Administração

Diretoria Estatutária

Conselho Fiscal

Total

Number of members

N/A

6.17

N/A

6.17

Bonus

Minimum amount expected for the compensation plan²

N/A

R$0

N/A

R$0

Maximum amount expected for the compensation plan ¹

N/A

R$19,841,154

N/A

R$19,841,154

Amount expected for the compensation plan – goals achieved

N/A

R$19,841,154

N/A

R$19,841,154

Actual amount booked

N/A

R$26,656,342

N/A

R$26,656,342

Profit sharing

Minimum amount expected for the compensation plan²

N/A

N/A

N/A

N/A

Maximum amount expected for the compensation plan ¹

N/A

N/A

N/A

N/A

Amount expected for the compensation plan – goals achieved

N/A

N/A

N/A

N/A

Actual amount booked

N/A

N/A

N/A

N/A

Variable compensation projected for the current fiscal year (2016)

Board of Directors

Statutory Board

Fiscal Council

Total

Number of members

N/A

7.67

N/A

7.67

Bonus

Minimum amount expected for the compensation plan²

N/A

R$0

N/A

R$0

Maximum amount expected for the compensation plan ¹

N/A

R$53,800,217

N/A

R$53,800,217

Amount expected for the compensation plan – goals achieved

N/A

R$53,800,217

N/A

R$53,800,217

Actual amount booked

Profit sharing

N/A

N/A

N/A

N/A

Minimum amount expected for the compensation plan

N/A

N/A

N/A

N/A

Maximum amount expected for the compensation plan

N/A

N/A

N/A

N/A

COMPANY

December 31, 2015

Board of Directors

Statutory Board

Fiscal Council

Total

Company

Type

Companhia Siderúrgica Nacional

Common shares 

1,550

89,000

-

90,550

SUBSIDIARIES

December 31, 2015

Board of Directors

Executive Board

Fiscal Council

Total

Company

Type

Rio Purus Participações S.A.

Common shares

1,000

1,000

N/A

1,000

SUBSIDIARIES

December 31, 2015

Board of Directors

Executive Board

Fiscal Council

Total

Company

Type

Cia. Metalic Nordeste

Common Shares

0

1

0

1

Companhia Florestal do Brasil

Common Shares

0

1

0

1

CSN Gestão de Recursos Financeiros Ltda.

Capital stock quotas

1

1

0

1

Estanho de Rondônia S.A.

Common Shares

0

1

0

0

Mineração Nacional S.A.

Common Shares

0

1

0

1

Sepetiba Tecon S.A.

Common Shares

0

1

0

1

Companhia Metalúrgica Prada

Common Shares

0

1

0

1

Nordeste Logística S.A.

Common Shares

0

1

0

1

CBS Previdência – Caixa Beneficente dos Empregados da Companhia Siderúrgica Nacional

Board of Directors

Statutory Board

Number of members^(¹)

N/A

7

Name of the plan⁽²⁾

N/A

Supplementary Benefit Mixed Plan and CBSPREV Benefits Plan

Number of management members entitled to retire

N/A

4

Conditions for early retirement

N/A

⁽³⁾

Updated amount of accumulated contributions up to the close of the last fiscal year, excluding contributions paid directly by management members

N/A

R$2,617,782.92

Total amount of accumulated contributions up to the close of the last fiscal year, excluding contributions paid directly by management members

N/A

R$285,657.06

Early withdrawal and its conditions

N/A

Yes, members who no longer work for the Sponsor and do not receive CBS payments