Part of the Usiminas team in the Blast Furnace 3 Control Room at the Ipatinga Plant: with a huge dedication from our entire team during the relining, the equipment will feature important improvements that will increase its operational and environmental efficiency.

HIGHLIGHTS 3Q23

  • Steel sales 1.0 million tons;
  • Iron ore sales of 2.4 million tons;
  • Adjusted EBITDA negative R$20 million;
  • Net loss of R$166 million;
  • Cash Position R$5.7 billion;
  • Net debt/EBITDA of 0.21x.

Market data on 09/30/2023

USIM5 R$6.64/share

B3

USIM3 R$6.94/share

US/OTC

USNZY

US$1.27/ADR

XUSI €1.39/share

LATIBEX

XUSIO €1.32/share

Consolidated - R$ million

3Q23

2Q23

∆

3Q22

∆

9M23

9M22

∆

Steel Sales Volume (000 t)

1,021

972

5%

1,047

-2%

3,028

3,269

-7%

Iron Ore Sales Volume (000 t)

2,391

2,398

0%

2,242

7%

6,672

6,241

7%

Net Revenue

6,714

6,887

-3%

8,434

-20%

20,857

24,811

-16%

Adjusted EBITDA

(20)

366

-

836

-

1,129

4,325

-74%

Adjusted EBITDA Margin

0%

5%

- 6 p.p.

10%

- 10 p.p.

8%

17%

- 10 p.p.

Net Income or Loss

(166)

287

-

609

-

666

2,932

-77%

Investments (CAPEX)

886

879

1%

604

47%

2,346

1,318

78%

Working Capital

7,900

9,444

-16%

10,700

-26%

7,900

10,700

-26%

Cash and Cash Equivalents

5,720

4,941

16%

5,137

11%

5,720

5,137

11%

Net Debt

353

965

-63%

965

-63%

353

965

-63%

Net Debt/Adjusted EBITDA

0.21x

0.38x

-0.17x

0.14x

0.06x

0.21x

0.14x

0.06x

For Immediate Release - Belo Horizonte, October 27, 2023. Usinas Siderurgicas de Minas Gerais SA - Usiminas (B3: USIM3, USIM5 and USIM6; OTC:

USDMY and USNZY; Latibex: XUSIO and XUSI) today announces its third quarter results of fiscal year 2023 (3Q23). The Company's operating and financial information, except when otherwise stated, is presented based on consolidated numbers in Brazilian Real, in accordance with the IFRS (International Financial Reporting Standards). The comparisons made in this release take into account the second quarter of 2023 (2Q23), except stated otherwise. Statements contained in this release regarding business prospects, projections of operational and financial results and references to the Company's growth potential constitute mere predictions, based on Management's expectations regarding its future performance. These expectations are highly dependent on market behavior, the economic situation in Brazil, the industry and international markets, and are therefore subject to change.

1

Operational and Economic-Financial Performance

Consolidated Operating Results

R$ thousand

3Q23

2Q23

∆

3Q22

∆

Net Revenues

6,714,210

6,887,396

-3%

8,434,426

-20%

Domestic Market

5,561,514

5,625,511

-1%

7,003,201

-21%

Exports

1,152,696

1,261,885

-9%

1,431,225

-19%

COGS

(6,538,854)

(6,304,931)

4%

(7,430,460)

-12%

Gross Profit

175,356

582,465

-70%

1,003,966

-83%

Gross Margin

2.6%

8.5%

- 5.8 p.p.

11.9%

- 9.3 p.p.

Operating Income and Expenses

(420,010)

(452,008)

-7%

(362,001)

16%

Selling Expenses

(110,685)

(155,479)

-29%

(139,207)

-20%

General and Administrative

(165,941)

(148,267)

12%

(140,384)

18%

Other Operating Income and expenses

(225,681)

(210,400)

7%

(146,963)

54%

Participation in the Results of Associate and Jointly-controlled subsidiaries

82,297

62,138

32%

64,553

27%

EBIT

(244,654)

130,457

-

641,965

-

EBIT Margin

-3.6%

1.9%

- 5.5 p.p.

7.6%

- 11.3 p.p.

Depreciation and Amortization

261,514

262,314

0%

224,953

16%

EBITDA (Instruction CVM 527)

16,860

392,771

-96%

866,918

-98%

EBITDA Margin (Instruction CVM 527)

0.3%

5.7%

- 5.5 p.p.

10.3%

- 10.0 p.p.

(-) Equity in the Results of Associate and Jointly-controlled subsidiaries

(82,297)

(62,138)

32%

(64,553)

27%

(+) Jointly-controlled subsidiaries proportional EBITDA

42,843

41,940

2%

36,421

18%

(-)Impairment

2,680

(6,214)

-

(3,160)

-

Adjusted EBITDA

(19,914)

366,359

-

835,626

-

Adjusted EBITDA Margin

-0.3%

5.3%

- 5.6 p.p.

9.9%

- 10.2 p.p.

Main non-recurring itens

-

-

-

-

-

Adjusted EBITDA Excluding Non-Recurring Itens

(19,914)

366,359

-

835,626

-

Adjusted EBITDA Excluding Non-recurring Itens Margin

-0.3%

5.3%

- 5.6 p.p.

9.9%

- 10.2 p.p.

Net Revenue

Net Revenue in the 3Q23 reached R$6.7 billion, 2.5% lower than in the 2Q23 (R$6.9 billion), with declines in all Business Units. The factors that led to these variations will be explained in the Business Unit Section of this Release.

Cost of Goods Sold - COGS

Cost of goods sold (COGS) in the 3Q23 totaled R$6.5 billion, a 3.7% increase compared to the 2Q23 (R$6.3 billion), with increase in the Steel Unit. Variations will be explained in the Business Unit Section of this Release.

Gross profit

Gross profit was R$175 million in 3Q23, 69.9% lower than in the 2Q23 (R$582 million).

Operating Income and Expenses

Sales expenses in the 3Q23 were R$111 million, 28.8% lower than the previous quarter (2Q23: R$155 million), with lower sales expenses in the Mining Unit.

In the 3Q23, General and Administrative Expenses totaled R$166 million, 11.9% higher than the previous quarter (2Q23: R$148 million), mainly with higher expenses in the Steel Unit.

Other operating income (expenses) totaled negative R$226 million in 3Q23, expenses 7.3% higher than the previous quarter (2Q23: negative R$210 million), with higher expenses in the Steel and Mining Units.

Share in the results of subsidiaries and jointly controlled and associate companies totaled R$82 million in 3Q23, expenses 32.4% higher than the previous quarter (2Q23: R$62 million), with higher revenues in the Steel and Mining Units.

Thus, the Operating income (expenses) were a negative R$420 million in the 3Q23 against negative R$452 million in the 2Q23.

2

Adjusted EBITDA reached a negative R$20 million in the 2Q23, R$386 million less than that accounted in the 2Q23 (R$366 million). Adjusted EBITDA margin was 0.3% in the 3Q23, compared to 5.3% in the previous quarter.

Adjusted EBITDA

Consolidated (R$ thousand)

3Q23

2Q23

3Q22

9M23

9M22

Net Income (Loss)

(165,586)

287,357

608,575

665,847

2,931,674

Income Tax / Social Contribution

(176,883)

48,572

204,275

61,504

1,181,937

Financial Result

97,815

(205,472)

(170,885)

(301,101)

(424,527)

Depreciation, Amortization and depletion

261,514

262,314

224,953

772,498

668,185

EBITDA - Instruction CVM - 527

16,860

392,771

866,918

1,198,748

4,357,269

(-) Equity in the Results of Associate and Jointly-controlled subsidiaries

(82,297)

(62,138)

(64,553)

(189,482)

(155,594)

(+) Jointly-controlled subsidiaries proportional EBITDA

42,843

41,940

36,421

123,474

126,925

(-) Impairment of Assets

2,680

(6,214)

(3,160)

(3,534)

(3,160)

Adjusted EBITDA

(19,914)

366,359

835,626

1,129,206

4,325,440

Adjusted EBITDA Margin

-0.3%

5.3%

9.9%

5.4%

17.4%

Adjusted EBITDA is calculated based on the net profit (loss) for the year, reversing: (a) income tax and social contribution; (b) the financial result; (c) depreciation, amortization and depletion; (d) participation in the results of jointly controlled and associated companies;

  1. impairment of assets; and including a proportional EBITDA of 70% of Unigal and other jointly controlled companies.

Consolidated Adjusted EBITDA and Adjusted

EBITDA Margin (R$ million):

9.9%

10.8%

7.6%

5.3%

836

783

-0.3%

579

366

(20)

3Q22

4Q22

1Q23

2Q23

3Q23

Consolidated Financial Result

R$ thousand

3Q23

2Q23

∆

3Q22

∆

9M23

9M22

∆

Financial Income

295,323

295,276

0%

434,235

-32%

892,774

964,148

-7%

Financial Expenses

(260,810)

(261,505)

0%

(238,226)

9%

(711,779)

(641,522)

11%

Net Currency Exchange Variation

(132,328)

171,701

-

(25,124)

427%

120,106

101,901

18%

Exchange variation on assets

72,030

(81,341)

-

165,523

-56%

(60,319)

156,561

-

Exchange variation on liabilities

(204,358)

253,042

-

(190,647)

7%

180,425

26,007

594%

FINANCIAL RESULT

(97,815)

205,472

-

170,885

-

301,101

424,527

-29%

+ Appreciation / - Depreciation of Exchange Rate (R$/US$)

-3.9%

5.1%

- 9.1 p.p.

-3.2%

- 0.7 p.p.

4.0%

3.1%

+ 0.9 p.p.

The Financial result in the 3Q23 was negative R$98 million, R$303 million lower than in the previous quarter (2Q23: R$205 million), with the accounting of foreign exchange losses of R$132 million, compared to net foreign exchange gains of R$172 million accounted in the previous quarter.

Net Profit (Loss)

R$ thousand

3Q23

2Q23

∆

3Q22

∆

9M23

9M22

∆

EBIT

(244,654)

68,319

-

577,412

-

426,250

3,533,490

-88%

EBIT Margin

-3.6%

1.0%

- 4.6 p.p.

6.8%

- 10.5 p.p.

2.0%

14.2%

- 12.2 p.p.

Financial Result

(97,815)

205,472

-

170,885

-

301,101

424,527

-29%

Operating Profit or Loss

(342,469)

335,929

-

812,850

-

727,351

4,113,611

-82%

Income Tax / Social Contribution

176,883

(48,572)

-

(204,275)

-

(61,504)

(1,181,937)

-95%

Net Income or Loss

(165,586)

287,357

-

608,575

-

665,847

2,931,674

-77%

Net Margin

-2.5%

4.2%

- 6.6 p.p.

7.2%

- 9.7 p.p.

3.2%

11.8%

- 8.6 p.p.

3

In the 3Q23, the Company recorded net loss of R$166 million, R$453 million less than the net profit presented in the previous quarter (2Q23 R$287 million), mainly affected by the lower operating result and exchange losses accounted in the 3Q23.

Working capital

In the 3Q23, working capital was R$7.9 billion, 16.3% lower than in the2Q23 (R$9.4 billion).

The main variations were:

  • • Reduction of Inventories by R$810 million, mainly with the slab inventories. At the end of the 3Q23, Usiminas had 148 thousand tons of slabs to supply production during the Blast Furnace 3 revamp;

  • Increase in Suppliers by R$405 million, with an increase in the average payment period in the quarter;
  • Increase in Customer Advances by R$329 million.

Working Capital (R$ Million)

10,700

10,578

9,845

9,444

7,900

3Q22

4Q22

1Q23

2Q23

3Q23

Steel Inventories (Thousand Tons)

1,009

1,163

1,085

941

821

3Q22

4Q22

1Q23

2Q23

3Q23

Investments (CAPEX)

In the 3Q23, CAPEX totaled R$886 million, 0.8% higher than the 2Q23 (R$879 million), of which 83.2% was in the Steel Unit, 13.6% in the Mining Unit, and 3.2% in the Steel Processing Unit.

Cash and Indebtedness

867

879

886

13

8

28

189

61

121

604

580

7

5

66

33

664

810

737

532

543

3Q22

4Q22

1Q23

2Q23

3Q23

Steel

Mining

Steel Transformation

Consolidated Cash and Cash Equivalents on 09/30/23 was R$5.7 billion, 15.8% higher compared to the position on 06/30/23 (R$4.9 billion), due to the decrease in working capital by R$1.5 billion, partially compensated by CAPEX of R$886 million, as demonstrated below:

4

*"Others" detailed in Cash Flow in the Annexes Section.

(5,720)
6,074
353
(5,072)
0,23x
1,130
6,202

On 09/30/23, Gross consolidated debt was R$6.1 billion, 2.8% higher than the gross

Consolidated Debt (R$ million)

debt on 06/30/23 (R$5.9 billion), with the effect of the 3.9% depreciation of the Real against the Dollar in the period.

0,14x

6,102

965

(5,137)

0,07X

6,121

284

(5,837)

Net Debt/

0,46X

0,21X

EBITDA

965

5,905

(4,941)

On 09/30/23, Net Debt

was R$353 million,

3Q22

4Q22

1Q23

2Q23

3Q23

Gross Debt

Cash and Cash Equivalents

Net Debt

63.4% lower than the

net debt in the previous quarter (06/30/23: R$965 million). The variation between the periods is mainly due to the increase in the aforementioned Cash position, partially offset by the effect of exchange rate variation on the Company's debt, as shown below (in R$ million).

Debt composition by maturity on 09/30/23 was 3% in the short term and 97% in the long term, compared to 2% and 98%, respectively, on 06/30/23.

The chart below shows consolidated debt data:

R$ thousand

30-set-23

30-jun-23

Change

30-Set-22

Change

Short Term

Long Term

TOTAL

TOTAL

Sep23/Jun23

TOTAL

Set23/Set22

Local Currency

112,075

2,192,723

2,304,798

38%

2,223,831

4%

2,039,280

13%

CDI

105,200

2,192,389

2,297,589

-

2,215,917

4%

2,028,120

13%

Others

6,875

334

7,209

-

7,914

-9%

11,160

-35%

Foreign Currency*

46,984

3,721,852

3,768,836

62%

3,681,658

2%

4,062,578

-7%

Gross Debt

159,059

5,914,575

6,073,634

100%

5,905,489

3%

6,101,858

0%

Cash and Cash Equivalents

-

-

5,720,296

-

4,940,641

16%

5,137,298

11%

Net Debt

-

-

353,338

-

964,848

-63%

964,560

-63%

Gross Debt (Principal Only)

-

-

5,962,903

-

5,822,306

2%

6,064,340

-2%

(*)100% of total foreign currency is US dollars denominated in the 3Q23

The graph below shows the cash position and the debt profile (principal only) in millions of Reais on 09/30/23.

Gross Debt (principal only)

5,720

Debt Duration: R$:

47 months

US$: 31 months

1,274

3,756

4,447

6

460

683

683

125

125

125

2

Cash

2023

2024

-

2026

2027

2028

2029

2030

2031

2032

2025

Cash (Local Currency)

Cash (Foreign Currency)

Debt (Local Currency)

Debt (Foreign Currency)

The following table details the issues that comprise the Company's debt:

Emissão

Série

Valor

Taxa

Vencimento

(Milhões)

Bonds

-

USD

750

5,875%

2026

8ª Emissão de Debêntures

1ª Série

BRL

300

CDI + 1,50%

2027

2ª Série

BRL

400

CDI + 1,70%

2028 e 2029

1ª Série

BRL

160

CDI + 1,45%

2027

9ª Emissão de Debêntures

2ª Série

BRL

966

CDI + 1,65%

2028 e 2029

3ª Série

BRL

374

CDI + 1,95%

2030, 2031 e 2032

Operational Performance of the Business Units

Intercompany transactions are on an arm's length basis (market prices and conditions), and sales between

Business Units are carried out as sales between independent parties.

Income Statement per Business Units - Non Audited - Quarterly

R$ million

Mining

3Q23

2Q23

Net Revenue

793

905

Domestic Market

131

140

Exports

661

765

COGS

(623)

(685)

Gross Profit or Loss

169

220

Operating Income amd Expenses

(67)

(115)

Selling

(70)

(116)

General and Administrative

(14)

(13)

Other Operating Income and expenses, Net

(37)

(23)

Participation in the Results of Associate and

54

36

Jointly-controlled subsidiaries

EBIT

102

105

Depreciation and amortization

81

77

EBITDA (Instruction CVM 527)

183

182

EBITDA Margin

23.1%

20.1%

Adjusted EBITDA

129

147

Adj.EBITDA Margin

16.2%

16.2%

*Consolidated 70% of Unigal and 100% of Usiminas Mecânica

Steel*

3Q23

2Q23

5,754

5,976

5,270

5,484

484493

(5,839) (5,651)

  1. 325
  1. (202)
  1. (29)
  1. (120)
  1. (172)

188119

  1. 123

  1. 179185

  2. 308
    -1.2% 5.2%
  1. 184
    -4.4% 3.1%

Steel Processing

3Q23

2Q23

2,009

2,100

2,001

2,095

8

5

(1,957)

(2,070)

52

30

  1. (38)
  1. (12)
  1. (20)
  1. (6)
  • -

17

(9)

12

10

28

2

1.4%

0.1%

282

1.4% 0.1%

Adjustment

3Q23

2Q23

(1,841)

(2,093)

(1,841)

(2,093)

-

-

1,881

2,102

39

8

  1. (97)

0

1

4

4

  1. (9)
  1. (93)
  1. (89)
  1. (10)
  1. (99)

6.8% 4.7%

7434

-4.0%-1.6%

Consolidated

3Q23

2Q23

6,714

6,887

5,562

5,626

1,153

1,262

(6,539)

(6,305)

175

582

  1. (452)
  1. (155)
  1. (148)
  1. (210)

8262

  1. 130

262

262

17

393

0.3%

5.7%

  1. 366
    -0.3% 5.3%

Income Statement per Business Units - Non Audited - Accumulated

R$ million

Mining

9M23

9M22

Net Revenue

2,481

2,805

Domestic Market

483

782

Exports

1,997

2,023

COGS

(1,801)

(1,669)

Gross Profit (Loss)

680

1,136

Operating Income (Expenses)

(269)

(322)

Selling

(250)

(281)

General and Administrative

(38)

(31)

Other Operating Income (expenses), Net

(90)

(91)

Participation in the Results of Associate and

109

81

Jointly-controlled subsidiaries

EBIT

410

814

Depreciation and amortization

226

154

EBITDA (Instruction CVM 527)

637

968

EBITDA Margin

25.7%

34.5%

Adjusted EBITDA

529

887

Adj.EBITDA Margin

21.3%

31.6%

*Consolidated 70% of Unigal and 100% of Usiminas Mecânica

Steel*

9M23

9M22

18,121

22,126

16,527

19,061

1,594

3,065

(17,365)

(18,914)

755

3,213

  1. (6)
  1. (175)
  1. (346)
  1. (347)

513862

3393,207

543519

8823,726

4.9% 16.8%

3712,867

2.0% 13.0%

Steel Processing

9M23

9M22

6,243

7,181

6,227

7,170

15

11

(6,081)

(6,605)

162576

  1. (112)
  1. (47)
  1. (55)
  1. (10)

-

-

63

463

32

21

95

484

1.5%

6.7%

95484

1.5%6.7%

Adjustment

9M23

9M22

(5,987)

(7,302)

(5,987)

(7,302)

-

-

6,033

7,284

46

(18)

  1. (777)

1

-

14

14

  1. (4)
  1. (787)
  1. (795)
  1. (26)
  1. (821)

6.9% 11.2%

13487

-2.2%-1.2%

Consolidated

9M23

9M22

20,857

24,811

17,250

19,711

3,607

5,099

(19,214)

(19,904)

1,643

4,907

(1,216)

(1,217)

  1. (503)
  1. (418)
  1. (452)

189156

  1. 3,689
  1. 668

1,199

4,357

5.7%

17.6%

1,129

4,325

5.4%

17.4%

6

Business Unit - Mining

Operational and Sales Performance

In the 3Q23 production volume was 2.4 million tons, a 4.4% increase compared to the 2Q23 (2.3 million tons).

Sales volume was 2.4 million tons in the 3Q23, stable compared to the previous quarter.

Production and sales volumes are shown below:

Thousand tons

Production

Total Sales

Exports

Domestic Market - Usiminas

Domestic Market - Third Parties

3Q23

2,410

2,391

1,753

215

422

2Q23

∆

3Q22

∆

2,309

4%

2,513

-4%

2,398

0%

2,242

7%

1,895

-7%

1,543

14%

248

-13%

589

-63%

256

65%

110

283%

9M23

6,540

6,672

4,886

960

826

9M22 ∆

6,587 -1%

6,241 7%

4,157 18%

1,646 -42%

438 89%

The types of ore sold by market are shown below:

Domestic

Exports

Total

Market

Granulated

32%

0%

9%

Sinter Feed

66%

99%

90%

Pellet Feed/

2%

1%

1%

Concentrate

% of total sales

27%

73%

100%

Exports in the 3Q23 totaled 1.8 million tons, equivalent to ten shipments, one ship less compared to the 2Q23 (1.9 million tons).

In the 3Q23, export distribution was 60% including ocean freight (CFR) and 40% without ocean freight, against 83% and 17% in the 2Q23, respectively.

Comments on the Results - Mining

Net income totaled R$793 million in the 3Q23, 12.4% less over the 2Q23 (R$905 million). In the 3rd quarter, there was a higher proportion of sales without sea freight and with lower iron content in addition to the appreciation of the Real against the Dollar, which, on average, varied 1.4% between the quarters. In the 3Q23, the average reference IODEX spot price for 62% Fe iron ore CFR China was US$114/t, which represented a 2.8% increase compared to the previous quarter (US$111/t).

Total production cash cost per ton was R$115.1/t or US$23.6/t in the 3Q23 against R$108.8/t (US$22.0/t) in the 2Q23, a 5.8% increase between the periods, this variation is due to higher costs with operating services, mainly with internal feeding transport and waste handling, higher costs with equipment maintenance and greater use of ROM from third-party areas in processing plants.

Cost of goods sold (COGS) in the 3Q23 was R$623 million, 9.0% lower than in the 2Q23 (R$685 million), mainly due to higher export sales without ocean freight and lower ocean freight rates on the export sales route.

In unit terms, COGS/ton in the 3Q23 (R$260.7/t) showed an 8.7%decrease compared to the 2Q23 (R$285.7/t), due to the same events mentioned above.

Sales Expenses totaled R$70 million in the 3Q23, a 39.4% decrease compared to the previous quarter (2Q23: R$116 million), as a result of lower export port costs, due to the lower volume sold and sales in commercial conditions with port costs for the customers' account.

7

General and Administrative Expenses totaled R$14 million in the 3Q23, up 9.9% in relation to the amounts presented in the previous quarter (2Q22: R$13 million), due to renewal of IT licenses.

In the 3Q23, Other Operating Income (Expenses) were a negative R$37 million, against a negative R$23 million in the 2Q23, a R$14 million variation between quarters, mainly due to higher provisions for legal proceedings.

Adjusted EBITDA reached R$129 million in 3Q23, a 12.4% decrease compared to the 2Q23 (R$147 million). Adjusted EBITDA margin was 16.2% in the 3Q23 (2Q23: 16.2%).

Investments (CAPEX)

CAPEX totaled R$121 million in the 3Q23, against R$61 million accounted in the 2Q23, a 97.2% increase in investments over the previous quarter.

Business Unit - Steel

Operational and Sales Performance

Crude steel production at the Ipatinga plant was 352 Kt in the 3Q23, 15.4% lower over the 2Q23 (416 Kt). Rolled steel production at the Ipatinga and Cubatão mills totaled 1.0 million tons in the 3Q23,

a 5.3% increase over the previous quarter (2Q23: 988 Kt). In the 3Q23, 674 thousand tons of purchased

slabs were processed (2Q23: 586 thousand tons).

Thousand tons

Total Crude Steel

Purchased Slab Processed

Total Rolled Steel

Sales Volume

Domestic Market

Exports

3Q23

352

674

1,040

1,021

931

90

2Q23

∆

3Q22

∆

416

-15%

660

-47%

586

15%

512

32%

988

5%

1,037

0%

972

5%

1,047

-2%

902

3%

938

-1%

70

29%

109

-18%

9M23

1,485

1,748

2,999

3,028

2,768

260

9M22 ∆

2,008 -26%

1,445 21%

3,200 -6%

3,269 -7%

2,753 1%

517 -50%

In the 3Q23, total sales volume amounted to 1.021 million tons of steel, 5.0% higher that in the 2Q23 (972 Kt), higher than the guidance provided by the Company for the period. In the domestic market, sales were 931 thousand tons in the 3Q23, a 3.2% increase in relation to the 2Q23, (902 thousand tons). Exports in the 3Q23 were 90 Kt, 28.5% higher than in the 2Q23 (70 Kt). Sales volume was 91% for the domestic market and 9% for exports (compared to 93% and 7% in the 2Q23).

Domestic Market Sales were distributed in the following segments:

Auto Industry

Distribution

Industry

3Q23

35.5%

28.6%

35.9%

2Q23

∆

3Q22

∆

36.0%

- 1 p.p.

32.7%

+ 3 p.p.

29.1%

- 0 p.p.

25.3%

+ 3 p.p.

34.9%

+ 1 p.p.

42.0%

- 6 p.p.

9M23

35.3%

27.8%

36.9%

9M22

∆

35.5%

- 0 p.p.

27.8%

- 0 p.p.

36.6%

+ 0 p.p.

8

Main export destinations were:

2Q23

3Q23

Comments on the Results - Steel

In the 3Q23, Net Revenue from the Steel Unit was R$5.8 billion, 3.7% lower than that recorded in 2Q23 (R$6.0 billion), due to a decline in the net revenue/ton sold in the quarter, partially compensated by higher steel volume sold in the quarter. Net revenue/ton sold was R$5,635/t, 8.3% lower than the previous quarter (2Q23: R$6.147/t). In the period, there was a 6.9% decline in net revenue/ton sold in the Domestic Market, and a 23.6% decrease in net revenue/ton sold in the Export Market.

Cash cost per ton was R$4,846/t in 3Q23, 7.3% lower than in 2Q23 (R$5,231/t). The main variations were: lower cost of coal and coke, better efficiency of blast furnaces with lower fuel consumption and lower cost of slabs in the production mix.

Cost of Goods Sold per ton was R$5,719/ton in 3Q23. COGS/ton was 1.6% lower than the previous quarter (2Q23: R$5,813/t). This variation was a result of efficiency gains during the quarter and smaller adjustments to the market value of inventories, partially offset by the sale of products manufactured in the previous quarter at higher costs, as shown in the graph alongside. Thus, the Cost of Goods Sold in 3Q23 was R$5.8 billion, 3.3% higher than the COGS of the previous quarter (2Q23: R$5.7 billion).

Sales expenses totaled R$31 million in the 3Q23, 7.4% higher than the 2Q23 (R$29 million), mainly due to higher distribution and commissions expenses in the period.

General and Administrative Expenses totaled R$136 million in the 3Q23, 13.7% higher than in the 2Q23 (R$120 million), with higher personnel expenses and social charges.

Other operating income (expenses) were a negative R$183 million in the 3Q23, expenses 6.1% higher than in the 2Q23 (negative R$172 million), mainly with higher expenses with downtime equipment by R$46 million, partially offset by lower expenses with contingencies.

9

Thus, the Adjusted EBITDA reached R$251 million in the 3Q23, R$434 million lower than that accounted in the 2Q23 (R$184 million). Adjusted EBITDA margin was -4.4% in the 3Q23, against 3.1% in the 2Q23.

Investments (CAPEX)

CAPEX in the 3Q23 totaled R$886 million, 0.8% higher than in 2Q23 (R$879 million). In the quarter, R$386 million were used to revamp Blast Furnace 3.

Business Unit - Steel Processing

Comments on the Results - Soluções Usiminas

Net Revenue in the 3Q23 totaled R$2.0 billion, 4.3% lower than in the 2Q23 (R$2.1 billion), due to lower prices practiced. Sales of the Distribution, Services/JIT and Tubes segments accounted for

26.3%, 69.2% and 4.5% of the volume sold in the 3Q23, respectively.

Cost of Goods Sold (COGS) was R$2.0 billion in the 3Q23, 5.5% lower than in the 2Q23 (R$2.1 billion). COGS/t was R$6,503/t in the 3Q23, a 4.5% decrease compared to the 2Q23 (R$6,812/t), with lower raw materials costs.

In the 3Q23, Operating income (expenses) were negative R$35 million, 8.2% lower compared to 2Q23 (negative R$38 million), mainly due to reversals of provisions for tax credits occurred in the previous quarter.

Adjusted EBITDA in the 3Q23 was R$28 million, 1,518% higher than in the previous quarter (2Q23: R$2

million). Adjusted EBITDA margin was 1.4% in the 3Q23 (2Q23: 0.1%).

ESG Agenda - Sustainability Themes

Material Theme

Goal

SDG

Comments

Objective of Zero Accidents, in compliance with the Strategic

The Safety index obtained a result above the established

People management

3 and 8

reference. The Company is adopting several preventive

Safety Plan, with focus on achieving a Safety Index of 1.0;

actions to revert this result;

Deviation generated by voluntary and involuntary

People management

Reach 18% of women in leadership positions by 2023;

5

dismissals of women in leadership. The company

intensified actions in order to reverse these results.

Climate changes

Conducting a GHG inventory at Soluções Usiminas by

13

.

Done. The inventory was completed on 06/30/2023.

09/30/2023;

Climate changes

Adhesion of Mineração Usiminas to the Brazilian GHG Protocol

13

Done. The emissions inventory of Mineração Usiminas was

Program;

submitted to the Brazilian GHG Protocol Program on

07/25/2023.

Relationship with

Improvement of the General Customer Satisfaction Index;

12

Evolution in line with plan

Stakeholders

Relationship with

Sustainability in the supply chain, strengthening relationships

12

Evolution in line with plan

Stakeholders

and reducing risks at 75% of strategic suppliers;

Relationship with

Strengthening relationships with formal and community leaders

17

Evolution in line with plan

Stakeholders

in Vale do Aço and Baixada Santista

Management of natural

Donation of 100% of the steel aggregate generated in 2023 to

resources and environmental

12

Evolution in line with plan

the Caminhos do Vale program

impacts

In line with planning

Late in relation to planning

10

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USIMINAS - Usinas Siderúrgicas de Minas Gerais SA published this content on 27 October 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 October 2023 11:04:05 UTC.