6-K 1 siditr3q20_6k.htm FORM 6-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of the

Securities Exchange Act of 1934

For the month of October, 2020

Commission File Number 1-14732

COMPANHIA SIDERÚRGICA NACIONAL

(Exact name of registrant as specified in its charter)

National Steel Company

(Translation of Registrant's name into English)

Av. Brigadeiro Faria Lima 3400, 20º andar
São Paulo, SP, Brazil
04538-132

(Address of principal executive office)

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

Form 20-F ___X___ Form 40-F _______

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes _______ No ___X____

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Table of Contents

Company Information |
Capital Breakdown | 1
Parent Company Financial Statements |
Balance Sheet – Assets | 2
Balance Sheet – Liabilities | 3
Statement of Income | 4
Statement of Comprehensive Income | 5
Statement of Cash Flows | 6
Statement of Changes in Shareholders’ Equity |
01/01/2020 to 09/30/2020 | 8
01/01/2019 to 09/30/2020 | 9
Statement of Value Added | 10
Consolidated Financial Statements |
Balance Sheet – Assets | 11
Balance Sheet - Liabilities | 12
Statement of Income | 14
Statement of Comprehensive Income | 16
Statement of Cash Flows | 17
Statement of Changes in Shareholders’ Equity |
01/01/2020 to 09/30/2020 | 19
01/01/2019 to 09/30/2020 | 20
Statement of Value Added | 21
Comments on the Company’s Consolidated Performance | 22
Notes to the quarterly financial information | 40
Comments on the Performance of Business Projections | 94
Reports and Statements |
Unqualified Independent Auditors’ Review Report | 98
Officers Statement on the Financial Statements | 100
Officers Statement on Auditor’s Report | 101

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Company Information / Capital Breakdown

Number of Shares (Units) | Current Quarter 09/30/2020 |
Paid-in Capital |  |
Common | 1,387,524,047 |
Preferred | 0 |
Total | 1,387,524,047 |
Treasury Shares |  |
Common | 7,409,500 |
Preferred | 0 |
Total | 7,409,500 |

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Parent Company Financial Statements / Balance Sheet - Assets
(R$ thousand) |

Code | Description | Current Quarter 09/30/2020 | Previous Year 12/31/2019
1 | Total Assets | 49,196,211 | 44,814,611
1.01 | Current assets | 12,163,202 | 9,719,866
1.01.01 | Cash and cash equivalents | 2,370,726 | 392,107
1.01.02 | Financial investments | 2,778,724 | 2,596,424
1.01.02.01 | Financial investments measured a fair value through profit or loss | 2,212,063 | 2,114,620
1.01.02.01.03 | Financial investments measured a fair value through profit or loss – Usiminas’ shares | 2,212,063 | 2,114,620
1.01.02.03 | Financial investments at amortized cost | 566,661 | 481,804
1.01.03 | Trade receivables | 1,750,211 | 1,691,643
1.01.04 | Inventory | 3,110,722 | 3,736,716
1.01.08 | Other current assets | 2,152,819 | 1,302,976
1.01.08.03 | Others | 2,152,819 | 1,302,976
1.01.08.03.01 | Recoverable taxes | 1,761,045 | 1,129,584
1.01.08.03.02 | Prepaid expenses | 110,472 | 82,664
1.01.08.03.03 | Dividends receivable | 229,379 | 33,447
1.01.08.03.04 | Others | 51,923 | 57,281
1.02 | Non-current assets | 37,033,009 | 35,094,745
1.02.01 | Long-term assets | 6,957,978 | 7,374,332
1.02.01.03 | Financial investments at amortized cost | 131,317 | 95,719
1.02.01.07 | Deferred taxes assets | 2,434,954 | 2,435,551
1.02.01.10 | Other non-current assets | 4,391,707 | 4,843,062
1.02.01.10.03 | Recoverable taxes | 685,987 | 1,907,420
1.02.01.10.04 | Judicial deposits | 250,818 | 224,300
1.02.01.10.05 | Prepaid expenses | 98,165 | 110,099
1.02.01.10.06 | Receivable from related parties | 1,853,911 | 1,558,194
1.02.01.10.07 | Others | 1,502,826 | 1,043,049
1.02.02 | Investments | 19,842,618 | 17,402,191
1.02.02.01 | Equity interest | 19,696,884 | 17,316,463
1.02.02.02 | Investment Property | 145,734 | 85,728
1.02.03 | Property, plant and equipment | 10,186,126 | 10,266,084
1.02.03.01 | Property, plant and equipment in operation | 8,444,525 | 8,685,331
1.02.03.02 | Right of use in leases | 35,494 | 44,172
1.02.03.03 | Property, plant and equipment in progress | 1,706,107 | 1,536,581
1.02.04 | Intangible assets | 46,287 | 52,138

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Parent Company Financial Statements / Balance Sheet – Liabilities
(R$ thousand)
Code | Description | Current Quarter 09/30/2020 | Previous Year 12/31/2019
2 | Total Liabilities | 49,196,211 | 44,814,611
2.01 | Current liabilities | 8,713,752 | 9,224,591
2.01.01 | Payroll and related taxes | 211,293 | 170,792
2.01.02 | Trade payables | 3,927,712 | 2,506,244
2.01.03 | Tax payables | 175,705 | 78,911
2.01.04 | Borrowings and financing | 3,013,864 | 4,396,840
2.01.05 | Other payables | 1,351,708 | 2,019,788
2.01.05.02 | Others | 1,351,708 | 2,019,788
2.01.05.02.01 | Dividends and interests on shareholder´s equity | 13,075 | 13,252
2.01.05.02.05 | Advances from clients | 149,328 | 72,404
2.01.05.02.06 | Trade payables – Drawee risk | 573,153 | 1,121,312
2.01.05.02.07 | Lease liabilities | 14,230 | 17,269
2.01.05.02.08 | Other payables | 601,922 | 795,551
2.01.06 | Provisions | 33,470 | 52,016
2.01.06.01 | Provision for tax, social security, labor and civil risks | 33,470 | 52,016
2.02 | Non-current liabilities | 35,485,732 | 25,415,476
2.02.01 | Borrowings and financing | 27,386,519 | 19,702,620
2.02.02 | Other payables | 430,602 | 356,942
2.02.02.02 | Others | 430,602 | 356,942
2.02.02.02.03 | Lease liabilities | 21,105 | 28,671
2.02.02.02.04 | Other payables | 284,446 | 328,271
2.02.02.02.06 | Derivative financial instruments | 125,051 | -
2.02.04 | Provisions | 7,668,611 | 5,355,914
2.02.04.01 | Provision for tax, social security, labor and civil risks | 379,743 | 370,703
2.02.04.02 | Other provisions | 7,288,868 | 4,985,211
2.02.04.02.03 | Provision for environmental liabilities and decommissioning of assets | 185,651 | 164,464
2.02.04.02.04 | Pension and healthcare plan | 912,184 | 912,184
2.02.04.02.05 | Provision for losses on investments | 6,191,033 | 3,908,563
2.03 | Shareholders’ equity | 4,996,727 | 10,174,544
2.03.01 | Paid-up capital | 4,540,000 | 4,540,000
2.03.02 | Capital reserves | 32,720 | 32,720
2.03.04 | Earnings reserves | 4,431,200 | 4,431,200
2.03.04.01 | Legal reserve | 278,576 | 278,576
2.03.04.02 | Statutory reserve | 4,210,888 | 4,210,888
2.03.04.09 | Treasury shares | (58,264) | (58,264)
2.03.05 | Accumulated earnings (losses) | 65,113 | -
2.03.08 | Other comprehensive income | (4,072,306) | 1,170,624

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Parent Company Financial Statements / Statement of Income
(R$ thousand)

Code | Description | Current Quarter 07/01/2020 to 09/30/2020 | Year to date 01/01/2020 to 09/30/2020 | Same quarter previous year 07/01/2019 to 09/30/2019 | YTD previous year 01/01/2019 to 09/30/2019
3.01 | Revenues from sale of goods and rendering of services | 3,998,497 | 9,879,817 | 2,675,199 | 8,679,231
3.02 | Costs from sale of goods and rendering of services | (3,387,750) | (8,689,585) | (2,765,033) | (8,473,275)
3.03 | Gross profit | 610,747 | 1,190,232 | (89,834) | 205,956
3.04 | Operating (expenses)/income | 218,586 | (1,679,782) | (338,290) | 37,233
3.04.01 | Selling expenses | (175,430) | (501,592) | (129,121) | (388,268)
3.04.02 | General and administrative expenses | (52,898) | (164,022) | (70,568) | (189,504)
3.04.04 | Other operating income | 13,950 | 378,777 | (231,182) | (226,952)
3.04.05 | Other operating expenses | (497,458) | (1,985,401) | (572,772) | (1,346,041)
3.04.06 | Equity in results of affiliated companies | 930,422 | 592,456 | 665,353 | 2,187,998
3.05 | Profit before financial income (expenses) and taxes | 829,333 | (489,550) | (428,124) | 243,189
3.06 | Financial income (expenses) | 256,298 | 677,011 | (563,786) | (1,204,629)
3.06.01 | Financial income | 129,950 | 635,636 | 52,385 | 203,210
3.06.02 | Financial expenses | 126,348 | 41,375 | (616,171) | (1,407,839)
3.06.02.01 | Net exchange differences over financial instruments | 11,037 | 1,094,345 | (189,477) | (100,432)
3.06.02.02 | Financial expenses | 115,311 | (1,052,970) | (426,694) | (1,307,407)
3.07 | Profit (loss) before taxes | 1,085,631 | 187,461 | (991,910) | (961,440)
3.08 | Income tax and social contribution | (4,845) | (122,348) | (1,048) | 1,705,993
3.09 | Profit (loss) from continued operations | 1,080,786 | 65,113 | (992,958) | 744,553
3.11 | Profit (loss) for the year | 1,080,786 | 65,113 | (992,958) | 744,553
3.99.01 | Basic earnings per share | - | - | - | -
3.99.01.01 | Common shares | 0.78311 | 0.04718 | (0.71948) | 0.53949
3.99.02 | Diluted earnings per share | - | - | - | -
3.99.02.01 | Common shares | 0.78311 | 0.04718 | (0.71948) | 0.53949

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Parent Company Financial Statements / Statement of Comprehensive Income
(R$ thousand)

Code | Description | Current Quarter 07/01/2020 to 09/30/2020 | Year to date 01/01/2020 to 09/30/2020 | Same quarter previous year 07/01/2019 to 09/30/2019 | YTD previous year 01/01/2019 to 09/30/2019
4.01 | (Loss) profit for the year | 1,080,786 | 65,113 | (992,958) | 744,553
4.02 | Other comprehensive income | (237,274) | (5,242,930) | (791,915) | (196,236)
4.02.01 | Actuarial gains over pension plan of subsidiaries, net of taxes | 28 | 89 | 30 | 89
4.02.02 | (Loss) /Gain over pension plan | - | - | - | 93,894
4.02.04 | Cumulative translation adjustments for the year | 135,882 | 649,335 | 64,636 | 36,700
4.02.10 | (Loss)/gain on the percentage change in investments | 1,631 | 6,243 | - | (1,995)
4.02.11 | Losses in cash flow hedge | (651,581) | (7,316,513) | (1,038,192) | (959,789)
4.02.13 | Cash flow hedge reclassified to income upon realization | 341,991 | 1,481,672 | 186,022 | 632,681
4.02.14 | Gain (Loss) on net investment hedge from investments in subsidiaries | - | 1,469 | (4,411) | 2,184
4.02.16 | (Loss)/ gain in cash flow hedge from investments in subsidiaries | (65,225) | (65,225) | - | -
4.03 | Comprehensive income for the year | 843,512 | (5,177,817) | (1,784,873) | 548,317

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Parent Company Financial Statements / Statements of Cash Flows – Indirect Method (R$ thousand)
Code | Description | Year to date 01/01/2020 to 09/30/2020 | YTD previous year 01/01/2019 to 09/30/2019
6.01 | Net cash from operating activities | 2,779,274 | 1,902,461
6.01.01 | Cash from operations | 723,000 | (613,530)
6.01.01.01 | Profit (loss) for the period | 65,113 | 744,553
6.01.01.02 | Financial charges in borrowing and financing raised | 771,804 | 1,054,136
6.01.01.03 | Financial charges in borrowing and financing granted | (34,204) | (42,331)
6.01.01.04 | Charges on lease liabilities | 2,667 | 2,029
6.01.01.05 | Depreciation, amortization and depletion | 650,438 | 481,891
6.01.01.06 | Equity in results of affiliated companies | (592,456) | (2,187,998)
6.01.01.07 | Deferred taxes assets | 597 | (1,705,982)
6.01.01.08 | Provision for tax, social security, labor, civil and environmental risks | (9,506) | (141,615)
6.01.01.09 | Monetary and exchange variations, net | 436,078 | 716,220
6.01.01.10 | Result of derivative operations | - | 7,664
6.01.01.11 | Updated shares – Fair value through profit or loss | (100,314) | 365,305
6.01.01.12 | Write-off of property, plant and equipment and Intangible assets | (2,283) | 18,324
6.01.01.13 | Provision for environmental liabilities and decommissioning of assets | 21,187 | (15,876)
6.01.01.14 | Accrued/(reversal) for consumption and services | 3,749 | 68,132
6.01.01.16 | Others | 22,884 | 22,018
6.01.01.17 | Receivables by indemnity | (512,754) | -
6.01.02 | Changes in assets and liabilities | 2,056,274 | 2,515,991
6.01.02.01 | Trade receivables - third parties | 60,297 | 61,528
6.01.02.02 | Trade receivables - related party | (153,234) | (112,331)
6.01.02.03 | Inventory | 625,994 | (587,053)
6.01.02.04 | Receivables - related parties/dividends | 946,259 | 3,644,534
6.01.02.05 | Recoverable taxes | 589,972 | (60,522)
6.01.02.06 | Judicial deposits | 20,256 | 9,178
6.01.02.09 | Trade payables | 1,326,253 | (173,196)
6.01.02.10 | Trade payables – Drawee risk | (548,159) | 862,412
6.01.02.11 | Payroll and related taxes | 40,501 | 71,196
6.01.02.12 | Tax payables | 110,562 | (54,424)
6.01.02.13 | Payables to related parties | (217,251) | 33,526
6.01.02.15 | Interest paid | (766,529) | (1,067,847)
6.01.02.17 | Interest received | 1,202 | -
6.01.02.18 | Others | 20,151 | (111,010)
6.02 | Net cash investment activities | (852,338) | (781,052)

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6.02.01 | Investments / AFAC / Acquisitions of Shares | (76,133) | (70,623)
6.02.02 | Purchase of property, plant and equipment and intangible assets | (568,613) | (759,368)
6.02.07 | Intercompany loans granted | (2,365,393) | (170,182)
6.02.09 | Intercompany loans received | 2,241,226 | -
6.02.11 | Financial Investments, net of redemption | (83,425) | 219,121
6.03 | Net cash used in financing activities | 51,683 | (914,916)
6.03.01 | Borrowings and financing raised | 80,744 | 3,377,697
6.03.02 | Transactions cost - Borrowings and financing | (18,478) | (35,262)
6.03.03 | Borrowings and financing – related parties | 2,421,713 | 3,274,891
6.03.05 | Amortization of borrowings and financing | (1,570,158) | (5,028,445)
6.03.06 | Amortization of borrowings and financing - related parties | (843,642) | (1,181,350)
6.03.07 | Amortization of leases | (18,319) | (11,768)
6.03.08 | Dividends and interest on shareholder’s equity | (177) | (1,310,679)
6.05 | Increase (decrease) in cash and cash equivalents | 1,978,619 | 206,493
6.05.01 | Cash and equivalents at the beginning of the year | 392,107 | 539,853
6.05.02 | Cash and equivalents at the end of the year | 2,370,726 | 746,346

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Parent Company Financial Statements / Statement of Changes in Equity - 01/01/2020 to 09/30/2020
(R$ thousand)
Code | Description | Paid-up capital | Capital reserve, granted options and treasury shares | Earnings reserve | Retained earnings (accumulated losses) | Other comprehensive income | Shareholders’ equity
5.01 | Opening balances | 4,540,000 | 32,720 | 4,431,200 | - | 1,170,624 | 10,174,544
5.03 | Adjusted opening balances | 4,540,000 | 32,720 | 4,431,200 | - | 1,170,624 | 10,174,544
5.05 | Total comprehensive income | - | - | - | 65,113 | (5,242,930) | (5,177,817)
5.05.01 | Profit (loss) for the period | - | - | - | 65,113 | - | 65,113
5.05.02 | Other comprehensive income | - | - | - | - | (5,242,930) | (5,242,930)
5.05.02.04 | Translation adjustments for the year | - | - | - | - | 649,335 | 649,335
5.05.02.07 | Actuarial gains/(losses) on pension plan, net of taxes | - | - | - | - | 89 | 89
5.05.02.12 | (Loss) / gain on the percentage change in investments | - | - | - | - | 6,243 | 6,243
5.05.02.13 | (Loss) / gain on cash flow hedge accounting, net of taxes | - | - | - | - | (5,900,066) | (5,900,066)
5.05.02.14 | (Loss) / gain on hedge of net investment in foreign operations | - | - | - | - | 1,469 | 1,469
5.07 | Closing balance | 4,540,000 | 32,720 | 4,431,200 | 65,113 | (4,072,306) | 4,996,727

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Parent Company Financial Statements / Statement of Changes in Equity - 01/01/2019 to 09/30/2019
(R$ thousand) |  |
Code | Description | Paid-up capital | Capital reserve, granted options and treasury shares | Earnings reserve | Retained earnings (accumulated losses) | Other comprehensive income | Shareholders’ equity
5.01 | Opening balances | 4,540,000 | 32,720 | 3,064,827 | - | 1,065,188 | 8,702,735
5.03 | Adjusted opening balances | 4,540,000 | 32,720 | 3,064,827 | - | 1,065,188 | 8,702,735
5.04 | Capital transaction with shareholders | - | - | - | (412,659) | - | (412,659)
5.04.06 | Dividends | - | - | - | (412,659) | - | (412,659)
5.05 | Total comprehensive income | - | - | - | 744,553 | (196,236) | 548,317
5.05.01 | Profit (loss) for the period | - | - | - | 744,553 | - | 744,553
5.05.02 | Other comprehensive income | - | - | - | - | (196,236) | (196,236)
5.05.02.04 | Translation adjustments for the year | - | - | - | - | 36,700 | 36,700
5.05.02.08 | Actuarial gains/(losses) on pension plan, net of taxes | - | - | - | - | 93,983 | 93,983
5.05.02.10 | (Loss) / gain on the percentage change in investments | - | - | - | - | (1,995) | (1,995)
5.05.02.11 | (Loss) / gain on cash flow hedge accounting, net of taxes | - | - | - | - | (327,108) | (327,108)
5.05.02.13 | (Loss) / gain on hedge of net investment in foreign operations | - | - | - | - | 2,184 | 2,184
5.07 | Closing balance | 4,540,000 | 32,720 | 3,064,827 | 331,894 | 868,952 | 8,838,393

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Parent Company Financial Statements / Statement of Value Added
(R$ thousand)

Code | Description | Year to date 01/01/2020 to 09/30/2020 | YTD previous year 01/01/2019 to 09/30/2019
7.01 | Revenues | 12,412,192 | 10,572,016
7.01.01 | Sales of products and rendering of services | 12,218,076 | 10,856,499
7.01.02 | Other revenues | 191,532 | (306,910)
7.01.04 | Allowance for (reversal of) doubtful debts | 2,584 | 22,427
7.02 | Raw materials acquired from third parties | (11,099,220) | (10,471,007)
7.02.01 | Cost of sales and services | (8,885,496) | (8,801,675)
7.02.02 | Materials, electric power, outsourcing and other | (2,233,368) | (1,646,063)
7.02.03 | Impairment/recovery of assets | 19,644 | (23,269)
7.03 | Gross value added | 1,312,972 | 101,009
7.04 | Retentions | (648,994) | (481,891)
7.04.01 | Depreciation, amortization and depletion | (648,994) | (481,891)
7.05 | Value added created | 663,978 | (380,882)
7.06 | Value added received | 1,591,170 | 2,450,407
7.06.01 | Equity in results of affiliates companies | 592,456 | 2,187,998
7.06.02 | Financial income | 635,636 | 203,210
7.06.03 | Others | 363,078 | 59,199
7.06.03.01 | Others and exchange gains | 363,078 | 59,199
7.07 | Value added for distribution | 2,255,148 | 2,069,525
7.08 | Value added distributed | 2,255,148 | 2,069,525
7.08.01 | Personnel | 962,149 | 1,007,083
7.08.01.01 | Salaries and wages | 727,468 | 749,657
7.08.01.02 | Benefits | 185,240 | 203,434
7.08.01.03 | Severance payment (FGTS) | 49,441 | 53,992
7.08.02 | Taxes, fees and contributions | 904,198 | (1,154,328)
7.08.02.01 | Federal | 758,549 | (1,326,467)
7.08.02.02 | State | 145,649 | 172,139
7.08.03 | Remuneration on third-party capital | 323,688 | 1,472,217
7.08.03.01 | Interest | 1,052,970 | 1,307,407
7.08.03.02 | Rental | 1,983 | 5,179
7.08.03.03 | Others | (731,265) | 159,631
7.08.03.03.01 | Others and exchange losses | (731,265) | 159,631
7.08.04 | Remuneration on Shareholders' capital | 65,113 | 744,553
7.08.04.02 | Dividends | - | 412,659
7.08.04.03 | Retained earnings (accumulated losses) | 65,113 | 331,894

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Consolidated Financial Statements / Balance Sheet - Assets
(R$ thousand)
Code | Description | Current Quarter 09/30/2020 | Previous Year 12/31/2019
1 | Total assets | 57,022,091 | 50,869,276
1.01 | Current assets | 18,541,939 | 12,725,805
1.01.01 | Cash and cash equivalents | 5,724,428 | 1,088,955
1.01.02 | Financial investments | 2,805,381 | 2,633,173
1.01.02.01 | Financial investments measured a fair value through profit or loss | 2,212,063 | 2,114,620
1.01.02.01.03 | Financial investments measured a fair value through profit or loss – Usiminas’ shares | 2,212,063 | 2,114,620
1.01.02.03 | Financial investments at amortized cost | 593,318 | 518,553
1.01.03 | Trade receivables | 2,668,369 | 2,047,931
1.01.04 | Inventory | 5,035,288 | 5,282,750
1.01.08 | Other current assets | 2,308,473 | 1,672,996
1.01.08.03 | Others | 2,308,473 | 1,672,996
1.01.08.03.01 | Recoverable taxes | 1,953,337 | 1,282,415
1.01.08.03.02 | Prepaid expenses | 164,588 | 107,428
1.01.08.03.03 | Dividends receivable | 45,153 | 44,554
1.01.08.03.04 | Derivative financial instruments | 1,010 | 1,364
1.01.08.03.05 | Others | 144,385 | 237,235
1.02 | Non-current assets | 38,480,152 | 38,143,471
1.02.01 | Long-term assets | 7,401,053 | 7,626,577
1.02.01.03 | Financial investments at amortized cost | 131,317 | 95,719
1.02.01.07 | Deferred taxes assets | 2,501,398 | 2,473,304
1.02.01.10 | Other non-current assets | 4,768,338 | 5,057,554
1.02.01.10.03 | Recoverable taxes | 893,568 | 2,119,940
1.02.01.10.04 | Judicial deposits | 372,526 | 328,371
1.02.01.10.05 | Prepaid expenses | 130,797 | 126,213
1.02.01.10.06 | Receivable from related parties | 1,554,207 | 1,274,972
1.02.01.10.07 | Others | 1,817,240 | 1,208,058
1.02.02 | Investments | 3,691,195 | 3,584,169
1.02.02.01 | Equity interest | 3,530,479 | 3,482,974
1.02.02.02 | Investment Property | 160,716 | 101,195
1.02.03 | Property, plant and equipment | 20,033,718 | 19,700,944
1.02.03.01 | Property, plant and equipment in operation | 15,901,359 | 16,011,547
1.02.03.02 | Right of use in leases | 498,805 | 472,345
1.02.03.03 | Property, plant and equipment in progress | 3,633,554 | 3,217,052
1.02.04 | Intangible assets | 7,354,186 | 7,231,781

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Consolidated Financial Statements / Balance Sheet – Liabilities
(R$ thousand)
Code | Description | Current Quarter 09/30/2020 | Previous Year 12/31/2019
2 | Total Liabilities | 57,022,091 | 50,869,276
2.01 | Current liabilities | 12,861,250 | 11,619,957
2.01.01 | Payroll and related taxes | 404,057 | 317,510
2.01.02 | Trade payables | 4,560,230 | 3,012,654
2.01.03 | Tax payables | 1,664,726 | 541,027
2.01.04 | Borrowings and financing | 3,598,537 | 5,125,843
2.01.05 | Other payables | 2,553,077 | 2,526,444
2.01.05.02 | Others | 2,553,077 | 2,526,444
2.01.05.02.01 | Dividends and interests on shareholder´s equity | 40,977 | 13,252
2.01.05.02.05 | Advances from clients | 962,789 | 787,604
2.01.05.02.06 | Trade payables – Drawee risk | 605,385 | 1,121,312
2.01.05.02.07 | Lease liabilities | 84,675 | 35,040
2.01.05.02.08 | Derivative financial instruments | 263,283 | -
2.01.05.02.09 | Other payables | 595,968 | 569,236
2.01.06 | Provisions | 80,623 | 96,479
2.01.06.01 | Provision for tax, social security, labor and civil risks | 80,623 | 96,479
2.02 | Non-current liabilities | 37,817,990 | 27,887,387
2.02.01 | Borrowings and financing | 32,559,616 | 22,841,193
2.02.02 | Other payables | 2,704,234 | 2,493,702
2.02.02.02 | Others | 2,704,234 | 2,493,702
2.02.02.02.03 | Advances from clients | 1,937,420 | 1,845,248
2.02.02.02.04 | Lease liabilities | 420,014 | 439,350
2.02.02.02.05 | Other payables | 221,749 | 209,104
2.02.02.02.06 | Derivative financial instruments | 125,051 | -
2.02.03 | Deferred taxes assets | 564,043 | 589,539
2.02.04 | Provisions | 1,990,097 | 1,962,953
2.02.04.01 | Provision for tax, social security, labor and civil risks | 529,176 | 526,768
2.02.04.02 | Other provisions | 1,460,921 | 1,436,185
2.02.04.02.03 | Provision for environmental liabilities and decommissioning of assets | 548,737 | 524,001
2.02.04.02.04 | Pension and healthcare plan | 912,184 | 912,184
2.03 | Shareholders’ equity | 6,342,851 | 11,361,932
2.03.01 | Paid-up capital | 4,540,000 | 4,540,000
2.03.02 | Capital reserves | 32,720 | 32,720
2.03.04 | Earnings reserves | 4,431,200 | 4,431,200
2.03.04.01 | Legal reserve | 278,576 | 278,576
2.03.04.02 | Statutory reserve | 4,210,888 | 4,210,888
2.03.04.09 | Treasury shares | (58,264) | (58,264)

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2.03.05 | Accumulated earnings (losses) | 65,113 | -
2.03.08 | Other comprehensive income | (4,072,306) | 1,170,624
2.03.09 | Profit attributable to the non-controlling interests | 1,346,124 | 1,187,388

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Consolidated Financial Statements / Statements of Income
(R$ thousand)
Code | Description | Current Quarter 07/01/2020 to 09/30/2020 | Year to date 01/01/2020 to 09/30/2020 | Same quarter previous year 07/01/2019 to 09/30/2019 | YTD previous year01/01/2019 to 09/30/2019
3.01 | Revenues from sale of goods and rendering of services | 8,714,583 | 20,269,919 | 6,006,393 | 18,912,601
3.02 | Costs from sale of goods and rendering of services | (5,133,126) | (13,528,898) | (4,370,357) | (12,834,121)
3.03 | Gross profit | 3,581,457 | 6,741,021 | 1,636,036 | 6,078,480
3.04 | Operating (expenses)/income | (1,422,016) | (3,932,678) | (1,365,864) | (3,494,511)
3.04.01 | Selling expenses | (606,938) | (1,398,316) | (429,836) | (1,429,593)
3.04.02 | General and administrative expenses | (124,180) | (369,681) | (137,497) | (383,379)
3.04.04 | Other operating income | 25,549 | 432,506 | (183,090) | (163,924)
3.04.05 | Other operating expenses | (742,417) | (2,606,403) | (679,510) | (1,636,583)
3.04.06 | Equity in results of affiliated companies | 25,970 | 9,216 | 64,069 | 118,968
3.05 | Profit before financial income (expenses) and taxes | 2,159,441 | 2,808,343 | 270,172 | 2,583,969
3.06 | Financial income (expenses) | (156,049) | (1,072,330) | (840,074) | (1,832,849)
3.06.01 | Financial income | 134,489 | 656,290 | 114,213 | 310,994
3.06.02 | Financial expenses | (290,538) | (1,728,620) | (954,287) | (2,143,843)
3.06.02.01 | Net exchange differences over financial instruments | (69,751) | 277,491 | (282,224) | (197,581)
3.06.02.02 | Financial expenses | (220,787) | (2,006,111) | (672,063) | (1,946,262)
3.07 | Profit (loss) before taxes | 2,003,392 | 1,736,013 | (569,902) | 751,120
3.08 | Income tax and social contribution | (741,797) | (1,340,227) | (300,754) | 359,449
3.09 | Profit (loss) from continued operations | 1,261,595 | 395,786 | (870,656) | 1,110,569
3.11 | Consolidated Profit (loss) for the year | 1,261,595 | 395,786 | (870,656) | 1,110,569
3.11.01 | Profit attributable to the controlling interests | 1,080,786 | 65,113 | (992,958) | 744,553
3.11.02 | Profit attributable to the non-controlling interests | 180,809 | 330,673 | 122,302 | 366,016
3.99.01 | Basic earnings per share | - | - | - | -

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3.99.01.01 | Common shares | 0.78311 | 0.04718 | -0.71948 | 0.53949
3.99.02 | Diluted earnings per share | 0.00000 | 0.00000 | 0.00000 | 0.00000
3.99.02.01 | Common shares | 0.78311 | 0.04718 | -0.71948 | 0.53949

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Consolidated Financial Statements / Statement of Comprehensive Income
(R$ thousand)

Code | Description | Current Quarter 07/01/2020 to 09/30/2020 | Year to date 01/01/2020 to 09/30/2020 | Same quarter previous year 07/01/2019 to 09/30/2019 | YTD previous year 01/01/2019 to 09/30/2019
4.01 | Consolidated profit (loss) for the year | 1,261,595 | 395,786 | (870,656) | 1,110,569
4.02 | Other comprehensive income | (246,566) | (5,252,220) | (791,913) | (196,230)
4.02.01 | Actuarial gains over pension plan of subsidiaries, net of taxes | 34 | 97 | 32 | 95
4.02.02 | (Loss) /Gain over pension plan | - | - | - | 93,894
4.02.04 | Cumulative translation adjustments for the year | 135,882 | 649,335 | 64,636 | 36,700
4.02.09 | (Loss)/gain on the percentage change in investments | 1,631 | 6,243 | - | (1,995)
4.02.10 | Losses in cash flow hedge, net of taxes | (834,789) | (7,499,721) | (1,038,192) | (959,789)
4.02.12 | (Loss)/gain on hedge of net investment in foreign operations. | - | 1,469 | (4,411) | 2,184
4.02.13 | Cash flow hedge reclassified to income upon realization, net of taxes | 450,676 | 1,590,357 | 186,022 | 632,681
4.03 | Consolidated comprehensive income for the year | 1,015,029 | (4,856,434) | (1,662,569) | 914,339
4.03.01 | Profit attributable to the controlling interests | 843,512 | (5,177,817) | (1,784,873) | 548,317
4.03.02 | Profit attributable to the non-controlling interests | 171,517 | 321,383 | 122,304 | 366,022

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Consolidated Financial Statements / Statements of Cash Flows – Indirect Method
(R$ thousand) |  |
Code | Description | Year to date 01/01/2020 to 09/30/2020 | YTD previous year 01/01/2019 to 09/30/2019
6.01 | Net cash from operating activities | 5,586,004 | 3,760,369
6.01.01 | Cash from operations | 4,504,812 | 3,239,338
6.01.01.01 | Profit (loss) attributable to the controlling interests | 65,113 | 744,553
6.01.01.02 | Results of non-controlling shareholders | 330,673 | 366,016
6.01.01.03 | Financial charges in borrowing and financing raised | 1,449,560 | 1,468,587
6.01.01.04 | Financial charges in borrowing and financing granted | (26,846) | (45,219)
6.01.01.05 | Charges on lease liabilities | 39,814 | 36,430
6.01.01.06 | Depreciation, amortization and depletion | 1,376,433 | 1,065,256
6.01.01.07 | Equity in results of affiliated companies | (9,216) | (118,968)
6.01.01.08 | Deferred taxes assets | (77,474) | (1,620,646)
6.01.01.09 | Provision for tax, social security, labor, civil and environmental risks | (22,258) | (132,585)
6.01.01.10 | Monetary, exchange and derivative financial instruments, net | 1,990,497 | 918,838
6.01.01.12 | Updated shares – Fair value through profit or loss | (100,314) | 365,305
6.01.01.13 | Write-off of property, plant and equipment and Intangible assets | 4,716 | 39,806
6.01.01.14 | Accrued/(reversal) for consumption and services | 20,147 | 51,248
6.01.01.16 | Provision for environmental liabilities and decommissioning of assets | 24,736 | 7,877
6.01.01.17 | Others | (48,015) | 92,840
6.01.01.19 | Receivables by indemnity | (512,754) | -
6.01.02 | Changes in assets and liabilities | 1,081,192 | 521,031
6.01.02.01 | Trade receivables - third parties | (406,493) | (162,632)
6.01.02.02 | Trade receivables - related party | 13,391 | (90,822)
6.01.02.03 | Inventory | 548,764 | (866,466)
6.01.02.04 | Receivables - related parties/dividends | - | 5,320
6.01.02.05 | Recoverable taxes | 555,450 | (196,688)
6.01.02.06 | Judicial deposits | 2,619 | (3,434)
6.01.02.08 | Trade payables | 1,252,949 | (151,385)
6.01.02.09 | Trade payables – Drawee risk | (515,927) | 862,412
6.01.02.10 | Payroll and related taxes | 76,802 | 101,327
6.01.02.11 | Tax payables | 1,124,159 | 229,376
6.01.02.12 | Payables to related parties | (22,214) | (23,538)
6.01.02.13 | Advances from clients | 110,482 | 2,645,962
6.01.02.14 | Interest paid | (1,577,315) | (1,619,552)
6.01.02.17 | Others | (49,661) | (208,849)
6.01.02.18 | Cash flow hedge accounting | (31,814) |
6.02 | Net cash investment activities | (1,348,220) | (1,316,527)
6.02.02 | Investments / AFAC / Acquisitions of Shares | (69,686) | (56,226)
6.02.03 | Purchase of property, plant and equipment and intangible assets | (1,118,154) | (1,377,339)

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6.02.05 | Receipt/(payment) in derivative transactions | - | (372)
6.02.08 | Intercompany loans granted | (101,631) | (101,913)
6.02.09 | Intercompany loans received | 14,584 | 20,386
6.02.10 | Financial Investments, net of redemption | (73,333) | 198,937
6.03 | Net cash used in financing activities | 442,190 | (2,789,789)
6.03.01 | Borrowings and financing raised | 6,008,548 | 9,575,838
6.03.02 | Transactions cost - Borrowings and financing | (35,923) | (52,073)
6.03.04 | Amortization of borrowings and financing | (5,320,116) | (10,434,891)
6.03.06 | Amortization of leases | (75,398) | (57,469)
6.03.07 | Dividends and interest on shareholder’s equity | (134,921) | (1,821,194)
6.04 | Exchange rate on translating cash and cash equivalents | (44,501) | (6,194)
6.05 | Increase (decrease) in cash and cash equivalents | 4,635,473 | (352,141)
6.05.01 | Cash and equivalents at the beginning of the year | 1,088,955 | 2,248,004
6.05.02 | Cash and equivalents at the end of the year | 5.724.428 | 1.895.863

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Consolidated Financial Statements / Statements of Changes in Equity - 01/01/2020 to 09/30/2020
(R$ thousand)
Code | Description | Paid-up capital | Capital reserve, granted options and treasury shares | Earnings reserve | Retained earnings (accumulated losses) | Other comprehensive income | Shareholders’ equity | Non-controlling interests | Shareholders’ equity
5.01 | Opening balances | 4,540,000 | 32,720 | 4,431,200 | - | 1,170,624 | 10,174,544 | 1,187,388 | 11,361,932
5.03 | Adjusted opening balances | 4,540,000 | 32,720 | 4,431,200 | - | 1,170,624 | 10,174,544 | 1,187,388 | 11,361,932
5.04 | Capital transaction with shareholders | - | - | - | - | - | - | (162,647) | (162,647)
5.04.06 | Dividends | - | - | - | - | - | - | (134,745) | (134,745)
5.04.07 | Interest on equity | - | - | - | - | - | - | (27,902) | (27,902)
5.05 | Total comprehensive income | - | - | - | 65,113 | (5,242,930) | (5,177,817) | 321,383 | (4,856,434)
5.05.01 | (Loss) profit for the year | - | - | - | 65,113 | - | 65,113 | 330,673 | 395,786
5.05.02 | Other comprehensive income | - | - | - | - | (5,242,930) | (5,242,930) | (9,290) | (5,252,220)
5.05.02.04 | Translation adjustments for the year | - | - | - | - | 649,335 | 649,335 | - | 649,335
5.05.02.07 | Actuarial gains/(losses) on pension plan, net of taxes | - | - | - | - | 89 | 89 | 8 | 97
5.05.02.12 | (Loss)/gain on the percentage change in investments | - | - | - | - | 6,243 | 6,243 | - | 6,243
5.05.02.13 | (Loss) / gain on cash flow hedge accounting, net of taxes | - | - | - | - | (5,900,066) | (5,900,066) | (9,298) | (5,909,364)
5.05.02.14 | (Loss) / gain on hedge of net investment in foreign operations | - | - | - | - | 1,469 | 1,469 | - | 1,469
5.07 | Closing balance | 4,540,000 | 32,720 | 4,431,200 | 65,113 | (4,072,306) | 4,996,727 | 1,346,124 | 6,342,851

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Consolidated Financial Statements / Statements of Changes in Equity - 01/01/2019 to 09/30/2019
(R$ thousand)
Code | Description | Paid-up capital | Capital reserve, granted options and treasury shares | Earnings reserve | Retained earnings (accumulated losses) | Other comprehensive income | Shareholders’ equity | Non-controlling interests | Shareholders’ equity
5.01 | Opening balances | 4,540,000 | 32,720 | 3,064,827 | - | 1,065,188 | 8,702,735 | 1,310,705 | 10,013,440
5.03 | Adjusted opening balances | 4,540,000 | 32,720 | 3,064,827 | - | 1,065,188 | 8,702,735 | 1,310,705 | 10,013,440
5.04 | Capital transaction with shareholders | - | - | - | (412,659) | - | (412,659) | (479,051) | (891,710)
5.04.06 | Dividends | - | - | - | (412,659) | - | (412,659) | (430,638) | (843,297)
5.04.07 | Interest on equity | - | - | - | - | - | - | (48,413) | (48,413)
5.05 | Total comprehensive income | - | - | - | 744,553 | (196,236) | 548,317 | 366,022 | 914,339
5.05.01 | (Loss) profit for the year | - | - | - | 744,553 | - | 744,553 | 366,016 | 1,110,569
5.05.02 | Other comprehensive income | - | - | - | - | (196,236) | (196,236) | 6 | (196,230)
5.05.02.04 | Translation adjustments for the year | - | - | - | - | 36,700 | 36,700 | - | 36,700
5.05.02.08 | Actuarial gains/(losses) on pension plan, net of taxes | - | - | - | - | 93,983 | 93,983 | 6 | 93,989
5.05.02.10 | (Loss)/gain on the percentage change in investments | - | - | - | - | (1,995) | (1,995) | - | (1,995)
5.05.02.11 | (Loss) / gain on cash flow hedge accounting | - | - | - | - | (327,108) | (327,108) | - | (327,108)
5.05.02.13 | (Loss) / gain on hedge of net investment in foreign operations | - | - | - | - | 2,184 | 2,184 | - | 2,184
5.07 | Closing balance | 4,540,000 | 32,720 | 3,064,827 | 331,894 | 868,952 | 8,838,393 | 1,197,676 | 10,036,069

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Consolidated Financial Statements / Statements of Value Added
(R$ thousand)
Code | Description | Year to date 01/01/2020 to 09/30/2020 | YTD previous year 01/01/2019 to 09/30/2019
7.01 | Revenues | 23,028,028 | 21,037,359
7.01.01 | Sales of products and rendering of services | 22,818,215 | 21,265,727
7.01.02 | Other revenues | 205,079 | (253,242)
7.01.04 | Allowance for (reversal of) doubtful debts | 4,734 | 24,874
7.02 | Raw materials acquired from third parties | (16,005,568) | (15,060,282)
7.02.01 | Cost of sales and services | (12,276,717) | (11,684,401)
7.02.02 | Materials, electric power, outsourcing and other | (3,658,054) | (3,288,431)
7.02.03 | Impairment/recovery of assets | (70,797) | (87,450)
7.03 | Gross value added | 7,022,460 | 5,977,077
7.04 | Retentions | (1,372,557) | (1,065,256)
7.04.01 | Depreciation, amortization and depletion | (1,372,557) | (1,065,256)
7.05 | Value added created | 5,649,903 | 4,911,821
7.06 | Value added received | 1,636,493 | 610,074
7.06.01 | Equity in results of affiliated companies | 9,216 | 118,968
7.06.02 | Financial income | 656,290 | 310,994
7.06.03 | Others | 970,987 | 180,112
7.06.03.01 | Others and exchange gains | 970,987 | 180,112
7.07 | Value added for distribution | 7,286,396 | 5,521,895
7.08 | Value added distributed | 7,286,396 | 5,521,895
7.08.01 | Personnel | 1,652,791 | 1,715,683
7.08.01.01 | Salaries and wages | 1,284,313 | 1,323,162
7.08.01.02 | Benefits | 291,973 | 312,758
7.08.01.03 | Severance payment (FGTS) | 76,505 | 79,763
7.08.02 | Taxes, fees and contributions | 2,532,531 | 356,167
7.08.02.01 | Federal | 2,246,836 | 132,068
7.08.02.02 | State | 259,321 | 206,813
7.08.02.03 | Municipal | 26,374 | 17,286
7.08.03 | Remuneration on third-party capital | 2,705,288 | 2,339,476
7.08.03.01 | Interest | 2,006,111 | 1,946,262
7.08.03.02 | Rental | 5,681 | 15,521
7.08.03.03 | Others | 693,496 | 377,693
7.08.03.03.01 | Others and exchange losses | 693,496 | 377,693
7.08.04 | Remuneration on Shareholders' capital | 395,786 | 1,110,569
7.08.04.02 | Dividends | - | 412,659
7.08.04.03 | Retained earnings (accumulated losses) | 65,113 | 331,894
7.08.04.04 | Non-controlling interests in retained earnings | 330,673 | 366,016

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São Paulo, October 15, 2020

Results for the Third Quarter of 2020

Companhia Siderúrgica Nacional (“CSN”) (B3 S.A. – Brasil, Bolsa e Balcão: CSNA3) (NYSE: SID) announces its results for the third quarter of 2020 (3Q20) in Brazilian Reais, in accordance with International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB), which are fully convergent with international accounting standards and with Brazilian accounting practices.

All comments presented herein refer to the Company’s consolidated results for the third quarter of 2020 (3Q20) and comparisons refer to the third quarter of 2019 (3Q19) and second quarter of 2020 (2Q20).The Brazilian Real/U.S. Dollar exchange rate was R$4.1644 on September 30, 2019, R$5.4416 on June 30, 2020, and R$5.6407 on September 30, 2020 (+3.7% appreciation of the U.S Dollar against the Brazilian Real in the quarter).

Operating and Financial Highlights in 3Q20

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¹ Adjusted EBITDA is calculated based on net profit (loss), plus depreciation and amortization, income tax, net financial result, share of profit (loss) of investees and other operating income/expenses, and includes the proportional share of EBITDA of jointly owned subsidiaries MRS Logística (37.27%) and CBSI (50% 3Q19, 100% 3Q20).

² Adjusted Net Debt and Adjusted Cash and Cash Equivalents include the stakes of 100% in CSN Mineração, 37.27% in MRS and CBSI (50% in 3Q19, 100% 3Q20), our stake in this company until 3Q19, excluding Forfaiting and Drawee Risk operations.

CSN’s Consolidated Result

| · | Net Revenue in 3Q20 totaled R$8,715 million, up by 40% over 2Q20 and by 45% over 3Q19. The increase was mainly due to the normalization of the volume of iron ore production, combined with higher prices for iron ore, cement and steel when compared to 2Q20.

| · | In 3Q20, the Cost of Goods Sold totaled R$5,133 million, up by 17% over 2Q20. Gross Margin increased by 11.5 p.p. over 2Q20, reaching 41.1% in 3Q20, due to the positive performance, mainly in cement, steel and mining.

| · | In 3Q20, Selling, General and Administrative Expenses totaled R$731 million, up by 39% over 2Q20, while the Net Revenue reached 40% year-on-year. Selling Expenses increased 52% in 3Q20, mainly due to a higher volume of freight, while General and Administrative Expenses decreased by 2% YoY.

| · | In 3Q20, the group of Other Operating Revenues and Expenses reached a negative value of R$717 million, mainly due to hedge accounting.

| · | The financial result reached a negative value of R$156 million, with cost of debt partially offset by the appreciation of Usiminas shares, generating a gain of R$537 million without cash effect.

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| · | Equity Pick-up was positive by R$26 million in 3Q20, compared to R$29 million in 2Q20, due to higher eliminations in the period.

| · | In 3Q20, the Company recorded a net income of R$1,262 million, compared to net income of R$446 million in 2Q20.

Adjusted EBITDA

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

| · | Adjusted EBITDA reached a record of R$3,506 million in 3Q20, compared to R$1,925 million in the second quarter, due to an increase in sales volume, mainly in the volume of steel sold in the domestic market and iron ore in the foreign market. Adjusted EBITDA margin reached 39% or up by 9.2 p.p. YoY.

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

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Adjusted Free Cash Flow¹

Adjusted Cash Flow in 3Q20 reached R$2,837MM, positively affected mainly by the higher Ebitda and by the positive variation in working capital due to the sharp decrease in inventory.

¹Adjusted Free Cash Flow is calculated from Adjusted EBITDA less EBITDA of Joint Subsidiaries, Capex, Income Tax, Financial Income (Expenses), and variation of Assets and Liabilities², excluding the impact of Glencore’s advance.

²Adjusted Working Capital² includes the variation in Net Working Capital (+R$264MM), plus the variation in long-term assets and liabilities accounts (R$701MM) and disregards the net variation of Income Tax and Social Contribution Tax for consumption (+R$3MM), dividends payable (-R$16MM) and non-cash CAPEX (-R$42MM) and AFAC TLSA non-cash (-R$95MM).

Indebtedness

On September 30, 2020, the consolidated net debt reached R$30,603 million, with the exchange rate change offset by the strong cash generation in the period and the inflow of funds from iron ore prepayment. The net debt/EBITDA ratio reached 3.67x, a considerable decrease due to the strong cash flow.

In 3Q20 and at the beginning of 4Q20, the Company continued to extend its liabilities, obtaining approvals for an extension of R$600 million with private banks.

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Foreign Exchange Exposure

Net exchange exposure of the consolidated balance sheet on September 30, 2020 was US$88 million, as shown in the table below, in line with the company's policy of minimizing the impacts of exchange rate volatility on results.

Hedge Accounting adopted by CSN correlates projected export in dollar with scheduled debt payments in the same currency. Therefore, the exchange rate variation of the dollar-denominated debt is temporarily accounted for under shareholders’ equity and recorded in the income statement when dollar revenues from exports are received.

Investments

The Company invested R$459 million in 3Q20, prioritizing reliability and safety projects in Steel and Mining.

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Net Working Capital

Net Working Capital invested in the business totaled R$3,317 million in 3Q20, down by R$264 million due to the decrease in inventories of finished goods due to the more robust demand in the period. The decrease was also possible due to the maintenance of the payment terms, besides the payment extension in the context of COVID-19.

Net Working Capital applied to the business disregards Glencore’s advance, as shown in the table below:

¹Other Assets NWC: Considers: Advances Employees and Other Accounts Receivable

²Other Liabilities NWC: Considers: Other accounts payable, dividends payable, installment taxes and other provisions

³Inventories: Does not consider the effect of the provision for losses on inventories. To calculate the PME, the balances of warehouse inventories are not considered.

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3Q20 Results (R$ Million) | Steel | Mining | Port Logistics | Railway Logistics | Energy | Cement | Corporate Expenses/ Eliminations | Consolidated
Net Revenue | 4,570 | 3,861 | 58 | 418 | 40 | 259 | (491) | 8,715
Domestic Market | 3,299 | 429 | 58 | 418 | 40 | 259 | (878) | 3,625
Foreign Market | 1,271 | 3,432 | - | - | - | - | 387 | 5,089
COGS | (4,022) | (1,291) | (38) | (273) | (34) | (170) | 694 | (5,133)
Gross Profit | 548 | 2,570 | 20 | 144 | 6 | 89 | 203 | 3,581
SG&A | (231) | (44) | (9) | (29) | (8) | (21) | (390) | (731)
Depreciation | 234 | 167 | 8 | 104 | 4 | 32 | (88) | 461
Proportional EBITDA of Jointly Owned Subsidiaries | - |  | - | - | - | - | 195 | 195
Adjusted EBITDA | 551 | 2,694 | 19 | 219 | 3 | 100 | (80) | 3,506
2Q20 Results (R$ Million) | Steel | Mining | Port Logistics | Railway Logistics | Energy | Cement | Corporate Expenses/ Eliminations | Consolidated
Net Revenue | 3,440 | 2,688 | 75 | 382 | 38 | 172 | (574) | 6,221
Domestic Market | 2,124 | 345 | 75 | 382 | 38 | 172 | (778) | 2,358
Foreign Market | 1,316 | 2,343 | - | - | - | - | 204 | 3,863
COGS | (3,109) | (1,367) | (51) | (260) | (33) | (161) | 604 | (4,378)
Gross Profit | 330 | 1,321 | 23 | 122 | 5 | 11 | 30 | 1,843
SG&A | (228) | (44) | (9) | (28) | (7) | (21) | (190) | (527)
Depreciation | 222 | 141 | 8 | 105 | 4 | 37 | (90) | 428
Proportional EBITDA of Jointly Owned Subsidiaries | - |  | - | - | - | - | 182 | 182
Adjusted EBITDA | 324 | 1,418 | 22 | 200 | 2 | 27 | (68) | 1,925
3Q19 Results (R$ Million) | Steel | Mining | Port Logistics | Railway Logistics | Energy | Cement | Corporate Expenses/ Eliminations | Consolidated
Net Revenue | 3,334 | 2,336 | 69 | 354 | 74 | 161 | (322) | 6,006
Domestic Market | 2,417 | 142 | 69 | 354 | 74 | 161 | (540) | 2,677
Foreign Market | 917 | 2,194 | - | - | - | - | 218 | 3,330
COGS | (3,190) | (1,071) | (43) | (258) | (56) | (180) | 427 | (4,370)
Gross Profit | 144 | 1,265 | 26 | 96 | 19 | (19) | 106 | 1,636
SG&A | (198) | (51) | (9) | (26) | (8) | (25) | (251) | (567)
Depreciation | 159 | 138 | 2 | 97 | 4 | 33 | (83) | 352
Proportional EBITDA of Jointly Owned Subsidiaries | - | - | - | - | - | - | 146 | 146
Adjusted EBITDA | 105 | 1,352 | 19 | 166 | 16 | (11) | (81) | 1,567

CSN’s Steel Results

According to the World Steel Association (WSA), global crude steel production totaled 311.1 million tonnes (Mton) in the YTD for July and August 2020, down by 0.3% YoY. China alone produced 188.2 Mton, up by 8.7%, while in the European Union and North America there was a decrease year-on-year.

In 3Q20, CSN’s slab production totaled 781,000 tons, down by 15% over 2Q20 due to the strategic shutdown of BF#2 at the end of May, which shows a substantial evolution in performance of BF#3 after 2019’s general renovation. |  | In 3Q20, total sales reached 1,278,000 tons, up by 27.4% over 2Q20, mainly due to the recovery in the domestic market after the peak of the pandemic, as well as the good use of galvanized products in the foreign market.
In 3Q20, the volume of steel sold on the domestic market totaled 923,000 tons, up by 50% over 2Q20 due to the strong recovery after the peak of the pandemic. Of this total, 869,000 tons refer to flat rolled steel and 54,000 tons to long rolled steel. According to the Brazilian Steel Institute (IABr), apparent consumption based on the monthly average (July and August 2020), increased by 29% over 2Q20. |  | In the Foreign Market, sales in 3Q20 totaled 355,000 tons, down by 9% compared to the previous quarter, due to the seasonality in Germany and the return of the use of quotas in the U.S. market. During this period, 26,000 tons were exported directly and 329,000 tons were sold by subsidiaries abroad, with 63,000 tons sold by LLC, 171,000 tons by SWT and 94,000 tons by Lusosider.

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| · | In 3Q20, regarding total sales volume, the share of products coated with flat steel remained stable at 53% QoQ and YoY. Sales volumes for the automotive (+165%), white goods (108%) and distribution (+52%) segments were the period’s positive highlights, with a strong recovery after the impact of the pandemic in 2Q20.

According to ANFAVEA (National Association of Automotive Vehicle Manufacturers), in the monthly average of the third quarter of 2020 for the production of cars, light commercial vehicles, trucks and buses reached 190,700 units, up by 300% QoQ, however still below the monthly average of 245,000 in 2019. |  |
According to IBGE, production of household appliances fell by 5% YTD on a YoY basis. |

| · | Steel’s Net Revenue reached R$4,570 million in 3Q20, up by 33% over 2Q20. The domestic recovery, the devalued exchange rate and the improvement in international prices led to adjustments in the main product lines over the period. The average price evolved in both markets (+4.6% in the Domestic Mkt and +5.3% in exports) QoQ.

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| · | Slab Production Cost in 3Q20 reached R$2,116/t, an increase of only 1.6% QoQ, offsetting a higher increase of costs with operational efficiency despite an increase in iron ore and the devalued exchange rate in the quarter.

| · | Adjusted EBITDA reached R$551 million in 3Q20, up by 70% over 2Q20, with an EBITDA margin at 12.1%, up by 2.6 p.p. in the period. The profitability significantly improved, from R$324/ton in 2Q20 to R$431/ton in 3Q20.

CSN’s Mining Results

In 3Q20, stimuli in China led to a strong recovery in steel margins and, despite the pandemic, demand for iron ore increased, leading to higher reference prices. Ore inventories at ports and mills remained at low levels due to the tight supply, which ensured high prices in the period. In this context, iron ore closed 3Q20 with an average of US$118.2/dmt (Platts, Fe62%, N. China), up by 27% over 2Q20 (US$93.3/dmt).

Regarding sea freight, Route BCI-C3 (Tubarão-Qingdao) reached an average of US$17.9/wmt in 3Q20, up by 51% QoQ due to the growing demand and seasonality.

| · | In 3Q20, CSN’s Iron Ore Production reached 9.4 million tons, up by 27% QoQ, due to the expected growth of the new mining fronts, leading to a return of the normal production.

| · | In 3Q20, sales volume reached 9.2 million tons, up by 18% QoQ due to the higher availability of iron ore.

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| · | In 3Q20, Mining Net Revenue totaled R$3,861 million, up by 44% QoQ, due to the higher sales volume (+18%) together with the devalued exchange rate and strong realization price. Net Unit Revenue reached US$78.3 per wet ton, up by 21% QoQ.

| · | Cost of Goods Sold from mining totaled R$1,291 million in 3Q20, down by 6% due to the better production performance. FOB Cash Cost totaled USD15.4/t in 3Q20, down by 9% due to the higher volume produced in the period and the devalued exchange rate.

| · | EBITDA reached R$2,694 million in 3Q20, a record margin of 70%, reflecting the recovery in sales volume, cost control and Platts appreciation.

Cement Results

In 3Q20, Cement’s Net Revenue reached R$259 million, up by 50% QoQ due to the higher sales volume (+16%) over 2Q20, in addition to price increases, which contributed to the change in the EBITDA level of R$100 million and a record EBITDA margin of 39%.

CSN’s Logistics Results

Railway Logistics: In 3Q20, Net Revenue reached R$418 million, with an EBITDA of R$219 million and an EBITDA margin of 52.4%.

Port Logistics: In 3Q20, 156,000 tons of steel products were shipped by Sepetiba Tecon, in addition to 4,000 tons of general cargo, about 44,000 containers and 181,000 tons of bulk goods. Net Revenue reached R$58 million, generating an EBITDA of R$19 million, with an EBITDA Margin of 33.0%.

Energy Results

In 3Q20, the volume of energy traded totaled a net revenue of R$40 million, with an EBITDA of R$3 million and an EBITDA margin of 7.1%.

ESG – Environmental, Social & Governance

Sustainability

The last quarter also had major advances in the Company’s ESG agenda. CSN was recognized, once again, with the gold seal of the “GHG Protocol” Program, which certifies the disclosure of inventories of greenhouse gas (GHG) emissions.

Currently, about 140 organizations present their data, making their Public Emissions Record the largest base of corporate inventories available in Latin America, with CSN participating in the program from the beginning and having a gold seal since 2014.

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Also, in the last quarter, for the tenth consecutive year, we concluded the report to the “Carbon Disclosure Project (CDP)”. The purpose of this initiative is to disseminate information on companies’ policies and results on the following subjects: Climate Change, Supply Chain and Water Resources.

This year, for the first time, the Company will have its information available to all audiences, as soon as the information is published on this platform.

Safety and Health:

Safety is our main priority and the result of our efforts towards the zero-accident target has been successively reflected in our indicators.

Actions focused on risk management have been key to prevent accidents.

Throughout CSN group, we recorded a 20% drop YoY in accident rates with and without leave (CAF+SAF), in occurrences with own and outsourced employees.

Environmental Licenses and Management of Dams

Completely independent of the use of dams for its production process, CSN Mineração obtained important environmental licenses in the last quarter, including: Fraile II Tailings Pile Operating License and Authorization for Environmental Intervention to Build B4 Dam’s Waist Channel - to drain any water that enters the dam - formalizing the start of its de-characterization process, which should be concluded in 2023.

Considering the last 6 months, we obtained three other important environmental licenses:

- Installation of Itabiritos processing plant, with capacity for 10 Mtpy;

- Implementation and operation of a waste pile called Batateiro IIIA;

- Operation for mining expansion in Mascate body;

All within the expected schedule to meet our expansion projects.

Also regarding the management of dams, in the last quarter we concluded the works to de-characterize B5 Casa de Pedra and Vigia Auxiliar dam, which has already been inspected by ANM (National Mining Agency) and FEAM (State Foundation for the Environment-MG). The only thing missing is the expert opinion with the final approval issued by these bodies.

In this quarter, the implementation of the Municipal Plan for Dam Safety also started, a joint initiative between the City Hall and the mining companies in the municipality of Congonhas, with an investment of over R$6 million from CSN Mineração. The plan’s purposes are, among others: building a modern headquarters for civil defense, acquiring vehicles and equipment, preparing the Integrated Contingency Plan considering all mining companies, signaling and advertisement campaign, as well as training the municipal brigade.

Biodiversity and Social Responsibility

In its relationship with the community, CSN Mineração kept the schedule of bimonthly routine meetings with several representatives of the public/private sector and communities, with the purpose of discussing demands, criticisms and suggestions to minimize or mitigate the social and environmental impacts inherent to its enterprises.

In this sense, “Casa de Apoio CSN”, located in the neighborhood Residencial, in Congonhas-MG, is an important communication channel with the community. Besides, we have expanded the scope of our Environmental Education Program (PEA), working monthly with the internal and external public on key environmental aspects, promoting the development of a collective awareness, and, therefore, contributing to environmental conservation in the company’s operating area.

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In the last quarter, CSN Mineração carried out important actions to protect the Biodiversity. Among them, regularizing lands and donating areas to ICMBIO located in the Sempre Vivas National Parks and Cavernas do Peruaçu National Park. All of them included in the São Francisco River basin, contributing to the preservation of biodiversity and water recharge in that region.

Coping with COVID-19

The company has been constantly raising the awareness of employees, maintaining the measures to fight COVID19. Our efforts include, but are not limited to, the measures listed below:

- Reinforcing internal notices with information on how to avoid Covid-19;
- Reinforcing the cleaning process of the rooms, making hand sanitizers available in all plants;
- Distributing protection masks for each employee;
- Medical protocols such as: measuring the body temperature of all employees before their access to plants and offices, RT-PCR testing in symptomatic cases and in possible contacts;
- Maintaining social distance;
- Keeping employees belonging to Risk Groups on leave of absence or working from home;
- Canceling in-person meetings, in the units or outside, as well as internal and external training, using electronic means to make work contacts.

These measures, among others, kept infection rates low, preserving the health and lives of our employees and ensuring that there is no impact on our operational performance.

Capital Markets

In the third quarter of 2020, CSN's shares appreciated 55.81%, while the Ibovespa decreased 1.66%. The average daily value (CSNA3) traded at B3, in turn, was R$ 191 million. On the New York Stock Exchange (NYSE), the Company's American Depositary Receipts (ADRs) appreciated by 50.00%, while the Dow Jones rose 7.95%. The daily average trading (SID) with ADRs on the NYSE was US$ 4.6 million.

2Q20 | 3Q20
Number of shares (in thousands) | 1,387,524 | 1,387,524
Market Cap |  |
Closing price (R$/share) | 10.68 | 16.50
Closing price (US$/ADR) | 1.96 | 2.94
Market cap (R$ million) | 14,819 | 23,435
Market cap (US$ million) | 2,720 | 4,174
Total return including Dividends and Interest on Equity |  |
CSNA3 | 56.31% | 55.81%
SID | 56.97% | 50.00%
Ibovespa | 33.94% | 1.66%

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Dow Jones | 23.25% | 7.95%
Volume |  |
Daily average (thousand shares) | 14,657 | 13,578
Daily average (R$ thousand) | 132,694 | 190,637
Daily average (thousand ADRs) | 2,109 | 1,753
Daily average (US$ thousand) | 3,538 | 4,613
Source: Bloomberg |  |

Webcast – 3Q20 Earnings Presentation | Investor Relations Team
Conference Call in Portuguese with Simultaneous Translation |  | CFO and IRO – Marcelo Cunha Ribeiro
into English |  | Leo Shinohara (leonardo.shinohara@csn.com.br)
|  | José Henrique Triques (jose.triques@csn.com.br)
October 16th, 2020 |  | Guilherme Vinco (guilherme.vinco@csn.com.br)
11:00 a.m. (Brasília Time) |  |
10:00 a.m. (US EDT) |  |
Phone: +1 929 378-3440 / +1 516 300-1066 |  |
Code: CSN |  |
Replay phone: +55 11 3127-4999 |  |
Replay Code: 35890687 |  |
Webcast: click here |  |

Some of the statements contained herein are forward-looking statements that express or imply expected results, performance or events. These include future results that may be implied by historical results and the statements under ‘Outlook’. Actual results, performance or events may differ materially from those expressed or implied by the forward-looking statements as a result of several factors, such as the general and economic conditions in Brazil and other countries, interest rate and exchange rate levels, protectionist measures in the USA, Brazil and other countries, changes in laws and regulations and general competitive factors (on a global, regional or national basis).

| INCOME STATEMENT |  |  |  |  |  |
| CONSOLIDATED - Brazilian Corporate Law (in thousand of Reais) |  |  |  |  |  |
|  |  |  | 3Q20 |  | 2Q20 |  | 3Q19
| Net Sales Revenue |  | 8,714,583 |  | 6,220,683 |  | 6,006,393
|  | Domestic Market |  | 3,625,325 |  | 2,358,059 |  | 2,676,655
|  | Foreing Market |  | 5,089,258 |  | 3,862,624 |  | 3,329,738
| Costs of Goods Sold (COGS) |  | (5,133,126) |  | (4,378,065) |  | (4,370,357)
|  | COGS, excluding Depreciation and Depletion |  | (4,685,167) |  | (3,962,839) |  | (4,026,696)
|  | Depreciation/Depletion allocated to COGS |  | (447,959) |  | (415,226) |  | (343,661)
| Gross Profit |  | 3,581,457 |  | 1,842,618 |  | 1,636,036
|  | Gross Margin (%) |  | 41% |  | 30% |  | 27%
|  | Selling Expenses |  | (603,629) |  | (396,847) |  | (427,703)
|  | General and Administrative Expenses |  | (114,822) |  | (117,706) |  | (131,171)

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|  | Depreciation and Amortization in Expenses |  | (12,667) |  | (12,356) |  | (8,459)
|  | Other Income (Expenses), net |  | (716,868) |  | (790,794) |  | (862,600)
|  | Equity in Results of Affiliated Companies |  | 25,970 |  | 28,354 |  | 64,069
| Operating Income Before the Financial Result |  | 2,159,441 |  | 553,269 |  | 270,172
|  | Net Financial Result |  | (156,049) |  | 284,857 |  | (840,074)
| Income before Income Tax and Social Contribution |  | 2,003,392 |  | 838,126 |  | (569,902)
|  | Income Tax and Social Contribution |  | (741,797) |  | (392,226) |  | (300,754)
| Profit for the Period |  | 1,261,595 |  | 445,900 |  | (870,656)

BALANCE SHEET |  |  |  |
Brazilian Corporate Law (in thousand of reais) |  |  |  |
|  |  |  | 09/30/2020 |  | 12/31/2020
| Current Assets |  | 18,541,939 |  | 12,725,805
|  | Cash and Cash Equivalents |  | 5,724,428 |  | 1,088,955
|  | Financial Investments |  | 2,805,381 |  | 2,633,173
|  | Accounts Receivable |  | 2,668,369 |  | 2,047,931
|  | Inventory |  | 5,035,288 |  | 5,282,750
|  | Other Current Assets |  | 2,308,473 |  | 1,672,996
|  | Taxes to Recover |  | 1,953,337 |  | 1,282,415
|  | Prepaid Expenses |  | 164,588 |  | 203,733
|  | Dividends Receivable |  | 45,153 |  | 44,554
|  | Derivative Financial Instruments |  | 1,010 |  | 1,364
|  | Others |  | 144,385 |  | 140,930
| Non-current Assets |  | 38,480,152 |  | 38,143,471
|  | Long-term Assets |  | 7,401,053 |  | 7,626,577
|  | Financial Investments Valued at Amortized Cost |  | 131,317 |  | 95,719
|  | Deferred Taxes |  | 2,501,398 |  | 2,473,304
|  | Other non-current Assets |  | 4,768,338 |  | 5,057,554
|  | Tax to Recover |  | 893,568 |  | 2,119,940
|  | Judicial Deposits |  | 372,526 |  | 328,371
|  | Prepaid Expenses |  | 130,797 |  | 139,927
|  | Credts Related Parties |  | 1,554,207 |  | 1,274,972
|  | Others |  | 1,817,240 |  | 1,194,344
|  | Investments |  | 3,691,195 |  | 3,584,169
|  | Shareholdings |  | 3,530,479 |  | 3,482,974
|  | Investments Properties |  | 160,716 |  | 101,195
|  | Property, Plant and Equipment |  | 20,033,718 |  | 19,700,944
|  | Fixed Assets in Operation |  | 19,534,913 |  | 19,228,599
|  | Lease |  | 498,805 |  | 472,345
|  | Intangible Assets |  | 7,354,186 |  | 7,231,781

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| TOTAL ASSETS |  | 57,022,091 |  | 50,869,276
| Current Liabilities |  | 12,861,250 |  | 11,619,957
|  | Payroll and Related Taxes |  | 404,057 |  | 317,510
|  | Trade Payables |  | 4,560,230 |  | 3,012,654
|  | Taxes Payable |  | 1,664,726 |  | 541,027
|  | Loans and Financing |  | 3,598,537 |  | 5,125,843
|  | Other Payables |  | 2,553,077 |  | 2,526,444
|  | Dividends and JCP Payable |  | 40,977 |  | 13,252
|  | Customer Advances |  | 962,789 |  | 787,604
|  | Payables - Drawee Risk |  | 605,385 |  | 1,121,312
|  | Lease Liabilities |  | 84,675 |  | 35,040
|  | Other Payables |  | 595,968 |  | 569,236
|  | Provision for Tax, Social Security, Labor and Civil Risks |  | 80,623 |  | 96,479
| Non-current Liabilities |  | 37,817,990 |  | 27,887,387
|  | Loans, Financing and Debentures |  | 32,559,616 |  | 22,841,193
|  | Other Payables |  | 2,704,234 |  | 2,493,702
|  | Customer Advances |  | 1,937,420 |  | 1,845,248
|  | Lease Liabilities |  | 420,014 |  | 439,350
|  | Derivative Financial Instruments |  | 125,051 |  |
|  | Other Payables |  | 221,749 |  | 209,104
|  | Deferred Taxes |  | 564,043 |  | 589,539
|  | Provisions for Tax, Social Security, Labor and Civil Risks |  | 529,176 |  | 526,768
|  | Other Provisions |  | 1,460,921 |  | 1,436,185
|  | Deactivation |  | 548,737 |  | 524,001
|  | Pension and Health Plan |  | 912,184 |  | 912,184
| Equity |  | 6,342,851 |  | 11,361,932
|  | Social Capital Paid |  | 4,540,000 |  | 4,540,000
|  | Capital Reserve |  | 32,720 |  | 32,720
|  | Profit Reserve |  | 4,431,200 |  | 4,431,200
|  | Accumulated Loss |  | 65,113 |  |
|  | Other Comprehensive Income |  | (4,072,306) |  | 1,170,624
|  | Non-controlling Interest |  | 1,346,124 |  | 1,187,388
| TOTAL LIABILITIES AND EQUITY |  | 57,022,091 |  | 50,869,276

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CASH FLOW |  |  |  |
CONSOLIDATED - Brazilian Corporate Law - in thousand of Reais |  |  |  |
|  |  |  | 3Q20 |  | 2Q20
| Net Cash generated by Operating Activities |  | 3,618,761 |  | 1,500,310
|  | Net income (loss) for the period attributable to controlling shareholders |  | 1,080,786 |  | 345,178
|  | Net income attributable to non-controlling shareholders |  | 180,809 |  | 100,722
|  | Charges on loans and financing raised |  | 466,546 |  | 512,024
|  | Charges on loans and financing granted |  | (6,351) |  | (9,014)
|  | Charges on lease liabilities |  | 13,688 |  | 13,070
|  | Depreciation, depletion and amortization |  | 486,612 |  | 452,314
|  | Equity in results of affiliated companies |  | (25,970) |  | (28,354)
|  | Deferred taxes |  | 37,058 |  | (103,181)
|  | Provisions for tax, social security, labor, civil and environmental risk |  | (25,168) |  | 11,595
|  | Monetary and exchange rate variation, net |  | 601,370 |  | 866,556
|  | Write-off of fixed and intangible assets |  | 2,387 |  | 929
|  | Adjusted shares – VJR |  | (535,678) |  | (527,197)
|  | Accounts receivable – restitution |  | (4,428) |  | (508,326)
|  | Provisions for decommissioning and environmental liabilities |  | 10,324 |  | (6,228)
|  | Provisions (reversal) for consumption and services |  | (15,802) |  | (1,209)
|  | Other provisions |  | (49,625) |  | 3,189
Working Capital Variation |  | 2,089,056 |  | 789,276
|  | Accounts receivable – third parties |  | (693,056) |  | 376,412
|  | Accounts receivable – related parties |  | (20,182) |  | 65,145
|  | Inventories |  | 990,260 |  | (427,984)
|  | Taxes to be compensated |  | 529,739 |  | (31,516)
|  | Judicial Deposits |  | 16,121 |  | (8,753)
|  | Trade Payables |  | 437,752 |  | 473,630
|  | Trade Payables - Drawee Risk |  | 4,565 |  | (336,756)
|  | Payroll and Related Taxes |  | (7,628) |  | 98,850
|  | Taxex/Refis |  | 581,802 |  | 603,969
|  | Trade Payables - Related Parties |  | 2,686 |  | (4,328)
|  | Customer Advances - Glencore |  | 464,222 |  | (223,172)
|  | Others |  | (217,225) |  | 203,779
Other Payments and Receipts |  | (686,853) |  | (411,034)
|  | Interests Paid |  | (655,039) |  | (411,034)

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|  | Payment of cash flow hedge operations |  | (31,814) |  |
| Cash Flow from Financing Activities |  | (523,756) |  | (419,613)
|  | Investments/Future Advance for capital increase |  | (33,148) |  | (36,538)
|  | Acquisition of intangible assets |  | (397,590) |  | (366,866)
|  | Loans granted - related parties |  | - |  | (19,542)
|  | Loans received - related parties |  | 2,031 |  | 9,531
|  | Financial application, net of redemption |  | (95,049) |  | (6,198)
| Cash Flow from Financing Activities |  | (1,578,915) |  | (136,022)
|  | Loans and financing raised |  | 943,860 |  | 510,718
|  | Loan amortizations – principal |  | (2,346,349) |  | (610,101)
|  | Borrowing costs |  | (16,751) |  | (10,041)
|  | Lease amortizations |  | (24,924) |  | (26,564)
|  | Dividends Paid |  | (134,751) |  | (34)
| Exchange Rate Variation on Cash and Cash Equivalents |  | (5,214) |  | (12,261)
| Increase (Decrease) of Cash and Cash Equivalents |  | 1,510,876 |  | 932,414
| Cash and cash equivalents at the beginning of the period |  | 4,213,552 |  | 3,281,138
| Cash and cash equivalents at the ending of the period |  | 5,724,428 |  | 4,213,552

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(Expressed in thousands of reais – R$, unless otherwise stated)

| 1. | DESCRIPTION OF BUSINESS

Companhia Siderúrgica Nacional “CSN”, also referred to as “the Company” or “Parent Company”, is a publicly-held company incorporated on April 9, 1941, under the laws of the Federative Republic of Brazil (Companhia Siderúrgica Nacional, its subsidiaries, associates and joint ventures are collectively referred to herein as the "Group”). The Company’s registered office is located in São Paulo, SP, Brazil.

CSN is listed on the São Paulo Stock Exchange (B3 S.A.- Brasil, Bolsa, Balcão) and on the New York Stock Exchange (NYSE). Accordingly, the Company reports its information to the Brazilian Securities and Exchange Commission (CVM) and the U.S. Securities and Exchange Commission (SEC).

The Group's main operating activities are divided into five segments as follows:

| · | Steel:

The Company’s main industrial facility is the Presidente Vargas steelworks (“UPV”), located in the city of Volta Redonda, state of Rio de Janeiro. This segment consolidates all operations related to the production, distribution and sale of flat steel, long steel, metallic containers and galvanized steel. In addition to the facilities in Brazil, CSN has commercial operations in the United States and operations in Portugal and Germany aimed at gaining markets and providing excellent services to end consumers. Its steel is used in home appliances, civil construction and automobile industries.

| · | Mining:

The production of iron ore is developed in the cities of Congonhas, Ouro Preto and Belo Vale, in the state of Minas Gerais, by the subsidiary CSN Mineração.

Iron ore is sold basically in the international market, especially in Europe and Asia. The prices charged in these markets are historically cyclical and subject to significant fluctuations over short periods of time, driven by several factors related to global demand, strategies adopted by the major steel producers, and the foreign exchange rate. All these factors are beyond the Company’s control. The ore transportation is carried out through Terminal de Carvão e Minérios do Porto de Itaguaí – (“TECAR”), a solid bulk terminal, one of the four terminals that comprise the Itaguaí Port, in State of Rio de Janeiro. Imports of coal and coke are also carried out through this terminal by providing services by CSN Mineração to CSN. The Company´s mining activities also comprise exploitation of tin in the State of Rondônia, to supply the needs of the UPV. The surplus of these raw materials is sold to subsidiaries and third parties.

The Company's mining activities utilize tailings filtering and dams are maintained for contingent situations (power supply shortfalls, sudden interruptions in the beneficiation plant, etc.) for tailing discharges. The Company has invested around R$250 million in two filtering plants. The filtered tailings are placed in piles geotechnically controlled which represents a new trend in iron ore mining without the use of tailing dams. As a result of those measures, decommissioning of dams is the natural path of processing dry tailings.

All of our dams, both mining and hydroelectric dams, are positively certified and comply with the environmental legislation in force.

| · | Cement:

CSN entered the cement market boosted by the synergy between this activity and its existing businesses. Next to the Presidente Vargas Steelworks (UPV) in Volta Redonda (RJ), the Company installed a new business unit that produces CP-III type cement using slag produced by the UPV’s blast furnaces. It also exploits limestone and dolomite at the Arcos unit in the State of Minas Gerais, to meet the needs of the UPV and of the cement plant. Additionally, the operation clinker production line is located in Arcos/MG. As a result, the Company is self-sufficient in the production of cement, with an installed capacity of 4.7 million tons per year.

| · | Logistics

Railroads:

CSN has interests in three railroad companies: MRS Logística S.A., which manages the Southeast Railway System of the former Rede Ferroviária Federal S.A. (“RFFSA”), Transnordestina Logística S.A. (“TLSA”) and FTL - Ferrovia

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Transnordestina Logística S.A. (“FTL”), the last two having the concession to operate the former Northeast Railway System of RFFSA, in the States of Maranhão, Piauí, Ceará, Rio Grande do Norte, Paraíba, Pernambuco, Alagoas and Sergipe, with TLSA being responsible for the rail links of Eliseu Martins-Trindade, Trindade-Salgueiro, Salgueiro-Porto Suape, Salgueiro - Missão Velha and Missão Velha – Pecém (Railway System II),and construction phase, and FTL responsible for the rail links of São Luís - Altos, Altos - Fortaleza, Fortaleza - Sousa, Sousa - Recife/Jorge Lins, Recife/Jorge Lins - Salgueiro, Jorge Lins - Propriá, Paula Cavalcante - Cabedelo, Itabaiana - Macau (Railway System I).

Ports:

The Company operates in the State of Rio de Janeiro, through its subsidiary Sepetiba Tecon S.A., the Container Terminal ("TECON”) and through its subsidiary CSN Mineração S.A., TECAR, both at the Itaguaí Port. Locate in the Bay of Sepetiba, they have privileged highway, railroad and maritime access.

TECON handles and stores containers, vehicles, steel products, general cargo, among other products, and TECAR performs the operational activities of loading and unloading of solid bulk ships, storage and distribution (road and rail) of coal, coke, petroleum coke, clinker, zinc concentrate, sulfur, iron ore and other bulk intended for the seaborne market, for own consumption or for different customers.

| · | Energy:

As energy is fundamental to its production process, the Company has electric energy generation assets to mitigate its costs aiming more competitiveness.

Note 23 - “Segment Information” details the financial information per CSN´s business segment.

| · | Going Concern

The interim financial information was prepared based on the normal continuity of its business.

The negotiations for reprofiling part of the debts remain in constant progress and do not jeopardize the Company's operating continuity. The management does not have any other relevant operational restructuring plan that implies a change to the conclusion of the operational continuity. Except for the statement in the following paragraphs, the assumptions adopted on the disclosures on the bases for evaluating the operational continuity included in the financial statements of December 31, 2019 remain unchanged in their majority, being those financial statements approved by Management on March 4, 2020.

The COVID-19 pandemic was a new and important factor that emerged globally, reaching great relevance at the end of the first quarter 2020 causing impacts to the global economy. Our operations experienced some impacts in the first half of 2020, especially in the steel operations. Although the pandemic is still active, many restrictive measures imposed by the Brazilian authorities have been attenuated and we consider the effects of the pandemic in the global economy continue the process of dissipation, as well as in our activities. We haven’t identified any evidences of continuity risks and substantially maintained our primary operating assumptions unchanged.

Additionally, as published on the Relevant Act of August 25, 2020, the Company studies to realize a public offering of shares of its subsidiary CSN Mineração S.A. (“CMIN”). On September 18, 2020, the Board of Directors approved the new business plan of the subsidiary driven by expansion projects for reaching the full potential of its reserves and natural resources. In this context, the Company has taken all the measures to realize the initial public offering of shares issued by CMIN, with the purpose of partially financing the mining activities besides adding value to its shareholders.

| 2. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

2.a) Basis of preparation and declaration of conformity

The consolidated and parent company condensed interim financial information (“condensed quarterly information”) have been prepared and are being presented in accordance with accounting practices adopted in Brazil based on the

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provisions of the Brazilian Corporate Law, pronouncements, guidelines and interpretations issued (CPC), approved by CVM, besides the own standards issued by the Brazilian Securities and Exchange Commission (“CVM”) and International Financial Reporting Standards (“IFRS”) issued by the International Accounting Standard Board (IASB) and highlight all the relevant information of the interim financial statements, and only this information, is being disclosed and corresponds to the information used by the Company's management in its activities

The interim financial information has been prepared and is being presented in accordance with CPC 21 (R1) - “Interim Financial Reporting” and IAS 34 - “Interim Financial Reporting”, consistently with the standards issued by the CVM.

The significant accounting policies applied in this interim financial information are consistent with the policies described in Note 02 to the Company’s financial statements for the year ended December 31, 2019, filed with CVM.

This interim financial information does not include all requirements of annual or full financial statements and, accordingly, should be read in conjunction with the Company’s financial statements for the year ended December 31, 2019.

Therefore, in this interim financial information the following notes are not repeated, either due to redundancy or to the materiality in relation to those already presented in the annual financial statements:

Note 02 – Summary of significant accounting policies

Note 08 - Investments

Note 15 - Taxes in installments

Note 16 - Provision for tax, social security, labor, civil and environmental risks and judicial deposits

Note 26 – Employee benefits

Note 27 – Commitments

The parent company and consolidated interim financial information were approved by Management on October 15, 2020.

2.b) Basis of presentation

The interim financial information is presented in thousand of Brazilian reais (R$), which is the Company’s principal functional currency and the Group’s presentation currency.

Transactions in foreign currencies are translated into the functional currency using the exchange rates in effect at the dates of the transactions or valuations when items are remeasured. The asset and liability balances are translated at the exchange rates prevailing at the end of the reporting period. As of September 30, 2020, US$1 is equivalent to R$5.6407 (R$4.0307 as of December 31, 2019) and €1 is equivalent to R$6.6132 (R$4.5305 as of December 31, 2019), according to the rates obtained from the Central Bank of Brazil website.

2.c) Basis of consolidation

The accounting policies have been consistently applied to all consolidated companies. The consolidated financial statements for the period ended September 30, 2020 and year ended December 31, 2019 include the following direct and indirect subsidiaries and joint ventures, as well as the exclusive funds, as described below:

| · | Companies

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| Number of shares held by CSN in units | Equity interests (%) |
Companies | 09/30/2020 |  | 12/31/2019 |  | Core business
Direct interest in subsidiaries: full consolidation |  |  |  |  |  |
CSN Islands VII Corp. | 20,001,000 | 100.00 |  | 100.00 |  | Financial transactions
CSN Inova Ventures (1) | 50,000 | 100.00 |  | 100.00 |  | Financial transactions
CSN Islands XII Corp. | 1,540 | 100.00 |  | 100.00 |  | Financial transactions
CSN Steel S.L.U. | 22,042,688 | 100.00 |  | 100.00 |  | Equity interests and Financial transactions
TdBB S.A (*) |  | 100.00 |  | 100.00 |  | Equity interests
Sepetiba Tecon S.A. | 254,015,052 | 99.99 |  | 99.99 |  | Port services
Minérios NacionalS.A. | 141,719,295 | 99.99 |  | 99.99 |  | Mining and Equity interests
Companhia Florestal do Brasil | 66,354,391 | 99.99 |  | 99.99 |  | Reforestation
Estanho de Rondônia S.A. | 195,454,162 | 99.99 |  | 99.99 |  | Tin Mining
Companhia Metalúrgica Prada | 555,142,354 | 99.99 |  | 99.99 |  | Manufacture of containers and distribution of steel products
CSN Mineração S.A. | 158,419,480 | 87.52 |  | 87.52 |  | Mining and Equity interests
CSN Energia S.A. | 43,149 | 99.99 |  | 99.99 |  | Sale of electric power
FTL - Ferrovia Transnordestina Logística S.A. | 486,592,830 | 92.38 |  | 92.38 |  | Railroad logistics
Nordeste Logística S.A. | 99,999 | 99.99 |  | 99.99 |  | Port services
CSN Inova Ltd. |  | 100.00 |  | 100.00 |  | Advisory and implementation of new development projec
CSN Equipamentos S.A (2) |  |  |  | 99.99 |  | Rental of commercial and industrial machinery and equipment
CBSI - Companhia Brasileira de Serviços de Infraestrutura | 3,752,291 | 99.99 |  | 100.00 |  | Equity interests and product sales and iron ore
Indirect interest in subsidiaries: full consolidation |  |  |  |  |  |
Lusosider Projectos Siderúrgicos S.A. |  | 100.00 |  | 100.00 |  | Equity interests and product sales
Lusosider Aços Planos, S. A. |  | 99.99 |  | 99.99 |  | Steel and Equity interests
CSN Resources S.A. |  | 100.00 |  | 100.00 |  | Financial transactions and Equity interests
Companhia Brasileira de Latas |  | 99.99 |  | 99.99 |  | Sale of cans and containers in general and Equity interests
Companhia de Embalagens Metálicas MMSA |  | 99.67 |  | 99.67 |  | Production and sale of cans and related activities
Companhia de Embalagens Metálicas - MTM |  | 99.67 |  | 99.67 |  | Production and sale of cans and related activities
CSN Steel Holdings 1, S.L.U. |  | 100.00 |  | 100.00 |  | Financial transactions, product sales and Equity interests
CSN Productos Siderúrgicos S.L. |  | 100.00 |  | 100.00 |  | Financial transactions, product sales and Equity interests
Stalhwerk Thüringen GmbH |  | 100.00 |  | 100.00 |  | Production and sale of long steel and related activities
CSN Steel Sections UK Limited (3) |  |  |  | 100.00 |  | Sale of long steel
CSN Steel Sections Polska Sp.Z.o.o |  | 100.00 |  | 100.00 |  | Financial transactions, product sales and Equity interests
CSN Mining Holding, S.L |  | 87.52 |  | 87.52 |  | Financial transactions, product sales and Equity interests
CSN Mining GmbH |  | 87.52 |  | 87.52 |  | Financial transactions, product sales and Equity interests
CSN Mining Asia Limited |  | 87.52 |  | 87.52 |  | Commercial representation
Lusosider Ibérica S.A. |  | 100.00 |  | 100.00 |  | Steel, commercial and industrial activities and equity interests
CSN Mining Portugal, Unipessoal Lda. |  | 87.52 |  | 87.52 |  | Commercial and representation of products
Companhia Siderúrgica Nacional, LLC |  | 100.00 |  | 100.00 |  | Import and distribution/resale of products
Direct interest in joint operations: proportionate consolidation |  |  |  |  |  |
Itá Energética S.A. | 253,606,846 | 48.75 |  | 48.75 |  | Electric power generation
Consórcio da Usina Hidrelétrica de Igarapava |  | 17.92 |  | 17.92 |  | Electric power consortium
Direct interest in joint ventures: equity method |  |  |  |  |  |
MRS Logística S.A. (4) | 63,377,198 | 18.64 |  | 18.64 |  | Railroad transportation
Aceros Del Orinoco S.A. |  | 31.82 |  | 31.82 |  | Dormant company
Transnordestina Logística S.A. (5) | 24,670,093 | 47.26 |  | 47.26 |  | Railroad logistics
Equimac S.A (2) | 1,117 | 50.00 |  |  |  | Rental of commercial and industrial machinery and equipment
Indirect interest in joint ventures: equity method |  |  |  |  |  |
MRS Logística S.A. (4) |  | 16.30 |  | 16.30 |  | Railroad transportation
Direct interest in associates: equity method |  |  |  |  |  |
Arvedi Metalfer do Brasil S.A. | 46,994,971 | 20.00 |  | 20.00 |  | Metallurgy and Equity interests

(*) Dormant companies, therefore, they are presented in note 8.a., where information on companies accounted for under the equity method and fair value through profit or loss and comprehensive income are disclosed;

1. | On June 29, 2020, CSN Islands XI Corp. was renamed as CSN Inova Ventures.

2. | On June 26, 2020, CSN Equipamentos S.A. was renamed as Equimac S.A and its paid-up capital was increased by a new shareholder called Unidas Guindastes Eireli. Accordingly, CSN was diluted and its share in Equimac’s capital was decreased to 50%.

| 3. | The company was liquidated on March 11, 2020;

| 4. | As of September 30, 2020 and December 31, 2019, the Company directly owned 63,377,198 common shares, 26.611,282 preferred shares class A and 36,765,916 preferred shares class B and indirectly owned 63,338,872 common shares, 25.802,872 preferred shares class A and 37,536,000 preferred shares class B of MRS Logistica S.A.

| 5. | As of September 30, 2020, the Company held 24,168,304 common shares and 501,789 preferred shares Class B.

| · | Exclusive funds

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|  | Equity interests (%) |
Exclusive funds |  | 09/30/2020 |  | 12/31/2019 |  | Core business
Direct interest: full consolidation |  |  |  |  |  |
Diplic II- Fundo de investimento multimercado crédito privado |  | 100.00 |  | 100.00 |  | Investment fund
Caixa Vértice - Fundo de investimento multimercado crédito privado | 100.00 |  | 100.00 |  | Investment fund
VR1 - Fundo de investimento multimercado crédito privado |  | 100.00 |  | 100.00 |  | Investment fund

2.d) COVID-19 effects

As of December 31, 2019, the first cases of Covid-19 arose in many countries and in March 2020 the WHO (World Health Organization) declared the pandemic of the virus. From the beginning of the pandemic, the Company has adopted several precautionary measures to reduce exposure of its employees and assure the continuity of its businesses. All employees in conditions of vulnerability (group of risk) have been identified and set on vacations together with many others with the purpose of reducing around 50% of the corporate staff in the Company’s premises. Additionally, we provided masks to our employees, placed hand sanitizers in all our premises and, also, circulate internal communications with preventive measures with the purpose of reinforcing the hygiene protocols recommended by the authorities.

Also, the Company continues assessing in details the effects caused by the Covid-19 pandemic in its businesses due to the sharp decrease in the economic activities in Brazil since the end of March 2020, which imposed restrictions and measures of social distancing with the purpose of reducing the virus circulation. Many of those restrictive measures have been already attenuated by the competent authorities and the Company expects no significant impacts in its businesses.

The Company’s economic activity is directly linked to the steel products demand in the automotive, domestic and civil construction segments, as well as in the iron ore’s in the domestic and international markets. Any reduction in the activities of those segments could affect the demand and the prices of our products and bring relevant impacts in our financial position and results.

The potential economic effects of Covid-19 in the Company are presented below:

a) Operating effects

The 2020 budget of investments has been revised considering the adverse effects of a global economic deacceleration and, consequently, the amount of investments has been reduced since priority is given to primary sustaining investments to maintain our current conditions in the operating capacity, environmental and security.

In the beginning of June 2020, the Company turned off the blast furnace No.2 in the Presidente Vargas steelplant (UPV), in the city of Volta Redonda – RJ. The decision was based on the weak global economic scenario since CSN is a major supplier of raw material to the automotive, appliances and civil construction industries. However, blast furnace No.3 has been recently refurbished and has supplied the current demand that continues expanding. Additionally, the Company is preparing to turn on the blast furnace No.2 by the end of November 2020.

The pandemic effects were most perceived in the second quarter of 2020, when caused some impacts in our activities, more precisely in the steel revenues. Other segments have not experienced any significant impacts.

The Company’s rail and seaborne logistics also did not experience any impacts as well as the Company’s supply chain that could have caused interruptions in its operating activities.

b) Assets recovery and financial and non-financial liabilities

The pandemic has not caused any significant impacts in the fair value of our assets and liabilities, except for a temporary adverse negative impact in the market value of our Usiminas’ shares that, as of March 31, 2020, had accumulated losses of R$962 million in that quarter, which were fully recovered and accumulated a gain of R$97 million as of September 30, 2020. It is not possible to predict the actual impact of the pandemic in the Company’s businesses. In limit situations, certain covenants or special obligations applicable to our debt instruments may be achieved. The Company closely monitors the indicators to avoid the risks to its financial position.

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There are no relevant impacts in the Company’s financial assets. A portion of the receivables that had been postponed was fully received until the end of the second quarter of 2020. The default rate of the Company’s receivables has not changed significantly and is not expected to change in the future.

Our portfolio of investments and the nature of our industrial plants have long-term characteristics. The long-term operating and economic context in which the Company is inserted gives us more flexibility in the strategies and plans to mitigate the risks and effects of the pandemic and, accordingly, ensure the maintenance of recoverability expected from our non-financial assets, such as equity instruments, property, plant and equipment and tax credits. In the beginning of the pandemic we realized stressing tests playing with many assumptions of our business projections, especially for the years 2020 and 2021. Those stressed assumptions were revalidated and remained unchanged during the second and third quarters and, accordingly, we did not identify any impairment losses that should be recognized in our financial information as of September 30, 2020.

According to orientations given by the Brazilian Securities and Exchange Commission (CVM), the Company assessed effects that eventually could have a relationship with its business continuity and accounting estimates. Despite we have perceived some adverse effects in the beginning of the pandemic, they did not put risks of continuity nor of changes to our accounting estimates that could produce significant effects in the Company’s businesses and, consequently, in the financial position.

The Company maintains in its entirety the production and sales projections for the medium and long term.

| 3. | CASH AND CASH EQUIVALENTS

|  |  | Consolidated |  |  |  | Parent Company
| 09/30/2020 |  | 12/31/2019 |  | 09/30/2020 |  | 12/31/2019
Current |  |  |  |  |  |  |
Cash and cash equivalents |  |  |  |  |  |  |
Cash and banks | 4,737,275 |  | 496,769 |  | 2,088,814 |  | 99,835
Short-term investments |  |  |  |  |  |  |
In Brazil: |  |  |  |  |  |  |
Government securities | 341 |  | 69,093 |  | 60 |  | 735
Private securities | 986,440 |  | 462,831 |  | 281,479 |  | 291,537
| 986,781 |  | 531,924 |  | 281,539 |  | 292,272
Abroad: |  |  |  |  |  |  |
Private securities | 372 |  | 60,262 |  | 373 |  |
Total short-term investments | 987,153 |  | 592,186 |  | 281,912 |  | 292,272
Cash and cash equivalents | 5,724,428 |  | 1,088,955 |  | 2,370,726 |  | 392,107

The funds available established in Brazil, are basically invested in private securities and yield interest based on the floating of Certificates of Interbank Deposits (“CDI”) and government securities are basically repurchase agreements backed by National Treasury Notes. The Company invests part of the funds through exclusive fund investments, and their financial statements were consolidated into the Company’s statements. The funds are managed by BNY Mellon Serviços Financeiros DTVM S.A. and Caixa Econômica Federal (CEF).

A significant part of the funds is invested abroad in Time Deposits in banks considered by management as top rated banks and the returns are based on fixed interest rates.

| 4. | FINANCIAL INVESTMENTS

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|  |  |  |  |  |  |  | Consolidated |  |  |  |  |  |  |  | Parent Company
|  | Current |  | Non Current |  | Current |  | Non Current
|  | 09/30/2020 |  | 12/31/2019 |  | 09/30/2020 |  | 12/31/2019 |  | 09/30/2020 |  | 12/31/2019 |  | 09/30/2020 |  | 12/31/2019
Private securities (1) |  | 587,439 |  | 481,409 |  |  |  |  |  | 565,595 |  | 481,409 |  |  |  |
Government securities (2) | 5,879 |  | 37,144 |  |  |  |  |  | 1,066 |  | 395 |  |  |  |
Usiminas shares (3) |  | 2,212,063 |  | 2,114,620 |  |  |  |  |  | 2,212,063 |  | 2,114,620 |  |  |  |
Bonds (4) |  |  |  |  |  | 131,317 |  | 95,719 |  |  |  |  |  | 131,317 |  | 95,719
|  | 2,805,381 |  | 2,633,173 |  | 131,317 |  | 95,719 |  | 2,778,724 |  | 2,596,424 |  | 131,317 |  | 95,719

| 1. | Restricted financial investments linked to Bank Certificate of Deposit to secure a letter of guarantee of certain loans.

| 2. | Investments in National Treasury Bills (LFT) managed by its exclusive funds.

| 3. | A portion of Usiminas’ shares is given as guarantee to a portion of the Company’s debt.

| 4. | Bonds issued by Fibra with maturity in February 2028.

| 5. | TRADE RECEIVABLES

|  |  | Consolidated |  |  |  | Parent Company
| 09/30/2020 |  | 12/31/2019 |  | 09/30/2020 |  | 12/31/2019
Trade receivables |  |  |  |  |  |  |
Third parties |  |  |  |  |  |  |
Domestic market | 1,055,999 |  | 1,118,632 |  | 762,172 |  | 852,434
Foreign market | 1,723,894 |  | 1,003,905 |  | 110,095 |  | 62,833
| 2,779,893 |  | 2,122,537 |  | 872,267 |  | 915,267
Allowance for doubtful debts | (268,721) |  | (245,194) |  | (164,663) |  | (167,247)
| 2,511,172 |  | 1,877,343 |  | 707,604 |  | 748,020
Related parties (note 17 a) | 157,197 |  | 170,588 |  | 1,042,607 |  | 943,623
| 2,668,369 |  | 2,047,931 |  | 1,750,211 |  | 1,691,643

In accordance with the sales policy the Group carries out transactions of assignment of receivables without co-obligation in which, after assigning the customer’s trade notes/bills and receiving the amounts from each transaction closed, CSN settles the receivables and becomes entirely free from the credit risk of the transaction. This transaction in the consolidated totals R$51,930 as of September 30, 2020 (R$51,161 as of December 31, 2019) and in the Parent Company R$43,219 (R$47,994 as of December 31,2019).

The gross balance of receivables from third parties is comprised as follows:

|  |  |  | Consolidated |  |  |  | Parent Company
|  | 09/30/2020 |  | 12/31/2019 |  | 09/30/2020 |  | 12/31/2019
Current |  | 2,506,615 |  | 1,739,746 |  | 700,762 |  | 731,377
Past-due up to 30 days |  | 53,246 |  | 132,845 |  | 13,871 |  | 9,089
Past-due up to 180 days |  | 24,801 |  | 23,877 |  | 19,251 |  | 6,684
Past-due over 180 days |  | 195,231 |  | 226,069 |  | 138,383 |  | 168,117
|  | 2,779,893 |  | 2,122,537 |  | 872,267 |  | 915,267

The changes in the Company’s allowance for doubtful accounts are as follows:

|  |  |  | Consolidated |  |  |  | Parent Company
|  | 09/30/2020 |  | 12/31/2019 |  | 09/30/2020 |  | 12/31/2019
Opening balance |  | (245,194) |  | (237,352) |  | (167,247) |  | (176,855)
Estimated (losses) |  | (40,003) |  | (43,313) |  | (9,165) |  | (18,540)
Recovery of receivables |  | 16,476 |  | 35,471 |  | 11,749 |  | 28,148
Closing balance |  | (268,721) |  | (245,194) |  | (164,663) |  | (167,247)

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| 6. | INVENTORIES

| Consolidated |  | Parent Company
| 09/30/2020 |  | 12/31/2019 |  | 09/30/2020 |  | 12/31/2019
Finished goods | 1,731,362 |  | 1,691,842 |  | 829,488 |  | 1,141,385
Work in progress | 1,030,400 |  | 1,294,369 |  | 804,636 |  | 1,081,050
Raw materials | 1,372,857 |  | 1,493,129 |  | 924,847 |  | 1,021,350
Storeroom supplies | 932,731 |  | 902,135 |  | 514,021 |  | 502,591
Advances to suppliers | 79,682 |  | 35,828 |  | 73,904 |  | 31,541
Provision for losses | (111,744) |  | (134,553) |  | (36,174) |  | (41,201)
| 5,035,288 |  | 5,282,750 |  | 3,110,722 |  | 3,736,716

The changes in the provision for inventory losses are as follows:

|  | Consolidated |  | Parent Company
|  | 09/30/2020 |  | 12/31/2019 |  | 09/30/2020 |  | 12/31/2019
Opening balance |  | (134,553) |  | (157,754) |  | (41,201) |  | (45,076)
Reversal / (losses) for slow-moving and obsolescence |  | 22,809 |  | 23,201 |  | 5,027 |  | 3,875
Closing balance |  | (111,744) |  | (134,553) |  | (36,174) |  | (41,201)

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| 7. | OTHER CURRENT AND NONCURRENT ASSETS

The group of other current and noncurrent assets is comprised as follows:

|  |  |  |  |  |  | Consolidated |  |  |  |  |  |  |  | Parent Company
| Current | Non-current | Current | Non-current
| 09/30/2020 |  | 12/31/2019 |  | 09/30/2020 |  | 12/31/2019 |  | 09/30/2020 |  | 12/31/2019 |  | 09/30/2020 |  | 12/31/2019
Judicial deposits (note 15) |  |  |  |  | 372,526 |  | 328,371 |  |  |  |  |  | 250,818 |  | 224,300
Credits with the PGFN (1) |  |  |  |  |  |  | 46,774 |  |  |  |  |  |  |  | 46,774
Recoverable taxes (2) | 1,953,337 |  | 1,282,415 |  | 893,568 |  | 2,119,940 |  | 1,761,045 |  | 1,129,584 |  | 685,987 |  | 1,907,420
Prepaid expenses | 164,588 |  | 107,428 |  | 117,083 |  | 126,213 |  | 110,472 |  | 82,664 |  | 98,165 |  | 110,099
Prepaid expenses with sea freight (3) |  |  | 96,305 |  |  |  |  |  |  |  |  |  |  |  |
Actuarial asset - related party (note 17 a) |  |  |  |  | 13,714 |  | 13,714 |  |  |  |  |  |  |  |
Derivative financial instruments (note 12 I) | 1,010 |  | 1,364 |  |  |  | 4,203 |  |  |  |  |  |  |  | 4,203
Securities held for trading (note 12 I) | 2,866 |  | 4,034 |  |  |  |  |  | 2,763 |  | 3,875 |  |  |  |
Iron ore inventory (4) |  |  |  |  | 312,281 |  | 144,499 |  |  |  |  |  |  |  |
Northeast Investment Fund – FINOR |  |  |  |  | 199 |  | 199 |  |  |  |  |  | 199 |  | 199
Loans with related parties (nota 17 a e 12 I) |  |  |  |  | 960,211 |  | 846,300 |  | 10,417 |  |  |  | 1,025,906 |  | 883,394
Other receivables from related parties (note 17 a) | 1,829 |  | 1,830 |  | 593,996 |  | 428,672 |  | 13,767 |  | 14,770 |  | 828,005 |  | 674,800
Other receivables (note 12 I) |  |  |  |  | 2,445 |  | 7,059 |  |  |  |  |  | 1,003 |  | 1,109
Eletrobrás compulsory loan (note 12 I) |  |  |  |  | 843,376 |  | 845,284 |  |  |  |  |  | 842,686 |  | 844,438
Dividends receivables (note 17 a) | 45,153 |  | 44,554 |  |  |  |  |  | 229,379 |  | 33,447 |  |  |  |
Employee debts | 37,866 |  | 33,045 |  |  |  |  |  | 24,316 |  | 20,657 |  |  |  |
Receivables by indemnity (6) |  |  |  |  | 512,754 |  |  |  |  |  |  |  | 512,754 |  |
Others | 101,824 |  | 102,021 |  | 146,185 |  | 146,326 |  | 660 |  | 17,979 |  | 146,184 |  | 146,326
| 2,308,473 |  | 1,672,996 |  | 4,768,338 |  | 5,057,554 |  | 2,152,819 |  | 1,302,976 |  | 4,391,707 |  | 4,843,062

| 1. | Refers to the excess of judicial deposit originated by the 2009 REFIS (Tax Debt Refinancing Program). As of September 30, 2020, the Company reclassified the amount to judicial deposits.

| 2. | Refers mainly to PIS / COFINS, ICMS recoverable and income and social contribution taxes to be offset. On September 20, 2018, the writ of mandamus and special appeal filed in 2006, in which CSN and Federal Union were parties, related to the discussion about the non-inclusion of ICMS in the calculation base of PIS and COFINS, confirmed the CSN's right to offset the amounts unduly paid under these taxes from 2001 to 2014.

| 3. | Refers a payment of freight expenses and maritime insurance over revenues didn’t recognized.

| 4. | Long-term iron ore inventories that will be used after the construction of new processing plants, which will produce pellet feed. In 2020, the Company defined the project to build a new plant to process itabirito, which until 2019 was taken as a sterile and, accordingly, the ore started to be recognized as inventory in the non-current asset.

| 5. | Refers to a virtually certain receivable, arising from the res judicata favorable decision to the Company, which is irreversible and irrevocable, to apply the STJ's consolidated position on the subject, which culminated in the conviction of Eletrobrás to the payment of the correct interest and monetary adjustment of the Compulsory Loan. The res judicata decision, as well as the certainty about the amounts involved in the liquidation of the sentence (judicial procedure to request the satisfaction of the right), allowed the conclusion that the entry of this value is certain. In addition to this amount recognized, the Company continues seeking alternatives to recover additional unrecognized credits over R$350 million at the Company’s best estimates.

| 6. | Refers to a receivable arising from the res judicata favorable decision to the Company to compensate losses and damages caused by recurring failures in the supply of energy in our plants from January 1991 to June 2002, that was recognized as Other Operating Income the amount of R$147,612 and as financial income the amount of R$365,142. See further details in Notes 21 and 22, respectively.

| 8. | INVESTMENTS

The information on the activities of subsidiaries, joint ventures, joint operations, associates and other investments did not have any changes in relation to that disclosed in the Company's financial statements as of December 31, 2019 and, accordingly, the Company decided not to repeat it in the condensed interim financial information as of September 30, 2020.

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8.a) Direct interests in subsidiaries, joint ventures, joint operations, associates and other investments

The balances of assets, liabilities and shareholders’ equity as well as the amounts of profit/(loss) for the period are stated at the ownership interest CSN holds in each entity.

|  |  |  |  |  |  |  |  |  | 09/30/2020 |  |  |  |  |  |  |  | 12/31/2019 |  | 09/30/2019
Companies |  | Participation in |  |  |  |  |  |  | Participation in |  |
| Assets |  | Liabilities |  | Shareholders’ equity |  | Fair Value (*) |  | Profit /(Loss) for the period |  | Assets |  | Liabilities |  | Shareholders’ equity |  | Fair Value (*) |  | Profit /(Loss) for the period
Investments under the equity method |  |  |  |  |  |  |  |  |  |  |  |
Subsidiaries |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
CSN Islands VII Corp. |  | 518,302 |  | 3,211,799 |  | (2,693,497) |  |  |  | (846,288) |  | 361,540 |  | 2,208,748 |  | (1,847,208) |  |  |  | (227,603)
CSN Inova Ventures |  | 8,605,448 |  | 9,239,772 |  | (634,324) |  |  |  | (400,046) |  | 3,997,823 |  | 4,232,102 |  | (234,279) |  |  |  | (81,109)
CSN Islands XII Corp. |  | 2,809,255 |  | 5,648,380 |  | (2,839,125) |  |  |  | (1,021,993) |  | 2,219,057 |  | 4,036,189 |  | (1,817,132) |  |  |  | (327,061)
CSN Steel S.L.U. |  | 4,786,410 |  | 43,368 |  | 4,743,042 |  |  |  | 585,879 |  | 3,642,029 |  | 135,672 |  | 3,506,357 |  |  |  | 6,435
Sepetiba Tecon S.A. |  | 749,018 |  | 443,610 |  | 305,408 |  |  |  | 2,155 |  | 719,750 |  | 406,738 |  | 313,012 |  |  |  | (3,496)
Minérios Nacional S.A. |  | 209,211 |  | 77,585 |  | 131,626 |  |  |  | 45,826 |  | 141,442 |  | 52,275 |  | 89,167 |  |  |  | 22,903
Valor Justo - Minérios Nacional |  |  |  |  |  | 2,123,507 |  |  |  | - |  |  |  |  |  | 2,123,507 |  |  |  |
Estanho de Rondônia S.A. |  | 53,906 |  | 77,993 |  | (24,087) |  |  |  | (14,143) |  | 49,860 |  | 59,804 |  | (9,944) |  |  |  | (7,785)
Companhia Metalúrgica Prada |  | 759,925 |  | 619,672 |  | 140,253 |  |  |  | (40,927) |  | 735,887 |  | 589,658 |  | 146,229 |  |  |  | 80,534
CSN Mineração S.A. |  | 16,952,029 |  | 7,614,882 |  | 9,337,147 |  |  |  | 2,353,267 |  | 13,888,599 |  | 5,698,541 |  | 8,190,058 |  |  |  | 2,583,898
CSN Energia S.A. |  | 126,680 |  | 72,995 |  | 53,685 |  |  |  | (7,875) |  | 98,866 |  | 37,306 |  | 61,560 |  |  |  | 6,775
FTL - Ferrovia Transnordestina Logística S.A. | 484,973 |  | 260,756 |  | 224,217 |  |  |  | (28,986) |  | 500,984 |  | 247,780 |  | 253,204 |  |  |  | (35,761)
Companhia Florestal do Brasil |  | 52,202 |  | 1,607 |  | 50,595 |  |  |  | (1,325) |  | 52,939 |  | 19,586.0 |  | 33,353 |  |  |  | (40)
Nordeste Logística |  | 74 |  | 56 |  | 18 |  |  |  | (3) |  | 82 |  | 60 |  | 22 |  |  |  | (2)
CSN Equipamentos S. A. |  |  |  |  |  |  |  |  |  |  |  | 1 |  |  |  | 1 |  |  |  |
CBSI - Companhia Brasileira de Serviços de Infraestrutura | 89,118 |  | 78,881 |  | 10,237 |  |  |  | (1,057) |  | 82,332 |  | 70,942 |  | 11,390 |  |  |  | 4,326
|  | 36,196,551 |  | 27,391,356 |  | 10,928,702 |  |  |  | 624,484 |  | 26,491,191 |  | 17,795,401 |  | 10,819,297 |  |  |  | 2,022,014
Joint-venture and Joint-operation |  |  |  |  |  |  |  |  |  |  |  |
Itá Energética S.A. |  | 269,888 |  | 19,666 |  | 250,222 |  |  |  | 6,700 |  | 259,777 |  | 16,255 |  | 243,522 |  |  |  | 4,165
MRS Logística S.A. |  | 1,991,186 |  | 1,188,533 |  | 802,653 |  |  |  | 37,920 |  | 2,073,125 |  | 1,308,439 |  | 764,686 |  |  |  | 85,908
Transnordestina Logística S.A. |  | 4,594,295 |  | 3,429,503 |  | 1,164,792 |  | 271,116 |  | (24,264) |  | 4,398,434 |  | 3,209,378 |  | 1,189,056 |  | 271,116 |  | (15,159)
Equimac S.A |  | 7,865 |  | 228 |  | 7,637 |  |  |  | (68) |  |  |  |  |  |  |  |  |  |
|  | 6,863,234 |  | 4,637,930 |  | 2,225,304 |  | 271,116 |  | 20,288 |  | 6,731,336 |  | 4,534,072 |  | 2,197,264 |  | 271,116 |  | 74,914
Associates |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Arvedi Metalfer do Brasil |  | 39,086 |  | 32,319 |  | 6,767 |  |  |  | (5,956) |  | 44,435 |  | 31,712 |  | 12,723 |  |  |  | (520)
|  | 39,086 |  | 32,319 |  | 6,767 |  |  |  | (5,956) |  | 44,435 |  | 31,712 |  | 12,723 |  |  |  | (520)
Classified at fair value through profit or loss (note 12l) |  |  |  |  |  |  |  |  |  |
Panatlântica |  |  |  |  |  | 50,171 |  |  |  |  |  |  |  |  |  | 47,300 |  |  |  |
|  |  |  |  |  | 50,171 |  |  |  |  |  |  |  |  |  | 47,300 |  |  |  |
Other investments |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Profits on subsidiaries' inventories |  |  |  |  |  | (54,970) |  |  |  | (36,408) |  |  |  |  |  | (18,563) |  |  |  | 91,418
Others |  |  |  |  |  | 78,761 |  |  |  | (9,952) |  |  |  |  |  | 78,763 |  |  |  | 172
|  |  |  |  |  | 23,791 |  |  |  | (46,360) |  |  |  |  |  | 60,200 |  |  |  | 91,590
Total investments |  |  |  |  |  | 13,505,851 |  |  |  | 592,456 |  |  |  |  |  | 13,407,900 |  |  |  | 2,187,998
Classification of investments in the balance sheet |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investments in assets |  |  |  |  |  | 19,696,884 |  |  |  |  |  |  |  |  |  | 17,316,463 |  |  |  |
Investments with negative equity |  |  |  |  |  | (6,191,033) |  |  |  |  |  |  |  |  |  | (3,908,563) |  |  |  |
|  |  |  |  |  | 13,505,851 |  |  |  |  |  |  |  |  |  | 13,407,900 |  |  |  |

(*) As of September 30, 2020 and December 31, 2019, the net balance of R$271,116 refers to fair value allocation in the loss of control in Transnordestina Logística S.A. in the amount of R$659,105, further impaired in R$387,989 before taxes.

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8.b) Movement in investments in subsidiaries, joint ventures, joint operations, associates and other investments

|  |  | Consolidated |  |  |  | Parent Company
| 09/30/2020 |  | 12/31/2019 |  | 09/30/2020 |  | 12/31/2019
Opening balance of investments | 3,482,974 |  | 5,630,613 |  | 17,316,463 |  | 20,232,005
Opening balance of loss provisions |  |  |  |  | (3,908,563) |  | (3,258,138)
Total | 3,482,974 |  | 5,630,613 |  | 13,407,900 |  | 16,973,867
Capital increase/acquisition of shares | 1,461 |  | 27,909 |  | 54,978 |  | 66,621
Dividends (1) |  |  | (94,603) |  | (1,144,266) |  | (4,166,291)
Comprehensive income (2) | 6,337 |  | (2,592) |  | 591,912 |  | 31,441
Equity pickup (3) | 45,533 |  | 175,524 |  | 592,456 |  | 2,720,437
Update of shares measured at fair value through profit or loss (Note 12 II) | 2,871 |  | (118,780) |  | 2,871 |  | (118,780)
Reclassification of Usiminas’ shares |  |  | (2,114,620) |  |  |  | (2,114,620)
Goodwill from acquisition of 50% interest of CBSI |  |  |  |  |  |  | 15,225
Consolidation of CBSI |  |  | (8,775) |  |  |  |
Amortization of fair value - investment MRS | (8,810) |  | (11,747) |  |  |  |
Others | 113 |  | 45 |  |  |  |
Closing balance of investments | 3,530,479 |  | 3,482,974 |  | 19,696,884 |  | 17,316,463
Balance of provision for investments with negative equity |  |  |  |  | (6,191,033) |  | (3,908,563)
Total | 3,530,479 |  | 3,482,974 |  | 13,505,851 |  | 13,407,900

| 1. | In 2020, refers mainly to dividends from the subsidiary CSN Mineração in the amount of R$1.140.996.

| 2. | Refers to a translation to reporting currency of the foreign investment whose functional currency is not the Real, actuarial gain/loss and gain/loss on investment hedge from investments accounted for under the equity method.

| 3. | The reconciliation of the equity in results of joint ventures and associates and the amount recorded in the statement of income are presented below and derive from the elimination of results of CSN's transactions with these companies:

|  |  | Consolidated
| 09/30/2020 |  | 09/30/2019
Equity in results of affiliated companies |  |  |
MRS Logística S.A. | 75,821 |  | 171,772
CBSI - Companhia Brasileira de Serviços de Infraestrutura |  |  | 4,326
Transnordestina Logística S.A. | (24,264) |  | (15,159)
Arvedi Metalfer do Brasil S.A. | (5,956) |  | (520)
Equimac S.A. | (68) |  |
Others |  |  | 14
| 45,533 |  | 160,433
Eliminations |  |  |
To cost of sales | (26,599) |  | (49,714)
To taxes | 9,044 |  | 16,903
Others |  |  |
Amortizated at fair value - Investment in MRS | (8,810) |  | (8,810)
Others | (9,952) |  | 156
Equity in results | 9,216 |  | 118,968

8.c) Investments in joint ventures and joint operations

The balances of the balance sheet and statement of income of joint ventures are presented below and refer to 100% of the companies’ results:

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|  | 09/30/2020 |  | 12/31/2019
|  | Joint-Venture |  | Joint-Operation |  | Joint-Venture |  | Joint-Operation
Equity interest (%) |  | MRS Logística |  | Transnordestina Logística |  | Equimac S.A. |  | Itá Energética |  | MRS Logística |  | Transnordestina Logística |  | Itá Energética
| 34.94% |  | 47.26% |  | 50.00% |  | 48.75% |  | 34.94% |  | 47.26% |  | 48.75%
Balance sheet |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents |  | 1,492,726 |  | 186 |  | 2,818 |  | 56,049 |  | 670,296 |  | 17,166 |  | 65,793
Advances to suppliers |  | 40,190 |  | 2,960 |  |  |  | 373 |  | 20,100 |  | 3,240 |  | 363
Other current assets |  | 505,277 |  | 48,831 |  |  |  | 72,768 |  | 1,326,281 |  | 59,405 |  | 15,955
Total current assets |  | 2,038,193 |  | 51,977 |  | 2,818 |  | 129,190 |  | 2,016,677 |  | 79,811 |  | 82,111
Noncurrent Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |
Other non-current assets |  | 619,248 |  | 222,212 |  | 653 |  | 22,467 |  | 789,562 |  | 258,391 |  | 24,361
Investments, PP&E and intangible assets |  | 8,025,230 |  | 9,446,881 |  | 12,258 |  | 401,960 |  | 8,316,033 |  | 8,968,447 |  | 426,403
Total non-current assets |  | 8,644,478 |  | 9,669,093 |  | 12,911 |  | 424,427 |  | 9,105,595 |  | 9,226,838 |  | 450,764
Total Assets |  | 10,682,671 |  | 9,721,070 |  | 15,729 |  | 553,617 |  | 11,122,272 |  | 9,306,649 |  | 532,875
Current Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |
Borrowings and financing |  | 775,827 |  | 156,233 |  |  |  |  |  | 653,784 |  | 103,877 |  |
Lease liabilities |  | 270,269 |  |  |  |  |  |  |  | 256,034 |  |  |  |
Other current liabilities |  | 547,958 |  | 132,873 |  | 455 |  | 25,354 |  | 1,561,684 |  | 171,821 |  | 16,793
Total current liabilities |  | 1,594,054 |  | 289,106 |  | 455 |  | 25,354 |  | 2,471,502 |  | 275,698 |  | 16,793
Noncurrent Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |
Borrowings and financing |  | 2,407,325 |  | 6,372,355 |  |  |  |  |  | 2,369,615 |  | 6,084,424 |  |
Lease liabilities |  | 1,482,688 |  |  |  |  |  |  |  | 1,650,758 |  |  |  |
Other non-current liabilities |  | 892,385 |  | 595,025 |  |  |  | 14,988 |  | 527,871 |  | 430,603 |  | 16,550
Total non-current liabilities |  | 4,782,398 |  | 6,967,380 |  |  |  | 14,988 |  | 4,548,244 |  | 6,515,027 |  | 16,550
Shareholders’ equity |  | 4,306,219 |  | 2,464,584 |  | 15,274 |  | 513,275 |  | 4,102,526 |  | 2,515,924 |  | 499,532
Total liabilities and shareholders’ equity |  | 10,682,671 |  | 9,721,070 |  | 15,729 |  | 553,617 |  | 11,122,272 |  | 9,306,649 |  | 532,875

|  | 01/01/2020 a 09/30/2020 |  | 01/01/2019 a 09/30/2019
|  | Joint-Venture |  | Joint-Operation |  | Joint-Venture |  | Joint-Operation
Equity interest (%) |  | MRS Logística |  | Transnordestina Logística |  | Equimac S.A. |  | Itá Energética |  | MRS Logística |  | CBSI |  | Transnordestina Logística |  | Itá Energética
| 34.94% |  | 47.26% |  | 50.00% |  | 48.75% |  | 34.94% |  | 50.00% |  | 46.30% |  | 48.75%
Statements of Income |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net revenue |  | 2,614,613 |  | 35 |  | 650 |  | 125,369 |  | 2,499,115 |  | 210,754 |  |  |  | 120,493
Cost of sales and services |  | (1,847,542) |  |  |  | (502) |  | (55,685) |  | (1,782,914) |  | (184,737) |  |  |  | (61,991)
Gross profit |  | 767,071 |  | 35 |  | 148 |  | 69,684 |  | 716,201 |  | 26,017 |  |  |  | 58,502
Operating (expenses) income |  | (236,017) |  | (34,342) |  | (281) |  | (48,776) |  | 183,378 |  | (9,882) |  | (16,216) |  | (46,497)
Finance income (costs), net |  | (219,551) |  | (17,033) |  | (1) |  | (109) |  | (200,106) |  | (1,079) |  | (16,139) |  | 914
Income before income tax and social contribution |  | 311,503 |  | (51,340) |  | (134) |  | 20,799 |  | 699,473 |  | 15,056 |  | (32,355) |  | 12,919
Current and deferred income tax and social contribution |  | (108,064) |  |  |  | (1) |  | (7,056) |  | (238,579) |  | (6,404) |  |  |  | (4,375)
Profit / (loss) for the period |  | 203,439 |  | (51,340) |  | (135) |  | 13,743 |  | 460,894 |  | 8,652 |  | (32,355) |  | 8,544

| · | TRANSNORDESTINA LOGÍSTICA S.A. (“TLSA”)

It is in pre-operational phase and will continue as such until the completion of Railway System II. The approved schedule, which estimated the completion of the work by January 2017, is currently under discussion with the responsible agencies; however, TLSA management believes that new deadlines for project completion will not have material adverse effects on the expected return on the investment. After analyzing this matter, management considered as appropriate the use of the accounting basis of operational continuity (going concern) of the project in the preparation of its financial statements.

The Company’s management considers funding from the shareholders and third parties to complete the construction, which are expected to be available based on the previous agreements and on recent discussions among the parties. After assessing the matter, management concluded as adequate the operating continuity of the Project in the quarterly financial information as of September 30, 2020.

The assumptions used to evaluate the impairment test in December 2019 remain valid and there is no event to justify the recognition of impairment in the quarter.

· EQUIMAC S.A.

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In August 2019 we incorporated the company CSN Equipamentos S.A., on June 26, 2020, it was renamed as Equimac S.A. The company was formed by Unidas Guindastes Eireli and CSN, each with the 50% interest in the equity capital of the Equimac joint venture, which is located in the city of São Paulo and aims to the main rental of commercial and industrial machinery and equipment. As of September 30, 2020, the share capital Equimac's paid-in amount is R $ 15,409.

8.d) Investment properties:

As of September 30, 2020, the balance of investment properties can be shown as follows:

|  | Consolidated |  | Parent Company
|  | Land |  | Buildings |  | Total |  | Land |  | Buildings |  | Total
Balance at December 31, 2019 |  | 68,877 |  | 32,318 |  | 101,195 |  | 65,698 |  | 20,030 |  | 85,728
Cost |  | 68,877 |  | 53,816 |  | 122,693 |  | 65,698 |  | 41,528 |  | 107,226
Accumulated depreciation |  |  |  | (21,498) |  | (21,498) |  |  |  | (21,498) |  | (21,498)
Balance at December 31, 2019 |  | 68,877 |  | 32,318 |  | 101,195 |  | 65,698 |  | 20,030 |  | 85,728
Acquisitions |  | 28,733 |  | 32,864 |  | 61,597 |  | 28,733 |  | 32,864 |  | 61,597
Depreciation |  |  |  | (2,076) |  | (2,076) |  |  |  | (1,591) |  | (1,591)
Balance at September 30, 2020 |  | 97,610 |  | 63,106 |  | 160,716 |  | 94,431 |  | 51,303 |  | 145,734
Cost |  | 97,610 |  | 86,680 |  | 184,290 |  | 94,431 |  | 74,392 |  | 168,823
Accumulated depreciation |  |  |  | (23,574) |  | (23,574) |  |  |  | (23,089) |  | (23,089)
Balance at September 30, 2020 |  | 97,610 |  | 63,106 |  | 160,716 |  | 94,431 |  | 51,303 |  | 145,734

The Company’s management estimated the market value of the investment properties for the year ended December 31, 2019. As of September 30, 2020, we used the same estimate increased by the new items aggregated to the portfolio in the semester, reaching the total amount of R$1,842,616 in the consolidated (R$1,781,019 as of December 31, 2019) and R$1,775,428 in the Parent Company (R$1,713,831 as of December 31, 2019).

The average useful lives are estimated as follows (in years):

|  |  | Consolidated |  |  |  | Parent Company
| 09/30/2020 |  | 12/31/2019 |  | 09/30/2020 |  | 12/31/2019
Buildings | 27 |  | 21 |  | 28 |  | 21

| 9. | PROPERTY, PLANT AND EQUIPMENT

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| Consolidated
| Land |  | Buildings and Infrastructure |  | Machinery, equipment and facilities |  | Furniture and fixtures |  | Construction in progress |  | Right of use (i) |  | Other (*) |  | Total
Balance at December 31, 2019 | 226,949 |  | 3,062,238 |  | 12,603,619 |  | 28,455 |  | 3,217,052 |  | 472,345 |  | 90,286 |  | 19,700,944
Cost | 226,949 |  | 4,250,471 |  | 24,372,514 |  | 170,229 |  | 3,217,052 |  | 531,044 |  | 386,144 |  | 33,154,403
Accumulated depreciation |  |  | (1,188,233) |  | (11,768,895) |  | (141,774) |  |  |  | (58,699) |  | (295,858) |  | (13,453,459)
Balance at December 31, 2019 | 226,949 |  | 3,062,238 |  | 12,603,619 |  | 28,455 |  | 3,217,052 |  | 472,345 |  | 90,286 |  | 19,700,944
Effect of foreign exchange differences | 34,128 |  | 68,988 |  | 204,297 |  | 2,547 |  | 7,198 |  | 4,927 |  | 17,713 |  | 339,798
Acquisitions | 495 |  | 308 |  | 107,443 |  | 544 |  | 1,066,541 |  |  |  | 1,948 |  | 1,177,279
Capitalized interest (notes 22 and 25) |  |  |  |  |  |  |  |  | 68,945 |  |  |  |  |  | 68,945
Write-offs (note 21) | (188) |  |  |  | (630) |  |  |  | (9) |  | (2,701) |  | (1,188) |  | (4,716)
Depreciation (note 20) |  |  | (115,411) |  | (1,132,927) |  | (4,397) |  |  |  | (45,899) |  | (19,128) |  | (1,317,762)
Transfers to other asset categories |  |  | 34,458 |  | 679,695 |  | 210 |  | (725,616) |  |  |  | 11,253 |  |
Transfers to intangible assets |  |  |  |  |  |  |  |  | (551) |  |  |  |  |  | (551)
Right of use - Remeasurement |  |  |  |  |  |  |  |  |  |  | 70,381 |  |  |  | 70,381
Others |  |  |  |  | (401) |  | (12) |  | (6) |  | (248) |  | 67 |  | (600)
Balance at September 30, 2020 | 261,384 |  | 3,050,581 |  | 12,461,096 |  | 27,347 |  | 3,633,554 |  | 498,805 |  | 100,951 |  | 20,033,718
Cost | 261,384 |  | 4,423,978 |  | 25,912,975 |  | 184,055 |  | 3,633,554 |  | 598,705 |  | 412,069 |  | 35,426,720
Accumulated depreciation |  |  | (1,373,397) |  | (13,451,879) |  | (156,708) |  |  |  | (99,900) |  | (311,118) |  | (15,393,002)
Balance at September 30, 2020 | 261,384 |  | 3,050,581 |  | 12,461,096 |  | 27,347 |  | 3,633,554 |  | 498,805 |  | 100,951 |  | 20,033,718

|  | Parent Company
|  | Land |  | Buildings and Infrastructure |  | Machinery, equipment and facilities |  | Furniture and fixtures |  | Construction in progress |  | Right of use (i) |  | Other (*) |  | Total
Balance at December 31, 2019 |  | 30,408 |  | 1,023,454 |  | 7,596,294 |  | 10,473 |  | 1,536,581 |  | 44,173 |  | 24,701 |  | 10,266,084
Cost |  | 30,408 |  | 1,309,542 |  | 14,333,445 |  | 98,103 |  | 1,536,581 |  | 66,435 |  | 131,753 |  | 17,506,267
Accumulated depreciation |  |  |  | (286,088) |  | (6,737,151) |  | (87,630) |  |  |  | (22,262) |  | (107,052) |  | (7,240,183)
Balance at December 31, 2019 |  | 30,408 |  | 1,023,454 |  | 7,596,294 |  | 10,473 |  | 1,536,581 |  | 44,173 |  | 24,701 |  | 10,266,084
Acquisitions |  |  |  |  |  | 49,694 |  | 13 |  | 518,837 |  |  |  | 69 |  | 568,613
Capitalized interest (notes 22 and 25) |  |  |  |  |  |  |  |  |  | 22,094 |  |  |  |  |  | 22,094
Write-offs (note 21) |  | (188) |  |  |  |  |  |  |  |  |  | (1,288) |  |  |  | (1,476)
Depreciation (note 20) |  |  |  | (26,090) |  | (595,670) |  | (1,673) |  |  |  | (16,083) |  | (3,480) |  | (642,996)
Transfers to other asset categories |  |  |  | 3,507 |  | 360,721 |  |  |  | (371,405) |  |  |  | 7,177 |  |
Capital increase |  | (1,267) |  | (28,307) |  | (5,377) |  |  |  |  |  |  |  |  |  | (34,951)
Right of use - Remeasurement |  |  |  |  |  |  |  |  |  |  |  | 8,806 |  |  |  | 8,806
Others |  |  |  |  |  |  |  |  |  |  |  | (114) |  | 66 |  | (48)
Balance at September 30, 2020 |  | 28,953 |  | 972,564 |  | 7,405,662 |  | 8,813 |  | 1,706,107 |  | 35,494 |  | 28,533 |  | 10,186,126
Cost |  | 28,953 |  | 1,283,374 |  | 14,707,372 |  | 98,114 |  | 1,706,107 |  | 70,452 |  | 139,438 |  | 18,033,810
Accumulated depreciation |  |  |  | (310,810) |  | (7,301,710) |  | (89,301) |  |  |  | (34,958) |  | (110,905) |  | (7,847,684)
Balance at September 30, 2020 |  | 28,953 |  | 972,564 |  | 7,405,662 |  | 8,813 |  | 1,706,107 |  | 35,494 |  | 28,533 |  | 10,186,126

(*) Refer basically to: i) in the consolidated chart: railway assets such as courtyards, tracks and leasehold improvements, vehicles, hardware, mines, ore deposits, and spare part inventories; (ii) in the Parent Company chart: leasehold improvements, vehicles and hardware.

| (i) | Rights of Use

The changes of the rights of use as of September 30, 2020 is as follows:

| Consolidated
| Land |  | Buildings and Infrastructure |  | Machinery, equipment and facilities |  | Others |  | Total
Balance at December 31, 2019 | 380,566 |  | 64,154 |  | 24,144 |  | 3,481 |  | 472,345
Cost | 401,746 |  | 73,344 |  | 39,455 |  | 16,499 |  | 531,044
Accumulated depreciation | (21,180) |  | (9,190) |  | (15,311) |  | (13,018) |  | (58,699)
Balance at December 31, 2019 | 380,566 |  | 64,154 |  | 24,144 |  | 3,481 |  | 472,345
Effect of foreign exchange differences |  |  | 1,170 |  | 3,382 |  | 375 |  | 4,927
Addition | 9,327 |  | 10,705 |  | 6,993 |  | 2,344 |  | 29,369
Remeasurement | 32,671 |  | (1,440) |  |  |  | 9,781 |  | 41,012
Depreciation | (17,947) |  | (6,109) |  | (13,755) |  | (8,088) |  | (45,899)
Write-offs | (2,354) |  | (318) |  |  |  | (29) |  | (2,701)
Transfers to other asset categories |  |  | (4,574) |  | 3,878 |  | 696 |  |
Others |  |  |  |  |  |  | (248) |  | (248)
Balance at September 30, 2020 | 402,263 |  | 63,588 |  | 24,642 |  | 8,312 |  | 498,805
Cost | 435,296 |  | 77,076 |  | 56,235 |  | 30,098 |  | 598,705
Accumulated depreciation | (33,033) |  | (13,488) |  | (31,593) |  | (21,786) |  | (99,900)
Balance at September 30, 2020 | 402,263 |  | 63,588 |  | 24,642 |  | 8,312 |  | 498,805

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|  | Parent Company
|  | Land |  | Machinery, equipment and facilities |  | Others |  | Total
Balance at December 31, 2019 |  | 30,145 |  | 13,580 |  | 448 |  | 44,173
Cost |  | 37,719 |  | 25,719 |  | 2,997 |  | 66,435
Accumulated depreciation |  | (7,574) |  | (12,139) |  | (2,549) |  | (22,262)
Balance at December 31, 2019 |  | 30,145 |  | 13,580 |  | 448 |  | 44,173
Addition |  | 5,672 |  |  |  | 1,048 |  | 6,720
Remeasurement |  | 83 |  |  |  | 2,003 |  | 2,086
Depreciation |  | (7,462) |  | (8,621) |  |  |  | (16,083)
Write off |  | (1,288) |  |  |  |  |  | (1,288)
Others |  |  |  |  |  | (114) |  | (114)
Balance at September 30, 2020 |  | 27,150 |  | 4,959 |  | 3,385 |  | 35,494
Cost |  | 38,799 |  | 25,719 |  | 5,934 |  | 70,452
Accumulated depreciation |  | (11,649) |  | (20,760) |  | (2,549) |  | (34,958)
Balance at September 30, 2020 |  | 27,150 |  | 4,959 |  | 3,385 |  | 35,494

The average estimated useful lives are as follows (in years):

|  |  | Consolidated |  |  |  | Parent Company
| 09/30/2020 |  | 12/31/2019 |  | 09/30/2020 |  | 12/31/2019
Buildings | 37 |  | 38 |  | 39 |  | 41
Machinery, equipment and facilities | 20 |  | 21 |  | 23 |  | 22
Furniture and fixtures | 12 |  | 12 |  | 13 |  | 12
Others | 10 |  | 14 |  | 12 |  | 14

9.a) Capitalized Interest

A part of the debt costs were capitalized in the amount of R$68,495 in the consolidated and R$22,094 in the Parent Company as of September 30, 2020 (as of September 30, 2019, R$61,040 in the consolidated and R$16,126 in the Parent Company). Those costs are capitalized, primarily, in the mining projects such as: (i) expansion of Casa de Pedra (MG) and TECAR (RJ), see Notes 22 and 25. The monthly average interest rate of the unespecified projects in the nine-month period ended September 30, 2020 was 0.47% (0.56% as of September 30, 2019).

| 10. | INTANGIBLE ASSETS

| Consolidated |  | Parent Company
| Goodwill |  | Customer relationships |  | Software |  | Trademarks and patents |  | Rights and licenses (*) |  | Others |  | Total |  | Software |  | Rights and licenses |  | Total
Balance at December 31, 2019 | 3,606,156 |  | 246,139 |  | 53,859 |  | 153,103 |  | 3,170,960 |  | 1,564 |  | 7,231,781 |  | 48,052 |  | 4,086 |  | 52,138
Cost | 3,846,563 |  | 585,407 |  | 171,152 |  | 153,103 |  | 3,189,789 |  | 1,564 |  | 7,947,578 |  | 131,795 |  | 4,088 |  | 135,883
Accumulated amortization | (131,077) |  | (339,268) |  | (117,293) |  |  |  | (18,829) |  |  |  | (606,467) |  | (83,743) |  | (2) |  | (83,745)
Adjustment for accumulated recoverable value | (109,330) |  |  |  |  |  |  |  |  |  |  |  | (109,330) |  |  |  |  |  |
Balance at December 31, 2019 | 3,606,156 |  | 246,139 |  | 53,859 |  | 153,103 |  | 3,170,960 |  | 1,564 |  | 7,231,781 |  | 48,052 |  | 4,086 |  | 52,138
Effect of foreign exchange differences |  |  | 105,728 |  | 672 |  | 70,381 |  |  |  | 718 |  | 177,499 |  |  |  |  |  |
Acquisitions and expenditures |  |  |  |  | 950 |  |  |  |  |  |  |  | 950 |  |  |  |  |  |
Transfer of property, plant and equipment |  |  |  |  | 551 |  |  |  |  |  |  |  | 551 |  |  |  |  |  |
Amortization (note 20) |  |  | (45,879) |  | (8,377) |  |  |  | (2,339) |  |  |  | (56,595) |  | (5,848) |  | (3) |  | (5,851)
Balance at September 30, 2020 | 3,606,156 |  | 305,988 |  | 47,655 |  | 223,484 |  | 3,168,621 |  | 2,282 |  | 7,354,186 |  | 42,204 |  | 4,083 |  | 46,287
Cost | 3,846,563 |  | 853,871 |  | 184,015 |  | 223,484 |  | 3,189,789 |  | 2,282 |  | 8,300,004 |  | 131,795 |  | 4,088 |  | 135,883
Accumulated amortization | (131,077) |  | (547,883) |  | (136,360) |  |  |  | (21,168) |  |  |  | (836,488) |  | (89,591) |  | (5) |  | (89,596)
Adjustment for accumulated recoverable value | (109,330) |  |  |  |  |  |  |  |  |  |  |  | (109,330) |  |  |  |  |  |
Balance at September 30, 2020 | 3,606,156 |  | 305,988 |  | 47,655 |  | 223,484 |  | 3,168,621 |  | 2,282 |  | 7,354,186 |  | 42,204 |  | 4,083 |  | 46,287

(*) Composed mainly by mineral rights with potential of 1,101 million tons (Not audited or reviewed by independent auditors). Amortization is based on production volume.

The average useful lives by nature are as follows (in years):

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|  |  | Consolidated |  |  |  | Parent Company
| 09/30/2020 |  | 12/31/2019 |  | 09/30/2020 |  | 12/31/2019
Software | 9 |  | 9 |  | 9 |  | 9
Customer relationships | 13 |  | 13 |  |  |  |

| 11. | BORROWINGS, FINANCING AND DEBENTURES

The balances of borrowings, financing and debentures, which are carried at amortized cost, are as follows:

|  |  |  |  |  |  |  |  | Consolidated |  |  |  |  |  |  | Parent Company
|  |  | Current Liabilities |  | Noncurrent Liabilities |  | Current Liabilities | Noncurrent Liabilities
|  |  | 09/30/2020 |  | 12/31/2019 |  | 09/30/2020 |  | 12/31/2019 |  | 09/30/2020 |  | 12/31/2019 | 09/30/2020 |  | 12/31/2019
Debt agreements in the international market |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Variable interest in US$: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Prepayment | (1) |  | 1,021,906 |  | 1,769,975 |  | 4,000,666 |  | 2,563,928 |  | 1,019,193 |  | 1,769,055 | 3,718,631 |  | 2,362,393
Fixed interest in US$ |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Bonds, Perpetual Bonds and ACC | (2) |  | 276,456 |  | 2,047,032 |  | 19,883,468 |  | 10,177,517 |  | 34,420 |  | 52,986 |  |  |
Intercompany |  |  |  |  |  |  |  |  |  |  | 255,487 |  | 1,549,329 | 14,503,468 |  | 7,344,014
Fixed interest in EUR |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Intercompany |  |  |  |  |  |  |  |  |  |  | 49,930 |  | 655 | 1,663,224 |  | 1,241,360
Facility |  |  | 419,952 |  | 223,204 |  | 165,330 |  | 147,241 |  |  |  |  |  |  |
|  |  | 1,718,314 |  | 4,040,211 |  | 24,049,464 |  | 12,888,686 |  | 1,359,030 |  | 3,372,025 | 19,885,323 |  | 10,947,767
Debt agreements in Brazil |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Securities with variable interest in R$: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
BNDES/FINAME, Debentures, NCE and CCB | (3) |  | 1,911,709 |  | 1,086,985 |  | 8,611,371 |  | 10,049,783 |  | 1,683,893 |  | 1,026,230 | 7,544,951 |  | 8,799,642
Securities with fixed interest in R$: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Intercompany |  |  |  |  | 25,038 |  |  |  |  |  |  |  | 25,038 | 18,210 |  | 27,507
|  |  | 1,911,709 |  | 1,112,023 |  | 8,611,371 |  | 10,049,783 |  | 1,683,893 |  | 1,051,268 | 7,563,161 |  | 8,827,149
Total Borrowings and Financing |  |  | 3,630,023 |  | 5,152,234 |  | 32,660,835 |  | 22,938,469 |  | 3,042,923 |  | 4,423,293 | 27,448,484 |  | 19,774,916
Transaction Costs and Issue Premiums |  |  | (31,486) |  | (26,391) |  | (101,219) |  | (97,276) |  | (29,059) |  | (26,453) | (61,965) |  | (72,296)
Total Borrowings and Financing + Transaction cost |  |  | 3,598,537 |  | 5,125,843 |  | 32,559,616 |  | 22,841,193 |  | 3,013,864 |  | 4,396,840 | 27,386,519 |  | 19,702,620

(1) | In May 2020, the Company concluded the debt rollover of US$236 million, equivalent to R$1,282 million, with the Banco do Brasil, related to prepayments, moving the maturities from May 2020 and March 2021 to January 2022. In July 2020, the Company also concluded the rollover of export prepayments in the amount of US$75 million equivalent to R$390 million, moving a portion of the maturities in July 2020 and January 2021 to July 2021 and January 2022, respectively.

(2) | In January 2020, the Company issued debt securities in the foreign market (“Notes”), through its subsidiary CSN IslandsXI Corp, in the amount of US$1 billion, with maturity for 2028 and interest rate of 6.75% per year. A portion of the funds, in the amount of US$263 million, was used to repurchase (“Tender Offer”) the Notes issued by CSN Resources S.A. with maturity for 2020. The Notes are unconditionally and irrevocably guaranteed by the Company.

(3) | In June 2020, the Company concluded the debt rollover with Caixa Econômica Federal in the amount of R$300 million, moving the maturities from June and September 2020 to 2021, 2022 and 2023.

The following table shows the average interest rate:

|  |  |  | Consolidated |  |  |  | Parent Company
|  |  |  | 09/30/2020 |  |  |  | 09/30/2020
|  | Average interest rate (i) |  | Total debt |  | Average interest rate (i) |  | Total debt
US$ |  | 6.66% |  | 25,182,496 |  | 3.26% |  | 19,531,199
EUR |  | 1.50% |  | 585,282 |  | 3.88% |  | 1,713,154
R$ |  | 2.85% |  | 10,523,080 |  | 2.80% |  | 9,247,054
|  |  |  | 36,290,858 |  |  |  | 30,491,407

(i) In order to determine the average interest rates for debt contracts with floating rate, the Company used the rates applied as of September 30, 2020. In the parent company was considered the interest rates of intercompany contracts.

11.a) Maturities of borrowings, financing and debentures presented in current and noncurrent liabilities

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|  |  |  |  |  | Consolidated |  |  |  |  |  | Parent Company
|  |  |  |  |  | 09/30/2020 |  |  |  |  |  | 09/30/2020
|  |  |  |  |  | Principal |  |  |  |  |  | Principal
|  | Borrowings and financing in foreign currency |  | Borrowings and financing in national currency |  | Total |  | Borrowings and financing in foreign currency |  | Borrowings and financing in national currency |  | Total
2020 |  | 1,049,920 |  | 168,830 |  | 1,218,750 |  | 604,592 |  | 148,795 |  | 753,387
2021 |  | 1,356,171 |  | 2,626,841 |  | 3,983,012 |  | 1,425,681 |  | 2,241,915 |  | 3,667,596
2022 |  | 2,901,430 |  | 2,863,359 |  | 5,764,789 |  | 7,799,599 |  | 2,531,054 |  | 10,330,653
2023 |  | 5,608,684 |  | 3,041,149 |  | 8,649,833 |  | 1,715,867 |  | 2,686,312 |  | 4,402,179
2024 |  | 185,754 |  | 1,240,585 |  | 1,426,339 |  | 4,853,402 |  | 1,056,670 |  | 5,910,072
2025 |  |  |  | 68,595 |  | 68,595 |  | 1,008,873 |  | 68,587 |  | 1,077,460
After 2015 |  | 9,025,119 |  | 513,721 |  | 9,538,840 |  | 3,836,339 |  | 513,721 |  | 4,350,060
Perpetual bonds |  | 5,640,700 |  |  |  | 5,640,700 |  |  |  |  |  |
|  | 25,767,778 |  | 10,523,080 |  | 36,290,858 |  | 21,244,353 |  | 9,247,054 |  | 30,491,407

11.b) Borrowings, financing and debentures raised and paid

The table below shows the borrowings, financing and debentures raised and paid during the period:

|  |  |  | Consolidated |  |  |  | Parent Company
|  | 09/30/2020 |  | 12/31/2019 |  | 09/30/2020 |  | 12/31/2019
Opening balance |  | 27,967,036 |  | 28,827,074 |  | 24,099,460 |  | 24,161,596
New debts |  | 6,027,352 |  | 10,149,381 |  | 2,502,457 |  | 6,798,683
Repayment |  | (5,320,116) |  | (11,775,093) |  | (2,413,800) |  | (7,431,176)
Payments of charges |  | (1,577,315) |  | (2,039,112) |  | (766,529) |  | (1,400,496)
Accrued charges (Note 22) |  | 1,518,505 |  | 1,996,305 |  | 793,898 |  | 1,376,862
Consolidation of CBSI |  |  |  | 19,722 |  |  |  |
Others (1) |  | 7,542,691 |  | 788,759 |  | 6,184,897 |  | 593,991
Closing balance |  | 36,158,153 |  | 27,967,036 |  | 30,400,383 |  | 24,099,460

1.Includes unrealized exchange and monetary variations and cost of transactions.

In 2020, the Group raised and paid borrowings as shown below:

· Funding raised and amortizations:

|  |  |  |  |  | Consolidated
|  |  |  |  |  | 09/30/2020
Nature |  | New debts |  | Repayment |  | Interest payment
Prepayment |  |  |  | (833,712) |  | (188,961)
Bonds, Perpetual bonds, ACC and Facility |  | 6,006,454 |  | (4,031,955) |  | (1,017,710)
BNDES/FINAME, Debentures, NCE and CCB |  | 20,898 |  | (454,449) |  | (370,644)
|  | 6,027,352 |  | (5,320,116) |  | (1,577,315)

| · | Covenants

The Company’s borrowing agreements provide for the fulfillment of certain non-financial obligations, as well as the maintenance of certain parameters and financial indicators, besides the publication of its audited financial statements within the regulatory terms or payment of commission on assumption of risks in case certain financial indicators reach the levels set out in such agreements.

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| 12. | FINANCIAL INSTRUMENTS

I - Identification and measurement of financial instruments

The Company can operate with various financial instruments, mainly cash and cash equivalents, including short-term investments, marketable securities, trade receivables, trade payables, and borrowings and financing. The Company also can operate into derivative transactions, currency swap and interest rate swap.

Considering the nature of the instruments, the fair value is basically determined by the use of quotations in the open capital market of Brazil and the Commodities and Futures Exchange. The amounts recorded in current assets and liabilities have immediate liquidity or maturity, mostly in terms of short time. Considering the term and the characteristics of these instruments, the book values approximate the fair values.

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| · | Classification of financial instruments

|  |  |  |  |  |  |  |  |  |  |  |  |  | Consolidated
Consolidated |  |  |  | 09/30/2020 |  | 12/31/2019
| Notes |  | Fair value through profit or loss |  | Measured at amortized cost |  | Balances |  | Fair value through profit or loss |  | Measured at amortized cost |  | Balances
Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents |  | 3 |  |  |  | 5,724,428 |  | 5,724,428 |  |  |  | 1,088,955 |  | 1,088,955
Short-term investments |  | 4 |  | 2,212,063 |  | 593,318 |  | 2,805,381 |  | 2,114,620 |  | 518,553 |  | 2,633,173
Trade receivables |  | 5 |  |  |  | 2,668,369 |  | 2,668,369 |  |  |  | 2,047,931 |  | 2,047,931
Dividends and interest on equity receivable | 7 |  |  |  | 45,153 |  | 45,153 |  |  |  | 44,554 |  | 44,554
Derivative financial instruments |  | 7 |  | 1,010 |  |  |  | 1,010 |  | 1,364 |  |  |  | 1,364
Trading securities |  | 7 |  | 2,866 |  |  |  | 2,866 |  | 4,034 |  |  |  | 4,034
Total |  |  |  | 2,215,939 |  | 9,031,268 |  | 11,247,207 |  | 2,120,018 |  | 3,699,993 |  | 5,820,011
Non-current |  |  |  |  |  |  |  |  |  |  |  |  |  |
Short-term investments |  | 4 |  |  |  | 131,317 |  | 131,317 |  |  |  | 95,719 |  | 95,719
Other trade receivables |  | 7 |  |  |  | 2,445 |  | 2,445 |  |  |  | 7,059 |  | 7,059
Eletrobrás compulsory loan |  | 7 |  |  |  | 843,376 |  | 843,376 |  |  |  | 845,284 |  | 845,284
Receivables by indemnity |  | 7 |  |  |  | 512,754 |  | 512,754 |  |  |  |  |  |
Loans - related parties |  | 7 |  |  |  | 960,211 |  | 960,211 |  |  |  | 846,300 |  | 846,300
Investments |  | 8 |  | 50,171 |  |  |  | 50,171 |  | 47,300 |  |  |  | 47,300
Derivative financial instruments |  | 7 |  |  |  |  |  |  |  | 4,203 |  |  |  | 4,203
Total |  |  |  | 50,171 |  | 2,450,103 |  | 2,500,274 |  | 51,503 |  | 1,794,362 |  | 1,845,865
Total Assets |  |  |  | 2,266,110 |  | 11,481,371 |  | 13,747,481 |  | 2,171,521 |  | 5,494,355 |  | 7,665,876
Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current |  |  |  |  |  |  |  |  |  |  |  |  |  |
Borrowings and financing |  | 11 |  |  |  | 3,630,023 |  | 3,630,023 |  |  |  | 5,152,234 |  | 5,152,234
Trade payables |  |  |  |  |  | 4,560,230 |  | 4,560,230 |  |  |  | 3,012,654 |  | 3,012,654
Trade payables -drawee risk |  | 13 |  |  |  | 605,385 |  | 605,385 |  |  |  | 1,121,312 |  | 1,121,312
Dividends and interest on capital |  | 13 |  |  |  | 40,977 |  | 40,977 |  |  |  | 13,252 |  | 13,252
Leases |  | 13.a |  |  |  | 84,675 |  | 84,675 |  |  |  | 35,040 |  | 35,040
Derivative financial instruments |  | (*) |  | 263,283 |  |  |  | 263,283 |  |  |  |  |  |
Total |  |  |  | 263,283 |  | 8,921,290 |  | 9,184,573 |  |  |  | 9,334,492 |  | 9,334,492
Non-current |  |  |  |  |  |  |  |  |  |  |  |  |  |
Borrowings and financing |  | 11 |  |  |  | 32,660,835 |  | 32,660,835 |  |  |  | 22,938,469 |  | 22,938,469
Derivative financial instruments |  |  |  | 125,051 |  |  |  | 125,051 |  |  |  |  |  |
Leases |  | 13.a |  |  |  | 420,014 |  | 420,014 |  |  |  | 439,350 |  | 439,350
Total |  |  |  | 125,051 |  | 33,080,849 |  | 33,205,900 |  |  |  | 23,377,819 |  | 23,377,819
Total Liabilities |  |  |  | 388,334 |  | 42,002,139 |  | 42,390,473 |  |  |  | 32,712,311 |  | 32,712,311

(*) The derivative financial instrument was designated as a cash flow hedge and, accordingly, the amounts related to the highly probable future shipping of iron ore is recognized as Other Comprehensive Income, in the net equity, and are reclassified to income at the moment the future transactions occur (for further details see Item 12.b below).

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|  |  |  |  |  |  |  |  |  |  |  |  |  | Parent Company
Parent Company |  |  |  | 09/30/2020 |  | 12/31/2019
| Notes |  | Fair value through profit or loss |  | Measured at amortized cost |  | Balances |  | Fair value through profit or loss |  | Measured at amortized cost |  | Balances
Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents |  | 3 |  |  |  | 2,370,726 |  | 2,370,726 |  |  |  | 392,107 |  | 392,107
Short-term investments |  | 4 |  | 2,212,063 |  | 566,661 |  | 2,778,724 |  | 2,114,620 |  | 481,804 |  | 2,596,424
Trade receivables |  | 5 |  |  |  | 1,750,211 |  | 1,750,211 |  |  |  | 1,691,643 |  | 1,691,643
Dividends and interest on equity receivable |  | 7 |  |  |  | 229,379 |  | 229,379 |  |  |  | 33,447 |  | 33,447
Trading securities |  | 7 |  | 2,763 |  |  |  | 2,763 |  | 3,875 |  |  |  | 3,875
Loans - related parties |  | 8 |  |  |  | 10,417 |  | 10,417 |  |  |  |  |  |
Total |  |  |  | 2,214,826 |  | 4,927,394 |  | 7,142,220 |  | 2,118,495 |  | 2,599,001 |  | 4,717,496
Non-current |  |  |  |  |  |  |  |  |  |  |  |  |  |
Short-term investments |  | 4 |  |  |  | 131,317 |  | 131,317 |  |  |  | 95,719 |  | 95,719
Other trade receivables |  | 7 |  |  |  | 1,003 |  | 1,003 |  |  |  | 1,109 |  | 1,109
Eletrobrás compulsory loan |  | 7 |  |  |  | 842,686 |  | 842,686 |  |  |  | 844,438 |  | 844,438
Receivables by indemnity |  | 7 |  |  |  | 512,754 |  | 512,754 |  |  |  |  |  |
Loans - related parties |  | 7 |  |  |  | 1,025,906 |  | 1,025,906 |  |  |  | 883,394 |  | 883,394
Investments |  | 8 |  | 50,171 |  |  |  | 50,171 |  | 47,300 |  |  |  | 47,300
Derivative financial instruments |  | 7 |  |  |  |  |  |  |  | 4,203 |  |  |  | 4,203
Total |  |  |  | 50,171 |  | 2,513,666 |  | 2,563,837 |  | 51,503 |  | 1,824,660 |  | 1,876,163
Total Assets |  |  |  | 2,264,997 |  | 7,441,060 |  | 9,706,057 |  | 2,169,998 |  | 4,423,661 |  | 6,593,659
Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current |  |  |  |  |  |  |  |  |  |  |  |  |  |
Borrowings and financing |  | 11 |  |  |  | 3,042,923 |  | 3,042,923 |  |  |  | 4,423,293 |  | 4,423,293
Trade payables |  |  |  |  |  | 3,927,712 |  | 3,927,712 |  |  |  | 2,506,244 |  | 2,506,244
Trade payables -drawee risk |  | 13 |  |  |  | 573,153 |  | 573,153 |  |  |  | 1,121,312 |  | 1,121,312
Dividends and interest on capital |  | 13 |  |  |  | 13,075 |  | 13,075 |  |  |  | 13,252 |  | 13,252
Leases |  | 13.a |  |  |  | 14,230 |  | 14,230 |  |  |  | 17,269 |  | 17,269
Total |  |  |  |  |  | 7,571,093 |  | 7,571,093 |  |  |  | 8,081,370 |  | 8,081,370
Non-current |  |  |  |  |  |  |  |  |  |  |  |  |  |
Borrowings and financing |  | 11 |  |  |  | 27,448,484 |  | 27,448,484 |  |  |  | 19,774,916 |  | 19,774,916
Derivative financial instruments |  |  |  | 125,051 |  |  |  | 125,051 |  |  |  |  |  |
Leases |  | 13.a |  |  |  | 21,105 |  | 21,105 |  |  |  | 28,671 |  | 28,671
Total |  |  |  | 125,051 |  | 27,469,589 |  | 27,594,640 |  |  |  | 19,803,587 |  | 19,803,587
Total Liabilities |  |  |  | 125,051 |  | 35,040,682 |  | 35,165,733 |  |  |  | 27,884,957 |  | 27,884,957

| · | Fair value measurement

The following table shows the financial instruments recognized at fair value through profit or loss classifying them according to the fair value hierarchy:

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Consolidated |  |  |  |  |  | 09/30/2020 |  |  |  |  |  | 12/31/2019
| Level 1 |  | Level 2 |  | Balances |  | Level 1 |  | Level 2 |  | Balances
Assets |  |  |  |  |  |  |  |  |  |  |  |
Current |  |  |  |  |  |  |  |  |  |  |  |
Financial assets at fair value through profit or loss |  |  |  |  |  |  |  |  |  |  |  |
Financial investments |  | 2,212,063 |  |  |  | 2,212,063 |  | 2,114,620 |  |  |  | 2,114,620
Derivative financial instruments |  |  |  | 1,010 |  | 1,010 |  | - |  | 1,364 |  | 1,364
Trading securities |  | 2,866 |  | - |  | 2,866 |  | 4,034 |  | - |  | 4,034
Non-current |  |  |  |  |  |  |  |  |  |  |  |
Financial assets at fair value through profit or loss |  |  |  |  |  |  |  |  |  |  |  |
Investments |  | 50,171 |  | - |  | 50,171 |  | 47,300 |  | - |  | 47,300
Derivative financial instruments |  | - |  |  |  |  |  | - |  | 4,203 |  | 4,203
Total Assets |  | 2,265,100 |  | 1,010 |  | 2,266,110 |  | 2,165,954 |  | 5,567 |  | 2,171,521
Liabilities |  |  |  |  |  |  |  |  |  |  |  |
Current |  |  |  |  |  |  |  |  |  |  |  |
Financial liabilities at fair value through profit or loss |  |  |  |  |  |  |  |  |  |  |  |
Derivative financial instruments |  | - |  | 263,283 |  | 263,283 |  | - |  | - |  | -
Non-current |  |  |  |  |  |  |  |  |  |  |  |
Financial liabilities at fair value through profit or loss |  |  |  |  |  |  |  |  |  |  |  |
Derivative financial instruments |  | - |  | 125,051 |  | 125,051 |  |  |  | - |  | -
Total Liabilities |  |  |  | 388,334 |  | 388,334 |  |  |  | - |  | -

Level 1: quoted prices in active markets for identical assets or liabilities.

Level 2: Includes observable inputs in market such as interest rates, exchange etc., but not prices traded in active markets.

There are no assets and liabilities classified as level 3.

II – Investments in securities measured at fair value through profit or loss

The Company has investments in common shares (USIM3), preferred shares (USIM5) of Usiminas (“Ações Usiminas”) and shares of Panatlântica S.A (PATI 3), which are designated as fair value through profit or loss.

Usiminas’ shares are classified as a financial investment in the current asset and Panatlântica’s is recognized as non-current investment and are all recorded at fair value based on the market price quotation on the stock exchange (B3 S.A.).

In accordance with the Company's policy, gains and losses arising from changes in the share prices are recorded directly in the statement of income under financial results (Usiminas’ shares) and Other Operating Income and Expenses (Panatlântica shares).

Class of shares |  | 09/30/2020 |  | 12/31/2019 |  | 09/30/2020
| Quantity |  | Equity interest (%) |  | Share price |  | Closing Balance |  | Quantity |  | Quantity |  | Share price |  | Closing Balance |  | Fair value adjustment recognized in profit or loss (note 21 and 22)
USIM3 |  | 107,156,651 |  | 15.19% |  | 10.24 |  | 1,097,284 |  | 107,156,651 |  | 15.19% |  | 9.87 |  | 1,057,636 |  | 39,648
USIM5 |  | 111,144,456 |  | 20.29% |  | 10.03 |  | 1,114,779 |  | 111,144,456 |  | 20.29% |  | 9.51 |  | 1,056,984 |  | 57,795
|  |  |  |  |  |  |  | 2,212,063 |  |  |  |  |  |  |  | 2,114,620 |  | 97,443
PATI3 |  | 2,065,529 |  | 11.31% |  | 24.29 |  | 50,171 |  | 2,065,529 |  | 11.31% |  | 22.90 |  | 47,300 |  | 2,871
|  |  |  |  |  |  |  | 2,262,234 |  |  |  |  |  |  |  | 2,161,920 |  | 100,314

• Share market price risks

The Company is exposed to the risk of changes in the price of the shares due to the investments, valued at fair value through profit or loss that have their prices based on the market price.

III - Financial risk management:

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The Company follows risk management strategies, with guidelines in relation to the risks incurred by the company. The nature and general position of financial risks is regularly monitored and managed to assess the results and the financial impact on cash flow. The credit limits and hedge quality of the counterparties are also periodically reviewed.

Market risks are protected when it is considered necessary to support the corporate strategy or when it is necessary to maintain the level of financial flexibility.

The Company considers to be exposed to foreign currency, interest rate, market prices and liquidity risks.

The Company may manage some of the risks through the use of derivative instruments, not associated with any speculative trading or short selling.

12.a) Foreign exchange rate, price and interest rate risks:

| · | Foreign exchange rate risk:

The exposure arises from the existence of assets and liabilities denominated in Dollar or Euro, since the Company's functional currency is substantially the Real and is denominated natural currency hedge. The net exposure is the result of offsetting the natural currency exposure by hedging instruments adopted by CSN.

The consolidated net exposure as of September 30, 2020 is as follows:

|  |  |  | 09/30/2020
Foreign Exchange Exposure |  | (Amounts in US$’000) |  | (Amounts in €’000)
Cash and cash equivalents overseas |  | 427,996 |  | 4,165
Trade receivables |  | 275,424 |  | 1,780
Financial investments |  | 23,280 |  | -
Other assets |  | 6,983 |  | 6,954
Total Assets |  | 733,683 |  | 12,899
Borrowings and financing |  | (4,464,428) |  | -
Trade payables |  | (142,717) |  | (10,827)
Iron ore derivative |  | (46,676) |  | -
Other liabilities |  | (5,280) |  | (1,134)
Total Liabilities |  | (4,659,101) |  | (11,961)
Foreign exchange exposure |  | (3,925,418) |  | 938
Cash flow hedge accounting |  | 4,080,341 |  | -
Swap CDI x Dollar |  | (67,000) |  | -
Net foreign exchange exposure |  | 87,923 |  | 938

CSN uses as strategy hedge accounting, as well as derivative instruments to hedge CSN’s future cash flows.

| · | Interest rate risk:

The risk arises from short and long-term liabilities with fixed or floating interest rates and inflation indices.

| · | Market price risk:

The Company is also exposed to market risks related to volatility of commodity prices and other materials. Based on the risk management policies, risk mitigation strategies with commodities may be used to reduce cash flows volatility. Those strategies may consider derivative instruments, predominantly forward transactions, futures and options instruments.

CSN Mineração uses instruments to hedge the risk of Platts fluctuations, as shown in the topic below.

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In item 12b) we show the derivatives and hedging strategies to hedge foreign exchange and interest rate risks.

12.b) Hedging instruments: Derivatives and cash flows hedge accounting and net investment hedge in foreign operations:

CSN uses various instruments to hedge foreign exchange, Platts fluctuation and interest rate risks, as shown in the following topics:

| · | Portfolio of derivative financial instruments

Exchange rate swap Dollar x Euro

The subsidiary Lusosider has derivative operations to hedge its exposure of the dollar against the euro.

Exchange rate swap GBP (Sterling Pound) x Euro

The subsidiary Lusosider has derivative operations to hedge its exposure of the GBP against the euro.

Exchange rate swap CDI x Dollar

The company has derivative operations with Bradesco Bank to hedge its NCE debt raised in September 2019 with maturity in October 2023 in the amount of US$67million (equivalent to R$278milhões), at a cost consistent with that usually praticed by the Company.

|  |  |  |  |  |  |  |  |  |  |  |  |  | Consolidated
|  |  |  |  |  |  |  |  |  |  |  |  |  | 09/30/2020
|  |  |  |  |  |  |  | Appreciation (R$) |  | Fair value (market) |  | Impact on financial income (expenses) in 2020
Counterparties |  | Maturity |  | Functional Currency |  | Notional amount |  | Asset position |  | Liability position |  | Amounts receivable / (payable) |
Exchange rate swap Dollar x Euro |  | 11/20/2020 |  | Dollar |  | 14,850 |  | 83,879 |  | (82,867) |  | 1,012 |  | (1,314)
Exchange rate swap Dollar x Euro |  | 1/06/2021 |  | Dollar |  | (201) |  | 1,132 |  | (1,134) |  | (2) |  | (2)
Total dollar-to-euro swap |  |  |  |  |  | 14,649 |  | 85,011 |  | (84,001) |  | 1,010 |  | (1,316)
Exchange rate swap GBP x Euro |  | Settled |  | GBP |  | 3,956 |  | - |  | - |  | - |  | (602)
Total Swap GBP x Euro |  |  |  | 3,956 |  |  |  |  |  |  |  | (602)
Swap CDI x Dollar |  | 10/02/2023 |  | Dollar |  | (67,000) |  | 289,850 |  | (414,901) |  | (125,051) |  | (133,659)
Total Swap CDI x dollar |  |  |  |  |  | (67,000) |  | 289,850 |  | (414,901) |  | (125,051) |  | (133,659)
|  |  |  | 374,861 |  | (498,902) |  | (124,041) |  | (135,577)

| · | Cash flow hedge accounting

Foreign currency

The Company designates cash flow hedging relationships to hedge highly probable future cash flows against U.S. dollar fluctuations.

In order to better reflect the accounting impacts of this foreign exchange hedging strategy on the Company’s results, CSN designated part of its US dollar-denominated liabilities as a hedging instrument of its future exports. As a result, foreign exchange differences arising from designated liabilities will be temporarily recognized in shareholders’ equity and recognized in profit or loss when such exports are carried out, allowing the concurrent recognition of the dollar

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fluctuations on liabilities and on exports. The adoption of this hedge accounting does not entail entering into any financial instrument.

In order to support the aforementioned designations, the Company prepared formal documentation indicating how the hedge designation is aligned with CSN's objective and risk management strategy, identifying the hedging instruments used, the hedge object, the nature of the risk to be hedged and demonstrating the expectation of high effectiveness of the designated relations. Debt instruments have been designated in amounts equivalent to the portion of future exports. Therefore, the exchange variation of the instrument and the object are similar. According to the Company's accounting policy, continuous evaluations of prospective and retrospective effectiveness should be carried out, comparing the amounts designated with the amounts expected and approved in the Management's budgets, as well as the amounts actually exported.

Through hedge accounting, the exchange gains and losses on debt instruments will not immediately affect the Company’s profit or loss except to the extent that exports are carried out.

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The table below shows a summary of the hedging relationships as of September 30, 2020:

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 09/30/2020
Designation Date |  | Hedging Instrument |  | Hedged item |  | Type of hedged risk |  | Hedged period |  | Exchange rate on designation |  | Designated amounts (US$’000) |  | Amortizated part (USD'000) |  | Effect on Result (*) (R$'000) |  | Impact on Shareholders' equity (R$'000)
12/18/2014 |  | Export prepayments in US$ to third parties |  | Part of the highly probable future monthly iron ore exports |  | Foreign exchange - R$ vs. US$ spot rate |  | May 2020 |  | 2.6805 |  | 30,000 |  | (30,000) |  | (82,374) |  | -
12/18/2014 |  | Export prepayments in US$ to third parties |  | Part of the highly probable future monthly iron ore exports |  | Foreign exchange - R$ vs. US$ spot rate |  | May 2020 |  | 2.678 |  | 35,000 |  | (35,000) |  | (96,190) |  | -
12/18/2014 |  | Export prepayments in US$ to third parties |  | Part of the highly probable future monthly iron ore exports |  | Foreign exchange - R$ vs. US$ spot rate |  | May 2020 |  | 2.676 |  | 35,000 |  | (35,000) |  | (96,261) |  | -
07/21/2015 |  | Export prepayments in US$ to third parties |  | Part of the highly probable future monthly iron ore exports |  | Foreign exchange - R$ vs. US$ spot rate |  | July 2019 - March 2021 |  | 3.1813 |  | 60,000 |  | (41,359) |  | (49,659) |  | (45,845)
07/23/2015 |  | Export prepayments in US$ to third parties |  | Part of the highly probable future monthly iron ore exports |  | Foreign exchange - R$ vs. US$ spot rate |  | July 2019 - March 2021 |  | 3.285 |  | 100,000 |  | (62,500) |  | (63,060) |  | (88,339)
07/23/2015 |  | Export prepayments in US$ to third parties |  | Part of the highly probable future monthly iron ore exports |  | Foreign exchange - R$ vs. US$ spot rate |  | August 2018 - October 2022 |  | 3.285 |  | 30,000 |  | (12,000) |  | - |  | (42,403)
07/24/2015 |  | Export prepayments in US$ to third parties |  | Part of the highly probable future monthly iron ore exports |  | Foreign exchange - R$ vs. US$ spot rate |  | August 2018 - October 2022 |  | 3.3254 |  | 100,000 |  | (40,000) |  | - |  | (138,918)
07/27/2015 |  | Export prepayments in US$ to third parties |  | Part of the highly probable future monthly iron ore exports |  | Foreign exchange - R$ vs. US$ spot rate |  | August 2018 - October 2022 |  | 3.3557 |  | 25,000 |  | (10,000) |  | - |  | (34,275)
07/27/2015 |  | Export prepayments in US$ to third parties |  | Part of the highly probable future monthly iron ore exports |  | Foreign exchange - R$ vs. US$ spot rate |  | August 2018 - October 2022 |  | 3.3557 |  | 70,000 |  | (28,000) |  | - |  | (95,970)
07/27/2015 |  | Export prepayments in US$ to third parties |  | Part of the highly probable future monthly iron ore exports |  | Foreign exchange - R$ vs. US$ spot rate |  | August 2018 - October 2022 |  | 3.3557 |  | 30,000 |  | (12,000) |  | - |  | (41,130)
07/28/2015 |  | Export prepayments in US$ to third parties |  | Part of the highly probable future monthly iron ore exports |  | Foreign exchange - R$ vs. US$ spot rate |  | August 2018 - October 2022 |  | 3.3815 |  | 30,000 |  | (12,000) |  | - |  | (40,666)
3/8/2015 |  | Export prepayments in US$ to third parties |  | Part of the highly probable future monthly iron ore exports |  | Foreign exchange - R$ vs. US$ spot rate |  | July 2018 - October 2022 |  | 3.394 |  | 355,000 |  | (276,500) |  | (338,777) |  | (176,366)
2/4/2018 |  | Bonds |  | Part of the highly probable future monthly iron ore exports |  | Foreign exchange - R$ vs. US$ spot rate |  | July 2018 - February 2023 |  | 3.3104 |  | 1,170,045 |  | (820,045) |  | (306,189) |  | (815,610)
07/31/2019 |  | Bonds and Export prepayments in US$ to third parties |  | Part of the highly probable future monthly iron ore exports |  | Foreign exchange - R$ vs. US$ spot rate |  | January 2020 - April 2026 |  | 3.7649 |  | 1,342,761 |  | (247,061) |  | (329,966) |  | (2,055,313)
10/1/2020 |  | Bonds without express maturity and Export prepayments in US$ to third parties |  | Part of the highly probable future monthly iron ore exports |  | Foreign exchange - R$ vs. US$ spot rate |  | March 2020 - December 2050 |  | 4.0745 |  | 1,416,000 |  | (87,000) |  | (119,196) |  | (2,081,479)
01/28/2020 |  | Bonds |  | Part of the highly probable future monthly iron ore exports |  | Foreign exchange - R$ vs. US$ spot rate |  | March 2017 - January 2028 |  | 4.2064 |  | 1,000,000 |  | - |  | - |  | (1,434,297)
Total |  |  |  |  |  |  |  |  |  |  |  | 5,828,806 |  | (1,748,465) |  | (1,481,672) |  | (7,090,611)

(*) For the nine-month period ended September 30, 2020 we recognized R$1,481,672 in Other Operating Expenses (R$632,681 for the same period of 2019).

In the hedging relationships described above, the amounts of the debt instruments were fully designated for equivalent iron ore export portions.

The movement in the cash flow hedge recognized in shareholders’ equity as of September 30, 2020 is as follows:

| 12/31/2019 |  | Movimento |  | Realização |  | 9/30/2020
Cash flow hedge accounting | 1,255,770 |  | 7,316,513 |  | (1,481,672) |  | 7,090,611

As of September 30, 2020, the hedging relationships established by the Company were effective, according to prospective tests performed. Thus, no reversal for hedge accounting ineffectiveness in the cash flow hedge was recognized.

“Platts” Index

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As of September 30, 2020, the Company has derivative transactions entered into by its subsidiary CSN Mineração, with the purpose of reducing the volatility of its exposure to iron ore price fluctuations. The derivative transactions expire in November 2020. The Company opted to formally designate the hedge and, accordingly, adopted the cash flow hedge accounting. The table below shows the losses recognized from the derivative instrument as of September 30, 2020 in Other Comprehensive Income and, upon realization of the sales of iron ore, the amount reclassified to Other Operating Income and Expenses:

|  |  |  |  |  |  |  | 09/30/2020 |  |  |  |  |  | 09/30/2020
|  |  |  | Appreciation (R$) |  | Fair value (market) |  | Other income and expenses |  | Other comprehensive income |  | Exchange variation
Maturity |  | Notional |  | Asset position |  | Liability position |  | Amounts receivable / (payable) |  |  |
Settled |  | Platts |  | - |  | - |  | - |  | (31,678) |  | - |  | (136)
10/2/2020 |  | Platts |  | 755,982 |  | (897,945) |  | (141,963) |  | (132,997) |  | - |  | (8,966)
11/4/2020 |  | Platts |  | 565,946 |  | (663,362) |  | (97,416) |  | - |  | (90,509) |  | (6,907)
12/2/2020 |  | Platts |  | 157,772 |  | (181,676) |  | (23,904) |  | - |  | (22,403) |  | (1,501)
|  |  |  | 1,479,700 |  | (1,742,983) |  | (263,283) |  | (164,675) |  | (112,912) |  | (17,510)

The Company opted for adopting hedge accounting to better reflect in the financial statements its strategy behind the derivative instrument entered into. Accordingly, the derivative financial instrument used to fix the Platts index to be applied to the designated highly probable future sales was designated as the hedge instrument, while the highly probable future iron ore sales were designated as the hedged item. The difference between the fixed Platts indexes of the hedge instrument and the Platts index of the SGX Futures Exchange for each period determined in the derivative contract is recognized as Other Comprehensive Income, in the net equity, and reclassified to income when the sales occur.

The Company prepared a formal documentation to support the hedge designation and its alignment with the risk management strategy, identifying the hedge instruments used, the hedged items, the risks being hedged, as well as the hedge effectiveness expected. The hedge transactions were approved by the Board of Directors. The Company permanently monitors the hedge effectiveness using the prospective and the retroactive methods established in IAS 39, comparing the designated amounts with those approved and expected in the budgets and forecasts prepared by management.

With the cash flow hedge accounting of the Platts index, gains or losses raised by the Platts volatility included in the derivative instrument do not affect the results immediately, but upon shipment of the highly probable future sales designated as hedged items.

The amount recognized as Other Comprehensive Income, in the net equity, as of September 30, 2020 was R$112.912 as shown in the table above and referred to shipments to be realized in October and November 2020, which financial settlement will occur on November 4 and December 2, 2020, respectively.

The hedge has been fully effective since its inception.

The changes in the amounts related to the cash flow hedge designation in the net equity as of September 30, 2020 are as follows:

| 12/31/2019 |  | Movement |  | Realization |  | 09/30/2020
Cash flow hedge accounting – “Platts” | - |  | 277,587 |  | (164,675) |  | 112,912
Income tax and social contribution on cash flow hedge accounting | - |  | (94,379) |  | 55,990 |  | (38,389)
Fair Value of cash flow accounting - Platts, net | - |  | 183,208 |  | (108,685) |  | 74,523

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| · | Hedge of net investment in foreign operation

The information related to the net investment hedge abroad did not change in relation that was disclosed in the Company's accounting accounts of December 31, 2019. Accordingly, Management decided not to repeat them in the interim financial information as of September 30, 2020.

On January 31, 2020, the Company repaid the Euro-denominated non-derivative financial liability designated as hedged item. The variations of the hedge recognized in the shareholders’ equity as of September 30, 2020 were R$1,469.

| · | Classification of the derivative instruments in the balance sheet and income statement

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 09/30/2020 |  | 09/30/2019
Instruments |  | Assets |  | Liabilities |  | Other operating income expenses |  | Other comprehensive income |  | Financial income (expenses), net (note 22)
| Current |  | Total |  | Current |  | Non-current |  | Total |  |  |
Dollar - to - euro swap |  | 1,010 |  | 1,010 |  |  |  |  |  |  |  |  |  |  |  | (1,316) |  | 4,621
Great Britain pound-to-euro swap |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (602) |  |
Swap CDI x Dollar |  |  |  |  |  |  |  | (125,051) |  | (125,051) |  |  |  |  |  | (133,659) |  | (7,664)
Iron ore derivative |  |  |  |  |  | (263,283) |  |  |  | (263,283) |  | (164,675) |  | (112,912) |  | (17,510) |  |
|  | 1,010 |  | 1,010 |  | (263,283) |  | (125,051) |  | (388,334) |  | (164,675) |  | (112,912) |  | (153,087) |  | (3,043)

12.c) Sensitivity analysis

We present below the sensitivity analysis of foreign exchange rate and interest rate risks.

| · | Sensitivity analysis of derivative financial instruments and consolidated foreign exchange exposure

The Company considered scenarios 1 and 2 as 25% and 50% deterioration for currency volatility using as reference the closing exchange rate as of September 30, 2020.

The currencies used in the sensitivity analysis and their scenarios are shown below:

|  |  |  |  |  |  |  | 09/30/2020
Currency |  | Exchange rate |  | Probable scenario |  | Scenario 1 |  | Scenario 2
USD |  | 5.6407 |  | 5.6464 |  | 7.0509 |  | 8.4611
EUR |  | 6.6132 |  | 6.6097 |  | 8.2665 |  | 9.9198
USD x EUR |  | 1.1708 |  | 1.1730 |  | 1.4635 |  | 1.7562

The effects on profit or loss, considering scenarios 1 and 2, are shown below:

|  |  |  |  |  |  |  |  |  | 09/30/2020
Instruments |  | Notional |  | Risk |  | Probable scenario (*) R$ |  | Scenario 1 R$ |  | Scenario 2 R$
Gross exchange position |  | (3,925,418) |  | Dollar |  | (22,375) |  | (5,535,526) |  | (11,071,053)
Cash flow hedge accounting |  | 4,080,341 |  | Dollar |  | 23,258 |  | 5,753,995 |  | 11,507,990

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Swap CDI x Dollar |  | (67,000) |  | Dollar |  | (382) |  | (94,482) |  | (188,963)
Net exchange position |  | 87,923 |  | Dollar |  | 501 |  | 123,987 |  | 247,974
Net exchange position |  | 938 |  | Euro |  | (3) |  | 1,549 |  | 3,098
Dollar-to-euro swap |  | 14,649 |  | Dollar |  | (1,709) |  | 31,078 |  | 53,144

(*) The probable scenarios were calculated considering the following variations for the risks: Real x Dollar – depreciation of Real by 0.10% / Real x Euro – appreciation of Real by 0.05%. Euro x Dollar – depreciation of Euro by 0.19%. Source: quotations from Central Bank of Brazil and Central Bank of Europe on 02/10/2020.

| · | Sensitivity analysis of changes in the “Platts” index

The Company presents the scenarios 1 and 2 as 25% and 50% of changes in Platts index volatility as of September 30, 2020.

The effects in income, considering the scenarios 1 and 2, are shown below:

|  | 09/30/2020
Maturity |  | Probable scenario (*) R$ |  | Scenario 1 R$ |  | Scenario 2 R$
10/2/2020 (**) |  | - |  | - |  | -
11/4/2020 |  | (17,921) |  | (154,312) |  | (308,624)
12/2/2020 |  | (5,759) |  | (42,583) |  | (85,166)
|  | (23,680) |  | (196,895) |  | (393,790)

(*) The probable scenario was calculated considering the Platts index on October 8, 2020 for the maturities on November 4, 2020 and December 2, 2020. Source: Bloomberg.

(**) The transaction was settled on October 2, 2020 in the amount of R$132.997 and there was no change in the Platts index between the dates.

| · | Sensitivity analysis of changes in interest rates

The Company considered scenarios 1 and 2 as 25% and 50% of changes in interest volatility as of September 30, 2020 using as reference the closing date.

The interest rates used in the sensitivity analysis and the scenarios are shown below:

|  |  |  |  |  | 09/30/2020
Interest |  | Interest rate |  | Scenario 1 |  | Scenario 2
CDI |  | 1.90% |  | 2.38% |  | 2.85%
TJLP |  | 4.91% |  | 6.14% |  | 7.37%
LIBOR |  | 0.26% |  | 0.32% |  | 0.39%

The effects in income, considering the scenarios 1 and 2, are shown below:

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|  |  |  |  |  |  |  |  |  |  |  | Consolidated
|  |  |  |  |  |  |  |  |  | Impact on profit or loss
Changes in interest rates |  | % p.a |  | Assets |  | Liabilities |  | Probable scenario (*) |  | Scenario 1 |  | Scenario 2
CDI |  | 1.90 |  | 986,439 |  | (9,585,811) |  | (9,594) |  | (40,847) |  | (81,694)
TJLP |  | 4.91 |  |  |  | (833,020) |  | (2,160) |  | (10,225) |  | (20,450)
Libor |  | 0.26 |  |  |  | (4,974,251) |  | (48,321) |  | (3,230) |  | (6,460)

(*) The sensitivity analysis is based on the assumption of maintaining, as a probable scenario, the market values as of September 30, 2020 recognized in the company's assets and liabilities.

12.d) Liquidity risk

It is the risk that the Company does not have sufficient liquid resources to honor its financial commitments, as a result of mismatching of term or volume between expected receipts and payments.

In order to manage the liquidity of the cash in local and foreign currency, premises of disbursements and future receipts are established, being monitored daily by the Treasury area. The payment schedules for the long-term portions of the loans and financing and debentures are presented in Note 11.

The following table shows the contractual maturities of financial liabilities and lease liabilities, including accrued interest.

|  |  |  |  |  |  |  |  | Consolidated
At September 30, 2020 | Less than one year |  | From one to two years |  | From two to five years |  | Over five years |  | Total
Borrowings, financing and debentures (note 11) | 3,630,023 |  | 7,336,528 |  | 10,144,767 |  | 15,179,540 |  | 36,290,858
Lease liabilities | 84,675 |  | 122,671 |  | 117,334 |  | 180,009 |  | 504,689
Derivative financial instruments (note 12 I) | 263,283 |  |  |  | 125,051 |  |  |  | 388,334
Trade payables (note 12I) | 4,560,230 |  |  |  |  |  |  |  | 4,560,230
Trade payables – Drawee risk (note 12I) | 605,385 |  |  |  |  |  |  |  | 605,385

IV - Fair values of assets and liabilities as compared to their carrying amounts

Financial assets and liabilities measured at fair value through profit or loss are recorded in current and noncurrent assets and liabilities and gains and losses are recorded as financial income and expenses, respectively.

The amounts are recorded in the financial statements at their carrying amount, which are substantially similar to those that would be obtained if they were traded in the market. The fair values of other long-term assets and liabilities do not differ significantly from their carrying amounts, except for the amounts below.

The estimated fair values for certain consolidated long-term borrowings and financing were calculated at prevailing market rates, taking into consideration the nature, terms and risks similar to those of the recorded contracts, according below:

|  |  | 09/30/2020 |  |  |  | 12/31/2019
| Closing Balance |  | Fair value |  | Closing Balance |  | Fair value
Perpetual bonds | 5,648,378 |  | 4,939,335 |  | 4,036,186 |  | 3,706,553
Fixed Rate Notes | 14,477,126 |  | 14,269,476 |  | 8,090,297 |  | 8,345,471

(*) Source: Bloomberg

• Credit Risks

The exposure to credit risks of financial institutions complies with the parameters established in the financial policy. The Company has as practice the detailed analysis of the patrimonial and financial situation of its clients and suppliers, the establishment of a credit limit and the permanent monitoring of its outstanding balance.

With respect to financial investments, the Company only makes investments in institutions with low credit risk rated by rating agencies. Since part of the funds is invested in repo operations that are backed by Brazilian government bonds, there is also exposure to the credit risk of the Brazilian State.

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Regarding the exposure to credit risk in accounts receivable and other receivables, the company has a credit risk committee, in which each new customer is analyzed individually regarding their financial condition, before granting the credit limit and payment terms and periodically revised, according to the periodicity procedures of each business area.

• Capital Management

The Company seeks to optimize its capital structure in order to reduce its financial costs and maximize the return to its shareholders. The table below shows the evolution of the Company's capital structure, with financing by equity and third-party capital:

Thousands of reais |  | 09/30/2020 |  | 12/31/2019
Shareholder's equity (equity) |  | 6,342,851 |  | 11,361,932
Borrowings and Financing (Third-party capital) |  | 36,158,153 |  | 27,967,036
Gross Debit/Shareholder's equity |  | 5.70 |  | 2.46

| 13. | OTHER PAYABLES

The group of other payables classified in current and noncurrent liabilities is comprised as follows:

| Consolidated |  | Parent Company
| Current |  | Non-current |  | Current |  | Non-current
| 09/30/2020 |  | 12/31/2019 |  | 09/30/2020 |  | 12/31/2019 |  | 09/30/2020 |  | 12/31/2019 |  | 09/30/2020 |  | 12/31/2019
Payables to related parties (note 17 a) | 44,739 |  | 46,063 |  | 75,469 |  | 88,021 |  | 252,463 |  | 457,577 |  | 261,430 |  | 318,967
Derivative financial instruments (note 12 I) | 263,283 |  |  |  | 125,051 |  |  |  |  |  |  |  | 125,051 |  |
Dividends and interest on capital (note 12I) | 40,977 |  | 13,252 |  |  |  |  |  | 13,075 |  | 13,252 |  |  |  |
Advances from customers (1) | 962,789 |  | 787,604 |  | 1,937,420 |  | 1,845,248 |  | 149,328 |  | 72,404 |  |  |  |
Taxes in installments | 21,109 |  | 19,498 |  | 62,008 |  | 67,727 |  | 9,834 |  | 9,777 |  | 1,479 |  | 1,985
Profit sharing - employees | 151,990 |  | 162,866 |  |  |  |  |  | 91,046 |  | 111,171 |  |  |  |
Taxes payable |  |  |  |  | 26,456 |  | 8,805 |  |  |  |  |  | 21,537 |  | 7,319
Provision for consumption and services | 202,983 |  | 204,299 |  |  |  |  |  | 114,550 |  | 132,262 |  |  |  |
Third party materials in our possession | 126,058 |  | 78,820 |  |  |  |  |  | 110,565 |  | 61,976 |  |  |  |
Trade payables - Drawee Risk (2) | 605,385 |  | 1,121,312 |  |  |  |  |  | 573,153 |  | 1,121,312 |  |  |  |
Lease Liabilities (note 13.a) | 84,675 |  | 35,040 |  | 420,014 |  | 439,350 |  | 14,230 |  | 17,269 |  | 21,105 |  | 28,671
Other payables | 49,089 |  | 57,690 |  | 57,816 |  | 44,551 |  | 23,464 |  | 22,788 |  |  |  |
| 2,553,077 |  | 2,526,444 |  | 2,704,234 |  | 2,493,702 |  | 1,351,708 |  | 2,019,788 |  | 430,602 |  | 356,942

(1) Advances from customers: During 2019, the Company received in advance through its subsidiary CSN Mineração the amounts of US$496 million (R$ 1,951 million) and US$250 million (R$956 million) related to a supply contract of approximately 22 million tons and 11 million tons of ore to a major international trading, to be executed within 5 years. In July 2020, the Company concluded a new supply agreement of, approximately, 4 million tons of iron ore. The Company received in advance, on August 28, 2020, the amount of US$115 million (R$629 million). This new agreement is expected to be performed within 3 years.

(2) Trade Payables – Drawee risk: The Company negotiated with financial institutions to anticipate payments from its suppliers, with the objective of lengthening the deadlines. This financial modality is an option of suppliers, and does not require mandatory participation, nor is the Company not reimbursed and / or benefited by the financial institution of discounts for payment executed before the due date agreed with the supplier, there is no change in the degree of subordination of the security in case of judicial execution and no changes in the commercial conditions existing between the Company and its suppliers.

13.a.) LEASE LIABILITIES

As of September 30, 2020, the lease liabilities are presented as follows:

|  |  | Consolidated |  |  |  | Parent Company
| 09/30/2020 |  | 12/31/2019 |  | 09/30/2020 |  | 12/31/2019
Leases | 1,607,443 |  | 1,501,960 |  | 41,137 |  | 53,279
Present value adjustment - Leases | (1,102,754) |  | (1,027,570) |  | (5,802) |  | (7,339)
| 504,689 |  | 474,390 |  | 35,335 |  | 45,940
Classified: |  |  |  |  |  |  |

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Current | 84,675 |  | 35,040 |  | 14,230 |  | 17,269
Non-current | 420,014 |  | 439,350 |  | 21,105 |  | 28,671
| 504,689 |  | 474,390 |  | 35,335 |  | 45,940

The Company has lease agreements for port operations in Itaguaí, the solid bulk terminal – TECAR, used for charges and discharges of coal and iron ore, and the containers terminal – TECON, with remaining terms of 27 and 31 years, respectively. Also, we have lease agreements for railway operations using the Northeast Railway System with a remaining term of 7 years.

Additionally, the Company has real estate lease agreements used for operating premises and sales and administrative offices in several localities where the Company holds operations, with remaining terms of 2, 5 and 16 years.

CSN also has lease agreements for operating equipment used in the mining and steel operations, with remaining terms from 2 to 5 years.

The present value of the future obligations was measured using the implicit rate observed in the contracts and, for the contracts with no explicit rates, the Company applied the Incremental Borrowing Rate – IBR, both in nominal terms.

The incremental borrowing rate was determined by consultations with the banks the Company maintains relationship and by calculating the average life of its contracts in accordance with orientations given by CVM in the Oficio-Circular/CVM/SNC/SEP nº 02/2019.

The changes in lease liabilities for the six-month period ended September 30, 2020 are shown in the table below:

|  |  | 09/30/2020
| Consolidated |  | Parent Company
Opening balance | 474,390 |  | 45,940
New leases | 18,878 |  | 6,200
Present Value Adjustments - New leases | (3,367) |  | (1,292)
Contract review | 53,327 |  | 3,898
Write off | (6,968) |  | (3,759)
Payments | (75,398) |  | (18,319)
Interest appropriated | 39,814 |  | 2,667
Exchange variation | 4,013 |  |
Net balance | 504,689 |  | 35,335

The minimum future payments estimated to leasing agreements include variable payments, essentially fixed when based on minimum performance and contractually fixed rates and as of September 30, 2020 are as follows:

|  |  |  |  |  |  | Consolidated
| Less than one year |  | Between one and five years |  | Over five years |  | Total
Leases | 89,400 |  | 346,860 |  | 1,171,183 |  | 1,607,443
Present value adjustment - Leases | (4,725) |  | (106,855) |  | (991,174) |  | (1,102,754)
| 84,675 |  | 240,005 |  | 180,009 |  | 504,689

· Recoverable PIS and COFINS

The lease liabilities were remeasured by the payable amounts to the lessors, and did not include the tax credits arisen from such payments. The tax credits embedded in the lease liabilities are shown below:

|  |  | 09/30/2020
| Consolidated |  | Parent Company
Leases | 1,607,443 |  | 41,137
Present value adjustment - Leases | (1,102,754) |  | (5,802)
Potencial PIS and COFINS credit | 148,688 |  | 3,805
Present value adjustment – Potential PIS and COFINS credit | (102,005) |  | (537)

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| · | Payments of leases not recognized as liabilities:

The Company chose not to recognize lease liabilities in contracts with a maturity of less than twelve months and for assets with low value. The realized payments to these contracts are recognized as expenses, when incurred.

The Company has lease agreements for the use of ports (TECAR) and railways (FTL) which, even if they establish minimum performance, cannot determine their cash flow since these payments are fully variable and will only be known when they occur. In such cases, payments will be recognized as expenses when incurred.

The expenses related to payments not included in the measurement of a lease liability in the nine-month period ended September 30, 2020 are:

|  |  |  |  |  |  | Consolidated
| Nine months ended |  | Three months ended
| 09/30/2020 |  | 09/30/2020 |  | 09/30/2019 |  | 09/30/2019
Contract less than 12 months | 549 |  | 9,974 |  | - |  | 2,992
Lower Assets value | 6,954 |  | 1,344 |  | 3,814 |  | 493
Variable lease payments | 181,643 |  | 136,059 |  | 62,867 |  | 42,440
| 189,146 |  | 147,377 |  | 66,681 |  | 45,925
|  |  |  |  |  |  | Parent Company
| Nine months ended |  | Three months ended
| 09/30/2020 |  | 09/30/2020 |  | 09/30/2019 |  | 09/30/2019
Lower Assets value | 3,197 |  | 4,736 |  | 2,013 |  | 1,549
Variable lease payments | 13,468 |  | 4,996 |  | 4,885 |  | 3,888
| 16,665 |  | 9,732 |  | 6,898 |  | 5,437

The Company studied the CVM Deliberation Nº 859 that changes CPC 06 (R2) with orientations in regard to recognition of possible impacts generated by contractual changes related to COVID-19. However, we didn’t have any contractual changes arising therefrom.

| 14. | INCOME TAX AND SOCIAL CONTRIBUTION

14.a) Income tax and social contribution recognized in profit or loss:

The income tax and social contribution recognized in profit or loss for the period are as follows:

|  |  |  |  |  |  | Consolidated
| Nine months ended |  | Three months ended
| 09/30/2020 |  | 09/30/2019 |  | 09/30/2020 |  | 09/30/2019
Income tax and social contribution income (expense) |  |  |  |  |  |
Current | (1,417,701) |  | (1,261,197) |  | (704,739) |  | (278,777)
Deferred | 77,474 |  | 1,620,646 |  | (37,058) |  | (21,977)
| (1,340,227) |  | 359,449 |  | (741,797) |  | (300,754)
|  |  |  |  | Parent Company
| Nine months ended |  | Three months ended
| 09/30/2020 |  | 09/30/2019 |  | 09/30/2020 |  | 09/30/2019
Income tax and social contribution income (expense) |  |  |  |  |  |
Current | (121,751) |  | 11 |  | (5,551) |  | -

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Deferred | (597) |  | 1,705,982 |  | 706 |  | (1,048)
| (122,348) |  | 1,705,993 |  | (4,845) |  | (1,048)

The reconciliation of consolidated and parent company income tax and social contribution expenses and the result from applying the tax rate to profit before income tax and social contribution are as follows:

|  |  |  |  |  |  | Consolidated
| Nine months ended |  | Three months ended
| 09/30/2020 |  | 09/30/2019 |  | 09/30/2020 |  | 09/30/2019
(Loss)/Profit before income tax and social contribution | 1,736,013 |  | 751,120 |  | 2,003,392 |  | (569,902)
Tax rate | 34% |  | 34% |  | 34% |  | 34%
Income tax and social contribution at combined statutory rate | (590,244) |  | (255,381) |  | (681,153) |  | 193,767
Adjustment to reflect the effective rate: |  |  |  |  |  |  |
Equity in results of affiliated companies | 6,129 |  | 43,445 |  | 9,829 |  | 22,782
Profit with differentiated rates or untaxed | (542,258) |  | (223,079) |  | (112,468) |  | (126,328)
Transfer price adjustment | - |  | - |  | - |  | 8,574
Tax loss carryforwards without recognizing deferred taxes | (28,613) |  | (2,310) |  | (6,547) |  | 12,150
Indebtdness limit | (22,392) |  | (14,685) |  | (9,846) |  | (4,599)
Unrecorded deferred taxes on temporary differences | 3,771 |  | (715) |  | 3,842 |  | (625)
(Loss)/Reversal for deferred income and social contribution tax credit | (212,310) |  | 780,004 |  | 71,142 |  | (415,916)
Deferred taxes on foreign profit | - |  | (483) |  | - |  | (188)
Tax incentives | 6,129 |  | 26,643 |  | 197 |  | 6,953
Interest on equity | 76,038 |  | 16,460 |  | - |  | 16,460
Other permanent deductions (additions) | (36,477) |  | (10,450) |  | (16,793) |  | (13,784)
Income tax and social contribution in profit for the period | (1,340,227) |  | 359,449 |  | (741,797) |  | (300,754)
Effective tax rate | 77% |  | -48% |  | 37% |  | -53%

|  |  |  |  | Parent Company
| Nine months ended |  | Three months ended
| 09/30/2020 |  | 09/30/2019 |  | 09/30/2020 |  | 09/30/2019
(Loss)/Profit before income tax and social contribution | 187,461 |  | (961,440) |  | 1,085,631 |  | (991,910)
Tax rate | 34% |  | 34% |  | 34% |  | 34%
Income tax and social contribution at combined statutory rate | (63,737) |  | 326,890 |  | (369,115) |  | 337,249
Adjustment to reflect the effective rate: |  |  |  |  |  |  |
Equity in results of affiliated companies | 201,435 |  | 743,919 |  | 316,343 |  | 226,220
Indebtdness limit | (22,392) |  | (14,685) |  | (9,846) |  | (4,599)
(Loss)/Reversal for deferred income and social contribution tax credit | (212,310) |  | 780,004 |  | 71,142 |  | (415,916)
Interest on equity | (1,145) |  | (115,474) |  | (1,145) |  | (115,474)
Other permanent deductions (additions) | (24,199) |  | (14,661) |  | (12,224) |  | (28,528)
Income tax and social contribution in profit for the period | (122,348) |  | 1,705,993 |  | (4,845) |  | (1,048)
Effective tax rate | 65% |  | 177% |  | 0% |  | 0%

14.b) Deferred income tax and social contribution:

The balances of deferred income tax and social contribution can be shown as follows:

|  |  |  |  |  |  |  |  | Consolidated
| Opening balance |  | Movement |  | Closing balance
| 12/31/2019 |  | Shareholders' Equity |  | P&L |  | Others |  | 09/30/2020
Deferred |  |  |  |  |  |  |  |  |
Income tax losses | 1,610,801 |  |  |  | 289,197 |  | - |  | 1,899,998
Social contribution tax losses | 610,046 |  |  |  | 96,177 |  | - |  | 706,223
Temporary differences | (337,082) |  | (28,916) |  | (307,900) |  | 5,032 |  | (668,866)

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- Provision for tax. social security, labor, civil and environmental risks | 264,013 |  |  |  | 13,738 |  | - |  | 277,751
- Asset impairment losses | 182,431 |  |  |  | (8,650) |  | 4,378 |  | 178,159
- (Gains)/losses on financial instruments | 414,495 |  |  |  | (33,796) |  | - |  | 380,699
- Actuarial liability (pension and healthcare plan) | 314,601 |  |  |  |  |  | - |  | 314,601
- Accrued supplies and services | 132,411 |  |  |  | 4,646 |  | - |  | 137,057
- Unrealized exchange variation (1) | 1,181,501 |  |  |  | (70,119) |  | - |  | 1,111,382
- Gain upon loss of control in Transnordestina | (92,180) |  |  |  |  |  | - |  | (92,180)
- Cash flow hedge accounting | 426,961 |  | 2,022,236 |  | 45,219 |  | - |  | 2,494,416
- Acquisition at fair value of SWT and CBL | (184,513) |  | (64,342) |  | 21,920 |  | - |  | (226,935)
- Deferred taxes not computed | (291,961) |  | - |  | (17,599) |  | - |  | (309,560)
- Estimated (losses)/reversals for deferred income tax and social contribution credits | (1,625,998) |  | (1,983,847) |  | (212,310) |  | - |  | (3,822,155)
- Business Combination | (1,023,341) |  | - |  | 5,838 |  | - |  | (1,017,503)
- Others | (35,502) |  | (2,963) |  | (56,787) |  | 654 |  | (94,598)
Total | 1,883,765 |  | (28,916) |  | 77,474 |  | 5,032 |  | 1,937,355
Total Deferred Assets | 2,473,304 |  |  |  |  |  | - |  | 2,501,398
Total Deferred Liabilities | (589,539) |  |  |  |  |  | - |  | (564,043)
Total Deferred | 1,883,765 |  |  |  |  |  | - |  | 1,937,355

(1) The Company taxes exchange differences on a cash basis to calculate income tax and social contribution on net income.

|  |  |  |  | Parent Company
| Opening balance |  | Movement | Closing balance
| 12/31/2019 |  | Shareholders' Equity |  | P&L |  | 09/30/2020
Deferred tax assets |  |  |  |  |  |  |
Income tax losses | 1,463,981 |  | - |  | 265,064 |  | 1,729,045
Social contribution tax losses | 549,026 |  | - |  | 95,422 |  | 644,448
Temporary differences | 422,544 |  | - |  | (361,083) |  | 61,461
- Provision for tax. social security, labor, civil and environmental risks | 193,245 |  | - |  | 3,743 |  | 196,988
- Asset impairment losses | 119,645 |  | - |  | (7,509) |  | 112,136
- (Gains)/losses on financial instruments | 414,495 |  | - |  | (33,797) |  | 380,698
- Actuarial liability (pension and healthcare plan) | 317,053 |  | - |  | - |  | 317,053
- Accrued supplies and services | 121,680 |  | - |  | 4,781 |  | 126,461
- Unrealized exchange variation (1) | 1,183,053 |  | - |  | (94,718) |  | 1,088,335
- Gain) in control loss on Transnorderstina | (92,180) |  | - |  | - |  | (92,180)
- Cash flow hedge accounting | 426,961 |  | 1,983,847 |  | - |  | 2,410,808
- Estimated (losses)/reversals for deferred income tax and social contribution credits | (1,625,998) |  | (1,983,847) |  | (212,310) |  | (3,822,155)
- Business Combination | (721,992) |  | - |  | - |  | (721,992)
- Others | 86,582 |  | - |  | (21,273) |  | 65,309
Total | 2,435,551 |  |  |  | (597) |  | 2,434,954
Total Deferred Assets | 3,258,542 |  |  |  |  |  | 3,258,542
Total Deferred Liabilities | (822,991) |  |  |  |  |  | (823,588)
Total Deferred | 2,435,551 |  |  |  |  |  | 2,434,954

(1) The Company taxes exchange differences on a cash basis to calculate income tax and social contribution on net income.

In its corporate structure the Company has foreign subsidiaries whose profits are subject to income tax in the countries where they were established at rates lower than those prevailing in Brazil. In the period from 2015 and 2020, these foreign subsidiaries generated profits amounting to R$1,283,937. If the tax authorities understand that these profits are subject to additional taxation in Brazil in respect of income tax and social contribution, these, if due, would total

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approximately R$412,235. The Company, based on its legal counsel’s opinion, assessed as possible the likelihood of loss in the event of challenge by the tax authorities and, therefore, no provision was recognized in this interim financial information.

In addition, the management assessed IFRIC 23 – “Uncertainties Over Income Tax Treatments” and considered the tax authorities have no reasons to diverge from the Company’s current tax positions. Accordingly, we did not recognize any additional provisions for income tax and social contribution arisen from the assessment of IFRIC 23 in the interim financial information as of September 30, 2020.

A sensitivity analysis of tax credit was performed considering a variation of macroeconomics assumptions, operating performance and liquidity events. In this way, considering the results of studies performed, which indicates that it is probable that there will be generated taxable income to use the deferred income and social contribution taxes.

The estimated recovery of deferred tax assets of IRPJ and CSLL is presented by its net amount when they refer to a same tax jurisdiction, as shown below:

In millions of reais |  | Consolidated |  | Parent Company
2020 |  | 230 |  | 230
2021 |  | 713 |  | 713
2022 |  | 938 |  | 938
2023 |  | 985 |  | 985
2024 |  | 459 |  | 393
Deferred asset |  | 3,325 |  | 3,259
Deferred liabilities - Parent Company |  | (824) |  | (824)
Net deferred asset |  | 2,501 |  | 2,435
Deferred liabilities - subsidiaries |  | (564) |  |
Net deferred asset |  | 1,937 |  | 2,435

14.c) Income statement and social contribution recognized in the shareholders’ equity

The income statement and social contribution recognized directly in the shareholder’s equity are demonstrated below:

|  |  | Consolidated |  |  |  | Parent Company
| 09/30/2020 |  | 12/31/2019 |  | 09/30/2020 |  | 12/31/2019
Income tax and social contribution |  |  |  |  |  |  |
Actuarial gains on defined benefit pension plan | 215,394 |  | 215,306 |  | 217,969 |  | 217,969
Estimated losses for deferred income and social contribution tax credits - actuarial gains | (217,969) |  | (217,969) |  | (217,969) |  | (217,969)
Exchange differences on translating foreign operations | (325,350) |  | (325,350) |  | (325,350) |  | (325,350)
Cash flow hedge accounting | 2,444,408 |  | 426,961 |  | 2,410,808 |  | 426,961
Estimated losses for deferred income and social contribution tax credits - cash flow hedge | (2,410,808) |  | (426,961) |  | (2,410,808) |  | (426,961)
| (294,325) |  | (328,013) |  | (325,350) |  | (325,350)

| 15. | PROVISION FOR TAX, SOCIAL SECURITY, LABOR, CIVIL AND ENVIRONMENTAL RISKS AND JUDICIAL DEPOSITS

Are being discussed in the competent spheres, actions and complaints of various natures. The details of the provisioned amounts and the related judicial deposits are presented below:

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|  |  |  |  |  |  |  | Consolidated |  |  |  |  |  |  |  | Parent Company
|  | Accrued liabilities |  | Judicial deposits |  | Accrued liabilities |  | Judicial deposits
|  | 09/30/2020 |  | 12/31/2019 |  | 09/30/2020 |  | 12/31/2019 |  | 09/30/2020 |  | 12/31/2019 |  | 09/30/2020 |  | 12/31/2019
Tax |  | 128,970 |  | 128,411 |  | 66,377 |  | 31,060 |  | 55,697 |  | 56,343 |  | 48,328 |  | 15,227
Social security |  | 1,731 |  | 7,039 |  |  |  |  |  | 1,515 |  | 6,447 |  |  |  |
Labor |  | 321,257 |  | 305,309 |  | 251,104 |  | 227,213 |  | 229,942 |  | 217,907 |  | 179,906 |  | 164,580
Civil |  | 145,160 |  | 138,990 |  | 26,533 |  | 53,771 |  | 115,443 |  | 105,464 |  | 20,343 |  | 42,252
Environmental |  | 12,681 |  | 43,498 |  | 9,872 |  | 3,731 |  | 10,616 |  | 36,558 |  | 2,241 |  | 2,241
Deposit of a guarantee |  |  |  |  |  | 18,640 |  | 12,596 |  |  |  |  |  |  |  |
|  | 609,799 |  | 623,247 |  | 372,526 |  | 328,371 |  | 413,213 |  | 422,719 |  | 250,818 |  | 224,300
Classified: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current |  | 80,623 |  | 96,479 |  |  |  |  |  | 33,470 |  | 52,016 |  |  |  |
Non-current |  | 529,176 |  | 526,768 |  | 372,526 |  | 328,371 |  | 379,743 |  | 370,703 |  | 250,818 |  | 224,300
|  | 609,799 |  | 623,247 |  | 372,526 |  | 328,371 |  | 413,213 |  | 422,719 |  | 250,818 |  | 224,300

The changes in the provisions for tax, social security, labor, civil and environmental risks for the nine-month period ended September 30, 2020 were as follows:

|  |  |  |  |  |  |  |  |  | Consolidated
|  |  |  |  |  |  |  |  |  | Current + Non-current
Nature |  | 12/31/2019 |  | Additions |  | Accrued charges |  | Net utilization of reversal |  | 09/30/2020
Tax |  | 128,411 |  | 21,395 |  | 1,973 |  | (22,809) |  | 128,970
Social security |  | 7,039 |  | 811 |  | 97 |  | (6,216) |  | 1,731
Labor |  | 305,309 |  | 25,111 |  | 39,475 |  | (48,638) |  | 321,257
Civil |  | 138,990 |  | 41,287 |  | 14,161 |  | (49,278) |  | 145,160
Environmental |  | 43,498 |  | 8,685 |  | 187 |  | (39,689) |  | 12,681
|  | 623,247 |  | 97,289 |  | 55,893 |  | (166,630) |  | 609,799

|  |  |  |  |  |  |  |  |  | Parent Company
|  |  |  |  |  |  |  |  |  | Current + Non-current
Nature |  | 12/31/2019 |  | Additions |  | Accrued charges |  | Net utilization of reversal |  | 09/30/2020
Tax |  | 56,343 |  | 19,604 |  | 791 |  | (21,041) |  | 55,697
Social security |  | 6,447 |  | 595 |  | 97 |  | (5,624) |  | 1,515
Labor |  | 217,907 |  | 13,061 |  | 25,980 |  | (27,006) |  | 229,942
Civil |  | 105,464 |  | 33,963 |  | 11,602 |  | (35,586) |  | 115,443
Environmental |  | 36,558 |  | 8,646 |  | 29 |  | (34,617) |  | 10,616
|  | 422,719 |  | 75,869 |  | 38,499 |  | (123,874) |  | 413,213

The provision for tax, social security, labor, civil and environmental risks was estimated by Management and is mainly based on the legal counsel’s assessment. Only lawsuits for which the risk is classified as probable loss are provisioned. Additionally, tax liability from actions initiated by the Company is included in this provision and is subject to SELIC (Central Bank’s policy rate).

| § | Possible administrative and judicial proceedings

The table below shows a summary of the main matters classified as possible risk compared with the balances as of September 30, 2020 and December 31, 2019.

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|  |  |  | Consolidated
|  | 09/30/2020 |  | 12/31/2019
Assessment Notice and imposition of fine (AIIM) / Tax Enforcement - Income tax and social contribution - Capital gain on sale of NAMISA's shares |  | 12,645,989 |  | 12,412,964
Assessment Notice and Imposition of fine (AIIM) - Income tax and Social contribution - Disallowance of deductions of goodwill generated in the reverse incorporation of Big Jump by NAMISA. |  | 3,918,808 |  | 3,867,663
Assessment Notice and Imposition of fine (AIIM) / Tax Enforcement - Income tax and Social contribution - Disallowance of interest on prepayment arising from supply contracts of iron ore and port services |  | 1,937,178 |  | 2,249,708
Assessment Notice and imposition of fine (AIIM) - Income tax and social contribution due to profits from foreign subsidiaries for years 2008, 2010, 2011, 2012 and 2014 |  | 3,099,576 |  | 2,946,288
Tax foreclosures - ICMS - Electricity credits |  | 837,503 |  | 1,022,371
Offset of taxes that were not approved by the Federal Revenue Service - IRPJ/CSLL, PIS/COFINS and IPI |  | 1,637,698 |  | 1,100,564
Disallowance of the ICMS credits - Transfer of iron ore |  | 622,403 |  | 567,534
ICMS - Refers to the transfer of imported raw material at an amount lower than the price disclosed in the import documentation |  | 316,578 |  | 310,349
Disallowance of the tax loss and negative basis of social contribution arising from the adjustments in the SAPLI |  | 552,902 |  | 538,268
Assessment Notice- IRRF- Capital Gain of CFM vendors located abroad |  | 259,383 |  | 254,850
CFEM – difference of understanding between CSN and DNPM on the calculation basis |  | 1,046,650 |  | 1,020,266
Assessment Notice- ICMS- questions about sales for incentive area |  | 1,072,153 |  | 1,015,812
Other tax lawsuits (federal, state, and municipal) |  | 3,827,547 |  | 4,478,014
Social security lawsuits |  | 210,683 |  | 325,492
Action to discuss the balance of the construction contract – Tebas |  | 487,124 |  | 468,776
Action related to power supply payment’s charge - Light |  | 282,166 |  | 253,569
Indemnity action due to the supply contract termination - Indumill |  | 228,711 |  | 215,281
Enforcement action applied by Brazilian antitrust authorities (CADE) |  | 95,399 |  | 93,212
Civil Public Action - Districts / School / Nursery relocation-CdP Dam (1) |  | 11,564 |  | 20,000
Other civil lawsuits |  | 758,768 |  | 764,127
Labor and social security lawsuits |  | 1,510,819 |  | 1,565,237
Tax foreclosures – Fine – Volta Redonda IV (2) |  | 92,705 |  | 84,599
ACP landfill Márcia (3) |  | 306,389 |  | -
Other environmental lawsuits |  | 259,820 |  | 215,691
|  | 36,018,516 |  | 35,790,635

| (1) | In May 2019, the Public Ministry of the state of Minas Gerais judged an ACP to oblige CSN Mineração to adopt measures to mitigate the risks and psichological damages theoretically caused by the dam of Casa de Pedra, relocating families who prefer to move, and assuming rental expenses and social assistance, as well as relocating the kids and children to nursery and school rebuilt in safer locations. By an injunction, the First Instance Magistrate determined the block of R$3 million to rebuild the nursery and school, a decision canceled by the Court of second instance, which determined the Magistrate to reassess all injunctions. The Public Ministry of the state of Minas Gerais also determined the payment of collective moral damages, as well as definitive relocation of the families at the cost of CSN Mineração. The action is in initial stage and no judicial sentence has been given yet.

| (2) | On April 8, 2013, INEA applied to CSN a fine in the amount of R$35 million related to the aspects of the condominium Volta Grande IV, determining the execution of the actions already weigthed and discussed in the public civil action filed in July 2012. In relation to that fine, an anullment action was filed, distributed to the 10th Civil Court of Rio de Janeiro County in January 2014, with the purpose of cancelling the fine and its effects. Also, INEA filed a tax enforcement action to execute the imposed fine. The tax enforcement action was distributed in May 2014 to the 4th Registry of Active Debt of Volta Redonda, in the state of Rio de Janeiro. Currently, the tax enforcement action is suspended until the judgement of the anullment action in order to avoid conflicting decisions.

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| (3) | Refers to an Environmental Public Civil action proposed by the Federal Public Ministry, requesting indemnification for material and collective moral damages for a alleged improper deposit of steel debris, as well as fines for non-compliance with injunction.

The Company has offered judicial guarantees (Guarantee Insurance/Letter of Guarantee) in the total updated amount of R$4,890,000 compliant with the current legislation in force.

The assessments made by the legal counsel define these administrative and judicial proceedings as entailing risk of possible loss and, therefore, no provision was recognized in conformity with Management’s judgment and accounting practices adopted in Brazil.

| 16. | PROVISION FOR ENVIRONMENTAL LIABILITIES AND ASSET RETIREMENT OBLIGATIONS

The information on provision for environmental liabilities and asset retirement obligations has not changed in relation to that disclosed in the Company's financial statements as of December 31, 2019 and, accordingly, the Company decided not to repeat it in the condensed interim financial information as of September 30, 2020.

The balance of the provision for environmental liabilities and asset retirement obligation (ARO) is as follows:

| Consolidated |  | Parent Company
| 09/30/2020 |  | 12/31/2019 |  | 09/30/2020 |  | 12/31/2019
Environmental liabilities | 215,780 |  | 192,270 |  | 184,777 |  | 163,659
Asset retirement obligations | 332,957 |  | 331,731 |  | 874 |  | 805
| 548,737 |  | 524,001 |  | 185,651 |  | 164,464

| 17. | RELATED-PARTY BALANCES AND TRANSACTIONS

The information on related-party transactions has not changed significantly in relation to that disclosed in the Company's financial statements as of December 31, 2019.

17.a) Transactions with subsidiaries, joint ventures, associates, exclusive funds and other related parties

| · | By transaction

|  |  |  | Consolidated
|  | Current | Non-current | Total
|  | 09/30/2020 |  | 12/31/2019 |  | 09/30/2020 |  | 12/31/2019 |  | 09/30/2020 |  | 12/31/2019
Assets |  |  |  |  |  |  |  |  |  |  |  |
Trade receivables(note 5) |  | 157,197 |  | 170,588 |  |  |  |  |  | 157,197 |  | 170,588
Dividends and interest on equity receivable (note 7) |  | 45,153 |  | 44,554 |  |  |  |  |  | 45,153 |  | 44,554
Actuarial asset (note 7) |  |  |  |  |  | 13,714 |  | 13,714 |  | 13,714 |  | 13,714
Cash/Financial investments |  | 4,372,708 |  | 2,116,560 |  | 131,317 |  | 95,719 |  | 4,504,025 |  | 2,212,279
Loans (note 7) |  |  |  |  |  | 960,211 |  | 846,300 |  | 960,211 |  | 846,300
Other receivables (note 7) |  | 1,829 |  | 1,830 |  | 593,996 |  | 428,672 |  | 595,825 |  | 430,502
|  | 4,576,887 |  | 2,333,532 |  | 1,699,238 |  | 1,384,405 |  | 6,276,125 |  | 3,717,937
Liabilities |  |  |  |  |  |  |  |  |  |  |  |
Borrowings and financing |  |  |  |  |  |  |  |  |  |  |  |
Intercompany Loans (note11) |  |  |  | 25,038 |  |  |  |  |  |  |  | 25,038
Other payables (note 13) |  |  |  |  |  |  |  |  |  |  |  |
Accounts payable |  | 31,103 |  | 23,566 |  | 75,469 |  | 88,021 |  | 106,572 |  | 111,587
Provision for consumption and services |  | 13,636 |  | 22,497 |  |  |  |  |  | 13,636 |  | 22,497

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Trade payables |  | 161,665 |  | 240,984 |  | - |  |  |  | 161,665 |  | 240,984
Actuarial liabilities |  |  |  |  |  | 19,788 |  | 19,788 |  | 19,788 |  | 19,788
|  | 206,404 |  | 312,085 |  | 95,257 |  | 107,809 |  | 301,661 |  | 419,894

|  | 09/30/2020 |  | 09/30/2019
P&L |  |  |  |
Revenues |  |  |  |
Sales |  | 1,085,814 |  | 854,813
Interest (note 22) |  | 31,547 |  | 60,344
Expenses |  |  |  |
Purchases |  | (838,734) |  | (1,478,875)
Financial investments/ investments |  | 97,443 |  | (380,671)
Foreign exchange and monetary variations, net |  | 37,030 |  | (6,661)
|  | 413,100 |  | (951,050)

| · | By company

|  | Consolidated
|  | Assets |  | Liabilities |  | P&L
| Current |  | Non-current |  | Total |  | Current |  | Non-current |  | Total |  | Sales |  | Purchases |  | Financial income (expenses), net |  | Exchange rate variations, net |  | Total
Joint-venture and Joint-operation |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Itá Energética S.A. |  |  |  |  |  |  |  | 13,169 |  |  |  | 13,169 |  |  |  | (19,721) |  |  |  |  |  | (19,721)
MRS Logística S.A. |  | 45,152 |  |  |  | 45,152 |  | 72,173 |  | 75,468 |  | 147,641 |  |  |  | (745,199) |  | (10,206) |  |  |  | (755,405)
Transnordestina Logística S.A (1) |  |  |  | 1,552,926 |  | 1,552,926 |  | 95,223 |  |  |  | 95,223 |  | 633 |  | (3,283) |  | 26,865 |  |  |  | 24,215
|  | 45,152 |  | 1,552,926 |  | 1,598,078 |  | 180,565 |  | 75,468 |  | 256,033 |  | 633 |  | (768,203) |  | 16,659 |  |  |  | (750,911)
Other related parties |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
CBS Previdência |  |  |  | 13,714 |  | 13,714 |  |  |  | 19,789 |  | 19,789 |  |  |  |  |  |  |  |  |  |
Banco Fibra (2) |  | 2,160,645 |  | 131,317 |  | 2,291,962 |  | 8,206 |  |  |  | 8,206 |  |  |  |  |  | 14,888 |  | 37,030 |  | 51,918
Usiminas |  | 2,213,507 |  |  |  | 2,213,507 |  | 3 |  |  |  | 3 |  |  |  | (348) |  |  |  | 97,443 |  | 97,095
Panatlântica (3) |  | 112,054 |  |  |  | 112,054 |  | 13,931 |  |  |  | 13,931 |  | 1,014,502 |  | (66,366) |  |  |  |  |  | 948,136
Other related parties |  | 1,869 |  |  |  | 1,869 |  | 3,571 |  |  |  | 3,571 |  | 304 |  | (3,711) |  |  |  |  |  | (3,407)
|  | 4,488,075 |  | 145,031 |  | 4,633,106 |  | 25,711 |  | 19,789 |  | 45,500 |  | 1,014,806 |  | (70,425) |  | 14,888 |  | 134,473 |  | 1,093,742
Associates |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Arvedi Metalfer do Brasil S.A. |  | 43,660 |  | 1,281 |  | 44,941 |  | 128 |  |  |  | 128 |  | 70,375 |  | (106) |  |  |  |  |  | 70,269
Total at 09/30/2020 |  | 4,576,887 |  | 1,699,238 |  | 6,276,125 |  | 206,404 |  | 95,257 |  | 301,661 |  | 1,085,814 |  | (838,734) |  | 31,547 |  | 134,473 |  | 413,100
Total at 12/31/2019 |  | 2,333,532 |  | 1,384,405 |  | 3,717,937 |  | 312,085 |  | 107,809 |  | 419,894 |  |  |  |  |  |  |  |  |  |
Total at 09/30/2019 |  |  |  |  |  |  |  |  |  |  |  |  |  | 854,813 |  | (1,478,875) |  | 60,344 |  | (387,332) |  | (951,050)

| 1. | Transnordestina Logística S.A: Assets: Refers mainly to loan agreements with interest rate ranging from 125% to 130% of the CDI. As of September 30, 2020, the loans amounted to R$958,930 (R$844,426 as of December 31, 2019) and advances for future capital increase of R$593,996 (R$ 428,672 as of December 31, 2019).

| 2. | Banco Fibra S.A: Assets: Refers mainly to cash equivalent investments and Eurobond from Fibra Bank.

| 3. | Panatlântica: Receivables from the sale of steel products.

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| · | By transaction

|  |  |  |  |  |  |  |  |  | Parent Company
|  | Current | Non-current | Total
|  | 09/30/2020 |  | 12/31/2019 |  | 09/30/2020 |  | 12/31/2019 |  | 09/30/2020 |  | 12/31/2019
Assets |  |  |  |  |  |  |  |  |  |  |  |
Trade receivables (1) (note 5) |  | 1,042,607 |  | 943,623 |  |  |  |  |  | 1,042,607 |  | 943,623
Dividends and interest on equity receivable (note 7) |  | 229,379 |  | 33,447 |  |  |  |  |  | 229,379 |  | 33,447
Loans (note 7) |  | 10,417 |  |  |  | 1,025,906 |  | 883,394 |  | 1,036,323 |  | 883,394
Cash/Financial investments (2) |  | 4,381,019 |  | 2,124,626 |  | 131,317 |  | 95,719 |  | 4,512,336 |  | 2,220,345
Other receivables (3) (note 7) |  | 13,767 |  | 14,770 |  | 828,005 |  | 674,800 |  | 841,772 |  | 689,570
|  | 5,677,189 |  | 3,116,466 |  | 1,985,228 |  | 1,653,913 |  | 7,662,417 |  | 4,770,379
Liabilities |  |  |  |  |  |  |  |  |  |  |  |
Borrowings and financing |  |  |  |  |  |  |  |  |  |  |  |
Prepayment (note11) |  | 184,295 |  | 73,334 |  | 8,671,345 |  | 6,162,673 |  | 8,855,640 |  | 6,236,007
Intercompany Bonds (note 11) |  |  |  | 2,491 |  |  |  | 374,855 |  |  |  | 377,346
Intercompany Loans (note11) |  | 121,122 |  | 1,499,197 |  | 7,513,557 |  | 2,075,353 |  | 7,634,679 |  | 3,574,550
|  | 305,417 |  | 1,575,022 |  | 16,184,902 |  | 8,612,881 |  | 16,490,319 |  | 10,187,903
Other payables (note 13) |  |  |  |  |  |  |  |  |  |  |  |
Accounts payable |  | 104,062 |  | 92,352 |  | 261,430 |  | 318,967 |  | 365,492 |  | 411,319
Provision for consumption and services |  | 148,401 |  | 365,225 |  |  |  |  |  | 148,401 |  | 365,225
Trade payables |  | 1,342,018 |  | 910,929 |  |  |  |  |  | 1,342,018 |  | 910,929
Actuarial liabilities |  |  |  |  |  | 19,788 |  | 19,788 |  | 19,788 |  | 19,788
|  | 1,594,481 |  | 1,368,506 |  | 281,218 |  | 338,755 |  | 1,875,699 |  | 1,707,261
|  | 1,899,898 |  | 2,943,528 |  | 16,466,120 |  | 8,951,636 |  | 18,366,018 |  | 11,895,164

|  | 09/30/2020 |  | 09/30/2019
P&L |  |  |  |
Revenues |  |  |  |
Sales/Others |  | 2,840,626 |  | 2,298,339
Interest (note 22) |  | 44,498 |  | 56,497
Exclusive funds (note 22) |  | 245 |  | 1,332
Financial investments/ investments |  | 97,443 |  | 380,671
Expenses |  |  |  |
Purchases |  | (1,992,309) |  | (1,987,465)
Interest (note 22) |  | (319,582) |  | (238,672)
Foreign exchange and monetary variations, net |  | (4,724,932) |  | (774,165)
|  | (4,054,011) |  | (263,463)

| 1. | Receivables from sales of goods and services between the parent company, subsidiaries and joint ventures.

2. | Assets: Cash equivalents and financial investments classified in current assets are investments in exclusive funds, in Usiminas’ shares and short-term investments deposited in the Fibra Bank.

| 3. | Noncurrent: Refers mainly to advance for future capital increase, dividends receivable and receivables from acquisition of debentures.

| · | By company

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|  | Parent Company
|  | Assets |  | Liabilities |  | P&L
| Current |  | Non-current |  | Total |  | Current |  | Non-current |  | Total |  | Sales/Others |  | Purchases |  | Financial income (expenses), net |  | Exchange rate variations, net |  | Total
Subsidiaries |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Companhia Metalúrgica Prada (1) |  | 282,514 |  | 121,336 |  | 403,850 |  | 5,687 |  |  |  | 5,687 |  | 552,329 |  | (32,858) |  |  |  | - |  | 519,471
Estanho de Rondônia S.A. |  | 12,043 |  | 43,384 |  | 55,427 |  | 1,476 |  |  |  | 1,476 |  |  |  | (31,054) |  | 1,329 |  | - |  | (29,725)
Sepetiba Tecon S.A. |  | 12,558 |  | 102,570 |  | 115,128 |  | 80,147 |  |  |  | 80,147 |  | 1 |  | (113,622) |  | 49 |  | - |  | (113,572)
Minérios Nacional S.A. |  |  |  |  |  |  |  |  |  | 18,210 |  | 18,210 |  | 13 |  | (12) |  | (483) |  | - |  | (482)
CSN Mineração S.A.(2) |  | 206,957 |  |  |  | 206,957 |  | 1,041,341 |  | 261,430 |  | 1,302,771 |  | 67,153 |  | (1,213,486) |  |  |  | - |  | (1,146,333)
CSN Energia S.A. |  | 3,214 |  |  |  | 3,214 |  | 91,141 |  |  |  | 91,141 |  |  |  | (39,380) |  | 1,004 |  | - |  | (38,376)
Ferrovia Transnordestina Logística S.A. |  |  |  | 121,333 |  | 121,333 |  |  |  |  |  |  |  | 9 |  |  |  | 3,173 |  | - |  | 3,182
Companhia Siderúrgica Nacional, LLC (3) |  | 146,092 |  |  |  | 146,092 |  | 142,253 |  |  |  | 142,253 |  | 768,317 |  | (38,293) |  |  |  | (142,805) |  | 587,219
CSN Resources S.A. (4) |  |  |  |  |  |  |  | 203,011 |  | 7,101,140 |  | 7,304,151 |  |  |  |  |  | (274,191) |  | (2,183,340) |  | (2,457,531)
CSN Steel Corp |  |  |  |  |  |  |  | 42,026 |  | 1,400,018 |  | 1,442,044 |  |  |  |  |  | (36,777) |  | (445,654) |  | (482,431)
Lusosider Aços Planos, S.A. |  | 457,855 |  |  |  | 457,855 |  | 66,845 |  |  |  | 66,845 |  | 435,508 |  | (63,979) |  |  |  | 56,977 |  | 428,506
CSN Inova Ventures (5) |  |  |  |  |  |  |  |  |  | 5,385,291 |  | 5,385,291 |  |  |  |  |  |  |  | (1,327,369) |  | (1,327,369)
CSN Islands XII Corp. (6) |  |  |  |  |  |  |  | 52,476 |  | 2,017,038 |  | 2,069,514 |  |  |  |  |  |  |  | (634,822) |  | (634,822)
Companhia de Embalagens Metálicas MMSA |  |  |  |  |  |  |  | 7 |  |  |  | 7 |  |  |  | (85) |  |  |  | - |  | (85)
Companhia Florestal do Brasil |  | 1,103 |  | 504 |  | 1,607 |  |  |  |  |  |  |  |  |  |  |  |  |  | - |  |
CSN Steel Holdings 1, S.L.U. |  |  |  |  |  |  |  | 1,604 |  | 53,402 |  | 55,006 |  |  |  |  |  | (1,692) |  | (17,503) |  | (19,195)
CSN Productos Sider. S.L. |  |  |  |  |  |  |  | 6,301 |  | 209,803 |  | 216,104 |  |  |  |  |  | (6,440) |  | (67,446) |  | (73,886)
CBSI - Companhia Brasileira de Serviços e Infraestrutura |  | 6,796 |  |  |  | 6,796 |  | 24,305 |  |  |  | 24,305 |  | 26 |  | (115,890) |  |  |  | - |  | (115,864)
|  | 1,129,132 |  | 389,127 |  | 1,518,259 |  | 1,758,620 |  | 16,446,332 |  | 18,204,952 |  | 1,823,356 |  | (1,648,659) |  | (314,028) |  | (4,761,962) |  | (4,901,293)
Joint-venture and Joint-operation |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | - |  |
MRS Logística S.A. |  | 22,570 |  |  |  | 22,570 |  | 23,793 |  |  |  | 23,793 |  |  |  | (274,207) |  |  |  | - |  | (274,207)
Transnordestina Logística S.A. (7) |  |  |  | 1,461,458 |  | 1,461,458 |  | 95,215 |  |  |  | 95,215 |  |  |  |  |  | 24,238 |  | - |  | 24,238
|  | 22,570 |  | 1,461,458 |  | 1,484,028 |  | 119,008 |  |  |  | 119,008 |  |  |  | (274,207) |  | 24,238 |  | - |  | (249,969)
Other related parties |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | - |  |
CBS Previdência |  |  |  |  |  |  |  |  |  | 19,788 |  | 19,788 |  |  |  |  |  |  |  | - |  |
Banco Fibra |  | 2,160,410 |  | 131,317 |  | 2,291,727 |  | 8,206 |  |  |  | 8,206 |  |  |  |  |  | 14,535 |  | 37,030 |  | 51,565
Usiminas |  | 2,187,511 |  |  |  | 2,187,511 |  | 3 |  |  |  | 3 |  |  |  | (348) |  |  |  | 106,803 |  | 106,455
Panatlântica (8) |  | 112,054 |  |  |  | 112,054 |  | 13,931 |  |  |  | 13,931 |  | 1,014,522 |  | (66,366) |  |  |  | - |  | 948,156
Other related parties |  | 1,869 |  |  |  | 1,869 |  | 130 |  |  |  | 130 |  | 335 |  | (2,729) |  |  |  | - |  | (2,394)
|  | 4,461,844 |  | 131,317 |  | 4,593,161 |  | 22,270 |  | 19,788 |  | 42,058 |  | 1,014,857 |  | (69,443) |  | 14,535 |  | 143,833 |  | 1,103,782
Associates |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | - |  |
Arvedi Metalfer do Brasil S.A. |  | 30,360 |  | 3,326 |  | 33,686 |  |  |  |  |  |  |  | 2,413 |  |  |  | 171 |  | - |  | 2,584
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | - |  |
Exclusive Funds |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | - |  |
Diplic II, Caixa Vertice e VR1 (9) |  | 33,283 |  |  |  | 33,283 |  |  |  |  |  |  |  |  |  |  |  | 245 |  | (9,360) |  | (9,115)
Total at 09/30/2020 |  | 5,677,189 |  | 1,985,228 |  | 7,662,417 |  | 1,899,898 |  | 16,466,120 |  | 18,366,018 |  | 2,840,626 |  | (1,992,309) |  | (274,839) |  | (4,627,489) |  | (4,054,011)
Total at 12/31/2019 |  | 3,116,466 |  | 1,653,913 |  | 4,770,379 |  | 2,943,528 |  | 8,951,636 |  | 11,895,164 |  | 2,836,219 |  | (2,658,628) |  | (246,912) |  | (553,086) |  | (622,407)
Total at 09/30/2019 |  |  |  |  |  |  |  |  |  |  |  |  |  | 2,298,339 |  | (1,987,465) |  | (180,843) |  | (393,494) |  | (263,463)

1. | Companhia Metalúrgica Prada: Refers mainly to receivables in the amount of R$282,514 (R$278,739 as of December 31,2019), and debentures from the indirect subsidiary CBL in the amount of R$121,336 (R$121,336 as of December 31,2019).

2. | CSN Mineração: Assets: Refer to dividends receivable of R$1,333,548. Liabilities: Payables from purchases of iron ore and port services in the amount of R$1,041,341 (R$590,091 as of December 31,2019) and cost sharing of R$261,430 (R$402,176 as of December 31, 2019).

3. | Companhia Siderurgica Nacional, LLC: Receivables of R$146,092 (R$345,470 as of December 31, 2019), related to sale of steel for resale. Current liabilities refer mainly to commission expenses and logistics in the operations of steel resales in the amount of R$ R$142,325 (R$348,060 as of December 31,2019).

| 4. | CSN Resources SA: Prepayment contracts in dollar and Fixed Rate Notes. As of September 30, 2020, the loans amounted to R$7,304,151 (R$5,485,880 as of December 31, 2019).

| 5. | CSN Inova Ventures: Intercompany contracts in US dollars. As of September 30, 2020, the loans amounted to R$5,385,291 (R$1,787,566 as of December 31, 2019).

| 6. | CSN Islands XII Corp.: Refers mainly to Intercompany contracts in dollar. As of September 30, 2020, the loans amounted to R$2,069,514 (R$1,619,896 as of December 31, 2019).

| 7. | Transnordestina Logística S.A: noncurrent assets: refers to loan agreements in the amount of R$867,462 (R$742,875 as of December 31,2019) and advance for future capital increase in the amount of R$593,996 (R$428,672 as of December 31,2019).

| 8. | Panatlântica: current assets: refers to accounts receivable for the supply of flat steel in the amount of R$112,054 (R$128,573 on December 31, 2019).

| 9. | Exclusive funds: Current assets: Refers to investments in Government securities and CDBs, in the amount of R$8,546 (R$8,301 as of December 31,2019). Noncurrent assets: Refers to Usiminas’ shares in the amount of R$24,737 (R$84,171 as of December 31,2019). The funds VR1 and Diplic II are managed by Taquari Asset.

17.b) Key management personnel

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The key management personnel with authority and responsibility for planning, directing and controlling the Company’s activities, include the members of the Board of Directors and statutory directors. The following is information on the compensation of such personnel and the related balances as of September 30, 2020.

|  | 09/30/2020 |  | 09/30/2019
|  | P&L
Short-term benefits for employees and officers |  | 27,945 |  | 30,883
Post-employment benefits |  | 83 |  | 81
|  | 28,028 |  | 30,964

17.c) Guarantees

The Company is responsible for fiduciary guarantees of its subsidiaries, joint-ventures and joint-operations as shown below:

| Currency |  | Maturities |  | Borrowings | Tax foreclosure | Others | Total
|  |  |  |  | 09/30/2020 |  | 12/31/2019 |  | 09/30/2020 |  | 12/31/2019 |  | 09/30/2020 |  | 12/31/2019 |  | 09/30/2020 |  | 12/31/2019
Transnordestina Logísitca | R$ |  | Up to 09/19/2056 and Indefinite |  | 2,461,093 |  | 2,428,194 |  | 35,291 |  | 37,406 |  | 3,277 |  | 8,702 |  | 2,499,661 |  | 2,474,302
FTL - Ferrovia Transnordestina | R$ |  | Up to 04/01/2021 |  | 36,005 |  | 43,118 |  | - |  | - |  |  |  | - |  | 36,005 |  | 43,118
Cia Metalurgica Prada | R$ |  | Indefinite |  | - |  | - |  | 195 |  | 457 |  | 244 |  | 235 |  | 439 |  | 692
CSN Energia | R$ |  | Up to 11/26/2023 and indefinite |  | - |  | - |  | 2,254 |  | 3,141 |  | 1,920 |  | 1,920 |  | 4,174 |  | 5,061
CSN Mineração | R$ |  | Up to 12/21/2024 |  | 1,180,248 |  | 1,184,048 |  | - |  | - |  |  |  | - |  | 1,180,248 |  | 1,184,048
Estanho de Rondônia | R$ |  | 7/15/2022 |  | 1,336 |  | 1,902 |  | - |  | - |  |  |  | - |  | 1,336 |  | 1,902
Minérios Nacional S.A. | R$ |  | Up to 09/10/2021 |  | 2,596 |  | 4,544 |  | - |  | - |  |  |  | - |  | 2,596 |  | 4,544
Total in R$ |  |  |  |  | 3,681,278 |  | 3,661,806 |  | 37,740 |  | 41,004 |  | 5,441 |  | 10,857 |  | 3,724,459 |  | 3,713,667
CSN Inova Ventures | US$ |  | 01/28/2028 |  | 1,000,000 |  | - |  | - |  | - |  | - |  | - |  | 1,000,000 |  |
CSN Islands XII | US$ |  | Perpetual |  | 1,000,000 |  | 1,000,000 |  | - |  | - |  | - |  | - |  | 1,000,000 |  | 1,000,000
CSN Resources | US$ |  | Up to 04/17/2026 |  | 1,525,000 |  | 1,958,603 |  | - |  | - |  | - |  | - |  | 1,525,000 |  | 1,958,603
Total in US$ |  |  |  |  | 3,525,000 |  | 2,958,603 |  |  |  | - |  |  |  | - |  | 3,525,000 |  | 2,958,603
CSN Steel S.L. | EUR |  |  |  |  |  | 24,000 |  | - |  | - |  | - |  | - |  |  |  | 24,000
Total in EUR |  |  |  |  |  |  | 24,000 |  | - |  | - |  | - |  | - |  |  |  | 24,000
Total in R$ |  |  |  |  | 19,883,468 |  | 12,033,973 |  |  |  |  |  |  |  |  |  | 19,883,468 |  | 12,033,973
|  |  |  |  | 23,564,746 |  | 15,695,779 |  | 37,740 |  | 41,004 |  | 5,441 |  | 10,857 |  | 23,607,927 |  | 15,747,640

| 18. | SHAREHOLDERS’ EQUITY

18.a) Paid-in capital

Fully subscribed and paid-in capital as of September 30, 2020 and December 31, 2019 is R$4,540,000 represented by 1,387,524,047 book-entry common shares without par value. Each common share entitles to one vote in resolutions of the General Meeting.

18.b) Authorized capital

The Company’s bylaws in effect as of September 30, 2020 determine that the capital can be raised to up to 2,400,000,000 shares by decision of the Board of Directors.

18.c) Legal reserve

This reserve is recognized at the rate of 5% of the profit for each period, as provided for by Article 193 of Law 6404/76, up to the ceiling of 20% of the share capital.

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18.d) shareholder structure

As of September 30, 2020, the Company’s shareholder structure was as follows:

|  |  |  |  |  | 09/30/2020 |  |  |  |  |  | 12/31/2019
|  | Number of common shares |  | % of total shares |  | % of voting capital |  | Number of common shares |  | % of total shares |  | % of voting capital
Vicunha Aços S.A. (*) |  | 679,522,254 |  | 48.97% |  | 49.24% |  | 679,522,254 |  | 48.97% |  | 49.24%
Rio Iaco Participações S.A. (*) |  | 58,193,503 |  | 4.19% |  | 4.22% |  | 58,193,503 |  | 4.19% |  | 4.22%
NYSE (ADRs) |  | 248,763,533 |  | 17.93% |  | 18.02% |  | 262,206,103 |  | 18.90% |  | 19.00%
Other shareholders |  | 393,635,257 |  | 28.37% |  | 28.52% |  | 380,192,687 |  | 27.40% |  | 27.55%
Outstanding shares |  | 1,380,114,547 |  | 99.47% |  | 100.00% |  | 1,380,114,547 |  | 99.47% |  | 100.00%
Treasury shares |  | 7,409,500 |  | 0.53% |  |  |  | 7,409,500 |  | 0.53% |  |
Total shares |  | 1,387,524,047 |  | 100.00% |  |  |  | 1,387,524,047 |  | 100.00% |  |

(*) Controlling group companies.

18.e) Treasury shares

As of September 30, 2020, the treasury shares were as follows:

Program |  | Board’s Authorization |  | Authorized quantity |  | Program period |  | Average buyback price |  | Minimum and maximum buyback price |  | Sale of shares |  | Balance in treasury
9º (*) |  | 3/31/2015 |  | 32,770,055 |  | From 4/01/2015 to 6/30/2015 |  |  |  |  |  |  |  | 30,391,000
|  | 04/20/2018 |  | 30,391,000 |  | From 4/20/2018 to 4/30/2018 |  | Not applicable |  | Not applicable |  | 22,981,500 |  | 7,409,500

(*) There was no purchase of shares in this program.

As of September 30, 2020, the position of treasury shares was as follows:

Quantity purchased (in units) |  | Amount paid for the shares |  | Share price |  | Share market price as of 09/30/2020 (*)
|  | Minimum |  | Maximum |  | Average |
7,409,500 |  | R$ 58,264 |  | R$ 4.48 |  | R$ 10.07 |  | R$ 7.86 |  | R$ 122,257

(*) By using the average price of the shares as of September 30, 2020 of R$16.50 per share.

18.f) Policy on investments and payment of interest on capital and dividends

The Company adopts a profit distribution policy which, in compliance with the provisions in Law 6,404/76, as amended by Law 9,457/97, will entail the allocation of all the profit to the Company’s shareholders, provided that the following priorities are observed, irrespective of their order: (i) carrying out the business strategy; (ii) fulfilling its obligations; (iii) making the required investments; and (iv) maintaining a healthy financial situation of the Company.

18.g) Earnings/(loss) per share:

Basic and diluted earnings/(loss) per share were calculated based on the profit/loss attributable to the owners of CSN divided by the weighted average number of common shares outstanding during the period, excluding the common shares purchased and held as treasury shares, as follows:

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|  |  |  |  |  |  | Parent Company
| Nine months ended |  | Three months ended
| 09/30/2020 |  | 09/30/2019 |  | 09/30/2020 |  | 09/30/2019
| Common Shares |  | Common Shares
(Loss)/profit for the period | 65,113 |  | 744,553 |  | 1,080,786 |  | (992,958)
Weighted average number of shares | 1,380,114,547 |  | 1,380,114,547 |  | 1,380,114,547 |  | 1,380,114,547
Basic and diluted earnings (loss) per share | 0.04718 |  | 0.53949 |  | 0.78311 |  | (0.71948)

The Company does not hold potential dilutable ordinary shares outstanding that could result in dilution of earnings per share

| 19. | NET SALES REVENUE

Net sales revenue is comprised as follows:

|  |  |  |  |  |  |  | Consolidated
|  | Nine months ended |  | Three months ended
|  | 09/30/2020 |  | 09/30/2019 |  | 09/30/2020 |  | 09/30/2019
Gross revenue |  |  |  |  |  |  |  |
Domestic market |  | 11,336,697 |  | 10,620,045 |  | 4,690,962 |  | 3,486,516
Foreign market |  | 11,711,782 |  | 10,857,844 |  | 5,156,272 |  | 3,367,342
|  | 23,048,479 |  | 21,477,889 |  | 9,847,234 |  | 6,853,858
Deductions |  |  |  |  |  |  |  |
Sales returns, discounts and rebates |  | (230,264) |  | (212,162) |  | (78,807) |  | (77,153)
Taxes on sales |  | (2,548,296) |  | (2,353,126) |  | (1,053,844) |  | (770,312)
|  | (2,778,560) |  | (2,565,288) |  | (1,132,651) |  | (847,465)
Net revenue |  | 20,269,919 |  | 18,912,601 |  | 8,714,583 |  | 6,006,393
|  |  |  |  |  |  |  | Parent Company
|  | Nine months ended |  | Three months ended
|  | 09/30/2020 |  | 09/30/2019 |  | 09/30/2020 |  | 09/30/2019
Gross revenue |  |  |  |  |  |  |  |
Domestic market |  | 10,921,810 |  | 10,165,242 |  | 4,521,919 |  | 3,312,997
Foreign market |  | 1,513,596 |  | 894,635 |  | 518,052 |  | 144,722
|  | 12,435,406 |  | 11,059,877 |  | 5,039,971 |  | 3,457,719
Deductions |  |  |  |  |  |  |  |
Sales returns, discounts and rebates |  | (217,330) |  | (203,378) |  | (75,012) |  | (73,675)
Taxes on sales |  | (2,338,259) |  | (2,177,268) |  | (966,462) |  | (708,845)
|  | (2,555,589) |  | (2,380,646) |  | (1,041,474) |  | (782,520)
Net revenue |  | 9,879,817 |  | 8,679,231 |  | 3,998,497 |  | 2,675,199

| 20. | EXPENSES BY NATURE

|  | Consolidated
|  | Nine months ended |  | Three months ended
|  | 09/30/2020 |  | 09/30/2019 |  | 09/30/2020 |  | 09/30/2019
Raw materials and inputs |  | (5,080,043) |  | (5,519,570) |  | (1,944,512) |  | (1,813,582)
Labor cost |  | (2,423,334) |  | (2,066,609) |  | (881,562) |  | (735,982)

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Supplies |  | (1,580,587) |  | (1,491,035) |  | (590,312) |  | (530,095)
Maintenance cost (services and materials) |  | (974,092) |  | (1,001,429) |  | (362,150) |  | (314,940)
Outsourcing services |  | (1,711,249) |  | (1,759,499) |  | (603,090) |  | (598,184)
Freight |  | (162,740) |  | (147,226) |  | (53,421) |  | (74,322)
Distribution freight |  | (982,089) |  | (996,360) |  | (414,499) |  | (281,762)
Depreciation, amortization and depletion |  | (1,303,389) |  | (989,931) |  | (460,626) |  | (352,120)
Others |  | (1,079,372) |  | (675,434) |  | (554,072) |  | (236,703)
|  | (15,296,895) |  | (14,647,093) |  | (5,864,244) |  | (4,937,690)
Classified as: |  |  |  |  |  |  |  |
Cost of sales |  | (13,528,898) |  | (12,834,121) |  | (5,133,126) |  | (4,370,357)
Selling expenses |  | (1,398,316) |  | (1,429,593) |  | (606,938) |  | (429,836)
General and administrative expenses |  | (369,681) |  | (383,379) |  | (124,180) |  | (137,497)
|  | (15,296,895) |  | (14,647,093) |  | (5,864,244) |  | (4,937,690)
|  | Parent Company
|  | Nine months ended |  | Three months ended
|  | 09/30/2020 |  | 09/30/2019 |  | 09/30/2020 |  | 09/30/2019
Raw materials and inputs |  | (5,030,429) |  | (5,182,819) |  | (1,966,803) |  | (1,625,282)
Labor cost |  | (1,026,590) |  | (992,909) |  | (389,227) |  | (385,696)
Supplies |  | (1,157,139) |  | (1,069,087) |  | (442,103) |  | (393,973)
Maintenance cost (services and materials) |  | (383,749) |  | (481,337) |  | (153,497) |  | (150,584)
Outsourcing services |  | (685,872) |  | (556,623) |  | (266,363) |  | (120,265)
Freight |  | (28,168) |  | (85,739) |  | (8,774) |  | (63,550)
Distribution freight |  | (265,010) |  | (186,642) |  | (98,895) |  | (56,800)
Depreciation, amortization and depletion |  | (640,495) |  | (469,972) |  | (218,669) |  | (159,313)
Others |  | (137,747) |  | (25,919) |  | (71,747) |  | (9,259)
|  | (9,355,199) |  | (9,051,047) |  | (3,616,078) |  | (2,964,722)
Classified as: |  |  |  |  |  |  |  |
Cost of sales |  | (8,689,585) |  | (8,473,275) |  | (3,387,750) |  | (2,765,033)
Selling expenses |  | (501,592) |  | (388,268) |  | (175,430) |  | (129,121)
General and administrative expenses |  | (164,022) |  | (189,504) |  | (52,898) |  | (70,568)
|  | (9,355,199) |  | (9,051,047) |  | (3,616,078) |  | (2,964,722)

Additions to depreciation, amortization and depletion for the period were distributed as follows:

|  |  |  |  |  |  | Consolidated
| Nine months ended |  | Three months ended
| 09/30/2020 |  | 09/30/2019 |  | 09/30/2020 |  | 09/30/2019
Production costs (1) | 1,266,785 |  | 965,331 |  | 447,959 |  | 343,661
Selling expenses | 10,201 |  | 5,548 |  | 3,309 |  | 2,133
‘General and administrative expenses | 26,403 |  | 19,052 |  | 9,358 |  | 6,326
| 1,303,389 |  | 989,931 |  | 460,626 |  | 352,120
Other operational (2) | 69,168 |  | 75,325 |  | 24,736 |  | 28,644
| 1,372,557 |  | 1,065,256 |  | 485,362 |  | 380,764

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| Parent Company
| Nine months ended |  | Three months ended
| 09/30/2020 |  | 09/30/2019 |  | 09/30/2020 |  | 09/30/2019
Production costs (1) | 621,169 |  | 454,695 |  | 212,193 |  | 153,948
Selling expenses | 8,563 |  | 4,388 |  | 2,768 |  | 1,721
General and administrative expenses | 10,763 |  | 10,889 |  | 3,708 |  | 3,644
| 640,495 |  | 469,972 |  | 218,669 |  | 159,313
Other operational | 8,499 |  | 11,919 |  | 4,163 |  | 8,681
| 648,994 |  | 481,891 |  | 222,832 |  | 167,994

| 1. | The production cost line includes PIS and COFINS credits on the lease agreements in the amount of R$3,876 in the consolidated and R$1,444 in the parent company as of September 30, 2020 in accordance with the orientations of CVM in its Ofício-Circular CVM/SNC/SEP 02/2019.

| 2. | Refer substantially to the depreciation of the investment properties, out-of-work equipment and amortization of SWT’s customers relationship, see Note 21.

| 21. | OTHER OPERATING INCOME (EXPENSES)

|  |  |  |  |  |  |  | Consolidated
|  | Nine months ended |  | Three months ended
|  | 09/30/2020 |  | 09/30/2019 |  | 09/30/2020 |  | 09/30/2019
Other operating income |  |  |  |  |  |  |  |
Receivables by indemnity (1) |  | 242,402 |  | 51,372 |  | 2,540 |  | 49,703
Rentals and leases |  | 6,577 |  | 6,792 |  | 1,796 |  | 2,334
Dividends received |  | 2,969 |  | 29,563 |  | 10 |  | 1,131
PIS, COFINS and INSS to compensate (2) |  | 120,452 |  | 87,394 |  |  |  |
Contractual fines |  | 4,285 |  | 2,733 |  | 778 |  | 847
Updated shares – Fair value through profit or loss (Note 12II) |  | 2,871 |  | (365,305) |  | (1,467) |  | (245,835)
Other revenues |  | 52,950 |  | 23,527 |  | 21,892 |  | 8,730
|  | 432,506 |  | (163,924) |  | 25,549 |  | (183,090)
|  | - |  | - |  | - |  | -
Other operating expenses |  |  |  |  |  |  |  |
Taxes and fees |  | (39,955) |  | (61,007) |  | (5,336) |  | (44,384)
Expenses with environmental liabilities, net |  | (25,342) |  | (49,165) |  | (4,631) |  | (25,430)
Write-off/(Provision) of judicial lawsuits |  | (23,093) |  | 13,483 |  | (21,795) |  | (20,118)
Contractual fines |  |  |  | (51,658) |  |  |  | (24,904)
Depreciation of investment property, equipment paralyzed and amortization of intangible assets (note 20) | (69,168) |  | (75,325) |  | (24,736) |  | (28,644)
Write- off of PPE and intagible assets (note 9) |  | (4,716) |  | (39,806) |  | (2,386) |  | (8,013)
Estimated (Loss)/reversal in inventories |  | (158,488) |  | (87,503) |  | (43,364) |  | (22,351)
Idleness in stocks and paralyzed equipment (3) |  | (291,038) |  | (422,552) |  | (31,822) |  | (252,046)
Studies and project engineering expenses |  | (15,014) |  | (18,123) |  | (5,394) |  | (6,445)
Research and development expenses |  | (531) |  | (1,309) |  | (179) |  | (625)
Healthcare plan expenses |  | (76,112) |  | (90,480) |  | (19,883) |  | (32,940)
Cash flow hedge accounting realized (note 12) (4) |  | (1,646,347) |  | (632,681) |  | (506,666) |  | (186,022)
Actuarial pension plan |  |  |  | (1,512) |  |  |  |
Other expenses |  | (256,599) |  | (118,945) |  | (76,225) |  | (27,588)
|  | (2,606,403) |  | (1,636,583) |  | (742,417) |  | (679,510)
Other operating income (expenses), net |  | (2,173,897) |  | (1,800,507) |  | (716,868) |  | (862,600)

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Quarterly Financial Information - September 30, 2020 – CIA SIDERURGICA NACIONAL | Version: 1 |

|  |  |  |  |  |  |  | Parent Company
|  | Nine months ended |  | Three months ended
|  | 09/30/2020 |  | 09/30/2019 |  | 09/30/2020 |  | 09/30/2019
Other operating income |  |  |  |  |  |  |  |
Receivables by indemnity (1) |  | 241,221 |  | 10,768 |  | 1,615 |  | 9,131
Rentals and leases |  | 6,261 |  | 6,517 |  | 1,687 |  | 2,184
Dividends received |  | 2,658 |  | 29,563 |  | 11 |  | 1,131
PIS, COFINS and INSS to compensate (2) |  | 97,154 |  | 87,394 |  | - |  | -
Contractual fines |  | 2,580 |  | 2,072 |  | 209 |  | 615
Updated shares – Fair value through profit or loss (Note 12II) |  | 2,871 |  | (365,305) |  | (1,467) |  | (245,835)
Other revenues |  | 26,032 |  | 2,039 |  | 11,895 |  | 1,592
|  | 378,777 |  | (226,952) |  | 13,950 |  | (231,182)
Other operating expenses |  |  |  |  |  |  |  |
Taxes and fees |  | (29,177) |  | (37,062) |  | (979) |  | (33,098)
Expenses with environmental liabilities, net |  | (3,164) |  | (12,007) |  | (4,108) |  | (7,003)
Write-off/(Provision) of judicial lawsuits |  | (20,015) |  | 30,195 |  | (11,325) |  | (7,365)
Contractual fines |  | - |  | (51,658) |  | - |  | (24,904)
Depreciation of investment property, equipment paralyzed and amortization of intangible assets (note 20) | (8,499) |  | (11,919) |  | (4,163) |  | (8,681)
Write- off of PPE and intagible assets (note 9) |  | (1,476) |  | (18,324) |  | (1,021) |  | (3,292)
Estimated (Loss)/reversal in inventories |  | (62,140) |  | (23,255) |  | (23,353) |  | (4,632)
Idleness in stocks and paralyzed equipment (3) |  | (74,970) |  | (418,251) |  | (26,872) |  | (251,178)
Studies and project engineering expenses |  | (10,556) |  | (17,230) |  | (3,193) |  | (4,927)
Research and development expenses |  | (531) |  | (1,309) |  | (179) |  | (625)
Healthcare plan expenses |  | (75,728) |  | (90,113) |  | (19,764) |  | (32,792)
Cash flow hedge accounting realized (note 12) (4) |  | (1,481,672) |  | (632,681) |  | (341,991) |  | (186,022)
Actuarial pension plan |  | - |  | (1,512) |  | - |  | -
Other expenses |  | (217,473) |  | (60,915) |  | (60,510) |  | (8,253)
|  | (1,985,401) |  | (1,346,041) |  | (497,458) |  | (572,772)
Other operating income (expenses), net |  | (1,606,624) |  | (1,572,993) |  | (483,508) |  | (803,954)

(1) | In June 2020, The Company received indemnification for unpaid rentals of one of its investment properties in the amount R$58,785, after irrevocable judicial decision. Additionally, it was received R$25,650 related to an insurance charging action for material damages caused by a contractor during the construction of the long-steel plant. Also, in June we recognized the principal amount of R$147,612 related to receivables for indemnification (see Note 7).

(2) | In 2020, refers to social security credit recoverable due to benefits granted to employees that should not be included in the basis of calculation of the contribution to the Social Security. In 2019, refers to the exclusion of ICMS in the basis of calculation of PIS and COFINS.

| (3) | Refers to the idle capacity arisen from production volumes lower than normal. In the parent company was generated from the refurbishment of the blast furnace No.3 and in the consolidated was generated in the iron ore mining operation due to delays in the release of environmental licenses, which postponed the start of new ore mining fronts, as well as new dry tailing processes still in ramp-up stage.

| (4) | As of September 30, 2020 is recognized in Other Operating Expenses (R$1.646.347) in the Consolidated and (R$1.481.672) in the Parent Company, the effects of the cash flow hedge of foreign currency (R$1.481.672) and of “Platts” index (R$164.675), see Note 12.

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| 22. | FINANCIAL INCOME (EXPENSES)

|  | Consolidated
|  | Nine months ended |  | Three months ended
|  | 09/30/2020 |  | 09/30/2019 |  | 09/30/2020 |  | 09/30/2019
Finance income |  |  |  |  |  |  |  |
Related parties (note 17 a) |  | 41,753 |  | 60,344 |  | 11,014 |  | 20,243
Income from financial investments |  | 40,145 |  | 78,059 |  | 10,088 |  | 27,388
Updated shares – Fair value through profit or loss (Note 12 II) (2) |  | 97,443 |  | - |  | 97,443 |  | -
Other income (1) |  | 476,949 |  | 172,591 |  | 15,944 |  | 66,582
|  | 656,290 |  | 310,994 |  | 134,489 |  | 114,213
Financial expenses |  |  |  |  |  |  |  |
Borrowings and financing - foreign currency (note 11 b) |  | (1,187,375) |  | (842,448) |  | (410,519) |  | (307,587)
Borrowings and financing - local currency (note 11 b) |  | (331,130) |  | (687,179) |  | (77,678) |  | (223,055)
Related parties |  | (10,206) |  | - |  | (10,206) |  | -
Lease liabilities |  | (36,738) |  | (36,430) |  | (12,389) |  | (19,017)
Capitalized interest (notes 9 and 25) |  | 68,945 |  | 61,040 |  | 21,650 |  | 19,644
Interest and fines |  | (120,848) |  | (78,382) |  | (70,301) |  | (11,101)
Commission, bank fees, Guarantee and bank fees |  | (119,555) |  | (132,359) |  | (36,880) |  | (44,494)
PIS/COFINS over financial income |  | (35,432) |  | (17,333) |  | (4,328) |  | (9,861)
Updated shares – Fair value through profit or loss (Note 12 II) (2) |  | - |  | - |  | 439,702 |  | -
Other financial expenses |  | (233,772) |  | (205,507) |  | (59,838) |  | (68,928)
|  | (2,006,111) |  | (1,938,598) |  | (220,787) |  | (664,399)
Others financial items, net |  |  |  |  |  |  |  |
Foreign exchange and monetary variation, net |  | 413,068 |  | (202,202) |  | (55,710) |  | (286,272)
Gains and (losses) on exchange derivatives (*) |  | (135,577) |  | (3,043) |  | (14,041) |  | (3,616)
|  | 277,491 |  | (205,245) |  | (69,751) |  | (289,888)
Finance income (costs), net |  | (1,072,330) |  | (1,832,849) |  | (156,049) |  | (840,074)
(*) Statement of gains and (losses) on derivative transactions (note 12) |  |  |  |  |  |
Dollar - to - euro swap |  | (1,316) |  | 4,621 |  | (1,547) |  | 4,048
Great Britain pound-to-euro swap |  | (602) |  | - |  | - |  | -
Swap CDI x Dollar |  | (133,659) |  | (7,664) |  | (12,494) |  | (7,664)
|  | (135,577) |  | (3,043) |  | (14,041) |  | (3,616)

| 1) | Refers mainly to the monetary adjustment of the Social Security – INSS credit in the amount of R$16,622 and to the recognition of the exclusion of ICMS in the PIS and COFINS basis of calculation in the amount of R$72,189 as of September 30, 2020 (R$139,316 as of September 30, 2019). In June it was recognized R$365,142 of interest as monetary update of the receivables for indemnification (see Note 7).

| 2) | As of December 31, 2019, Usiminas’ shares were reclassified to financial investments in the current asset and their price changes are recognized as financial result. As of September 30, 2020, Usiminas’ shares presented accumulated gain of R$97.443 in the nine-month period which was recognized as financial income. In the third quarter of 2020, the gain was R$537,145, of which R$439,702 was presented as recovery of financial expenses accumulated until June 30, 2020.

|  | Parent Company
|  | Nine months ended |  | Three months ended
|  | 09/30/2020 |  | 09/30/2019 |  | 09/30/2020 |  | 09/30/2019
Finance income |  |  |  |  |  |  |  |
Related parties (note 17 a) |  | 44,743 |  | 57,829 |  | 12,516 |  | 19,592
Income from financial investments |  | 26,291 |  | 46,094 |  | 6,680 |  | 15,523
Updated shares – Fair value through profit or loss (note 12 II) (2) |  | 97,443 |  | - |  | 97,443 |  | -
Other income (1) |  | 467,159 |  | 99,287 |  | 13,311 |  | 17,270
|  | 635,636 |  | 203,210 |  | 129,950 |  | 52,385
Financial expenses |  |  |  |  |  |  |  |
Borrowings and financing - foreign currency (note 11 b) |  | (182,679) |  | (223,711) |  | (59,907) |  | (67,453)
Borrowings and financing - local currency (note 11 b) |  | (291,637) |  | (607,879) |  | (68,329) |  | (197,718)
Related parties (note 11 b) |  | (319,582) |  | (238,672) |  | (107,765) |  | (87,219)
Lease liabilities |  | (2,341) |  | (2,029) |  | (619) |  | (406)

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Capitalized interest (notes 9 and 25) |  | 22,094 |  | 16,126 |  | 7,237 |  | 5,094
Interest and fines |  | (88,223) |  | (74,294) |  | (48,882) |  | (9,947)
Commission, bank fees, Guarantee and bank fees |  | (104,668) |  | (123,790) |  | (31,624) |  | (41,634)
PIS/COFINS over financial income |  | (25,423) |  | (9,241) |  | (635) |  | (2,069)
Updated shares – Fair value through profit or loss (note 12 II) (2) |  | - |  | - |  | 439,702 |  | -
Other financial expenses |  | (60,511) |  | (36,253) |  | (13,867) |  | (17,678)
|  | (1,052,970) |  | (1,299,743) |  | 115,311 |  | (419,030)
Others financial items, net |  |  |  |  |  |  |  |
Foreign exchange and monetary variation, net |  | 1,228,004 |  | (100,432) |  | 23,531 |  | (189,477)
Gains and (losses) on exchange derivatives (*) |  | (133,659) |  | (7,664) |  | (12,494) |  | (7,664)
|  | 1,094,345 |  | (108,096) |  | 11,037 |  | (197,141)
Finance income (costs), net |  | 677,011 |  | (1,204,629) |  | 256,298 |  | (563,786)
(*) Statement of gains and (losses) on derivative transactions (note 12) |  |  |  |  |  |
Swap CDI x Dollar |  | (133,659) |  | (7,664) |  | (12,494) |  | (7,664)
|  | (133,659) |  | (7,664) |  | (12,494) |  | (7,664)

| 1. | Refer primarily to monetary update of INSS in the amount of R$12,707 and to the recognition of ICMS exclusion from the basis of calculation of PIS and COFINS in the amount of R$74,359 as of September 30, 2020 (R$ 91,607 as of September 30, 2019). Additionally, in June it was recognized monetary update in the amount of R$365,142 from indemnities receivable (see Note 7).

| 23. | SEGMENT INFORMATION

The segment information has not changed in relation to that disclosed in the Company's financial statements as of December 31, 2019. Therefore, management decided not to repeat it in this condensed interim financial information.

According to the Group´s structure, the businesses are distributed and managed in five operating segments as follows:

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Quarterly Financial Information - September 30, 2020 – CIA SIDERURGICA NACIONAL | Version: 1 |

|  | Nine months ended
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 09/30/2020
P&L |  | Steel |  | Mining |  | Logistics |  |  |  | Energy |  | Cement |  | Corporate expenses/elimination |  | Consolidated
|  |  | Port |  | Railroads |  |  |  |
Metric tons (thou.) (*) |  | 3,422,003 |  | 22,516,993 |  | - |  | - |  | - |  | - |  | (3,219,352) |  | -
Net revenues |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | -
Domestic market |  | 7,934,124 |  | 1,038,302 |  | 206,994 |  | 1,081,890 |  | 119,825 |  | 576,713 |  | (2,236,519) |  | 8,721,329
Foreign market |  | 3,617,704 |  | 7,156,544 |  | - |  | - |  | - |  | - |  | 774,342 |  | 11,548,590
Total net revenue (note 19) |  | 11,551,828 |  | 8,194,846 |  | 206,994 |  | 1,081,890 |  | 119,825 |  | 576,713 |  | (1,462,177) |  | 20,269,919
Cost of sales and services |  | (10,368,800) |  | (3,480,674) |  | (138,641) |  | (803,803) |  | (96,441) |  | (475,567) |  | 1,835,028 |  | (13,528,898)
Gross profit |  | 1,183,028 |  | 4,714,172 |  | 68,353 |  | 278,087 |  | 23,384 |  | 101,146 |  | 372,851 |  | 6,741,021
General and administrative expenses |  | (673,351) |  | (134,081) |  | (27,454) |  | (82,456) |  | (22,697) |  | (64,508) |  | (763,450) |  | (1,767,997)
Depreciation (note 20) |  | 663,366 |  | 453,135 |  | 23,598 |  | 333,755 |  | 13,243 |  | 105,049 |  | (288,757) |  | 1,303,389
Proportionate EBITDA of joint ventures |  | - |  | - |  | - |  | - |  | - |  | - |  | 486,281 |  | 486,281
Adjusted EBITDA |  | 1,173,043 |  | 5,033,226 |  | 64,497 |  | 529,386 |  | 13,930 |  | 141,687 |  | (193,075) |  | 6,762,694
Sales by geographic area |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Asia |  | - |  | 4,798,450 |  | - |  | - |  | - |  | - |  | 774,342 |  | 5,572,792
North America |  | 787,962 |  | - |  | - |  | - |  | - |  | - |  | - |  | 787,962
Latin America |  | 171,176 |  | - |  | - |  | - |  | - |  | - |  | - |  | 171,176
Europe |  | 2,654,220 |  | 2,358,094 |  | - |  | - |  | - |  | - |  | - |  | 5,012,314
Others |  | 4,346 |  | - |  | - |  | - |  | - |  | - |  | - |  | 4,346
Foreign market |  | 3,617,704 |  | 7,156,544 |  |  |  |  |  |  |  |  |  | 774,342 |  | 11,548,590
Domestic market |  | 7,934,124 |  | 1,038,302 |  | 206,994 |  | 1,081,890 |  | 119,825 |  | 576,713 |  | (2,236,519) |  | 8,721,329
Total |  | 11,551,828 |  | 8,194,846 |  | 206,994 |  | 1,081,890 |  | 119,825 |  | 576,713 |  | (1,462,177) |  | 20,269,919
|  | Three months ended
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 09/30/2020
P&L |  | Steel |  | Mining |  | Logistics |  |  |  | Energy |  | Cement |  | Corporate expenses/elimination |  | Consolidated
|  |  | Port |  | Railroads |  |  |  |
Metric tons (thou.) (*) |  | 1,279,090 |  | 9,164,633 |  | - |  | - |  | - |  | - |  | (1,049,626) |  | -
Net revenues |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | -
Domestic market |  | 3,299,219 |  | 429,353 |  | 57,822 |  | 417,567 |  | 40,051 |  | 258,819 |  | (877,505) |  | 3,625,326
Foreign market |  | 1,270,971 |  | 3,431,678 |  |  |  |  |  |  |  |  |  | 386,608 |  | 5,089,257
Total net revenue (note 19) |  | 4,570,190 |  | 3,861,031 |  | 57,822 |  | 417,567 |  | 40,051 |  | 258,819 |  | (490,897) |  | 8,714,583
Cost of sales and services |  | (4,022,102) |  | (1,290,579) |  | (38,032) |  | (273,156) |  | (34,005) |  | (169,611) |  | 694,359 |  | (5,133,126)
Gross profit |  | 548,088 |  | 2,570,452 |  | 19,790 |  | 144,411 |  | 6,046 |  | 89,208 |  | 203,462 |  | 3,581,457
General and administrative expenses |  | (231,187) |  | (43,765) |  | (8,747) |  | (29,391) |  | (7,612) |  | (20,706) |  | (389,710) |  | (731,118)
Depreciation (note 20) |  | 234,112 |  | 166,964 |  | 8,066 |  | 103,914 |  | 4,421 |  | 31,596 |  | (88,447) |  | 460,626
Proportionate EBITDA of joint ventures |  | - |  | - |  | - |  | - |  | - |  | - |  | 195,123 |  | 195,123
Adjusted EBITDA |  | 551,013 |  | 2,693,651 |  | 19,109 |  | 218,934 |  | 2,855 |  | 100,098 |  | (79,572) |  | 3,506,088
Sales by geographic area |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Asia |  |  |  | 2,407,085 |  |  |  |  |  |  |  |  |  | 386,608 |  | 2,793,693
North America |  | 290,529 |  |  |  |  |  |  |  |  |  |  |  |  |  | 290,529
Latin America |  | 91,730 |  |  |  |  |  |  |  |  |  |  |  |  |  | 91,730
Europe |  | 887,375 |  | 1,024,593 |  |  |  |  |  |  |  |  |  |  |  | 1,911,968
Others |  | 1,337 |  |  |  |  |  |  |  |  |  |  |  |  |  | 1,337
Foreign market |  | 1,270,971 |  | 3,431,678 |  |  |  |  |  |  |  |  |  | 386,608 |  | 5,089,257
Domestic market |  | 3,299,219 |  | 429,353 |  | 57,822 |  | 417,567 |  | 40,051 |  | 258,819 |  | (877,505) |  | 3,625,326
Total |  | 4,570,190 |  | 3,861,031 |  | 57,822 |  | 417,567 |  | 40,051 |  | 258,819 |  | (490,897) |  | 8,714,583

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Quarterly Financial Information - September 30, 2020 – CIA SIDERURGICA NACIONAL | Version: 1 |

|  | Nine months ended
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 09/30/2019
P&L |  | Steel |  | Mining |  | Logistics |  |  |  | Energy |  | Cement |  | Corporate expenses/elimination |  | Consolidated
|  |  | Port |  | Railroads |  |  |  |
Metric tons (thou.) (*) |  | 3,407,746 |  | 28,210,619 |  |  |  |  |  |  |  |  |  | (2,695,819) |  |
Net revenues |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Domestic market |  | 7,498,693 |  | 685,061 |  | 184,960 |  | 1,028,947 |  | 221,877 |  | 426,452 |  | (1,855,996) |  | 8,189,994
Foreign market |  | 3,100,928 |  | 6,820,833 |  |  |  |  |  |  |  |  |  | 800,846 |  | 10,722,607
Total net revenue (note 19) |  | 10,599,621 |  | 7,505,894 |  | 184,960 |  | 1,028,947 |  | 221,877 |  | 426,452 |  | (1,055,150) |  | 18,912,601
Cost of sales and services |  | (9,791,477) |  | (3,073,458) |  | (133,946) |  | (770,001) |  | (183,037) |  | (466,563) |  | 1,584,361 |  | (12,834,121)
Gross profit |  | 808,144 |  | 4,432,436 |  | 51,014 |  | 258,946 |  | 38,840 |  | (40,111) |  | 529,211 |  | 6,078,480
General and administrative expenses |  | (605,472) |  | (143,020) |  | (25,985) |  | (78,120) |  | (21,595) |  | (67,114) |  | (871,666) |  | (1,812,972)
Depreciation (note 20) |  | 471,676 |  | 342,202 |  | 23,427 |  | 287,744 |  | 13,079 |  | 96,551 |  | (244,748) |  | 989,931
Proportionate EBITDA of joint ventures |  |  |  |  |  |  |  |  |  |  |  |  |  | 415,646 |  | 415,646
Adjusted EBITDA |  | 674,348 |  | 4,631,618 |  | 48,456 |  | 468,570 |  | 30,324 |  | (10,674) |  | (171,557) |  | 5,671,085
Sales by geographic area |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Asia |  | 2,980 |  | 4,772,174 |  |  |  |  |  |  |  |  |  | 800,846 |  | 5,576,000
North America |  | 635,722 |  |  |  |  |  |  |  |  |  |  |  |  |  | 635,722
Latin America |  | 128,980 |  |  |  |  |  |  |  |  |  |  |  |  |  | 128,980
Europe |  | 2,331,861 |  | 2,048,659 |  |  |  |  |  |  |  |  |  |  |  | 4,380,520
Others |  | 1,385 |  |  |  |  |  |  |  |  |  |  |  |  |  | 1,385
Foreign market |  | 3,100,928 |  | 6,820,833 |  |  |  |  |  |  |  |  |  | 800,846 |  | 10,722,607
Domestic market |  | 7,498,693 |  | 685,061 |  | 184,960 |  | 1,028,947 |  | 221,877 |  | 426,452 |  | (1,855,996) |  | 8,189,994
Total |  | 10,599,621 |  | 7,505,894 |  | 184,960 |  | 1,028,947 |  | 221,877 |  | 426,452 |  | (1,055,150) |  | 18,912,601
|  | Three months ended
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 09/30/2019
|  | Steel |  | Mining |  | Logistics |  |  |  | Energy |  | Cement |  | Corporate expenses/elimination |  | Consolidated
|  |  |  | Port |  | Railroads |  |  |  |
Metric tons (thou.) (*) |  | 1,072,210 |  | 9,209,162 |  |  |  |  |  |  |  |  |  | (387,919) |  |
Net revenues |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Domestic market |  | 2,416,785 |  | 141,580 |  | 69,029 |  | 354,201 |  | 74,348 |  | 160,601 |  | (539,890) |  | 2,676,654
Foreign market |  | 917,267 |  | 2,194,089 |  |  |  |  |  |  |  |  |  | 218,383 |  | 3,329,739
Total net revenue (note 19) |  | 3,334,052 |  | 2,335,669 |  | 69,029 |  | 354,201 |  | 74,348 |  | 160,601 |  | (321,507) |  | 6,006,393
Cost of sales and services |  | (3,189,615) |  | (1,070,900) |  | (43,299) |  | (258,399) |  | (55,556) |  | (179,820) |  | 427,232 |  | (4,370,357)
Gross profit |  | 144,437 |  | 1,264,769 |  | 25,730 |  | 95,802 |  | 18,792 |  | (19,219) |  | 105,725 |  | 1,636,036
General and administrative expenses |  | (198,426) |  | (50,974) |  | (8,663) |  | (26,451) |  | (7,501) |  | (24,734) |  | (250,584) |  | (567,333)
Depreciation (note 20) |  | 159,255 |  | 138,292 |  | 2,337 |  | 97,090 |  | 4,397 |  | 33,277 |  | (82,528) |  | 352,120
Proportionate EBITDA of joint ventures |  |  |  |  |  |  |  |  |  |  |  |  |  | 146,065 |  | 146,065
Adjusted EBITDA |  | 105,266 |  | 1,352,087 |  | 19,404 |  | 166,441 |  | 15,688 |  | (10,676) |  | (81,322) |  | 1,566,888
Sales by geographic area |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Asia |  | 1,236 |  | 1,322,203 |  |  |  |  |  |  |  |  |  | 218,383 |  | 1,541,822
North America |  | 207,877 |  |  |  |  |  |  |  |  |  |  |  |  |  | 207,877
Latin America |  | 45,262 |  |  |  |  |  |  |  |  |  |  |  |  |  | 45,262
Europe |  | 661,239 |  | 871,886 |  |  |  |  |  |  |  |  |  |  |  | 1,533,125
Others |  | 1,653 |  |  |  |  |  |  |  |  |  |  |  |  |  | 1,653
Foreign market |  | 917,267 |  | 2,194,089 |  |  |  |  |  |  |  |  |  | 218,383 |  | 3,329,739
Domestic market |  | 2,416,785 |  | 141,580 |  | 69,029 |  | 354,201 |  | 74,348 |  | 160,601 |  | (539,890) |  | 2,676,654
Total |  | 3,334,052 |  | 2,335,669 |  | 69,029 |  | 354,201 |  | 74,348 |  | 160,601 |  | (321,507) |  | 6,006,393

(*) The ore sales volumes presented in this note take into consideration Company sales and the interest in its subsidiaries and joint ventures.

| · | Adjusted EBITDA

Adjusted EBITDA is the principal measurement through which the chief operating decision maker assesses the segment performance and the capacity to generate recurring operating cash, consisting of profit for the year less net finance income (expenses), income tax and social contribution, depreciation and amortization, equity in results, results of discontinued operations and other operating income (expenses), plus the proportionate EBITDA of joint ventures.

As required by IFRS 8, the table below shows the reconciliation of the measurement used by the chief operating decision maker with the results determined using the accounting practices:

|  |  |  |  |  |  |  | Consolidated
|  | Nine months ended |  | Three months ended
|  | 09/30/2020 |  | 09/30/2019 |  | 09/30/2020 |  | 09/30/2019
(Loss)/profit for the period |  | 395,786 |  | 1,110,569 |  | 1,261,595 |  | (870,656)
Depreciation/Amortization/Depletion (note 20) |  | 1,303,389 |  | 989,931 |  | 460,626 |  | 352,120

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Income tax and social contribution (note 14) |  | 1,340,227 |  | (359,449) |  | 741,797 |  | 300,754
Financial income (expenses) (note 22) |  | 1,072,330 |  | 1,832,849 |  | 156,049 |  | 840,074
EBITDA |  | 4,111,732 |  | 3,573,900 |  | 2,620,067 |  | 622,292
Other operating (income) expenses (note 21) |  | 2,173,897 |  | 1,800,507 |  | 716,868 |  | 862,600
Equity in results of affiliated companies (note 8) |  | (9,216) |  | (118,968) |  | (25,970) |  | (64,069)
Proportionate EBITDA of joint ventures |  | 486,281 |  | 415,646 |  | 195,123 |  | 146,065
Adjusted EBITDA (*) |  | 6,762,694 |  | 5,671,085 |  | 3,506,088 |  | 1,566,888

(*) The Company discloses its adjusted EBITDA net of its share of investments and other operating income (expenses) because it understands that these should not be considered in the calculation of recurring operating cash generation.

| 24. | INSURANCE

Aiming to properly mitigate risk and in view of the nature of its operations, the Company and its subsidiaries have taken out several different types of insurance policies. Such policies are contracted in line with the Risk Management policy and are similar to the insurance taken out by other companies operating in the same lines of business as CSN and its subsidiaries. The risks covered under such policies include the following: Domestic Transportation, International Transportation, Life and Casualty, Health, Vehicles Fleet, D&O (Civil Liability Insurance for Directors and Officers), General Civil Liability, Engineering Risks, Named Peril, Export Credit, Surety Bond and Port Operator’s Civil Liability.

In 2020, after negotiation with insurers and reinsurers in Brazil and abroad, an insurance policy was issued of Operational Risk of Property Damages and Loss of Profits, with effect from June 30, 2020 to June 30, 2021. Under the insurance policy, the LMI (Maximum Limit of Indemnity) is US$600 million and deductibles in the amount of US$385 million for material damages and 45 days for loss of profits and covers the following Company’s units and subsidiaries: Presidente Vargas Steelworks, CSN Mineração and Sepetiba Tecon.

The risk assumptions adopted, given their nature, are not within the scope of a review of interim financial information and, consequently, were not reviewed by our independent auditors.

| 25. | ADDITIONAL INFORMATION TO CASH FLOWS

The following table provides additional information on transactions related to the statement of cash flows:

|  |  | Consolidated |  |  |  | Parent Company
| 09/30/2020 |  | 09/30/2019 |  | 09/30/2020 |  | 09/30/2019
Income tax and social contribution paid | 318,606 |  | 957,084 |  |  |  |
Addition to PP&E with interest capitalization (notes 9 and 22) | 68,945 |  | 61,040 |  | 22,094 |  | 16,126
Initial adoption CPC 06 – Right of use |  |  | 640,989 |  |  |  | 61,072
Remeasurement and addition – Right of use (note 9 a) | 70,381 |  | (142,040) |  | 8,806 |  | (12,072)
Addition to PP&E without adding cash | 60,075 |  | 56,609 |  |  |  |
Acquisition of fixed assets by auction |  |  | 25,187 |  |  |  | 25,187
Capitalization in subsidiaries without cash | 95,215 |  |  |  | 148,732 |  | 28,409
Addition to investment property without cash effect | 61,597 |  |  |  | 61,597 |  |
| 674,819 |  | 1,598,869 |  | 241,229 |  | 118,722

| 26. | STATEMENT OF COMPREHENSIVE INCOME

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|  | Consolidated
|  | Nine months ended |  | Three months ended
|  | 09/30/2020 |  | 09/30/2019 |  | 09/30/2020 |  | 09/30/2019
(Loss)/Profit for the period |  | 395,786 |  | 1,110,569 |  | 1,261,595 |  | (870,656)
Other comprehensive income |  |  |  |  |  |  |  |
Items that will not be subsequently reclassified to the statement of income |  |  |  |  |  |  |  |
Actuarial of the defined benefit plan from investments in subsidiaries, net of taxes |  | 97 |  | 95 |  | 34 |  | 32
Actuarial (losses)/gains on defined benefit pension plan |  | - |  | 93,894 |  | - |  | -
|  | 97 |  | 93,989 |  | 34 |  | 32
Items that could be subsequently reclassified to the statement of income |  |  |  |  |  |  |  |
Cumulative translation adjustments for the period |  | 649,335 |  | 36,700 |  | 135,882 |  | 64,636
(Loss)/gain on the percentage change in investments |  | 6,243 |  | (1,995) |  | 1,631 |  | -
(Loss)/gain on cash flow hedge accounting, net of taxes |  | (7,499,721) |  | (959,789) |  | (834,789) |  | (1,038,192)
Realization on cash flow hedge accounting reclassified to income statements, net of taxes |  | 1,590,357 |  | 632,681 |  | 450,676 |  | 186,022
(Loss)/gain on net investment hedge in foreign subsidiaries |  | 1,469 |  | 2,184 |  |  |  | (4,411)
|  | (5,252,317) |  | (290,219) |  | (246,600) |  | (791,945)
|  | (5,252,220) |  | (196,230) |  | (246,566) |  | (791,913)
Total comprehensive income for the period |  | (4,856,434) |  | 914,339 |  | 1,015,029 |  | (1,662,569)
Attributable to: |  |  |  |  |  |  |  |
Controlling shareholders |  | (5,177,817) |  | 548,317 |  | 843,512 |  | (1,784,873)
Non-controlling shareholders |  | 321,383 |  | 366,022 |  | 171,517 |  | 122,304
|  | (4,856,434) |  | 914,339 |  | 1,015,029 |  | (1,662,569)

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|  | Parent Company
|  | Nine months ended |  | Three months ended
|  | 09/30/2020 |  | 09/30/2019 |  | 09/30/2020 |  | 09/30/2019
(Loss)/Profit for the period |  | 65,113 |  | 744,553 |  | 1,080,786 |  | (992,958)
Other comprehensive income |  |  |  |  |  |  |  |
Items that will not be subsequently reclassified to the statement of income |  |  |  |  |  |  |  |
Actuarial of the defined benefit plan from investments in subsidiaries, net of taxes |  | 89 |  | 89 |  | 28 |  | 30
Actuarial (losses)/gains on defined benefit pension plan |  | - |  | 93,894 |  | - |  | -
|  | 89 |  | 93,983 |  | 28 |  | 30
Items that could be subsequently reclassified to the statement of income |  |  |  |  |  |  |  |
Cumulative translation adjustments for the period |  | 649,335 |  | 36,700 |  | 135,882 |  | 64,636
(Loss)/gain on the percentage change in investments |  | 6,243 |  | (1,995) |  | 1,631 |  | -
(Loss)/gain on cash flow hedge accounting |  | (7,316,513) |  | (959,789) |  | (651,581) |  | (1,038,192)
Realization on cash flow hedge accounting reclassified to income statements |  | 1,481,672 |  | 632,681 |  | 341,991 |  | 186,022
(Loss)/gain on cash flow hedge accountingfrom investments in subsidiaries |  | (65,225) |  |  |  | (65,225) |  |
(Loss)/gain on investments hedge in subsidiaries |  | 1,469 |  | 2,184 |  |  |  | (4,411)
|  | (5,243,019) |  | (290,219) |  | (237,302) |  | (791,945)
|  | (5,242,930) |  | (196,236) |  | (237,274) |  | (791,915)
Total comprehensive income for the period |  | (5,177,817) |  | 548,317 |  | 843,512 |  | (1,784,873)
Attributable to: |  |  |  |  |  |  |  |
Controlling shareholders |  | (5,177,817) |  | 548,317 |  | 843,512 |  | (1,784,873)
|  | (5,177,817) |  | 548,317 |  | 843,512 |  | (1,784,873)

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COMMENTS ON THE PERFORMANCE OF BUSINESS PROJECTIONS

Projections

The Company clarifies that the information disclosed in this item are merely estimates and hypothetical data and is not considered, in any way, as a promise of performance by the Company and/or its managers. The projections presented herein involve market conditions that are not controlled by the Company and, therefore, may undergo changes.

| a) | Purpose of the projection.

The Company changed the way it presents its iron ore production which, as of the first quarter of 2020, adds to its total production the volumes purchased from third parties, hoping to reach approximately 33 to 36 million tons of iron ore production in the period.

The Company estimates an Adjusted EBITDA in the amount of R$9.75 billion in 2020, broken down by segment as shown in the table below.

Adjusted EBITDA (R$ million) | 2020
Consolidated | 9,750
Steel | 1,596
Mining | 7,337
Logistics | 786
Cement | 264
Energy | 24

The Company estimates global investments in the amount of R$1.5 billion in 2020, broken down by segment as shown in the table below.

CAPEX (R$ Million) | 2020
Consolidated | 1,487
Steel | 460
Mining | 890
Cement | 62
Others | 75

The Company estimates it will reach a 2.99x Net Debt/Adjusted EBITDA index for its 2020 year-end balance sheet.

The Company estimates it will reach a 2.50x Net Debt/Adjusted EBITDA index for its 2021 year-end balance sheet.

The Company estimates it will reach R$23 billion in Net Debt for its 2021 year-end balance sheet

.

| b) | Projected period and validity.

The projected iron ore production period comprises the years of 2020 to 2023, with annual production volumes to be disclosed to the market in the annual financial statements (DFPs) to be published for each year.

The projected EBITDA period comprises only the year of 2020 and will be disclosed by segment in the annual financial statements (DFPs).

The projected Capex period comprises the year of 2020 and will be disclosed in the annual financial statements (DFPs).

The data referring to the projected 2.99x and 2.50x in Net Debt/Adjusted EBITDA indicator will be disclosed to the market in the annual financial statements (DFPs) to be published for its 2020 and 2021 year-end balance sheets, respectively.

The data referring to the projected R$23 billion in Net Debt for the end year balance sheet in 2020 will be disclosed to the market in the annual financial statements (DFPs) to be published for its 2020 year-end balance sheet.

| c) | Assumptions used for the projection, with an indication of which may be influenced by the company's management and which are not under its control.

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All assumptions used for calculating the projections mentioned herein are influenced by external factors which are not controlled by the Company's management. Therefore, in the event of any material changes in these assumptions, the Company may revise its estimates, changing them against the projections originally presented.

The volume of ore production considers our mining plan between 2020 and 2023, with an increase in pellet feed production, in line with the investment projects announced for the mining segment and widely disclosed in our corporate presentations to the market.

| d) | Projected Indicators

Leverage | 2017 | 2018 | 1H19 | 4Q19 | 2019 | 2020 E | 2021 E | 2022 E | 2023 E
Estimated | 5.00x | n.a. | 3.50x | n.a. | 3.00x | 2.99x | 2.50x | n.a. | n.a.
Actual | 5.66x | 4.55x | 3.65x | n.a. | 3.74X | n.a. | n.a. | n.a. | n.a.
Change | 0.66x | n.a. | 0.15x | - | 0.74x | n.a. | n.a. | n.a. | n.a.
Adjusted EBITDA (R$ million) | 2017 | 2018 | 1H19 | 4Q19 | 2019 | 2020 E | 2021 E | 2022 E | 2023 E
Estimated | n.a. | n.a. | n.a. | n.a. | n.a. | R$9,750 | n.a. | n.a. | n.a.
Actual | n.a. | n.a. | n.a. | n.a. | n.a. | n.a. | n.a. | n.a. | n.a.
Change | - | - | - | - | - | - | - | - | -
Net Debt (R$ million) | 2017 | 2018 | 1H19 | 4Q19 | 2019 | 2020 E | 2021 E | 2022 E | 2023 E
Estimated | n.a. | n.a. | n.a. | n.a. | n.a. | n.a. | R$23,000 | n.a. | n.a.
Actual | n.a. | n.a. | n.a. | n.a. | n.a. | n.a. | n.a. | n.a. | n.a.
Change | n.a. | n.a. | n.a. | - | n.a. | n.a. | n.a. | n.a. | n.a.
CAPEX (R$ million) | 2017 | 2018 | 1H19 | 4Q19 | 2019 | 2020 E | 2021 E | 2022 E | 2023 E
Estimated | n.a. | n.a. | n.a. | n.a. | n.a. | R$1,487 | n.a. | n.a. | n.a.
Actual | n.a. | n.a. | n.a. | n.a. | n.a. | n.a. | n.a. | n.a. | n.a.
Change % | - | - | - | - | - | - | - | - | -
Iron Ore Production Volume | 2017 | 2018 | 1H19 | 4Q19 | 2019 | 2020 E | 2021 E | 2022 E | 2023 E
New Methodology (Purchases + Production, in thousand tons)
Estimated | n.a. | n.a. | n.a. | n.a. | n.a. | 33,000-36,000 | n.a. | n.a. | n.a.
Actual | n.a. | n.a. | n.a. | n.a. | n.a. | n.a. | n.a. | n.a. | n.a.
Change % | - | - | - | - | - | - | - | - | -
* E = estimated ** n.a. = not available |

11.2 If the company has disclosed, during the last 3 fiscal years, projections for its indicators:

a) inform which ones are being replaced by new projections and which ones are being repeated.

New estimates:

The Company estimates an Adjusted EBITDA in the amount of R$9.75 billion in 2020, broken down by segment as shown in the table below.

Adjusted EBITDA (R$ million) | 2020
Consolidated | 9,750
Steel | 1,596
Mining | 7,337
Logistics | 786
Cement | 264
Energy | 24

The Company estimates global investments in the amount of R$1.5 billion in 2020, broken down by segment as shown in the table below

CAPEX (R$ Million) | 2020
Consolidated | 1,487
Steel | 460
Mining | 890
Cement | 62
Others | 75

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Estimates repeated:

The Company estimates it will reach R$23 billion in Net Debt for its 2021 year-end balance sheet.

The Company estimates an iron ore production volume of 33-36Mton in 2020 (new methodology). The reduction in expected production volume in 2020 is due to high rainfall in the region in 1Q20 and delays in new mining fronts.

Estimates changed:

CSN changed its consolidated investments estimate, from R$1.15 billion to R$1.5 billion in 2020.

CSN changed its Net Debt/Adjusted EBITDA index estimates from 3.75x to 2.99x for its 2020 year-end balance sheet.

CSN changed its Net Debt/Adjusted EBITDA index estimates from 3.00x to 2.50x for its 2021 year-end balance sheet.

b) regarding projections for periods that have already passed, compare the projected data with the actual performance indicators, clearly indicating the reasons that led to changes in projections.

Adjusted EBITDA in 2019 came in 3% less than the estimated amount of R$7.5 billion due to lower mining results since Platts performed under the Company's budget and freight costs came in higher than initially estimated.

The Company's estimated a Net Debt/Adjusted EBITDA ratio of approximately 3.0x at the end of 2019 and the actual results came in at 3.74x, that is, materially lower than initially projected due to exchange rate variations that strongly influenced the Company's debt in U.S. dollar, in addition to a slightly higher-than-expected CAPEX and a lower-than-expected mining result arising from higher freight and costs and lower Platts as of 3Q19.

Iron ore production was 3% lower than the initially estimated 33Mton due to excessive rainfall in the southeast region in November and December 2019.

Iron ore sales were 4% below the 40Mton projection due to lower ore production in the fourth quarter of 2019

.

Net revenue | 2016 | 2017 | 2018 | 1H19 | 2019
Estimated | n.a. | 18,000 | 22,230 | n.a. | n.a.
Actual | 17,149 | 18,525 | 22,969 | n.a. | n.a.
Change % | n.a. | 3% | 3% | n.a. | -
Adjusted EBITDA | 2016 | 2017 | 2018 | 1H19 | 2019
Estimated | n.a. | 5,000 | 5,574 | n.a. | 7,500
Actual | 4,075 | 4,645 | 5,849 | n.a. | 7,251
Change % | n.a. | -7% | 5% | n.a. | -3%
Leverage | 2016 | 2017 | 2018 | 1H19 | 2019
Estimated | n.a. | 5.00x | n.a. | 3.50x | 3.00x
Actual | 6.32x | 5.66x | 4.55x | 3.65x | 3.74X
Change % | n.a. | 13% | n.a. | 0.15x | 0.74x
Iron Ore Production Volume | 2016 | 2017 | 2018 | 1H19 | 2019
Estimated | n.a. | n.a. | 28,500 | n.a. | 33,000
Actual | 32,174 | 29,921 | 27,875 | n.a. | 32,090
Change % | n.a. | n.a. | -2% | n.a. | -3%
Iron Ore Sales Volume | 2016 | 2017 | 2018 | 1H19 | 2019
Estimated | n.a. | n.a. | n.a. | n.a. | 40,000
Actual | n.a. | n.a. | n.a. | n.a. | 38,545
Change % | n.a. | n.a. | n.a. | n.a. | -4%
*E = estimated |  |  |  |  |
** n.a. = not available |  |  |

c) regarding the projections for periods still in progress, inform whether they remain valid on the date this form is disclosed and, when applicable, explain why they were excluded or replaced.

Estimates underway and valid:

The Company estimates an Adjusted EBITDA in the amount of R$9.75 billion in 2020, broken down by segment as shown in the table below.

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Adjusted EBITDA (R$ million) | 2020
Consolidated | 9,750
Steel | 1,596
Mining | 7,337
Logistics | 786
Cement | 264
Energy | 24

The Company estimates global investments in the amount of R$1.5 billion in 2020, broken down by segment as shown in the table below.

CAPEX (R$ Million) | 2020
Consolidated | 1,487
Steel | 460
Mining | 890
Cement | 62
Others | 75

The Company estimates an iron ore production volume (considering the new methodology that includes the sum of its own production with purchases from third parties) of 33-36 Mton in 2020.

The Company estimates it will reach a 2.99x Net Debt/Adjusted EBITDA index for its 2020 year-end balance sheet.

The Company estimates it will reach a 2.50x Net Debt/Adjusted EBITDA index for its 2021 year-end balance sheet.

The Company estimates it will reach R$23 billion in Net Debt for its 2021 year-end balance sheet.

Estimates excluded/changed in the last 3 years:

CSN estimates an iron ore production volume (the old methodology considered only its own production) of 31.2 Mton in 2021, 36.6 Mton in 2022 and 38.0 Mton in 2023. The Company no longer reports its own production volume only and, since the first quarter of 2020, it consolidates its own production with the purchase of iron ore from third parties.

The projection of reaching 3.00 x in the Net Debt / Adjusted EBITDA indicator at the close of the annual balance sheet 2021. This projection will be reached in the new projection to reach 2.99x in the Debt indicator Net / Adjusted EBITDA for its 2020 year-end balance sheet.

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(Free translation from the original issued in Portuguese. In the event of any discrepancies, the Portuguese language version shall prevail.)

Independent Limited Review Auditor’s Report on Review of the Interim Financial Information

To the Shareholders, Directors and Management of

Companhia Siderúrgica Nacional

São Paulo - SP

Introduction

We have reviewed the accompanying individual and consolidated interim financial information of Companhia Siderúrgica Nacional (“Company”), included in the Interim Financial Information Form (ITR) for the quarter ended September 30, 2020, which comprises the balance sheet as of September 30, 2020 and the related statement of profit and loss and comprehensive income (loss) for the three and nine-months periods then ended and the statements of changes in equity and cash flows for the nine-months period then ended, including a summary of significant accounting policies and other explanatory notes.

Management is responsible for the preparation of the individual and consolidated interim financial information in accordance with Technical Pronouncement NBC TG 21 - Interim Financial Reporting and IAS 34 - Interim Financial Reporting, issued by the International Accounting Standards Board (IASB), as well as for the presentation of such information in accordance with the standards issued by the Brazilian Securities and Exchange Commission (CVM) applicable to the preparation of Interim Financial Information (ITR). Our responsibility is to express a conclusion on this interim financial information based on our review.

Scope of review

We conducted our review in accordance with Brazilian and international standards on review of interim financial information (NBC TR 2410 - Review of Interim Financial Information Performed by the Independent Auditor of the Entity and ISRE 2410 - Review of Interim Financial Information Performed by the Independent Auditor of the Entity, respectively). A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with the standards on auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion on the individual and consolidated interim financial information

Based on our review, nothing has come to our attention that causes us to believe that the accompanying individual and consolidated interim financial information included in the Interim Financial Information Form (ITR) referred to above is not prepared, in all material respects, in accordance with NBC TG 21 and IAS 34 applicable to the preparation of interim financial information and presented in accordance with the standards issued by the Brazilian Securities and Exchange Commission (CVM).

Emphasis of matter

Ability of the jointly-controlled subsidiary Transnordestina Logística S.A. to continue as a going concern

We draw attention to note 8.c) to the interim financial information, which describes the percentage of completion of the new railway network by the jointly-controlled subsidiary Transnordestina Logística S.A. (TLSA), currently under construction and originally scheduled to be completed by January 2017, is currently being revised and discussed by the relevant regulatory bodies. The completion of the work under the project (and consequent start of operations) is contingent upon receiving ongoing financial contribution from TLSA's shareholders and third parties. These events and conditions, together with other issues described in note 8.c) to the interim financial information, indicate the existence of significant uncertainty that may raise significant doubt as to TLSA's ability to continue as a going concern. Our conclusion is not qualified regarding this matter.

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Other matters

Interim statement of value added

The quarterly information referred to above includes the individual and consolidated statements of value added for the period of nine months ended September 30, 2020, prepared under the responsibility of the Company's management and presented as supplementary information for the purposes of IAS 34.
These statements were submitted to the same review procedures in conjunction with the review of the Company's interim financial information in the order to conclude they are reconciliated to the interim financial information and to the accounting records, as applicable, and whether the structure and content are in accordance with the criteria established in the NBC TG 09 - Statement of Value Added. Based on our review, nothing has come to our attention that causes us to believe that the accompanying statements of value added were not prepared, in all material respects, in accordance with the individual and consolidated interim financial information taken as a whole.

São Paulo, October 15, 2020

Nelson Fernandes Barreto Filho

CT CRC 1SP-151.079/O-0

Grant Thornton Auditores Independentes

CRC 2SP-025.583/O-1

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Opinions and Statements / Officers Statement on the Financial Statement

As Executive Officers of Companhia Siderúrgica Nacional, we declare pursuant to Article 25, paragraph 1º, item VI of CVM Instruction 480, of December 7, 2009, as amended, that we reviewed, discussed and agreed with the Company’s Financial Statements for the quarter ended September 30, 2020.

São Paulo, October 15 th, 2020.

____________________________________________

Benjamin Steinbruch

CEO

____________________________________________

Luis Fernando Barbosa Martinez

Executive Officer

____________________________________________

David Moise Salama

Executive Officer

____________________________________________

Pedro Gutemberg Quariguasi Netto

Executive Officer

____________________________________________

Marcelo Cunha Ribeiro

Executive Officer – CFO and Investors Relations

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Opinions and Statements / Officers Statement on Auditor’s Report

As Executive Officers of Companhia Siderúrgica Nacional, we declare pursuant to Article 25, paragraph 1º, item V of CVM Instruction 480, of December 7, 2009, as amended, that we reviewed, discussed and agreed with the opinion expressed on the Independent Auditors’ Report related to the Company’s Financial Statements for the quarter ended September 30, 2020.

São Paulo, October 15 th, 2020.

____________________________________________

Benjamin Steinbruch

CEO

____________________________________________

Luis Fernando Barbosa Martinez

Executive Officer

____________________________________________

David Moise Salama

Executive Officer

____________________________________________

Pedro Gutemberg Quariguasi Netto

Executive Officer

____________________________________________

Marcelo Cunha Ribeiro

Executive Officer – CFO and Investors Relations

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SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Date: October 29, 2020

COMPANHIA SIDERÚRGICA NACIONAL
By: | /S/ Benjamin Steinbruch
| Benjamin Steinbruch Chief Executive Officer

By: | /S/ Marcelo Cunha Ribeiro
| Marcelo Cunha Ribeiro Chief Financial and Investor Relations Officer

FORWARD-LOOKING STATEMENTS

This press release may contain forward-looking statements. These statements are statements that are not historical facts, and are based on management's current view and estimates of future economic circumstances, industry conditions, company performance and financial results. The words "anticipates", "believes", "estimates", "expects", "plans" and similar expressions, as they relate to the company, are intended to identify forward-looking statements. Statements regarding the declaration or payment of dividends, the implementation of principal operating and financing strategies and capital expenditure plans, the direction of future operations and the factors or trends affecting financial condition, liquidity or results of operations are examples of forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. There is no guarantee that the expected events, trends or results will actually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.