XML 67 R48.htm IDEA: XBRL DOCUMENT v3.21.1
10. BASIS OF CONSOLIDATION AND INVESTMENTS IN SUBSIDIARIES AND AFFILIATES (Tables)
 12 Months Ended
Dec. 31, 2020
Basis Of Consolidation And Investments In Subsidiaries And Affiliates  
Schedule of direct and indirect subsidiaries, joint ventures and joint operations

The consolidated financial statements for the years ended December 31, 2020 and 2019 include the following direct and indirect subsidiaries, joint ventures and joint operations, as well as the exclusive funds, as follows:

 

  Number of shares held by CSN in units Equity interests (%)        
Companies   12/31/2020   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
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 4,669,986  99.99   100.00    Equity interests and product sales and iron ore 
CSN Cimentos S.A.(3)  90  90.00   -    Manufacturing and sale of cement
             
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 (4)       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 
CSN Cimentos S.A.(3)  10  10.00        Manufacturing and sale of cement
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. (5) 63,377,198  18.64    18.64    Railroad transportation 
Aceros Del Orinoco S.A.     31.82    31.82    Dormant company 
Transnordestina Logística S.A. (6) 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. (5)    16.30    16.30    Railroad transportation 
             
Direct interest in associates: equity method            
Arvedi Metalfer do Brasil S.A.  49,074,882  20.00    20.00    Metallurgy and Equity interests 
             
Exclusive funds: 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 

(*) Dormant companies.

 

  1. On June 29, 2020, CSN Islands XI Corp. changed its corporate name to CSN Inova Ventures.

 

  2. On June 26, 2020, CSN Equipamentos SA had its corporate name changed to Equimac SA and its capital increased by Unidas Guindastes Eireli. With this capital increase, CSN’s stake in Equimac’s share capital increased to 50% and was classified as joint venture.

 

  3. Company acquired on October 2, 2020.

 

  4. Company liquidated on March 11, 2020.

 

  5. As of December 31, 2020, the Company directly held 63,377,198 shares, of which 26,611,282 were common and 36,765,916 were preferred, and indirectly 63,338,872 shares, of which 25,802,872 were common and 37,536,000 were preferred

 

  6. As of December 31, 2020, the Company had 24,168,304 common shares and 501,789 Class B preferred shares.
Schedule of direct equity interests in subsidiaries, joint ventures, joint operations, associates and other investments

The number of shares, the balances of assets and liabilities, shareholders’ equity and the profit / (loss) amounts for the period in those investees are as follows:

 

                12/31/2020               12/31/2019
Companies   Participation in         Participation in
  Assets   Liabilities   Shareholders’ equity   Profit /(Loss) for the period   Assets   Liabilities   Shareholders’ equity   Profit /(Loss) for the period
               
               
               
Joint-venture and Joint-operation                                
MRS Logística S.A.    4,175,249   2,567,882    1,607,367   160,371   4,145,205   2,616,218   1,528,987    187,597
Fair Value - MRS Logística S.A.           421,888    (11,747)            433,635   (11,747)
CSBI - Companhia Brasileira de Serviços de Infraestrutura  -               -    -       6,665
Transnordestina Logística S.A. (*)    4,657,691   3,497,587   1,160,104   (28,952)   4,398,434   3,209,378   1,189,056   (17,100)
Fair Value (*) - Transnordestina    -        271,116       -    -    271,116   -
Equimac S.A   7,536    301   7,235   (329)   -    -   -   -
     8,840,476    6,065,770    3,467,710   119,343    8,543,639    5,825,596    3,422,794   165,415
Associates                                
Arvedi Metalfer do Brasil S.A.   40,528   32,490   8,038    (6,765)   44,435   31,712   12,723    (1,682)
    40,528   32,490    8,038    (6,765)   44,435    31,712   12,723   (1,682)
Classified at fair value through profit or loss (note 12 I)                
Panatlântica           59,879                47,300    
            59,879               47,300    
                                 
Eliminations               (30,856)               (38,219)
                                 
Other investments                                
Others           279    (9,967)           157    171
             279    (9,967)           157    171
Total investments in affillated companies         3,535,906                3,484,974    
Total Equity in results of affillated companies        71,755             125,715
Investments properties            159,874               101,195    
Total investments           3,695,780                3,584,169    

(*) As of December 31, 2020 and December 31, 2019, the net balance of R$271,116 refers to the Fair Value generated by the loss of control of Transnordestina Logística SA in the amount of R$659,105 and impairment of R$387,989
Schedule of changes of investments balances in subsidiaries, joint ventures, joint operations, associates and other investments
10.b) Changes in investments in subsidiaries, jointly controlled companies, joint operations, associates and other investments

 

      Consolidated
  12/31/2020   12/31/2019
   
Opening balance of investments 3,482,974   5,630,613
Capital increase/acquisition of shares   3,400     27,909
Dividends (1) (82,642)   (94,603)
Comprehensive income (2)  6,895     (2,592)
Equity in results of affiliated companies(3) 124,324   175,524
Update of shares measured at fair value through profit or loss (Note 14 II)   12,579    (118,780)
Reclassification of Usiminas’ shares       (2,114,620)
Consolidation of CBSI        (8,775)
Amortization of fair value - investment MRS (11,747)   (11,747)
Others  123   45
Closing balance of investments 3,535,906   3,482,974
  1. In 2020, it mainly refers to dividends of the subsidiary CSN Mineração SA in the amount of R$2,437,482 (R$4,060,816 on December 31, 2019).

 

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

 

  3. The table below shows the reconciliation of the equity in results of affiliated companies classified as joint venture and associates and the amount disclosed in the income statement and it is due to the elimination of the results of the CSN´s transactions with these companies.
Schedule of equity in results
    Consolidated
  12/31/2020   12/31/2019
   
Equity in results of affiliated companies      
MRS Logística S.A. 160,370   187,597
CBSI - Companhia Brasileira de Serviços de Infraestrutura (1)      6,695
Transnordestina Logística S.A. (28,952)   (17,100)
Arvedi Metalfer do Brasil S.A. (6,765)   (1,682)
Equimac S.A. (329)    
Others     14
  124,324   175,524
Eliminations      
To cost of sales  (46,751)   (57,908)
To taxes 15,895   19,689
Others      
Amortizated at fair value - Investment in MRS (11,747)   (11,747)
Others (9,966)   157
Equity in results  71,755   125,715

(1) Refers to equity income until November 30, 2019, as of this date, the joint venture started to be controlled and consolidated, according to note 10 c.
Schedule of joint ventures and joint operations financial information

The balance sheet and income statement balances of the companies whose control is shared are shown below and refer to 100% of the companies’ results:

 

                12/31/2020           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   1,206,484   1,390    1,351   48,919    670,296    17,166   65,793
Advances to suppliers    27,312   1,948       742   20,100   3,240    363
Other current assets   823,204    51,793   2,356   89,521    1,326,281    59,405   15,955
Total current assets   2,057,000    55,131    3,707    139,182    2,016,677    79,811   82,111
 Noncurrent Assets                             
Other non-current assets   608,878   225,492   -   20,807    789,562   258,391   24,361
Investments, PP&E and intangible assets   8,537,009   9,574,588   11,365    390,672    8,316,033   8,968,447   426,403
Total non-current assets   9,145,887   9,800,080   11,365    411,479    9,105,595   9,226,838   450,764
Total Assets   11,202,887   9,855,211   15,072    550,661   11,122,272   9,306,649   532,875
                             
 Current Liabilities                             
Borrowings and financing    828,439   241,029            653,784   103,877    
Lease liabilities   317,526                256,034        
Other current liabilities   1,117,975   125,794    602   19,721    1,561,684   171,821   16,793
Total current liabilities   2,263,940   366,823    602   19,721    2,471,502   275,698   16,793
 Noncurrent Liabilities                             
Borrowings and financing    2,162,657   6,368,070            2,369,615   6,084,424    
Lease liabilities   1,674,594                1,650,758        
Other non-current liabilities   788,862   665,653       15,900    527,871   430,603   16,550
Total non-current liabilities   4,626,113   7,033,723       15,900    4,548,244   6,515,027   16,550
Shareholders’ equity   4,312,834   2,454,665   14,470    515,040    4,102,526   2,515,924   499,532
Total liabilities and shareholders’
equity		   11,202,887   9,855,211   15,072    550,661   11,122,272   9,306,649   532,875

 

                01/01/2020 to 12/31/2020   01/01/2019 to 11/30/2019           01/01/2019 to 12/31/2019
    Joint-Venture   Joint-Operation       Joint-Venture       Joint-Operation
Equity interest (%)   MRS Logística   Transnordestina Logística   Equimac S.A.   Itá Energética   CBSI   MRS Logística   Transnordestina Logística   Itá Energética
  34.94%   47.26%   50.00%   48.75%   50.00%   34.94%   46.30%   48.75%
Statements of Income                                
Net revenue     3,604,965    35     2,308    173,426   267,436   3,200,809        163,048
Cost of sales and services   (2,521,991)        (2,386)    (74,048)    (233,830)    (2,382,828)        (83,129)
Gross profit     1,082,974    35   (78)   99,378     33,606   817,981       79,919
Operating (expenses) income    (105,267)     (42,108)    (576)    (67,885)   (12,328)   207,840   (18,077)    (62,660)
Financial income (expenses), net   (330,756)     (19,186)     (4)   (764)     (1,460)    (268,089)   (18,386)     1,183
Income before income tax and social
contribution		     646,951     (61,259)    (658)   30,729     19,818   757,732   (36,463)   18,442
Current and deferred income tax
and social contribution		 (216,649)         -    (10,391)     (6,428)    (254,378)       (6,147)
Profit / (loss) for the period     430,302     (61,259)    (658)   20,338     13,390   503,354   (36,463)   12,295
Schedule of measurement of recoverable value

Measurement of recoverable value

 

Cash Flow Projection By 2057
Gross margin Estimated based on market study to capture cargo and operating costs according to market trend studies
Cost estimate Study-based costs and market trends
Perpetuity growth rate Growth rate was not considered as a result of the projection model until the end of the concession.
Discount rate Range from 5.83% to 7.41% in real terms
Schedule of investment properties

The balance of investment properties as of December 31, 2020 is shown below:

 

            Consolidated
    Land   Buildings    Total
Balance at December 31, 2019     68,877     32,318    101,195
Cost     68,877     53,816    122,693
Accumulated depreciation          (21,498)     (21,498)
Balance at December 31, 2019     68,877     32,318    101,195
Acquisitions     28,733     32,864   61,597
Depreciation         (2,786)   (2,786)
Write-off        (132)   (132)
Balance at December 31, 2020     97,610     62,264    159,874
Cost     97,610     86,548    184,158
Accumulated depreciation         (24,284)    (24,284)
Balance at December 31, 2020     97,610     62,264    159,874
Schedule of average estimated useful lives

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

 

      Consolidated
  12/31/2020   12/31/2019
Buildings 27   21