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RELATED-PARTY BALANCES AND TRANSACTIONS
 12 Months Ended
Dec. 31, 2021
RELATED-PARTY BALANCES AND TRANSACTIONS

 

23.RELATED-PARTY BALANCES AND TRANSACTIONS

 

23.a) Transactions with holding companies

 

Vicunha Aços SA is shareholder of the Company with a 50.65% interest in the voting capital.

 

Also, part of the Company’s control is Rio Iaco Participações SA, which holds a 3.41% interest in the voting capital of CSN.

 

The corporate structure of Vicunha Aços SA is as follows:

 

a)Vicunha Steel S.A. - holds 67.93% interest in Vicunha Aços S.A.;
b)CFL Participações S.A. - holds a 12.82% interest in Vicunha Aços S.A. and a 40% interest in Vicunha Steel S.A.;
c)Rio Purus Participações S.A. - holds a 19.25% interest in Vicunha Aços S.A. and a 60% interest in Vicunha Steel S.A.

 

·Liabilities

 

The Company's Board of Directors at a meeting held on July 27, 2021, approved the distribution of dividends to shareholders on income generated until June 30, 2021, in the amount of R$861,641 to shareholder Vicunha Aços S.A and R$57,956 to Rio Iaco Participações S.A., corresponding to R$1.26801069070972 per share, which were paid in August 2021. Additionally, on December 29, 2021, the Board of Directors approved the payment to shareholders of interest on equity in the amount of R$129,839 to shareholder Vicunha Aços S.A and R$8,723 to Rio Iaco Participações S.A., corresponding to R$0.19150790423 per share, after withholding income tax, the value per share is R$0.16278171860. The interest on equity will be paid to shareholders until May 30, 2022.

 

After the anticipations, the remaining balance destined as minimum mandatory dividends amounted to R$458,070 to the shareholder Vicunha Aços S.A and R$30,811 to Rio Iaco Participações S.A., which will be submitted for approval at the General Meeting.

 

 

 

23.b) Transactions with subsidiaries, joint ventures, associates, exclusive founds and other related parties

 

    Consolidated
    12/31/2021   12/31/2020
    Subsidiaries and associates   Joint-ventures and Joint Operation   Other related parties   Total   Subsidiaries and associates   Joint-ventures and Joint Operation   Other related parties   Total
Assets                                
 Current Assets                                 
Investments (1)          2,579,990    2,579,990             3,763,603     3,763,603
Trade receivables (note 7) (2)  8,159    1,667    134,570   144,396    7,686     8    113,482    121,176
Dividends (note 10) (3)       61,898     14,980     76,878       38,088       38,088
Loans (note 10) (4)      4,511        4,511                  
Other current assets (note 10)          1,828    1,828         4,413    1,829     6,242
     8,159     68,076    2,731,368    2,807,603    7,686   42,509    3,878,914     3,929,109
 Noncurrent Assets                                 
Investments (1)          132,523   132,523             123,409    123,409
Loans (note 10) (4)  3,626    1,139,602        1,143,228    3,375     962,675        966,050
Actuarial asset (note 10)           59,111     59,111              13,819   13,819
Other non-current assets (note 10) (5)      927,077       927,077         664,020        664,020
     3,626    2,066,679    191,634    2,261,939    3,375     1,626,695    137,228     1,767,298
      11,785    2,134,755    2,923,002    5,069,542   11,061     1,669,204    4,016,142     5,696,407
                                 
Liabilities                                
 Current Liabilities                               
Trade payables   21     62,730     14,712     77,463         106,946    9,455    116,401
Accounts payable (note 16)       28,442         28,442       23,555    2,437   25,992
Provision for consumption (note 16)       22,182         22,182       44,466       44,466
      21    113,354     14,712   128,087         174,967     11,892    186,859
 Noncurrent Liabilities                                 
Accounts payable (note 16)       66,607         66,607       78,083       78,083
Actuarial liability  (note 16)                            79,546   79,546
          66,607         66,607       78,083     79,546    157,629
      21    179,961     14,712   194,694         253,050     91,438    344,488

 

 

    Consolidated
    12/31/2021   12/31/2020
    Subsidiaries and associates   Joint-ventures and Joint Operation   Other related parties   Total   Subsidiaries and associates   Joint-ventures and Joint Operation   Other related parties   Total
P&L                                
Sales   274,978    2,250    3,244,017    3,521,245    104,400     843    1,568,992     1,674,235
Cost and expenses   (1,065)   (1,273,740)   (119,500)   (1,394,305)        (1,036,420)   (104,212)    (1,140,632)
Financial income (expenses)                                  
Interest (note 29)   251     49,293     32,246     81,790       19,095     18,421   37,516
Short-term investments             94,866     94,866             1,190,489     1,190,489
    274,164   (1,222,197)    3,251,629    2,303,596    104,400    (1,016,482)    2,673,690     1,761,608

 

1.Financial investments

 

In the consolidated financial statements refers to Investments in Usiminas shares of R$2,383,059 (R$3,305,109 in December 2020) and cash and cash equivalents with Banco Fibra totaling R$196,931 in December 2021 (R$458,494 in December 2020) and no current amount R$132,523 (R$123,409 in December 2020) from Bonds with an average rate of 98% to 115% of the CDI.

 

2.Trade receivable mainly refers to operations of sales of steel products to other unconsolidated related parties.

 

Dividend’sreceivable:
3.dividends from Usiminas R$14,980 (nil on December 31, 2020) and from MRS Logística in the amount of R$61,898 (R$38,088 on December 31, 2020)

 

Loans(Assets):
4.Short-term: refers mainly to loan agreements with Equimac S.A. at a fixed rate of 4.0% p.a. + 100.00% of CDI of R$4,511.

Long-term: refers mainly to loan agreements with Transnordestina Logística R$1,123,375 (R$962,675 as of December 31, 2020) at an average rate of 125% to 130% p.a. of the CDI, loans at a fixed rate of 130% of the CDI with Arvedi Metalfer S.A. of R$3,626 and loans at a fixed rate of 4.0% p.a.+ 100% of the CDI with Equimac S.A. of R$16,227.

 

5.Others (Assets): Advance for future capital increase with subsidiaries Transnordestina Logística S.A in the amount of R$927,076 (R$664,020 on December 31,2020).

 

6.Loans (Liabilities):

Foreign currency: Intercompany contracts in the amount of R$9,591.868 on December 31,2021 (R$15,069,614 on December 31, 2020).

 

23.c)Other unconsolidated related parties

 

·CBS Social Security

 

The Company is its main sponsor, being a non-profit civil society established in July 1960 and whose main objective is the payment of benefits complementary to those of the official social security for the participants. As a sponsor, it maintains transactions for payment of contributions and recognition of actuarial liabilities determined in defined benefit plans.

 

·Banco Fibra

 

Banco Fibra is under the control structure of Vicunha Aços S.A., the major shareholder of the Company and the financial transactions carried out with this bank are limited to movements in checking accounts and financial investments in fixed-income securities.

 

·CSN Foundation

 

The Company develops socially responsible policies concentrated today in the CSN Foundation, of which it is the founder. Transactions between the parties are related to operational and financial support for the Foundation to conduct social projects developed mainly in the locations where it operates.

 

·Related Parties under the control of a member of the Company’s Management

 

The following companies are under the control of a member of the Management, which maintain some minor transactions with the Company:

 

·Partifib Projetos Imobiliários Ltda
·Vicunha Imóveis Ltda.
·Vicunha Serviços Ltda.
·Ibis Participações e Serviços Ltda
·Party Negócios e Participações Ltda;
·Jockey Club de São Paulo;
·Fibra Sequoia Guarulhos Empreendimentos.

 

 

23.d)Key management personal

 

The key management personnel with authority and responsibility for planning, directing, and controlling the Company’s activities include members of the Board of Directors and statutory officers. The following is information on the compensation of such personnel and the related balances as of December 31, 2021, 2020 and 2019.

 

Key management personnel compensation 

    12/31/2021   12/31/2020   12/31/2019
    P&L
Short-term benefits for employees and officers                   46,747                   40,522                   37,452
Post-employment benefits                        192                        111                        109
Key management personnel compensation                    46,939                   40,633                   37,561

 

23.e)Guarantees

 

The Company is liable for guarantees of its subsidiaries and joint ventures as follows:

 

 

 

  Currency   Maturities   Borrowings Tax foreclosure Others Total
          12/31/2021   12/31/2020   12/31/2021   12/31/2020   12/31/2021   12/31/2020   12/31/2021   12/31/2020
Transnordestina Logísitca R$   Up to 09/19/2056 and Indefinite     2,486,926     2,478,105    12,627    35,496   3,384    3,298    2,502,937    2,516,899
                                       
CSN Cimentos R$   Up to 11/26/2023 and indefinite                  33       33    
                                       
Cia Siderurgica Nacional R$   05/31/2025                   536        536    
                                   
Cia Metalurgica Prada  R$   Indefinite             197   196     244   244    441    440
                                       
CSN Energia R$   Up to 11/26/2023 and indefinite                 1,920    1,920    1,920    1,920
                                       
CSN Mineração R$   Up to 12/21/2024    846,284    846,749              846,284    846,749
                                       
CBS R$   06/30/2024                  21       21    
                                   
Estanho de Rondônia  R$   7/15/2022     771     1,154              771    1,154
                                       
Minérios Nacional S.A. R$   Up to 09/10/2021          1,946                  1,946
                                       
Total in R$           3,333,981     3,327,954    12,824    35,692   6,138    5,462    3,352,943    3,369,108
                                       
CSN Inova Ventures US$   01/28/2028     1,300,000     1,300,000              1,300,000    1,300,000
                                       
CSN Islands XII US$   Perpetual          1,000,000                  1,000,000
                                       
CSN Resources US$   Up to 04/17/2026     1,450,000     1,525,000              1,450,000    1,525,000
                                       
CSN Cimentos US$   Indefinite                 1,025        1,025    
                                       
Total in US$           2,750,000     3,825,000       1,025        2,751,025    3,825,000
                                       
Lusosider Aços Planos EUR   Indefinite                 75,000         75,000    
Total in EUR                       75,000         75,000    
Total in R$         15,346,375   19,877,378         479,795         15,826,170     19,877,378
          18,680,356   23,205,332    12,824    35,692     485,933    5,462     19,179,113     23,246,486

 

Accounting Policy

 

Transactions with related parties were carried out by the Company on terms equivalent to those prevailing in market transactions, observing the price and the usual market conditions. Therefore, these transactions are in conditions that are no less favorable for the Company than those negotiated with third-parties.

 

Transactions between the related parties are eliminated and adjusted to ensure consistency with the practices adopted by The Company.

 

The Company’s related parties are subsidiaries, joint ventures, affiliates, shareholders and their related companies and the key personnel of the Company’s management.