Lauro Henrique Rezende Investments Executive Officer Brazil Day 2003

2 CSN: Truly Integrated Integrated flat steel producer: proprietary iron ore mine, self- sufficiency in electricity, stakes in railways and ports Lowest cost and highest EBITDA margin in the sector Export sales ratio of around 30% Low leverage - between 1/2 times Net Debt/EBITDA Sepetiba Port 109 km Arcos 445 km Casa de Pedra 328 km Rio de Janeiro Port 120 km São Paulo 450 Km MRS (32% stake) Mill Rio de Janeiro GalvaSud INAL

3 A World of Steel Broad range of products: from slabs to tin plate, with a 5.8 million tons of molten steel production capacity Fifth largest tin mill producer worldwide and 59% share of galvanized steel market in Brazil Downstream facilities: galvanized products and 2- piece steel can producer Investments abroad: Cold rolled and galvanized plant in USA and Galvanized and tin mill plant in Portugal Market capitalization: US$2.9 billion, on Oct 31, 2003

4 Steel Industry Outlook In Brazil: –Flat steel consumption expected to increase 6% (2x GDP) World: –Steel consumption expected to increase by 6%, driven by industrial production growth. Expected growth worldwide - 3% average –China: growth leader with 13% expected growth (25% for flat steel); imports are not expected to fall in the short-term –North America: decreasing inventories and production, signs of market recovery given by the manufacturing index (ISM) –Western Europe: decreasing production, flat market, usually follows growth in North America –Risks: lower than expected growth in China (estimates are around 8% GDP in the next couple of years), weak dollar, no recovery in North American and European economies Sources: IISI and CRU - 2nd half 2003

5 Growth Strategy Maintain and enhance CSN’s lowest cost producer position worldwide Maintain highest EBITDA margin in the industry with a solid balance sheet; net debt/EBITDA ratio of 1-2x Enhance distribution and develop superior client relationships - both in Brazil and abroad - by providing customized service solutions Take advantage of CSN’s capabilities, including expansion of the Casa de Pedra mine iron ore output Pursue opportunistic international expansion that capitalizes on CSN’s infrastructure assets and competitive cost structure

6 Casa de Pedra Iron Ore Mine High iron content: ~ 68% Possible capacity expansion up to 40 mm tons/y Estimate Reserves billion tons CSN consumption 2003E - 8 mm tons Iron Ore Production In millions of tons

7 Why Globalize? Flat Steel Market (millions of tons) WESTERN EUROPE UNITED STATES BRAZIL JAPAN POSCO (KOREA) Souce: CRU International - Costs of Steelmaking and Hot Strip Mill, 2001 edition, IISI World Steel in Figures, 2000 ed. and 2002 ed. Slab Cost (US$/t) “Anguish ” “Death” “Hope” “Happiness” 2002 BRAZIL UNITED STATES WESTERN EUROPE JAPAN

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