csn | annual report 2010
DESCRIPTION
Companhia Siderúrgica Nacional Annual ReportTRANSCRIPT
A N N U A L R E P O R T
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01. Message from the Management 0402. 2010 Highlights 0603. Timeline 0804. Company Profile 2405. Operating Performance 3006. Financial Performance 4607. Outlook, Strategy and Investments 5608. Corporate Governance 6009. Innovation 7010. Human Resources 7411. Environmental Responsibility 8212. Social Responsibility 88
SUMMARY
Also visit our website for this Report.
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0203
This Annual Report is more than a yearbook that recounts the achieve-
ments of Companhia Siderúrgica Nacional in 2010. It proposes to be a
source of information that is aligned with modern trends in corporate
communication. And it elegantly succeeds.
Its 96 pages of texts, images and charts unite to provide readers with a
contextualized analysis of the most important and interesting facts
regarding what took place in Brazil and the World while CSN was becoming
the integrated and profitable company that it is today.
And, with another display of innovative leadership, the company is invest-
ing in new media by presenting this report as an iPad application, as well
as in the traditional printed book format and a digital pen drive version.
This has been the way of the Company since its founding, 70 years ago,
and especially since it was privatized: innovative and victorious. �
Enjoy your reading.
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MESSAGE FROM THEMANAGEMENT
O1
Continuous Casting in Volta Redonda Steel Mill
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0405
CSN reaches its 70th anniversary, proud of its past, certain of its present, and confident in its future. Born from the dream of visionaries of the 1940s, this Company paved the highway for Brazil’s development and quickly gained markets beyond the borders of our Nation. We took the colors green and yellow to the big markets, out of Portugal, in Europe, and the United States, in North America. We are synonymous with competence, competitiveness, and results.
A careful look at the feats of 2010 attests to the fact that we are headed in the right direction. With our strategy, focused on operational excellence and integration, we have shown robust financial and operating results. The record revenues of R$ 14.5 billion and gross profits of R$ 6.8 billion – 71% above the previous year – are some of our 2010 results highlights.
Although recognizing that, in 2010, the strong growth of the emerging countries contributed to the recovery of the global economy, the Company’s results prove the efficiency of its administration. As of 1993, we have experienced a metamorphosis from a semi-bankrupt plant in Volta Redonda (Rio de Janeiro) to a profitable corporation with steelmaking, mining, energy, logistical and cement assets. Our transformation can be explained by several angles and among all of them, the one that expresses most emphatically this amazing story refers to our human resources. Our people.
Men and women who, with inspiration and perspiration, feed into the world of CSN, wherever it is located. In mining, for example, CSN and Namisa produced 32.8 million tonnes of iron ore. We are ready for planned growth, while increasing the importance of mining activities for CSN. Casa de Pedra and Namisa’s annual production capacities are scheduled to reach 70 million tonnes and 39 million tonnes, respectively, in the coming years. The concentration and pelletizing projects will also achieve full capacity.
In steelmaking, our origin, we increased production of rolled steel by 15%, and we are pre-pared to meet the heavy demand of the construction industry, with a more complete portfolio and a more extensive range of diversified and innovative products. With its integrated production system, the Company controls the entire steel production chain. This position ensures our place among the most competitive and profitable companies in the world, which encourages us for new challenges, like CSN Cimentos, whose production tripled in 2010, making it possible to present a complete portfolio to meet the demands of the domestic construction market. This sector is of fundamental importance to Brazil that, in 2010, had an outstanding GDP of 7.5%, which was sustained by strong domestic consumption, in turn fueled by more jobs, higher income and the expansion of credit.
In 2010, CSN invested a hefty R$3.6 billion, making it one of the biggest investors in Brazil and underlining its commitment to the country’s development . The Transnordestina project received most of these investments and currently employs more than 12,000 workers.
In addition to our organic growth projects, supported by a comfortable cash position, the Company continues to pay attention to acquisition opportunities and strategic partnerships in all segments where it operates.
2011 symbolizes much more than CSN’s 70th anniversary. It also marks movingly and proudly our determination – as we have done since those visionary years in the 1940s — to continue building the future of Brazil.
Enjoy your reading.
Benjamin Steinbruch
Chairman of the Board of Directors
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2010HIGHLIGHTS
O2
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0607
Net revenue totaled R$14.5 billion in 2010, 32% up on the previous year and a new record;
The gross margin reached 47% in 2010, an 11 p.p. improvement over 2009;
Annual gross profit amounted to R$6.8 billion, 71% up on the year before;
Adjusted EBITDA came to R$6.4 billion in 2010, an increase of 76% over the previous year.
The adjusted EBITDA margin stood at 44%, 11 p.p. higher than in 2009;
Mining revenue reached the record amount of R$3.6 billion, 84% up on 2009;
Iron ore sales totaled 25.3 million tonnes in 2010, the Company’s highest-ever figure and a 13% improvement over the year before;
Consolidated steel product sales volume on the domestic market, where margins are historically higher, accounted for 86% of total annual sales volume;
In 2010, the Company’s consolidated investments totaled R$3.6 billion;
The net debt/ adjusted EBITDA ratio closed the year at 1.55x, 0.19x less than at the end of 2009.
CSN is a highly liquid company, with a cash position of R$10.2 billion.
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TIMELINEO3
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0809
To learn more about
CSN’s history take a picture of
this QR Code with your
mobile
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TIMELINE
Hollywood invades Brazil, as well as Coca-Cola and a countless number of American products
United States enters World War II, after the attack on Pearl Harbor, on December 7th
On May 1st, the president Getúlio Vargas announces the Consolidation of Labor Laws.
The play, “Vestido de Noiva” (Wedding Dress), by Nelson Rodrigues, premiers at the Municipal Opera House of Rio de Janeiro.
The birth of Companhia Siderúrgica Nacional was close
On January 30, Getúlio Vargas signs the decree-law creating the Companhia Siderúrgica Nacional
The first General Meeting for creating CSN is held on April 9, with a starting capital of 500,000 “contos”
Construction of the blast furnace, coke plant, water treatment plant, and most of the thermoelectric plant is concluded
I940-I949
Earthmoving work begins Santo Antônio da Volta Redonda
In one year, 62 provisional lodgings were built, with 36 m2 each. In addition to a hospital, offices, laundries, water treatment plants, workshops, and dining halls
D Day. The Allies land at Normandy, on June 6
Rome is occupied by the Allies
“Cassino Quitandinha” opens in Petrópolis, Rio de Janeiro
FIESP promotes a visit by 120 industrialists and engineers from São Paulo to Volta Redonda
The first houses of VoltaRedonda begin to be delivered
Charles Chaplin premiers The Great Dictator
Carmen Miranda returns to the United States and becomes a world icon
1944
19431941
19421940
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1111
American baby boom begins
The Human Rights Declaration is approved by the UN
The State of Israel is created
After years of crisis, the world economy grows. 10 million TVs are sold
Swing is still the popular rhythm. And Frank Sinatra is the idol of millions
With the end of World War II, 80% of the construction of the mill was already concluded
Production of rolled steel reaches 226,900 tonnes
In May, Germany surrenders. Hitler commits suicide and Mussolini is murdered
Americans drop atomic bombs on Hiroshima and Nagasaki
Getúlio Vargas is deposed by the military: End of the New State
The Volta Redonda Steel Mill is officially inaugurated on October 12, with the presence of President Dutra. Getúlio Vargas, in voluntary exile, did not attend the ceremony
The blast furnace is lit on
June 11th and pig iron runs through the mill for the first time
Rita Hayworth wins an entire generation with the movie “Gilda”
IBM creates ENIAC, the first digital computer produced on a large scale
Three Siemens-Martins furnaces produced 150 tonnes, each, per load
Production comes to 94,342 tonnes of rolled steel, 31.79% of Brazil’s production
First year of operation of all sectors of the Steel Mill all together
In order to handle production, the fourth furnace and a fifth group of kilns are built
Expansion begins to bear fruit. 198,300 tonnes of rolled steel are produced
The Marshall Plan is announced on June 5
The sound barrier is broken
MASP (Museum of Modern Art of Sao Paulo) opens
1949
1948
1947
1946
1945
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TIMELINE
19541950
19531951
1952
Elizabeth II is crowned the Queen of England
Gene Kelly dances in Singing in the Rain
Eisenhower is elected President of the United States
The Diary of Anne Frank is published in Brazil
Getúlio Vargas is elected President of the Republic with 49% of the valid votes
In Maracanã Stadium, the Brazilian National Team loses the FIFA World Cup final to Uruguay by 2 to 1
The first Formula 1 race is held in Silverstone, England
More than five thousand people attend Sao Paulo’s first Art Biennial
A Streetcar Called Desire propels the career of young actor Marlon Brando
Walt Disney’s cartoon, Alice in Wonderland, wins the imagination of the whole world
The population of Volta Redonda reaches 33,000 inhabitants
The steel industry is the major reason for attracting laborers and migration within the country
Expansion begins (Plan B): construction of blast furnace nº 2, of another 21 furnaces in the coke plant, and the Siemens-Martins kilns nº 5 and nº6
Steel production expansion projected to be 750,000 tonnes/year
In the first half of the year, Getúlio Vargas inaugurates the second blast furnace at Volta Redonda
Volta Redonda is emancipated and becomes a new city in the State of Rio de Janeiro
I950-I959
Getúlio Vargas fires a fatal shot to his chest on August 23
The first color TV, produced on large scale, arrives in Brazil
Rock’n’roll is born, and Bill Haley explodes with Rock Around The Clock
Martha Rocha loses the Miss Universe contest by just 2 inches
Vargas announces the new production goal of post-expansion CSN: 1 million steel bars per year
CSN decides to make a new urbanistic plan for the city of Volta Redonda
Metallic Structures Plant goes into operation
Lack of imported materials harms CSN’s production
Marilyn Monroe becomes a movie diva, after the success of Gentlemen Prefer Blondes
US President Truman announces the development of the hydrogen bomb
Sir Edmund Hillary and Tenzing Norgay are the first men to reach the top of Mount Everest
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1312
1959
1958
19571955
1956
Juan Manuel Fangio wins his 5th World Formula 1 Racing Championship
Brazil strengthens UN troops that occupy the Suez Canal
The Russians launch the Earth’s first artificial satellite: Sputnik. Months later, they sent the first living being into space: the dog Laika
A compact single, with the song
“Chega de Saudade” is released by João Gilberto. Bossa nova is born
For the first time in its history, Brazil wins the FIFA World Cup in Sweden
Charles de Gaulle is elected President of France with 78.5% of the votes
The Guggenheim Museum opens to the public in New York
The Vietnam war begins
Fidel Castro comes to power in Cuba
Domestic production of rolled steel reaches 1.07 million tonnes in Brazil
Blast furnace nº 2 achieves production of 1 million tonnes
CSN produces railroad tracks and beams, heavy plates, rolls and hot rolled, cold rolled, galvanized and tin plate
This year, the company is able to make a significant capital increase
The first canned sodas are sold
Consumption explodes. Car sales grow all over the world. In the US, seven in every ten families have a car
Juscelino Kubitschek is elected President
The first National Metallurgical Workers Conference is held, organized by the Volta Redonda union, supported by CSN
Juscelino Kubitschek becomes President of Brazil and launches the
“Plano de Metas”, that provides for CSN’s expansion
Plan C for expansion begins. The goal is to achieve a coke production capacity of 1,970 tonnes/day
The announcement of a loan from Eximbank is made during the visit of US Vice President Richard Nixon to Brazil
During the implementation period of Plan C, the company is able to generate profits of about US$ 117 million
The VW Beetle begins to be manufactured in Brazil
Prince Rainier of Monaco marries Grace Kelly
Elvis Presley hits the top of the charts with Heartbreak Hotel
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TIMELINE
19641960
19631961
1962
The birth control pill is launched on the market
Brazil’s Éder Jofre is the World Bantam Weight champion (WBA)
Brasilia is inaugurated, substituting Rio de Janeiro as the capital of Brazil
Jânio Quadros resigns from the Presidency. Political crisis in Brazil
Parliamentary regime in Brazil. João Goulart sworn in as President
With Garrincha, the Brazilian national soccer team wins its second FIFA World Cup, in Chile
The Beatles song She Loves You is one of the most played in the world
First flight of Boeing 727
John Fitzgerald Kennedy takes the oath of office as the President of the United States
The Volta Redonda Steel Mill changes its name to Presidente Vargas Steel Mill
The General Edmundo Macedo Soares e Silva Foundation (now CSN Foundation) is created as the company’s social arm, performing actions focusing on building responsible citizens in the communities where it is involved.
The steel industry becomes an instrument of economic policy of the military government. General Pinto da Veiga becomes the President of CSN on April 26
I960-I969
CSN’s central office building was the first multiple-floor building to use welded steel I-beams
First intervention of the Federal Government regarding the price of CSN’s products
The military coup of 1964, in Brazil, overthew President João Goulart
PLO is founded, in Cairo, Egypt, with the support of the Arab League
North Vietnam is bombed by the US
The miniskirt takes over the streets of London and ofthe world
CSN’s production reaches 1.3 million tonnes/year
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1514
1969
1968
1967
1966
1965The Venera space probe arrives at the planet Venus
Elis Regina wins the final round of the Brazilian Popular Music Festival, the first of a series of festivals that went on for about 20 years
35,000 people march in Washington, D.C., in a historic protest against the Vietnam war
The novel “Cem Anos de Solidão” (One Hundred Years of Solitude), by Colombian author Gabriel García Márquez, is released in Buenos Aires, Argentina, selling out 8,000 copies in two weeks
The crisis that hits the steel industry leads President Castello Branco to hire an American consultancy firm to evaluate the scenario and provide solutions
The National Steel Plan is established, representing, in practice, the institutionalization of State planning for the steel industry
In the midst of the most serious crisis since its founding, CSN also sees the need to expand the capacity of its plant. The company adopts several measures to reverse the situation. At the end of the year, the first signs of financial recovery were reported
The work of Plan D continues, focusing on increasing the capacity of the plant to 1.7 million tonnes/year of steel bars, with an emphasis on plating (tin and zinc)
Beginning of “May 1968”. Students demonstrate at the French universities of Nanterre and the Sorbonne against the “status quo”. Barricades are raised on the streets and there are confrontations with the police
First supersonic flight of the Concorde Brazil’s President Médici takes office without direct elections
Neil Armstrong walks on the Moon
The Cultural Revolution is launched in China, by Mao Tse-tung
Indira Gandhi is elected Prime Minister of India
The President of Brazil, Marshall Humberto de Alencar Castello Branco, shuts down the National Congress
Last public performance of the Beatles takes place on the roof of Apple Records
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TIMELINE
19741970
19731971
1972
ABBA, Elton John and Rod Stewart hit the charts
Paul McCartney announces the end of the Beatles
After much tension, Apollo 13 finally lands in the Pacific
Salvador Allende is elected President of Chile
Brazil beats Italy by 4 to 1 and wins its third FIFA World Cup, in Mexico
Intel launches the world’s first microprocessor The movie Love Story is a blockbuster
Joe Frazier defeats Muhammad Ali in Madison Square Garden
The first Gramado Movie Festival is held
The VW “Brasilia” and the GM “Chevette” go on city streets for the first time
Brazil experiences the “economic miracle”. Production expansion projects continue. Expansion work moves forward
The company adopts measures to eliminate any activity that is not totally connected with steel production
The work of Stage II brings along several problems for the company to face
I970-I979
Volta Redonda watches the return of the union movement
General Ernesto Geisel becomes President of Brazil
Richard Nixon resigns, after the Watergate scandal
The Rio-Niterói bridge opens to traffic
The work of the first stage of Plan D, expected to be concluded this year, continues
The TV show “Fantástico” debuts on Globo TV
The Godfather dominates box office
Emerson Fittipaldi becomes the youngest world champion in the history of Formula 1 racing
The Pong Game is released and changes the way the world has fun
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33
1979
1978
1977
1976
1975Vietnam war ends The Voyager 1 space probe
begins its interplanetary trip and reveals secrets of the Universe
Jimmy Carter is elected President of the US
Elvis dies, at 42 years of age
George Lucas releases Star Wars and a new icon is born: Darth Vader
The first “test tube baby” is born
Brazilian President Ernesto Geisel ends the AI-5 and restores habeas corpus in Brazil
General João Batista Figueiredo takes over as President of Brazil
Regina Duarte stars in “Malu Mulher”, one of
the most popular soaps on Brazilian TV
The Iranian revolution transforms Iran into an Islamic Republic
The company inaugurates Blast Furnace 3. The work is concluded, ensuring CSN a production capacity of 1.7 million tonnes of bars/year, and 1.27 million tonnes of rolled steel/year
Production capacity to be achieved by CSN is revised, and expanded to 4.6 million tonnes/year
Stage III provided not only for production expansion, but a complete modernization of the old mill, with the substitution of all equipment
In the 1970s, the company invests heavily in pollution control equipments – aware of its responsibility for the environment. In Stage III, alone, US$ 123 million were invested
Stage III keeps the cities of Volta Redonda, Rio de Janeiro, and Sao Paulo busy: industries work to meet the demand, new production areas are created, new buildings are built
Steve Jobs and Steve Wozniak create the Apple Computer Company
Golden era of TV soaps in Brazil: “Pecado Capital”,“Saramandaia”,
“Estúpido Cupido”, and “Escrava Isaura”
Chico Buarque protests against the military dictatorship and releases the songs “Cálice” and
“Apesar de Você”
Margaret Thatcher becomes the first woman Prime Minister of the United Kingdom
14-year-old Nadia Comaneci wins three gold medals at the Montreal Olympics
Spielberg releases Jaws and takes millions to the movies
Oil crisis and launch of the Pro-Alcohol program
Brazil-Germany nuclear accord is signed
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TIMELINE
19841980
19831981
1982
Argentina invades the Falkland Islands The Itaipu hydroelectric plant goes into operation
Michael Jackson releases Thriller
The Pac-Man game is launched
Ronald Reagan is elected President of the United States
Brazilian architect Oscar Niemeyer creates the JK Memorial
Pope John Paul II is shot at the Vatican Lady Di marries Prince Charles MTV goes on the air in the US Law passed, creating the Brazilian State of Rondônia
The population of China reaches its first billion inhabitants The first generation of the mobiles is launched by Motorola The Compact Disk (CD) transforms the music industry
The “Paralamas do Sucesso” band releases its first album, and a new phase in Brazilian rock music begins
CSN begins to focus more on exports
The company makes production adjustments, in order to face the national crisis: control of public indebtedness and drawing back of the domestic market
I980-I989
E.T. dominates the movie theaters
With the crisis, the company is forced to slow down its expansion work. The international market shows signs of paralysis
The first Apple Macintosh is launched
The Betamax format clashes with VHS in the dispute for videocassette consumers The “Diretas-Já” (Direct Elections Now) movement takes over Brazil
Despite the drop in the world price for steel, exports and the company’s hard work ensured a sales increase of 33%
The mascot Misha is the symbol of the Moscow Olympic Games
First mission of the Columbia space shuttle
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1918
1989
1988
1987
1986
1985
Live Aid takes in millions to help combat hunger in Ethiopia
Microsoft launches the first version of Windows
British scientists discover a hole in the ozone layer
Gorbachev presents the reform in the concept of Perestroika
The Soviet Union launches the Mir Space Station
Brazilian President José Sarney launches the “Plano Cruzado” to fight inflation
General elections are held in Brazil
The US Food and Drug Administration approves the drug that attemps to combat the AIDS virus
Nelson Piquet wins his third Formula 1 world championship
The Mercosur begins to be formed
Brazilian Constitution is passed
The Simpsons win TV fans
The first of 24 satellites to form the global GPS network is launched
The Berlin Wall comes down
Fernando Collor de Mello is elected President of Brazil
The “Plano Cruzado” affects CSN’s steel production, requiring a reduction in exports, to meet internal demand
CSN concentrates its efforts on increasing the operational efficiency of the Presidente Vargas Steel Mill
In the first half of the year, CSN exports 215,000 tonnes of steel. By the end of the year, the company is able to raise this amount to 615,000 tonnes
The national crisis affects CSN’s performance. Still, it invests in technological improvements, such as the sixth line for electrolytic tinplating, which makes the company the 3rd largest producer of tinplating in the world
CSN notes a significant growth in gross profits and decrease in losses
Michael J. Fox is a box office hit with the movie Back to the Future
Tancredo Neves is elected President of Brazil
Rock in Rio attracts 1.5 million people
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TIMELINE
19941990
19931991
1992
Bill Clinton is elected President of the United States
With the fear of being impeached, Fernando Collor de Mello resigns as President of Brazil Brazil wins the gold medal in men’s volleyball, in Barcelona
Pretty Woman is one of the year’s hit movies
Collor Plan is launched, and among other measures, it confiscates Brazilian savings accounts The air bag is invented in the United States
South Africa approves final measures for ending Apartheid
Ayrton Senna wins the “GP Brasil” race for the first time
Fernando Henrique Cardoso takes over as Treasury Minister Intel launches the Pentium Processor
The company adopts a whole series of measures to optimize its production processes
CSN is 50 years old and faces a new prospect: privatization
First steps are taken for the shock of changes in CSN
I990-I999
CSN’s auction is set for December 22, then postpo-ned. The company achieves net profits of 125 million dollars
Brazil elects Fernando Henrique Cardoso as President
Launch of the “Real “currency, for the main purpose of controlling the hyperinflation that was sweeping over the country The Chunnel is inaugurated between France and England
Ayrton Senna dies during a Formula 1 race in Italy
After a 24-year hiatus, the Brazilian national soccer team wins its fourth world championship
CSN is sold during successive auctions on the Stock Exchan-ge of Rio de Janeiro. The government sells 91% of its shares in the com-pany, and the current controller becomes one of the controlling partners of the company
A period of large investments begins, for the purpose of improving the quality of its pro-ducts, and of increa-sing the productivi-ty of its manufactu-ring plants
McDonalds opens its first store in China
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2120
1999
1998
19971995Pelé becomes Minister of Sports
Dow Jones closes above 5,000 points for the first time
The European Union allows its citizens to freely move from country to country
The DVD is launched
Nelson Mandela signs the new South African constitution
Light, Rio’s electrical power company, is privatized
Brazil’s Robert Scheidt earns a gold medal in sailing in the Atlanta Olympic Games
Dolly, the first cloned mammal, is born
Microsoft becomes the company with the highest market value
Tony Blair becomes the Prime Minister of England
Gustavo Kuerten wins the French open at Roland Garros, in Paris
Fernando Henrique Cardoso is re-elected
Google is born
The Brazilian national soccer team loses to France the final game of the World Cup
The world population exceeds 6 billion people
Lance Armstrong wins the first of seven Tour de France
The movie Matrix is released
With the mission of preparing CSN to be involved in an increasingly globalized economy, executive Maria Silvia de Bastos Marques takes over as CEO
The company expands its involvement in the infrastructure sector by participating in projects for two new hydroelectric plants, in Sepetiba Port, and in the MRS Logística railroad, integrating their operations
Benjamin Steinbruch becomes the Chairman of the Board of CSN
Modernization movement builds up and the company begins to gain more efficiency
The company begins to list American Depositary Receipts (ADR) on the New York Stock Exchange (NYSE) Steel production reaches the historic mark of 100 million tonnes
CSN acquires INAL and Intermesa, a steel distributor headquartered in Rio de Janeiro. By unifying both operations, the new Indústria Nacional de Aços Laminados (INAL) is born
A co-generation thermoelectric plant is inaugurated at the Presidente Vargas Steel Mill, supplying 60% of the company’s needs and benefiting the environment1996
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2000-2010
2004GalvaSud plant opens, specializing in galvani-zing, in Porto Real, RJ.
Itá hydroe-lectric plant is inaugura-ted in SC.
Container Terminal (TECON) is inaugurated in Porto de Sepetiba, RJ.
Brazil wins its fifth FIFA World Cup in Korea and Japan.
Luis Inácio Lula da Silva is elected President of the Republic of Brazil
Benjamin Steinbruch, President of the Board of Directors, also takes over as CEO of CSN.
CSN acquires Metalic, which manufactures two-part steel cans, located in Ceará.
CSN acquires 50% of the capital of Luso-sider, in Portu-gal, and control of CSN LLC.
CSN takes over 100% of TECON and 49.9% of the shares of CFN, which operated the former northeastern railroad system of the RFFSA.
CSN Paraná is inaugurated, dedicated to producing coated steel, Galvalume®, and pre-painted products.
CSN takes over all the capital of the GalvaSud, in Porto Real, RJ.
The Millennium Bug was nothing but a scare
The Internet spreads all over the world, as does the
“bubble effect”
Brazil celebrates its 500th anniversary with festivities all over the Nation
The Genome Project is concluded
The world watches the attacks on the Twin Towers and the Pentagon, in the United States
Saddam Hussein is captured by American troops in Iraq
Tsunami leaves a trail of destruction in Asia
Facebook is launched and transforms the way people relate to each other
Brazilian delegation returns from the Greek Olympic Games with ten medals
Arnold Schwarzenegger is elected governor of California
TIMELINE
20032001
20022000 A term is signed with the Vale do Rio Doce Company to uncross shareholding.Vicunha Siderurgia becomes the controlling partner of the company.
Renovation work on Blast Furnace nº 3 and on Hot Roller nº 2 increase the capacity to 5.6 million tonnes of crude steel and 5.1 million tonnes of rolled products.
CSN acquires Heartland Steel and forms CSN LLC, beginning the internatio-nalization process.
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2322
Hurricane Katrina hits the coast of the US States of Louisiana, Mississippi, and Alabama
Ronaldinho Gaúcho is elected the best soccer player in the world
Cardinal Joseph Ratzinger is elected Pope
CSN acquires the remaining 50% of Lusosider, in Portugal, to now hold all of the company’s capital
Expansion of the Casa de Pedra mine begins
CSN acquires PRADA, the country’s largest steel packaging manufacturer
Construction begins of the New Transnordestina railroad, 1,728 km long, which will carry production in the Northeast to the ports of Pecém and Suape
CSN announces a strategic part-nership with a consortium of Asian steel-makers, invol-ving the sale of 40% of Namisa’s capital In April, the company launches CSN Steelcolors for the construction industry
Pluto is not longer considered to be a planet
Dilma Rousseff is the first woman to be elected as President of Brazil
Ashes from Iceland’s Eyjafjallajökull volcano brings chaos to air transportation in Europe
Spain wins the FIFA World Cup for the first time
2010
20092008
2007
2006
2005 One billion songs are downloaded through Apple’s iTunes
The special European laboratory, Columbus, connects to the International Space Station
Usain Bolt is the fastest man in the world
US President George W. Bush and Pope Benedict XVI visit Brazil
The use of solar energy is now a reality
iPhone changes the way the cell phone is used
In February, the first iron ore cargo for export is shipped
On July 20, CSN buys Companhia de Fomento Mineral (CFM), located in the State of Minas Gerais, and restructures the company, which is renamed as Nacional Minérios S.A (Namisa).
The painting “Nu au Plateau de Sculpteur”, by Pablo Picasso, is sold for US$ 106 million
In May, CSN enters the cement market with the launch of the grinding plant located in Volta Redonda, RJ
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COMPANYPROFILE
04
CSN’s facilities in the State of Minas Gerais
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2425
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Projects to triple mining and logistics capacity
Companhia Siderúrgica Nacional (CSN) ce-lebrates its 70th anniversary in 2011. CSN was a landmark for the Brazilian industrialization when it was founded in 1941, and also when it was priva-tized, in 1993. Today the Company faces the future with a highly integrated production, one of the lowest production and logistical costs, and one of the highest levels of profitability in the global steelmaking industry.
With its firm goal of growing and increasing its its business areas, the Company operates throu-ghout the entire steel production chain, from mi-ning of iron ore to producing and selling rolled products, tin plates and steel packaging.
Positioned as Brazil’s second largest exporter of iron ore, CSN has projects to triple its mining capacity and port logistics. With the strength of steelmaking and mining as its main sources of re-venue and income, CSN has a solid profitability to grow in other promising businesses, such as cement and long steel, and to strengthen its logistical and energy infrastructure.
CSN’s presence and stakes in railroads, port terminals, its growing cement production, and in-vestments in energy generation contribute to making CSN an efficient Company and self-sufficient in resources. These factors allow CSN to habitually maintain its EBITDA margins over 40%.
In 2010, the Company maintained its growth. At the steelmaking business, CSN’s main plant, Presidente Vargas Steel Mill, in the city of Volta Redonda (Rio de Janeiro), operates with two blast furnaces that have a total capacity of 5.6 million tonnes of crude steel per year. Last year, production reached 4.9 million tonnes, or 12% over 2009. Rolled steel products reached 4.7 million tonnes in 2010, an increase of 15%.
CSN’s steel is found in people’s everyday lives, from automotive industry to home applian-ces and construction, and packaging.
In the mining business, the Company broke records and increased its sales in 2010, compared to the previous year. Considering all of the finished iron ore products from Casa de Pedra mine and Namisa, both located in Minas Gerais, CSN sold 25.3 million tonnes, or 13% more than in 2009. Ex-ports represented 23.8 million of this amount. Within the Company’s integration policy, CSN absor-bed 6.9 million tonnes of iron ore for its own consumption. CSN has projects underway for increasing production capacity to 89 million tonnes and to 84 million tonnes at the Itaguaí port.
As for cement in 2010, after less than two years in this segment, CSN produced and sold around one million tonnes of CPIII cement at its first plant, located in Volta Redonda, more than double the previous year. A full sales volume of 2.4 million tonnes is projected for 2012. In 2011, the clinker factory (with capacity for 830,000 tonnes) will go into operation, ensuring in-creased production and lower costs.
IIn the logistics business, the highlight is the building of Nova Transnordestina railroad,with 1,728 kilometers long and connecting the interior of the Northeast region to the ports of Pecém and Suape. Nova Transnordestina was CSN’s biggest investment in 2010 and one of the major projects of Brazil’s PAC – Programa de Aceleração do Crescimento (Federal Growth Acceleration Program) in the Nor-theast. Another railroad, MRS Logística, a company in which CSN holds a stake of 33.27%, transpor-ted around 144 million tonnes, 12% more than in 2009.
In addition to the railroads, CSN manages two port terminals in Itaguaí (Rio de Janeiro): Te-car, for solid bulk; and Sepetiba Tecon, for containers. In 2010, Sepetiba Tecon remained at the top in market share among the four main port terminals in the States of Rio de Janeiro and Espírito Santo. At the same time, Tecar shipped 25 million tonnes of iron ore, an increase of 7% over the previous year. It unloaded about 4 million tonnes of other products, like coal, coke, sodium carbonate, and clinker for its own consumption and for other clients.
MISSION
To stand out as an icon of entrepreneurship and civic responsibility in Brazil, increasing shareholder value in a sustainable manner by focusing on the steel, mining and infrastructure industries, in which the Company, possesses certain growth-enhancing advantages; to offer high-quality products and services; to employ the highest standards of ethical conduct in its relations with employees, suppliers, clients and its surrounding communities; and to act in harmony with the environment at all times.
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CSN Porto Real specializes in coated galvanized steel for the automotive industry 26
27
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Dump trucks in Casa de Pedra mine
See the location of the mine on the map
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CSN is one of the country’s largest energy consumers and it is self-sufficient. This indepen-dence is guaranteed by the Company’s co-generation thermoelectric plant (Central Termoe-létrica de Cogeração de Energia – CTE) at the Presidente Vargas Steel Mill, and the hydroelec-tric plants at Itá (Santa Catarina) and Igarapava (São Paulo/Minas Gerais), in which CSN has stakes. Together, they generate an average of 428 MW. The Company has plans to expand this capacity in the future with new investments. In 2011, CSN will unveil a top recovery turbine atta-ched to blast furnace nº 3, which will increase capacity by 18 MW.
Attentive to the market, CSN has worked on mergers and acquisitions and on gaining new markets. At the end of last year, CSN began negotiating with Alfonso Gallardo, a Spanish com-pany, targeting the European long steel and cement markets.
In order to conduct this entire operation and maintain the Company among the five largest in Brazil, as well as integrated and profitable, CSN has around 19,000 employees, 12.7% more than the previous year, who are constantly being trained. Social and environmental responsibi-lity are a part of the Company’s values, and the CSN Foundation invested R$ 14.9 million in 2010, in education, culture, sports, and health.
With shares traded on São Paulo and New York Stock Exchanges, CSN is commited to its more than 42,000 shareholders.
VALUES
Our activities are governed by ethical conduct and transparency; We encourage respect for other people and mutual trust; We aim to provide a safe and healthy environment; We are firm believers in social and environmental responsibility; We value integrated management and teamwork; We prioritize commitment to shareholders; We seek client satisfaction and recognition; We esteem partnerships with suppliers; We consider CSN’s corporate culture to be the cornerstone of our operations.
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OPERATINGPERFORMANCE
O5
Presidente Vargas Steel Mill has a total capacity of 5.6 million tonnes of crude steel per year
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3130
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Casa de Pedra and Namisa (photo) sold 25.3 million tonnes of iron ore
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2010 marked a solid increase in the produc-tion of Companhia Siderúrgica Nacional in its several sources of income. In Steelmaking, crude steel production grew 12%; in Mining, CSN’s own iron ore production plus purchases from third parties grew 17%; and sales volume of cement in 2010 reached 992,000 tonnes, a growth of 193% over 2009.
See the following details of CSN’s perfor-mance in 2010, taking into account the scenari-os of the segments involved.
MINING
Iron oreAs Brazil’s second largest exporter and currently implementing major logistics and port ex-
pansion projects, CSN and Namisa sales grew 13% in 2010 compared to the previous year.Brazil was the highlight of global iron ore market, with record exports of 307 million tonnes,
15% more than in 2009, according to the LBH Group.CSN’s sales of finished iron ore products from the Casa de Pedra mine and Namisa reached
25.3 million tonnes in 2010. Out of this total, exports accounted for 23.8 million.In addition, the Company produced 6.9 million tonnes of iron ore for its own consumption.2010 will be remembered as a year of major changes in the iron ore market. The traditional
pricing system, used for over 40 years, was replaced by a system that reflects market oscilla-tions and is subject to periodical reviews.
LimestoneThe mine in Arcos, Minas Gerais, is responsible for supplying the limestone and dolomite con-
sumed as fluxes in steel production. In 2010, it supplied the Presidente Vargas Steel Mill with around 1.8 million tonnes.
Following CSN’s entry into the cement market, in 2011 the Arcos mine will also be supplying limestone for the production of clinker, an important input for the cement production in Volta Redonda.
Therefore, CSN’s operations will become even more integrated through the verticalization of production, thereby enhancing competitiveness and profitability.
TinTin, an essential tin plate raw material, is produced by ERSA - Estanho de Rondônia S.A., a Com-
pany subsidiary, which owns the Santa Bárbara tin mine in Itapuã do Oeste and a smelting plant in Ariquemes, both in the state of Rondônia.
Revenue Growth in Mining and Steel in 2010
3233
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STEELMAKING
On the international scene, steel production hit a record figure with 1.4 billion tonnes, accord-ing to the World Steel Association (WSA), for a growth of 15% over 2009. Despite the record, with the exception of China, many producing countries have still not recovered their pre-crisis levels.
In Brazil, the apparent consumption of steel products came to 26.6 million tonnes, 43% over 2009. In 2011, this market is expected to reach 28 million tonnes.
CSN dominates the entire steel production chain, from the extraction of iron ore to produc-tion and sales of high value-added finished products.
The Company produces various types of coated galvanized steels that are corrosion-resis-tant and less susceptible to international market price swings. The Company’s main markets are the automotive, construction, distribution, home appliance, OEM (capital goods, engines, etc.), and metal packaging industries.
Crude steel production totaled 4.9 million tonnes in 2010, 12% up on 2009 and equivalent to 88% of the Presidente Vargas Steel Mill annual installed capacity of 5.6 million tonnes. Rolled flat steel production totaled 4.7 million tonnes, 15% more than the year before.
The projection is even higher for the next three years, since maintenance services have been completed, so that an increase in installed capacity can be implemented.
Construction of the new long steel plant is underway, using the Presidente Vargas Steel Mill facility’s existing infrastructure. CSN Aços Longos received R$ 275 million in investments in 2010.
In flat steel, the Company has five galvanizing production lines: three in the Presidente Var-gas Steel Mill, in Volta Redonda, one in Porto Real (Rio de Janeiro) and another in CSN Paraná, in Araucária, which also has cold-rolling and pre-painting facilities.
The galvanizing production line called CSN Porto Real is the former subsidiary GalvaSud S.A., which was incorporated on January 29, 2010, and became a branch of the Company. This incor-poration seeks to optimize processes and maximize results by centralizing the sales, operational and administrative activities of both companies under a single organizational structure.
CSN Porto Real is strategically located between Rio de Janeiro and São Paulo, mainly serv-ing the automotive sector and offering a wide range of world-class products and services. It has a hot galvanizing line and a shearing center, in addition to a state-of-the-art laser-welding facility. In 2010, production exceeded 307,000 tonnes, 30,000 tonnes more than in 2009, most of which went to the automotive sector.
CSN Paraná focuses on home appliances, as well as the construction industry and large distributors. In 2010, total integrated production on all lines came to 1,020,000 tonnes.
The Company also has two overseas subsidiaries: CSN LLC, based in Terre Haute, Indiana, USA, which produces cold-rolled and galvanized products, and Lusosider, in Paio Pires, Portu-gal, which also produces flat coated steel.
CSN is Brazil’s sole producer of tin plate, most of which is absorbed by the packaging indus-try, and one of the five largest producers in the world, with an installed capacity of 1 million tonnes per year. It also produces Galvalume, a zinc-and-aluminum-coated steel which com-bines high luster and durability, and pre-painted steel, both of which have several applications in the construction and home-appliance industries.
was the increase in rolled flat steel production in 2010
15%
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Steel production grew over 2009 and capacity used reached 88%
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Packaging production line at Prada
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CSN LLCCSN LLC, the Company’s American arm, runs a cold-rolling and galvanizing facility in Indiana.
In 2010, it produced 250,000 tonnes of cold-rolled and galvanized coils, 15% more than in 2009.
LusosiderInstalled in Paio Pires, Portugal, Lusosider Projectos Siderúrgicos S.A. undertakes cold-roll-
ing and hot-dip galvanizing. In 2010, it produced and sold 241,000 tonnes of galvanized prod-ucts on the European market, 22% up on the previous year.
Metalic NordesteA CSN subsidiary, Metalic is Latin America’s sole manufacturer of aluminum lids and two-
piece steel cans for the beverage industry. In 2010, it sold 831 million 350 ml cans, 60 million 250 ml cans and 1,284 million lids, 13% of which were exported to Latin America.
Currently, Metalic has a 5% share of the national beverage can market and a 34% share in the Northeast region.
Prada EmbalagensFounded in 1936, Companhia Metalúrgica Prada joined the CSN Group in 2006. Latin Amer-
ica’s leading manufacturer of steel packaging, it has two plants located in São Paulo (São Paulo) and Uberlândia (Minas Gerais), and is an important client for the Company’s tin plate.
Its production lines are equipped to deliver the high volumes and technical specifications demanded by the food, chemical and aerosol industries. Prada has revalidated its ISO 9001:2008 certification, first obtained in 1995, being the first company in its segment to achieve this distinction.
In 2010, the company maintained the volume of investments in previous years, focusing its operations on the chemical and aerosol product markets, which are the most profitable metal packaging segments.
Prada DistribuiçãoThe Company operates in the distribution and service markets through the Prada Distri-
buição business unit, owned by its subsidiary, Companhia Metalúrgica Prada.With nationwide coverage, the Company maintains three service centers and eight distri-
bution centers equipped to supply plates, blanks, rolls, I-beams, welded tubes, steel decks and metallic roofing tiles to several industrial sectors, including the automotive and con-struction industries. It is one of the largest rolled flat steel distributors and processors, with a wide range of shearing, forming and logistics services, offering off-the-shelf, made-to-or-der and kanban services, adding value to CSN’s product portfolio in order to meet the needs of the most demanding clients.
In 2010, Prada Distribuição sold 372,000 tonnes of products, 3% more than in 2009, and repositioned its distribution center in Paraná, making this company play an important role in CSN’s strategy. In the coming years, it will continue to invest in expanding its storage and pro-cessing capacity and distribution logistics, as well as its geographical coverage. With this mind, it plans to open three new distribution centers in 2011.
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Building the Transnordestina: new section is 1728 km long
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See the location of
one of the sections of
implantation on the map.
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LOGISTICS
PortsCSN manages two terminals in Itaguaí Port, in Rio de Janeiro: a bulk solids terminal (Tecar)
and a container terminal (Sepetiba Tecon). In 2010, Tecar shipped 25 million tonnes of iron ore, 7% up on the previous year, and un-
loaded around 4 million tonnes of other products, including coal, coke, sodium carbonate and clinker for its own consumption and for other clients.
Sepetiba Tecon, CSN’s container and general cargo terminal, is one of the pillars of the Company’s logistics platform project in Itaguaí, Rio de Janeiro.
In 2010, the terminal handled 196,000 containers, 306,000 tonnes of steel products and 30,000 tonnes of general cargo, maintaining its lead among the four largest terminals in the states of Rio de Janeiro and Espírito Santo, with a 29% share of total containers handled.
Thanks to constant investments and excellent land and maritime access conditions, in 2010 Sepetiba Tecon received the largest container ships operating in South America: the MSC Messina and the Hamburg Süd Santa Clara, both of which are 300 meters long.
All of these factors have confirmed its position as a hub port for cargo and have helped it become the largest container terminal in Rio de Janeiro and one of the largest in Brazil.
In order to expand Tecon, the Company is investing in infrastructure, including the equal-ization of berth 301, and new equipment, including two super-post-Panamax portainers, four transtainers and six reach stackers, in addition to developing projects for the multimodal logis-tics center and the adaptation of berths 302/303.
After these investments are concluded, the Itaguaí port complex will be consolidated as one of the largest in the country.
RailroadsBrazil’s rail logistics sector had a positive year in 2010. The volume of cargo transported in-
creased 15% over 2009. With investments from private enterprise and support from govern-ment, the outlook for the rail, sector is promising. The federal government forecasts that Brazil will have 41,000 kilometers of railroads by 2020, a 37% growth over the current railway system.
CSN retain interest in two railway companies: MRS Logística and Transnordestina Logística S.A.
MRSMRS Logística operates the former Southeastern Network of the Federal Railways (RFFSA), in
the Rio de Janeiro-São Paulo-Belo Horizonte corridor.The company, which celebrated 14 years of operations last year, during which time it recorded
substantial growth, continues to present excellent results. In 2010, it transported around 144 million tonnes, 12% more than in 2009.
CSN holds a direct 22.93% interest in MRS Logística S.A., as well as an indirect stake of 10.34%, giving it a total interest of 33.27%.
In the container segment, MRS consolidated its position as the largest domestic rail carrier, with 53,500 containers transported.
MRS Logística S.A. focuses most of its activities on heavy haul clients (ore, coal and coke), who accounted for around 107 million tonnes of cargo, 74% of the company’s total, as well as long-term agreements, new businesses and projects aimed at supporting the company’s growth.
MRS’ rail services are vital for the supply of raw materials and the outflow of finished products. It transports all the iron ore, coal and coke consumed by the Presidente Vargas Steel Mill, as well as mining products and some of the steel produced by CSN for the domestic market and exports.
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40
TransnordestinaIn 2010, Transnordestina received the major investments of the Company, a total of R$ 1,371
million to build the new railway system that should be concluded by the end of 2013. This route will be 1,728 kilometers long and will carry up to 30 million tonnes of cargo per year.
In 2006, CSN merged Transnordestina S.A., then a state-owned company, into Compan-hia Ferroviária do Nordeste (CFN). The company’s name was subsequently changed to Transnordestina Logística S.A.
Transnordestina Logística S.A (TLSA) operates the former Northeastern network of the RFF-SA, which extends for 4,534 kilometers and connects seven states – Maranhão, Piauí, Ceará, Rio Grande do Norte, Paraíba, Pernambuco and Alagoas. TLSA’s concession agreement runs for 30 years as of 1997 and may be extended for a similar period.
In 2010, it carried 1.5 million tonnes, the most important cargo being fuel, cement, aluminum, rolled coils and malt, among others.
At the end of 2010, CSN held a 76.45% interest in the company.
Solid Bulk Terminal (Tecar) loads iron ore and unloads coal, coke, clinker and other products
See the location of
the Terminal on the map
41
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The cement plant, in Volta Redonda (RJ), produced around 1 million tonnes, in 2010
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CEMENT
Incentives for buying homes, increased in-come and employment, and expansion of Bra-zil’s infrastructure, led by works related to the 2014 FIFA World Cup and the 2016 Olympic Games boosted cement sales in Brazil. There was a 15% growth and the domestic market consumed 59 million tonnes in 2010.
The cement industry is a new market for CSN, and it is the business segment that grew the most in 2010. The Company produced around one million tonnes of cement from its first plant in Volta Redonda, significantly more than the 338,000 tonnes produced in 2009.
The sales volume of cement reached 992,000 tonnes in 2010, a growth of 193% compared to 2009.
CSN Cimentos increases the verticaliza-tion and integration of the Company, since the cement industry possesses a high degree of complementarity with steelmaking and sup-plies the entire construction sector, which is of fundamental importance to the country’s eco-nomic development.
The investments made in CSN Cimentos, in 2010, reached R$ 249 million.CSN’s cement is currently sold in the Baixada Fluminense region, the south of Rio de Janeiro
state, the Vale do Paraíba and Greater São Paulo, as well as the south of Minas Gerais state. At the end of 2010, it had four distribution centers, which are crucial for increasing competitiveness given the excellent acceptance of our product, which was higher than originally estimated.
ENERGY
The Company is one of Brazil’s largest industrial electric energy consumers, and it is self-suffi-cient. To that end, CSN has been investing in power generation projects for more than 10 years.
In 2010, net revenues from the energy segment reached R$ 113 million, in line with the previous year. All in all, the Company has a generating capacity of 428 MW, enough to meet all the group’s power needs.
Its generation assets are: a 29.95% interest in the Itá Hydroelectric Power Plant, in San-ta Catarina, corresponding to 167 MW, through a 48.75% stake in Itá Energética S.A.; a 17.9% interest in the 210 MW Igarapava Hydroelectric Power Plant, in Minas Gerais; and the 238 MW Thermoelectric Cogeneration Center, installed in the Presidente Vargas Steel Mill, in Volta Redonda.
With an eye to the growth it must support over the coming years, the Company is developing the project for a top recovery turbine attached to blast furnace nº 3 at the Presidente Vargas Steel Mill, which will add 18MW to its total generating capacity. CSN is also studying other energy investments to accompany the expansion projects and to maintain its self-sufficiency.
The Igarapava hydroelectric plant is one of the assets which CSN has a stake in the energy sector, in order to achieve self-sufficiency
increase in net revenue from cement in 2010
234%
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Transtainers in Port of Itaguaí
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PERFORMANCEFINANCIALO6
Mines, plant and port integrated by the MRS Logística railroad
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4647
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Inventory of rolled steel at the CSN Paraná subsidiary
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14.5 billionCSN’s record net revenue in 2010
CSN was right in counting on re-newed growth in 2010. In a scenario where Brazil had a significant in-crease of 7.6% in its GDP, and where the world’s main economies intensi-fied their efforts to recover the loss-es of 2009, CSN achieved a record net income of R$ 14.5 billion, or 32% more than 2009.
Adapting to International Accounting StandardsCSN’s consolidated financial statements are presented in accordance with International
Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB), and in accordance with Brazilian accounting practices, issued by the Accounting Pronouncements Committee (CPC) and approved by the Brazilian Securities and Exchange Commission (CVM), pursuant to CVM Instruction 485 of September 1, 2010.
Net Revenue Consolidated net revenue totaled R$14,451 million in 2010, a 32% improvement over 2009,
as a result of the growth in the sales volume of steel, as well as for higher prices and sales volume for iron ore.
Cost of Goods SoldThe cost of goods sold amounted to R$7,687 million in 2010, a growth of 9% over 2009, as a
result of greater sales volume of steel products, partially offset by a greater dilution of fixed costs.
Selling, General, Administrative and Other Operating ExpensesIn 2010, CSN recorded a net expense of R$551 million in the “Other Revenue and Expens-
es” line, versus revenue of R$721 million in 2009. The R$1,272 million reduction was chiefly due to the positive non-recurring effects of the reverse merger of Big Jump Energy Participa-ções S.A. by Namisa and the adherence of CSN and its subsidiaries to the REFIS tax repay-ment program in 2009.
Annual SG&A expenses totaled R$1,215 million, 9% up on 2009, reflecting the Company’s stronger sales efforts.
Consolidated Highlights (R$ million) 2009 2010 2010 x 2009 (Var%)
Net Revenue 10,978 14,451 32%
Gross Profit 3,956 6,764 71%
Adjusted EBITDA 3,621 6,355 76%
Adjusted EBITDA Margin 33% 44% 11 p.p.
Net Profit (R$ MM) 2,615 2,516 -4%
Net Indebtedness (R$ MM) 6,297 9,850 56%
Growth in 2010 looks to the future Processing flat steel at
Prada Distribuição
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EBITDAAdjusted EBITDA as presented in this report comprises net income before the financial re-
sult, income and social contribution taxes, depreciation and amortization and other operating revenues (expenses), the latter operating item being excluded due to its non-recurring nature.
Adjusted EBITDA totaled R$6,355 million in 2010, 76% up on the R$3,621 million recorded in 2009, accompanied by an adjusted EBITDA margin of 44%, 11 p.p. more than the 33% re-ported last year.
The variation between adjusted EBITDA and the adjusted EBITDA margin previously published in BRGAAP and the current figures in accordance with IFRS are presented below (R$ million):
Financial Result and Net DebtThe 2010 net financial result was negative by R$1,911 million, chiefly due to the following factors:
Interest on loans and financing totaling R$1,808 million; Negative monetary and foreign exchange variations of R$354 million, including the result of
derivative operations; The monetary restatement of tax provisions totaling R$284 million.
These negative effects were partially offset by returns on financial investments and other financial revenue (expenses), totaling R$535 million, basically due to the upturn in cash and cash equivalents.
4T09
1.741.56
1T10
1.56
2T10
1.51
3T10
1.55
4T10
Calculation of Consolidated EBITDA (Adjusted) 2009 2010
Net Profit for the Period 2,615 2,516
(-) Net Financial Result 246 1,911
(-) Social Contribution 180 154
(-) Income Tax 520 417
(-) Depreciation and Amortization 780 806
(-) Other Net Income (Expense) (721) 551
Adjusted EBITDA 3,621 6,355
R$ million
Adjusted EBITDA 2009 2010
Adjusted EBITDA (BRGAAP Reported) 3,607 -
Convergence effect on accounting practices 14 -
Adjusted EBITDA (IFRS) 3,621 6,355
R$ milion
Indebtedness (R$ MM) and Net Debt / Adjusted EBITDA
Adjusted EBITDA and EBITDA Margin
14,268
6,29715,759
6,61017,941
8,26920,767
9,28420.089
9.850
Gross debt Net Debt Net Debt / adjusted EBITDA
2009
Adjusted EBITDA Margin (%)
2010
3.621 6.355
33%44%
Adjusted EBITDA (R$ MM)
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On December 31, 2010, the consolidated net debt stood at R$9.8 billion, R$3.5 billion more than the R$6.3 billion recorded at the close of 2009. The net debt/adjusted EBITDA ratio closed 2010 at 1.55x, 0.19x less than at the end of the previous year.
On July 14, 2010, CSN, through its wholly-owned subsidiary CSN Resources S.A., issued bonds worth US$1 billion at 6.5% p.a. and maturing in July 2020, in accordance with U.S. Rule 144A and Regulation S. The issue price was 99.096% and the bonds were guaranteed by CSN.
On September 16, 2010, CSN, through its wholly-owned subsidiary CSN Islands XII Corp., is-sued bonds worth US$1 billion at 7.0% p.a., in accordance with U.S. Rule 144A and Regulation S. The bonds are guaranteed by CSN and the proceeds were primarily used to settle the US$750 million perpetual bonds issued by CSN Islands X Corp in 2005, with a return of 9.50% p.a.
The chart below shows the maturities of CSN’s loans, financings and debentures on De-cember 31, 2010:
Consolidated Net ProfitCSN posted 2010 net profit of R$2,516 million, 4% down on 2009.The improved results in the steel and mining segments were offset by the increase in other oper-
ating expenses, due to non-recurring gains recorded in 2009 and the upturn in financial expenses. The difference between net profit previously published in BRGAAP and the current figures
in accordance with IFRS are presented below (R$ million):
CapexCSN invested R$3,636 million in 2010, R$2,201 million of which in and by its subsidiaries or
joint subsidiaries, allocated as follows: Transnordestina Logística: R$1,371 million; CSN Aços Longos: R$ 275 million; CSN Cimentos: R$ 249 million; MRS Logística: R$ 199 million.
3,636 millionwere invested in expansion and maintenance projects
Net Profit 2009 2010
Net Profit (BRGAAP Reported) 2,599 -
Convergence effect on accounting practices 16 -
Net Profit (IFRS) 2,615 2,516
R$ millions
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 PerpetualBonuses
1,345
2,166
2,0881,9
47 2,188
2,222
1,148
7791,3
51 1,776
1,531 1,6
66
Consolidated Debt* (R$ million)
* INCLUDES LABOR CHARGES AND TRANSACTION COSTS
Casa de Pedra mine has reserves of 3.4 billion tonnes of iron ore
After 2020
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The remaining R$1,435 million went to the parent company, mostly in the following projects: Maintenance and repairs: R$ 483 million; Expansion of the Casa de Pedra mine: R$ 275 million; Expansion of the Port of Itaguai: R$ 139 million; Technological improvements: R$ 125 million.
Working CapitalWorking capital closed December 2010 at R$2,844 million, R$770 million up on the figure at
the end of 2009, basically due to higher inventories, in turn caused by the reduction in steel product sales volume.
The average receivables period declined from 31 days at the end of 2009 to 26 days at the close of 2010, while the average supplier payment period fell from 26 days to 25 days.
Results By SegmentThe Company maintains integrated operations in five business segments: steel, mining,
logistics, cement and energy. The main assets of each segment are presented below:
The information on CSN’s five business segments is derived from the accounting data, together with allocations and the apportionment of costs among the segments. CSN’s man-agement uses adjusted EBITDA as an indicator to measure recurrent net operating cash flow.
2,884 million is total working
capital
WORKING CAPITAL (R$ million) Dec/2009 Dec/2010 Variation (4Q10 x 4Q09)
Assets 3,130 3,963 833
Accounts Receivable 1,186 1,259 73
Inventory (*) 1,889 2,492 603
Tax advances 55 212 157
Liabilities 1,057 1.120 63
Suppliers 504 521 17
Salaries and Social Contributions 134 165 31
Taxes to be withheld 333 398 65
Advances from Clients 85 35 (50)
Working Capital 2,074 2,844 770
TURNOVER RATIO
(Average Days)
Dec/2009 Dec/2010 Variation (4Q10 x 4Q09)
Receivables 31 26 (5)
Payment 26 25 (1)
Inventory 88 113 25
Steel Mining Logistics Cement Energy
Presid. Vargas Steel Mill
Porto Real
Paraná
LLC
Lusosider
Prada (Distribution & Packaging)
Metalic
Casa de Pedra
Namisa (60%)
Tecar
ERSA
Railroad:
- MRS
- Transnordestina
Port:
- Sepetiba Tecon
Volta Redonda
Arcos
CSN Energia
and
Itasa
* INVENTORY - INCLUDES “ADVANCES TO SUPPLIERS” AND DOES NOT CONSIDER “STORE ROOM”
Thermoelectric plant (CTE), in Volta Redonda, RJ
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Ship docked at the Itaguaí Port, in Rio de Janeiro: CSN exports iron ore since 2007
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The charts below show the various segments’ contribution to CSN’s overall net revenue and adjusted EBITDA.
The Company’s consolidated results by business segment are presented below:
Consolidated Results Steel Mining PortLogistics
Railroad Logistics
Energy Cement Elimination/ Corporate
Consolidated
Revenue 9,926 3,615 119 838 114 202 (364) 14,451
Domestic Market 8,763 574 119 838 114 202 (364) 10,247
Foreign Market 1,163 3,041 - - - - - 4,204
Cost of Products/Serv. Sold (6,095) (1,187) (70) (522) (42) (164) 393 (7,687)
Gross Profit 3,831 2,428 49 317 72 38 29 6,764
Sales & Admin. Expense (574) (135) (17) (71) (26) (43) (351) (1,215)
Depreciation 519 146 6 103 23 14 (3) 806
EBITDA 3,776 2,439 38 349 69 9 (325) 6,355
EBITDA Margin 38% 67% 32% 42% 61% 4% 44%
Consolidated Results Steel Mining PortLogistics
Railroad Logistics
Energy Cement Elimination/ Corporate
Consolidated
Revenue 8,201 1,964 144 823 117 60 (330) 10,978
Domestic Market 7,046 247 144 823 117 60 (330) 8,107
Foreign Market 1,156 1,716 - - - - - 2,872
Cost of Products/Serv. Sold (5,572) (1,179) (76) (464) (43) (61) 373 (7,022)
Gross Profit 2,629 784 69 358 73 (1) 43 3,956
Sales & Admin. Expense (491) (108) (14) (58) (25) (16) (403) (1,116)
Depreciation 484 135 11 110 25 9 7 780
EBITDA 2,623 811 65 410 74 (8) (353) 3,621
EBITDA Margin 32% 41% 45% 50% 63% -13% 33%
Net revenues by segment in 2010 (R$ million)
Adjusted EBITDA by segment in 2010 (R$ million)
R$ 9,926
STEEL
STEEL
MINING
MINING
LOGISTICS
LOGISTICS
CEMENT
CEMENT
ENERGY
ENERGY
R$ 3,615 R$ 957 R$ 202 R$ 113
67.0% 24.4% 6.5% 1.4% 0.7%
R$ 3,776 R$ 2,439 R$ 387 R$ 9 R$ 69
56.6% 36.5% 5.8% 0.1% 1.0%
R$ million 2010
R$ million 2009
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332%is the return for shareholders
over the last 5 years
CAPITAL MARKET
Share Performance In 2010, CSN’s shares depreciated by 2%, versus the 1% upturn recorded by the IBOVESPA
in the same period. On the NYSE, CSN’s ADRs appreciated by 8%, versus 11% for the Dow Jones.It is worth noting, however, that in the last five years CSN’s stock has generated returns of 332%
for its shareholders, three times more than the 107% upturn in the IBOVESPA in the same period.Daily traded volume in CSN’s shares averaged R$106 million in 2010, while on the NYSE
daily traded volume in CSN’s ADRs averaged US$88 million.
Profitability - CSNA3 / SID / IBOVESPA / DOW JONES
2010 2009
No. of shares 1,483,033,685 1,510,359,220
Market Value
Closing Quote (R$/share) 26.67 27.11
Closing Quote (US$/ADR) 16.67 15.47
Market Value (R$ million) 38,884 39,522
Market Value (US$ million) 24,304 22,550
Total return, including dividends and JCP*
CSNA3 -2% 108%
SID 8% 168%
Ibovespa 1% 83%
Dow Jones 11% 19%
Volume
Daily average (1,000 shares) 3,637 4,930
Daily average (R$ 1,000) 106,265 110,860
Daily average (1,000 ADRs) 5,360 7,214
Daily average (US$ 1,000) 88,710 83,492
SOURCE: ECONOMÁTICA* FIGURES WERE RETROACTIVEL ADJUSTED TO REFLECT THE SHARE SPLIT OCCURRED ON 3/25/2010
Close-up of a roll of steel
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OUTLOOKSTRATEGY ANDINVESTMENTS
07
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The diversification of business portfolio, products and markets, associated with projects for reducing costs, integrating operations, and becoming self-sufficient in critical inputs con-tinue to be strategic priorities for CSN in order to maintain the high level of profitability and the trust acquired from current investors and the market in recent years.
The proof is in the fact that CSN has consis-tently shown robust financial results, and in 2010, CSN posted consolidated net revenue of R$ 14.5 billion, a new record and reached an EBITDA margin of 44%.
Simultaneously to the growth efforts and in-vestments, which surpassed R$ 3.6 billion in 2010, CSN has promoted and planned a series of cost-reduction and increased productivity projects, in
order to improve competitiveness and profitability of all the production chain.The highlights are the steelmaking excellence projects, such as increased coke production,
reduced electrical energy transportation costs, reduction and reuse of wastes, energy effi-ciency, logistics, and others. These projects have the potential of significantly reducing pro-duction costs, especially at the Presidente Vargas Steel Mill.
In addition to the organic growth projects, supported by a comfortable cash position, the Company remains alert to opportunities for acquisitions and strategic partnerships in all its operational segments, both in Brazil and abroad, in order to accelerate its expansion and add value to its shareholders.
GROWTH IN IRON ORE
CSN showed a growth in export volume, in 2010, and is established as Brazil’s second largest iron ore exporter. Its own production came to 26.9 million tonnes, and the Company has been expanding the Casa de Pedra and Namisa mines in order to reach a total annual production capacity of 89 million tonnes.
Capacity in Casa de Pedra will reach 50 million tonnes per year, while Namisa’s concentration and pelletizing projects will supply the remaining output to achieve total capacity.
The Company has also been increasing Tecar’s loading capacity in the Port of Itaguaí, which should reach 84 million tonnes.
In addition to these expansions, the Company has been considering additional capacity increases for Casa de Pedra (up to 70 million tonnes/year) and Tecar (up to 130 million tonnes per year).
GROWTH IN STEEL
In 2010, steel production reached 4.9 million tonnes of crude steel, an increase of 15% over the previous year. CSN has been diversifying its steel activities, entering the long steel segment. For that reason, CSN is building a plant in Volta Redonda with the capacity to produce 500,000 tonnes per year of rebars and wire rods.
The Company plans to build two other long steel plants with a production capacity of 500,000 tonnes per year each. The necessary equipment has already been contracted. With
CSN invests in organic growth and is alert to acquisition opportunities
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the addition of 1.5 million tonnes from these three plants, and the return to the full production capacity of the Presidente Vargas Steel Mill (5.6 million tonnes), the Company should achieve the mark of 7.1 million tonnes of steel.
As for flat steel, CSN has been expanding its service centers, investing in the expansion of the Porto Real unit, in the State of Rio de Janeiro, which focuses on the automotive industry.
GROWTH IN NEW MARKETS – CEMENT
After having completed the construction of its first cement plant, which is expected to reach full capacity of 2.4 million tonnes per year by the end of 2012, CSN will begin producing clinker in the Arcos plant, in Minas Gerais, in the first half of 2011, thereby substantially reducing its production costs.
The Company has also been studying organic growth alternatives to increase total production capacity in Brazil to up to 4.0 million tonnes per year.
In addition, CSN is determined to grow in this sector and achieve a relevant market share in Bra-zil and abroad. With this in mind, CSN will be evaluating any acquisition opportunities that may arise.
GROWTH – PRODUCTION VERTICALIZATION
CSN has also been developing important projects geared towards improving operational ex-cellence and reducing costs, the most important of which includes the installation of new coke batteries in order to achieve self-sufficiency in this raw material; altering the power source of the Presidente Vargas Steel Mill from 138KV to 500KV, thereby increasing system stability and reducing energy transportation costs; and completing the top recovery turbine (scheduled for 2011), which will add 18 MW to the Company’s installed generating capacity.
Producing tin, in Ariquemes, RO
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CORPORATEGOVERNANCE
08
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CSN controls the entire steel production chain
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Investor RelationsIf the year 2009 marked the opening and ex-
pansion of new communication channels with the market, last year CSN solidified these contacts. 2010 was a year of considerable achievement for CSN during which the Company further expanded its communications with the capital market, im-proving investors’ perception of its basic funda-mentals and helping reduce funding costs.
The main highlights are shown below: Increased presence in national and international events. In 2010, the Company took part in 20 conferences with the financial market community, equivalent to around 400 meetings with investors. It also held 280 meetings and conference calls in its headquarters, for a total of 680 meetings with shareholders;
Market diversification through a Non Deal Roadshow in Tokyo, Hong Kong, and Beijing; For the fifth consecutive year, CSN took part in Expomoney São Paulo, an event targeting in-dividual investors;
Development of closer ties with sell-side analysts through visits to the Casa de Pedra mine, Port of Itaguaí, and Presidente Vargas Steel Mill, increasing the visibility of the Company’s op-erations, strategies, and investments.
CSN Shares CSN’s stock comprises common shares only, each of which is entitled to one vote in the Company’s Shareholders’ Meetings;
More than 44% of CSN’s shares are traded on stock exchanges in São Paulo (BOVESPA) and New York (NYSE).
Sarbanes-Oxley ActThe Company is in the final phase of Certification for internal controls related to the 2010
Consolidated Financial Statements (CSN and its subsidiaries), in compliance with Section 404 of the Sarbanes-Oxley Act (SOx).
As of August 2010, tests were carried out to evaluate the effectiveness of internal controls in CSN, (Presidente Vargas Steel Mill, Casa de Pedra mine and CSN Porto Real) CSN Cimentos, CSN LLC, CSN Export, CSN Europe (former CSN Madeira) and Prada, which are companies considered significant for SOx Certification. The managers of each process (process owners) were responsible for carrying out the tests and monitoring existing points.
It is important to emphasize that the financial, entity level and accounts preparation and disclosure processes are corporate in nature, including all CSN companies except NAMISA, which has its own structure for executing these processes and activities.
Ethics CodeCSN has employed an Ethics Code since 1998, which is delivered to members of staff in
corporate integration training courses, where any possible queries can be resolved. CSN’s Ethics Code details the standards of personal and professional conduct expected of its employees in their relations with co-workers, clients, shareholders, suppliers, communities and competitors, as well as the environment, and also contains a declaration of our corporate conduct and commit-ments. Its content is in the public domain and is available at www.csn.com.br. One issue that has been a permanent feature of the Code since its inception is the rules governing trading in the Company’s shares.
CSN intensified its investors relations
47.05%VICUNHA SIDERURGIA S/A
3.92%RIO IACO PARTICIPAÇÕES S/A
0.86%CBS
1.69%TREASURY
2.14%BNDESPAR
24.20%NYSE ADRS
20.13%BOVESPA (OTHERS)
CSN – Capital Structure (%)
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BOARD MEMBERS
Benjamin Steinbruch ChairmanJacks Rabinovich Vice ChairmanAlexandre Gonçalves Silva Antônio Francisco dos SantosFernando PerroneGilberto Sayão da SilvaYoshiaki Nakano
MEMBERS
Benjamin Steinbruch CEO Alberto Monteiro de Queiroz NettoEnéas Garcia DinizJosé Taragano Paulo Penido Pinto Marques
Disclosure of Material Acts and Facts
CSN maintains a Material Act or Fact Dis-closure Policy, which determines that all such disclosures must contain information that is accurate, consistent, appropriate, transpar-ent and within the proper timeframes, in ac-cordance with CVM Instruction 358 of January 3, 2002, and Section 409 of the Sarbanes-Ox-ley Act – Real Time Issuer Disclosure.
All material acts or facts are disclosed in Bra-zil (BOVESPA) and the United States (NYSE), where the Company’s shares are traded.
Annual Shareholders’ MeetingThe Annual Shareholders’ Meeting, the Company’s sovereign body, meets once a year, in
accordance with the prevailing legislation, to elect the members of the Board of Directors, ex-amine management’s accounts and the financial statements, and decide on the allocation of annual net profit and the payment of dividends, among other matters. Whenever necessary, Extraordinary Shareholders’ Meetings may be called to decide on specific issues that are not within the normal scope of the Annual Meeting.
Board of DirectorsThe Board of Directors currently comprises seven members, five of whom independent,
and meets on a routine basis on pre-established dates throughout the year and on an extraor-dinary basis whenever necessary. Members are elected for a one-year term of office, re-elec-tion being permitted.
Its role is to define and monitor the Company’s policies and strategies, oversee the activi-ties of the Board of Executive Officers and decide on matters relevant to the Company’s busi-nesses and operations. It is also responsible for electing the executive officers and may, if nec-essary, constitute special advisory committees to help in the execution of these duties.
Board of Executive OfficersThe Board of Executive Officers is responsible for the day-to-day management of the busi-
ness in line with the strategies and policies established by the Board of Directors. It currently comprises five officers, including the Chief Executive Officer, who meet periodically, each of whom being responsible for certain specific Company operations, processes and/or businesses. Officers are elected for a two-year term, re-election being permitted.
Audit CommitteeThe Audit Committee has autonomy to make decisions on all matters concerning Sections
301 and 407 of the Sarbanes-Oxley Act. Its main responsibilities include reviewing, analyzing and making recommendations to the Board of Directors on matters concerning the indication, hiring and compensation of the external auditors, as well as supervising the internal and exter-nal audits. In regard to the hiring of external auditors, special procedures are adopted to en-sure that there are no conflicts of interest, dependence or loss of objectivity on the part of the auditors in their relations with CSN.
Material facts are disclosed in Brazil and the United States
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Internal AuditCSN maintains an internal audit department which acts independently within the organiza-
tion to assist and communicate material facts to the Board of Directors, the Audit Committee and the Board of Executive Officers. It is responsible for ensure the appropriate allocation of resources and protecting CSN companies’ assets, providing support for compliance with the planned results, and improving processes and internal controls in order to enhance financial and operating performance or prevent the risk of losses or fraud and, consequently, any dam-age to the Group’s image.
Independent AuditorsIn 2010, CSN and its subsidiaries’ independent auditors – KPMG Auditores Indepen-
dentes – were hired to perform services in addition to auditing the financial statements.It is the belief of both the Company and its independent auditors that these services,
essentially appraisal reports, technical support and reviews of income tax declarations, do not affect the latter’s’ independence. The additional services do not exceed 10% of total external auditing fees.
Services additional to the examination of the financial statements are submitted for prior approval to the Audit Committee in order to ensure that, based on the pertinent leg-islation, they do not represent a conflict of interest or jeopardize the auditors’ indepen-dence or objectivity.
In accordance with CVM Instruction 480/09, on March 22, 2011 the Board of Executive Officers declared that they had discussed, reviewed, and agreed with the opinions ex-pressed in the independent auditors’ report and with the financial statements for the fis-cal year ended December 31, 2010.
Work site of the Nova Transnordestina railroad
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Working at the Casa de Pedra mine
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RISK MANAGEMENT
It is necessary to identify, measure and report the risks to the achievement of business ob-jectives. To accomplish this, CSN, which operates in a globalized and increasingly complex market, maintains a Corporate Risk area, which is staffed by specialized professionals who in-dependently monitor all the Company´s actions.
After an extensive risk mapping and assessment of internal controls, which started in 2008, CSN has significantly reduced the number of control deficiencies. In 2010 more subsidiaries were incorporated in this mapping controls, especially CSN Cimentos and CSN LLC, located in U.S.
The Corporate Risk area aims to ensure compliance with Sections 302 and 404 of the Sar-banes-Oxley Act, and to keep CSN’s management and shareholders informed on all risks inher-ent to the business.
CSN’s internal controls, responsible for mitigating these risks, are executed by the opera-tional areas and monitored by the corporate risk area, the internal audit department, linked to the Board of Directors, and the independent external auditors.
In addition to the measures of risks prevention and contingency, CSN is a highly liquid com-pany, with a cash position of R$ 10.2 billion, ensuring that the Company is well guarded in the event of an incident.
Market Risks The steel industry is highly cyclical in nature due to supply and demand swings triggered by
macroeconomic change worldwide. Any significant decline in demand for steel in the Company’s markets in Brazil and abroad may have an impact on its operations, which are closely aligned with the performance of the automotive, construction, home appliance and packaging industries.
However, the Company usually weathers such cycles with no undue impact on its busi-ness, thanks to the integrated nature of its operations and its exceptionally low production costs plus the fact that it operates in a diversified range of markets, including mining, rail transport, ports, cement and energy.
Raw Material Supply RisksThe Company’s operations are regarded as integrated because it uses its own raw ma-
terials and assets, such as ore from the Casa de Pedra, Namisa, Arcos and ERSA mines, the MRS and Transnordestina Logística railways, the Tecar and Sepetiba Tecon port terminals and the electricity generation plants.
With this level of integration, CSN’ operations are almost entirely self-sufficient in terms of steel production. In fact, the only raw materials acquired from third parties are coal (100% imported) and coke (around 25% imported), as well as zinc and aluminum (pur-chased on the domestic market).
In addition, in order to protect itself against possible abusive pricing on the part of its suppliers, the Company seeks to vary the origin of its imported coal and coke.
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Competitive RisksFor some years now, the global steel industry has been experiencing a period of intense
change, marked by a series of mergers and acquisitions aimed at increasing competitiveness by reducing costs, and Brazil has not been immune to this trend.
In order to mitigate this risk, CSN constantly analyses possible mergers and acquisitions of companies in Brazil and abroad. The Company has acquired an interest in two rolling compa-nies, CSN LLC in the United States and Lusosider in Portugal. This presence in North America and Europe ensures long-term expansion and closer ties with overseas customers.
CSN is constantly seeking closer proximity to its clients, offering higher added-value prod-ucts more suited to their needs in terms of quality, service and delivery times.
Foreing Exchange RisksSince the Company operates and raises funding abroad, part of its revenue (iron ore and steel
exports) and expenses (imported coal, coke and equipment) is in foreign currency.As a result, it is subject to variations in exchange and interest rates, in turn altering the
amount in Reais needed to honor its foreign-currency obligations. It manages this risk by re-sorting to several different financial instruments, including cash investments in dollars and de-rivative instruments (without financial leverage, such as put and call options), mainly swaps and future contracts.
Environmental RisksTaking into account the nature of the production process, steel plants are bound to meet a
series of requirements imposed by Brazil’s strict environmental legislation aimed at controlling atmospheric emissions, liquid effluents, and the handling and disposal of solid waste, in order to protect human and environmental health.
More than just complying with the legal requirements, CSN has adopted a preventive and pro-active approach to environmental issues, seeking to anticipate possible risks and/or problems.
Products from the Porto Real plant
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Legal Risks CSN is involved in several ongoing lawsuits regarding civil, labor and environmental claims, as
well as federal, state and municipal taxes and contributions. As a result, at the close of 2010, it main-tained legal provisions of around R$2.5 billion and judicial deposits of R$2.7 billion, there being no certainty as to the outcome of these proceedings.
The Company also seeks to mitigate its legal risks through preventive consulting procedures, close monitoring of the legislation, participating in public hearings on the drawing up and improve-ment of regulations that have an impact on its activities, and joining professional associations and corporate representative bodies.
Insurance Risks Aiming to mitigate risks and given the nature of its operations, the Company and its sub-
sidiaries have taken out several different types of insurance coverage. These policies are in accordance with risk management policy and are similar to those contracted by other com-panies in the same sector. Coverage includes national and international transport, transport company civil liability; imports; exports; life and personal accident; health, automotive (ve-hicle fleet), D&O (directors and officers’ liability); general civil liability; engineering risks; sun-dry risks; export credit; guarantee insurance; and port operator civil liability.
The Company has also renewed material damage and loss of earnings insurance for all its units and subsidiaries, except for the Presidente Vargas Steel Mill, Casa de Pedra, Arcos Min-ing, CSN Paraná and Tecar (insured against material damage), which is currently being nego-tiated with Brazilian and international insurance and reinsurance companies.
Credit RisksExposure to credit risks from financial instruments is managed by restricting counterparties in derivative instruments to major financial institutions with excellent credit quality. Management therefore believes that the risk of non-compliance by these counterparties is negligible.
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INNOVATIONO9
In 2010, CSN developed
42 new metallic packages
for the market
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With its firm purpose of adding value to final products and of being closer to its customers, CSN constantly invests in the development of innovative projects in order to provide its clients with creative product and service solutions.
In 2010, the Company invested around R$57 million in R&D activities.
The investments bring results in the form of innovation. One project that underlines CSN’s innovative approach is the development of pre-painted ste-el for organo-metallic vehicle fuel tanks, replacing plastic tanks. The product is
more easily shaped, welded, and corrosion-resistant, with an expected demand of 500,000 tanks per year.
Another pioneering product that has been well accepted in the market is the CSN Extra Fino® cold-rolled steel, which was developed in response to global trends for new applica-tions in white goods and steel furniture.
In the construction segment, CSN’s pre-painted steel has found a new application in the rapid-assembly structures used on a large scale by the Pacifying Police Units (UPP) and Rapid Response Units (UPA) in Rio de Janeiro, and also CSN Steelcolors®, a special pre-painted steel for facades used in Beira-Rio stadium in Porto Alegre (Rio Grande do Sul), one of the host stadiums of the FIFA World Cup 2014.
AUTOMOTIVE INDUSTRY
In the automotive segment, innovation, product development and new applications have been given top priority, exemplified by Dual Phase steel, which has the advantage of reducing vehicle weight, allowing manufacturers to produce lighter and safer vehicles with reduced CO2 emissions. Other high-resistance steels have also been developed, such as bake hardening, rephosphorized and microalloyed, as well as highly conformable steel for exposed parts, such as titanium-stabilized ultra-low carbon steel.
MINING
In the mining segment, the Company has been investing consistently in technological studies and the use of new mineral processing technologies in order to increase output, im-prove product quality and maximize metal and mass recovery.
The recent introduction of wet high intensity magnetic separators (WHIMS) has enabled the processing of rejects from the Casa de Pedra processing plant, transforming part of them into pellet feed. Over the last five years, the consistent development of technological studies has demonstrated the feasibility of building plants to process poor-quality itaberites from the Casa de Pedra mine into pellet feed.
CSN invests in new processes and innovative products
R$ 57 million invested in R&D in 2010
New mineral
processing
technologies
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PACKAGING
In the packaging segment, the Company invested in the consolidation of a modern innova-tion center, which allows greater proximity to clients, presenting new proposals, concepts and designs for expanded three-piece cans with attractive and innovative shapes.
CSN has increased sales for the the food industry major brands. In 2010, the Company de-veloped 42 new metallic packaging, including for microwave ovens, now present in superma-rkets and pharmacies all over Latin America and the world.
The Company also supported of the book “200 Years of Tin Packaging”, launched last year.
The steel can celebrated its 200th anniversary, in 2010, but continues to be innovative. Its technology allows conceiving of new formats and solutions for specific products
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HUMANRESOURCES
19,000 employees work for the Company
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Leadership and performance are emphasized by CSN’s HR model
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It is not possible to build one of the five largest companies in Brazil and one of the most profit-able ones in the world without a People Manage-ment model that offers training and develop-ment to its employees. In a national setting, where the lack of a specialized and trained work force is one of the major challenges for remain-ing competitive, CSN invests in strategies that begin with the individual´s education and fo-cuses on constant updating and improvement.
By the end of 2010, CSN and its subsidiaries saw a 12.7% increase in its workforce, which reached 19,000 employees.. The CSN’s Human Resources Management model is based on five pillars: Attract; Align and Engage; Evaluate; Develop; Recognize and Compensate.
There is an effort to adapt the size of the personnel structure to be implemented in each area. A set of excellence indicators was developed to evaluate, before implementation, how many people are needed for a project, thus lessening the impact of outsourced labor. For the first time, the Company is analyzing this according to market criteria.
People management policies are compatible with the competitive environment and are strongly geared towards performance and leadership, being supported by learning and the propagation of knowledge.
ATTRACT AND DEVELOP
Selection, training and developmentThe five pillars of the Company’s people management model are sustained by investments
in projects for professional development and improvement, thereby contributing to the growth of the organization and its people.
All in all, the various training programs in 2010 totaled 2.08 million man-hours. The challenge of training and maintaining the quality of the work force for Brazil´s future, and for keeping up with the Company’s expansion plans means several of these programs target young people who are entering in the job market.
Of particular emphasis are the new Trainee Program and the Young Professionals Program, whose objective is to attract young talent up to two years after graduation in order to meet the Company’s specialist needs. More than 15,000 people applied for the selection process of 40 trainees and 85 young professionals.
The internship program is aimed at students undergoing technical and university courses in a wide range of subjects, and its basic aim is to familiarize them with the corporate environ-ment. In 2010, there were around 500 interns spread through all units of the group.
The Capacitar program trains high school graduates aged between 18 and 24 in the mining, steelmaking, cement and logistics areas so that they are qualified to enter the job market. In 2010, it had 568 participants and the success of the program led to CSN´s decision to expand it to all the group’s units.
The Aprendizagem (Apprenticeship) program aims to transmit a set of skills to young peo-ple that will favor the progress of their studies, increasing their prospects of entering and re-maining in the job market. In addition, it offers professional training courses in partnership with SENAI (National Industrial Apprenticeship Service).
The Company seeks to motivate and value its employees by prioritizing internal recruitment. In 2010, 42% of all job openings were filled by in-house candidates through a fair and transparent process which recognizes personal performance and encourages individual development.
The HR model focuses on developing people
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CSN also identified that investing in the corporate adaptation of new employees and their integration with co-workers results in in-creased productivity. To achieve this, the company developed a Corporate Integration Program for executives to present the Com-pany’s mission, vision, values and culture.
In relation to development and retention of talent, the Company offered 73 places in MBA courses in top Brazilian institutions to highly skilled professionals and former train-ees. Also in 2010, CSN granted 241 scholar-ships for university courses and 261 scholar-ships for technical courses, with the intention of contributing to its employees´ personal and professional growth.
The trainees who entered the program in 2008 continued to take part in various development initiatives in 2010. With the completion of the Trainee program, they had the opportunity to present the Practi-
cal Project they had been working on throughout the program to management. The aim was to propose solutions for corporate problems or for improving corporate processes.
In 2010, CSN created the Ciranda do Conhecimento Program, aimed at promoting con-tinuous learning, propagating knowledge and expanding the organization’s intellectual capi-tal. The program is conducted by CSN multipliers, who have considerable knowledge of cer-tain specific academic areas. This transfer of knowledge fostered the development of both employees and instructors, who not only developed new abilities and skills but were also recognized by the group.
In order to support the expansion and sustainability of the CSN Group’s businesses, the Company developed a program to identify, evaluate and develop potential managers.
ENGAGE
Internal communicationsAiming to improve communications with its 19,000 employees, CSN launched another im-
portant vehicle in 2010: the Electronic Mural. Thirty-six monitors were installed in the Compa-ny’s 14 main units. The murals efficiently inform corporate and local news, information regard-ing the markets where the Company operates, and notes on Brazil and the world.
As for our existing channels, the intranet provides information on the Company and its policies, with access to the Ethics Code, the Company Manual and the Safety Manual.
In addition, employees receive up-to-date news on CSN’s projects through the Matéria-Prima newspaper, a bi-monthly publication with a print-run of 25,000 copies. Internal cam-paigns using vehicles such as outdoors and posters also provide information on the Compa-ny’s various activities.
261scholarships were granted
for technical courses
The new Electronic Mural: 36 monitors were installed in the Company’s main units
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Job safetyIn 2010, CSN attained its lowest employee accident rate for the last 8 years. To achieve
this, the Company intensified efforts to disseminate a culture of occupational safety, aim-ing to preserve the integrity and health of its own and outsourced employees
The results of this effort let to a reduction of 22.2% in the employee accident rate from 2009 to 2010 (3.65 to 2.84).
This progress is directly linked to the Company´s actions to improve its Occupation-al Health and Safety Management System. The program adopts a series of measures to avoid accidents, including workplace risk assessment; an occupational hygiene program; risk assessment of installations and processes; daily visits to the workplace; standardiza-tion of activities; a quality audit focused on the 5S model; investigation and analysis of ac-cidents and incidents; labor certification; operational diagnostics; critical analysis of op-erational processes; dissemination of the safety manual; a behavior monitoring program; management of outsourced companies; procedures for adapting workspace utilization conditions; and audits.
CSN invests in spreading the safety culture on the job 79
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The following initiatives and results in 2010 are particularly noteworthy:
Implementation of the Top Safety program, recognizing the best employees in the Steel Produc-tion Units (DEPRO) in terms of safety, encouraging them to commit to and engage in safe behav-ior, teamwork, accident reduction and excellence in safety procedures. The program culminated with an event for employees and their families called “Safe Behavior, a Personal Value”.
A training program in association with the national manufacturers of the motorcycles used by the Company and its outsourced companies, helping build a culture of safety among motor-cyclists. After the program was launched in September, the number of motorcycle accidents fell from two per month to zero at year-end.
A substantial 38.7% reduction in the number of traffic accidents (from 62 to 38), reflecting the increase in safe driving initiatives designed to raise our employees’ awareness of the need for safety in traffic.
Program for 5,757 employees and outsourced personnel (an increase of 30% over 2009) in the CSN Foundation’s Safety Training Center aimed at raising safety awareness (develop-ment of risk perception).
Recognition of CSN’s workplace safety by renowned institutions. The Company received the 2010 Labor Health and Safety Honor and Merit Award for being best in the steelmaking category.
EVALUATE
Rumo Certo (Right Track) – Managing CompetenciesIn order to support decision-making regarding people, CSN develops initiatives to monitor
the competencies of its staff, competencies being definied as the set of knowledge, skills and attitudes demonstrated by the employee. The ten key competencies are divided into three cat-egories: core, sustainability and business. In 2010, all executives, senior management and ad-ministrative staff were trained in the competencies mapped out in 2009, as well as in the new process for assessing competencies, called Rumo Certo (Right Way). The Company also imple-mented a Feedback Workshop to introduce techniques and tools to help managers with this process, thereby encouraging efficient and high-quality employee development.
RECOGNIZE AND REWARD
Profit sharing CSN’s profit sharing program is designed to ensure a steady improvement in the Compa-
ny’s results and to create value for its shareholders by emphasizing performance and the de-velopment of strategies.
Managers and employees are assessed in relation to the results of the Company and the business unit where they work, as well as their own specific performance, always in line with the strategic maps and GVA®.
This balance means that bonuses are based on the effective contribution of each area to the achievement of strategic targets defined by the Company, thereby ensuring that the best performances are rewarded.
5,757employees and
outsourced personnel received safety training
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CSN’s corporate headquarters, in São Paulo
8180
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ENVIRONMENTALRESPONSIBILITY
Cicuta Nature Reserve, maintained by CSN, in Volta Redonda, RJ
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See the location of
the Reserve on the map
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Howler monkey in Cicuta forest
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Environmental responsibility is a part of the Mission and Values of CSN and is one of the pillars of its business strategy. CSN pur-sues continuous improvement of its process in order to obtain consistent gains in its envi-ronmental performance.
The signing of the Conduct Adjustment Agreement (Termo de Ajustamento de Con-duta) for the Presidente Vargas Steel Mill, in 2010, marked the beginning of a three-year plan for a series of operational improvements.
This project is more than an agreement for renewing the plant’s operating licenses. It is an opportunity for CSN to fully upgrade its main operations and to go beyond the limits established by the law in its pursuit of becoming a benchmark for best industrial practices in the sector. In-vestments of R$ 216 million place the Company among Brazil’s largest investors in this area.
In 2010, CSN disbursed R$ 336 million on environmental projects, including capex and de-frayal, more than the R$ 291 million invested in 2009.
All of its main units have received ISO 14,001 environmental certification and it is con-stantly striving to integrate its activities in this area, eliminating waste and increasing the energy efficiency of its various industrial facilities.
Sustainability BoardCreated in 2010, the Sustainability Board meets on a quarterly basis to analyze strategies, plan and evaluate CSN’s social-environmental and financial performance. The Board assesses all new projects and has veto power. The Chairman of the Board, Benjamin Steinbruch, is person-ally involved, as are the following members:
José Taragano, Marcelo Behar, Marcos Barreto, Thomaz Zanotto, Gerson Scheufler, Carlos Nobre, Fábio Feldman, Adalberto Veríssimo, Ricardo Abramovay, Bertha Becker, and Tasso Azevedo.
2010 was the year for creating the Board, and 2011 promises to bring it more influence on the decisions and direction of the Company.
Environmental Management SystemCSN makes every effort to implement the Environmental Management System throughout
the Company. In 2010, it was extended to other units, such as Prada Embalagens. Transnor-destina and Tecon also began the process during the same year.
MiningIn its operations, CSN aims to consolidate sustainable initiatives for local and regional develo-pment, integrating the different interests of the parties involved. Through the new Company guidelines, developed by the Sustainability Board, the mining expansion project was concei-ved strongly considering the environment. This project is going to meet the demands of the city of Congonhas, State of Minas Gerais, regarding the local impact on atmospheric emissions, water resources, the landscape and noise.
In 2010, CSN created a Sustainability Board
Ranger monitors forest reserves
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CSN keeps a toll free number for environmental concerns of the general public
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EnergyCSN is one of the largest energy consumer in Brazil, and maintains a solid policy of be-ing self-sufficient in its resources, counting on hydroelectric plants, which is consid-ered to be a clean energy source, and ther-moelectric plants that reuse residual gases from the steelmaking process.
In 2010, CSN continued the works in a Top Gas Pressure Recovery Turbine to be installed in blast furnace nº 3, making it possible, by using the kinetic energy of the gases, to generate additional 18 MW at the Presidente Vargas Steel Mill.
Air Quality, Water Resources, Solid Wastes, and Preservation Areas
CSN monitors its emissions, and it has sought opportunities associated with Clean Development Mechanism (CDM). Over the past 10 years, the Company has been working to achieve the reuse of 90% of the collected water, and in 2010 it began to do a complete mapping of the water system of the Presidente Vargas Steel Mill. As for wastes, according to the resource reutilization policy, nearly 99% of the Company’s by-products are reused commercially. In 2010, this area gener-ated income of R$ 212 million.
The highlight was the addition of slag to cement production, thus reducing the emission of the greenhouse gases associated with cement production. CSN also heavily involved in recovering the environmental liabilities of its activities, prior to privatization, as well as recov-ering preservation areas and fomenting projects for areas of relevant ecological interest: Cicuta and Replanta Guandú.
Environmental Programs – TransnordestinaAmong numerous environmental projects under implementation along with the construction of the railway, one of the highlights is the Archeology Program, which has unveiled an enormous amount of data referring to prehistoric times in the Northeast. Around 90,000 pieces were collected from the archeological digs, involving objects made of stone chips, indigenous pot-tery, and countless utensils related to backcountry life, whit mobilization of around 60 re-searchers. The work with organizations and universities provides for exhibiting the materials recovered, for educational purposes regarding these assets of the communities within the area affected by the project.
0800 GREEN LINECSN values social-environmental responsibility and intends that its relations with the commu-nity relations to be transparent. To this end, it maintains a Green Line (0800 282 4440), which is a free telephone line that is open to general public for environmental complaints, criticism and suggestions to the Company.
R$ 336 millioninvested in
environmental projects
8687
CSN is self-sufficient in electrical energy
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RESPONSIBILITYSOCIAL
Activity with children of the Garoto Cidadão Project, in Volta Redonda, RJ
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R$ 81 millionin social investments
since 2006
Social responsibility is one of CSN’s values. During the year of the Company’s 70th anniversary, CSN Foundation celebrates its own 50th anniversary with the mission of developing socially responsible policies and practices.
Between 2006 and 2010, CSN invested more than R$81 million in these initiatives, R$14.9 million of which in 2010 alone, allocated to educational, cultural, sports and health activities.
More than sponsoring actions in these areas, CSN is concerned about the social impact it has on the communities in which it is involved. For that reason, it created a unit within the projects department to identify local necessities and desires. It found that
the main demands are for professional development in the communities. In some of them, CSN’s operations naturally become the main job prospect, increasing the Company´s responsibility and opportunity to train local residents.
SPONSORSHIPSIn addition to the Foundation’s initiatives, CSN makes use of fiscal incentive mechanisms to
sponsor several cultural and sporting projects following a rigorous election process.Among other projects, the Company sponsored:
The exhibition Lúcio Costa – The Architect, as part of Brasília’s 50th anniversary celebrations The book Direitos Humanos – Imagens do Brasil (Human Rights – Images of Brazil) The construction of the Brasiliana Library at the University of São Paulo (USP), to house the Guita and José Mindlin collection
The movies Tropa de Elite 2 (Elite Squad 2) and Eu e Meu Guarda-Chuva (Me and My Umbrella) The installation of two education-through-sports centers for the Passe de Mágica Institute.
CSN supports several NGOs registered with various Municipal Councils for Children and Teenag-ers’ Rights, focusing on the socially vulnerable. Among the most important projects supported by the Company are GRAACC’s (Support Group for Children and Teenagers with Cancer) expansion project, and the Deco 20 Institute, which develops several cultural and sporting activities.
VOCATIONAL TRAININGIn Volta Redonda (Rio de Janeiro) and Congonhas (Minas Gerais), CSN has long-established
technical schools that maximize the use of local human resources in its operations. The Pandiá Calógeras Technical School (ETPC), in Volta Redonda, prepares students for the job
market and also for the university entrance exams. In 2010, it had 1,073 students, 238 of whom on full scholarships and 169 on 50% scholarships. CSN also offered the Curso Capacitar Siderurgia (steel-making training course) to five groups, each of them four months long, totaling 178 students, se-lected through an entrance exam. The course is free of charge and the students also receive a monthly grant of one minimum wage while attending.
The General Edmundo Macedo Soares e Silva Technological Education Centre (CET), located in Con-gonhas (MG), has been offering vocational training courses for almost 50 years, helping supply qualified professionals for companies in the Alto Paraopeba region.
In 2010, CSN Foundation offered 65 full scholarships and 15 partial scholarships for high-school voca-tional and technical courses. The Foundation also maintains partnerships with external bodies, such as PEP (the Minas Gerais State Vocational Training Program) and Congonhas ́municipal government, resulting in full scholarships for 185 students. Another 48 full scholarships were offered within the Industrial Learning Course, sponsored by CSN. These 48 students also received monthly financial grants while attending.
CSN Foundation celebrates 50 years of investing in people
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1,904young people served by
the Garoto Cidadão Project
The Bela Vista Hotel School, in Volta Redonda, offers training in hotel and catering services for socially vulnerable young adults at risk aged between 18 and 25 in the Sul-Fluminense region of Rio de Janeiro State.
Every semester, 80 young people are invited to take part in the course following a selection pro-cess in association with the Social Assistance Reference Centers (CRAS). It is worth stressing that the region has enormous demand for qualified labor in the service sector, so most students have already been hired by regional hotels, restaurants, hospitals and event organizers by the time they graduate. Ten percent of course openings are earmarked for youngsters who are doing community services through a partnership with Degase/RJ.
SOCIAL AND CULTURAL PROJECTS
Garoto Cidadão ProjectImplemented in 1999, the purpose of the project is to encourage the social, educational and
emotional development of its participants, helping to create well-informed, critically-aware citi-zens. It is aimed at children and teenagers aged between 6 and 16 years and enrolled in the public school system, who are deemed to be in situations of social risk. The project is implemented in association with local government authorities and functions outside school hours, offering work-shops on music, theater, dance, visual arts, and digital inclusion, as well as refresher courses in Portuguese and mathematics.
In 2010, a significant highlight was the ability to combine increased numbers of people benefited and the lower cost per capita of the project. The number of children and adolescents nearly dou-bled, compared to 2009, reaching a total of 1,904 participants. Since 2007, due to optimized fund-ing, the project’s cost per capita has been gradually reduced, and during 2010, the cost per capita/month of the operation dropped from R$ 221.47 to R$ 136.10, for a 38.6% reduction, without a de-cline in the quality of the service.
The Garoto Cidadão project is available in the cities of Itaguaí and Volta Redonda (Rio de Ja-neiro), Congonhas and Arcos (Minas Gerais), Araucária (Paraná), and Mogi das Cruzes (São Paulo), where CSN has a local presence. In 2011, the project is expected to expand, with units to be opened in the Northeast region.
Um Caminhão para Jorge AmadoInternationally recognized as one of the great Brazilian authors, Bahia’s Jorge Amado was the
star of the “A Truck for Jorge Amado, in Three Moments” project, in 2010. This is the second of a series of initiatives, following the successful “A Truck for Ziraldo – Ziraldo from A to Z” project that, from 2006 to 2009 visited twenty Brazilian States and received an estimated 360,000 spectators.
The project is based on a traveling truck-stage that visits a number of cities with theatrical shows. Through the scenic arts, it gives public presentations of two classics by Jorge Amado: Capitães da Areia (Captains of the Sand) and O Gato Malhado e a Andorinha Sinhá (The Swallow and the Tom Cat).
CSN Foundation Cultural CenterThe CSN Foundation Cultural Center holds a series of seminars, workshops, lectures, exhibitions,
recitals and concerts, among other events, aiming to increase the Volta Redonda community’s ac-cess to the arts and achieve social transformation through culture.The Art Gallery project , through exhibitions, courses, community workshops and seminars, encourages and promotes artists at the forefront of contemporary art, aligning artistic investigation and debate, as well as conducting an important educational activity in conjunction with the local public education system. 90
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The CSN Foundation Youth Symphony OrchestraBased at the Cultural Center, the Youth Symphony Orches-
tra is composed of 85 young musicians, all of whom youngsters living in situations of social risk who have passed through a se-lection process.Participants are taught orchestral techniques, complementing their classes in choral singing, vocal techniques, musical theory and perception, and the history of music.
In 2010, the project presented the following concerts: Spe-cial Concert, starring Wagner Tiso and Lô Borges, August Con-cert and The Marvelous World of Monteiro Lobato, all of which in Volta Redonda (RJ); Light of Christmas, in Petrópolis (RJ); and the Symphonic Beatles Concert, in Mogi das Cruzes (SP). The total audience was of 7,300 spectators.
Steel Drum OrchestraComposed of Youth Symphony Orchestra members as well as members of the community,
mostly from the cultural workshop projects, the Steel Drum Orchestra, sponsored by the CSN Foun-dation, is one of the first orchestras of its type in Brazil. Founded in 2008, it has already performed for around five thousand people. The most important presentations in 2010 were: Expo Aço (April); Re-ception for the Prince of Belgium (May) and the Concert in Volta Redonda (September).
Cultural WorkshopsThe cultural workshops are held by producers and artists, including musicians, actors, paint-
ers and dancers, enabling youngsters and adults to have access to cultural activities. In 2010, the workshops had more than 1,200 participants from the community, including youngsters en-rolled through the partnerships with APAE and Degase.
Sound Library ProjectThe CSN Foundation maintains a valuable phonographic collection composed of 16,000
33 and 78 rpm records and over 3,000 musical scores, inherited from the former radio station Rádio Siderúrgica Nacional, in Volta Redonda. The collection, duly restored and digitalized, is now available to the community for leisure, research and the preservation of radio memora-bilia. The project also includes an on-line radio station to ensure even wider access to this in-valuable material. In 2010, the Fonoteca Project began offering professional training courses to youngsters doing community service referred through the association with Degase/RJ.
SOCIAL AND SPORTS PROJECTS
Programa Esportivo Social (PES)The Social Sports Program, sponsored by the CSN Foundation and launched in 2010 with the
support of the Ministry of Sports and the National Council for Children’s and Teenagers’ Rights (CONANDA), offers a series of activities to 320 socially vulnerable children and teenagers at-tending public schools in Volta Redonda, Barra Mansa and Barra do Piraí.
Through courses and workshops, the program offers a series of sports practices, including football, volleyball, badminton, tennis and judo for youngsters aged between 7 and 18 years old. These activities are held in the Recreio do Trabalhador sports facilities, maintained by the CSN Foundation in Volta Redonda. The program also includes educational and cultural lectures and workshops for participants’ families.
Youth Orchestra played for over 7,000 people
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Alexandre Luiz Silva dos Santos, cellist of the Youth Orchestra plays in Volta Redonda 92
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CREDITS
BOARD OF DIRECTORSCHAIRMAN Benjamin SteinbruchBOARD MEMBER Jacks RabinovichBOARD MEMBER Antônio Francisco dos SantosBOARD MEMBER Fernando PerroneBOARD MEMBER Alexandre Gonçalves SilvaBOARD MEMBER Yoshiaki NakanoBOARD MEMBER Gilberto Sayão da Silva
INVESTOR RELATIONSInvestor Relations OfficerPaulo Penido Pinto Marques / [email protected].: (55 11) 3049-7454 Investor Relations ManagerDavid Moise Salama / [email protected].: (55 11) 3049-7588 Investor Relations SpecialistsClaudio Lopes Pontes / [email protected].: (55 11) 3049-7592Fabio Romanin / [email protected].: (55 11) 3049-7598Investor Relations AnalystsFernando Tavares de Campos/ [email protected].: (55 11) 3049-7591Stephan Antonio Szolimowski / [email protected].: (55 11) 3049-7593
General [email protected]
Independent Auditors KPMG Auditores Independentes
ADRDepository Institution: Banco JP MorganAddress: 4 New York Plaza, 13th floor - New York – NY 1 Chase Manhantan Plaza, 58th floor – New York - NY NY 1 0005
Shareholder ServicesShareholder services are handled by Banco Itaú, CSN´s custodian bank.
Personally in main branches: São Paulo (SP) - Rua Boa Vista 176, subsolo – Centro Rio de Janeiro (RJ) - Rua Sete de Setembro, subsolo - Centro Brasília (DF) - SCS QD3 - Ed. D’Angela, 30 - bloco A, sobreloja - Centro Belo Horizonte (MG) - Av. João Pinheiro, 195, térreo - Centro Porto Alegre (RS) - Rua Sete de Setembro, 746, térreo - Centro Salvador (BA) - Av. Estados Unidos, 50 Ed. Sesquicentenário - Centro Curitiba (PR) - Av. João Negrão, 65, sobreloja - Centro
Shareholder Service Center: (55 11) 5029-7780
EXECUTIVE BOARDCHIEF EXECUTIVE OFFICER Benjamin SteinbruchOFFICER Paulo Penido Pinto MarquesOFFICER Enéas Garcia DinizOFFICER Alberto Monteiro de Queiroz NettoOFFICER José Taragano
CORPORATE COMMUNICATIONSCorporate Communications ManagerMarcos Barreto / [email protected].: (55 11) 3049-7434 Press OfficerFlávia Ferreira da Silva / [email protected].: (55 11) 3049-7434 Corporate Communication SpecialistPriscila Lenci Boccia / [email protected].: (55 11) 3049-7241
ANNUAL REPORT 2010 CREDITSAdministrative Executive Director, Treasury Exe-cutive Director, Steel and Cement Operations Executive Director, Projects Executive Director, Institutional Director, Mining Operations Director, Controlling Director, Auditing Director, Logistics Director, Domestic Market Director, Foreign Market Director, Human Resources Director, Cement Industrial Director, Procurement Director, Legal Director, Planning and M&A Director, General Manager, Environment General Manager, Corporate Risk Manager and CSN Foundation.
Edited byInvestor Relations DepartmentCorporate Communications Management
Coordination Verde S/AEditing Mob36Graphic Project Casa36Graphic Production Jairo da RochaPhotographs Agência Nitro, Acervo CSN, GettyImages and Creative Commons (timeline)
NEWSPAPERS FOR THE PUBLICATION OF CORPORATE ANNOUNCEMENTS 2010CSN published its corporate act in the following newspapers:
Valor econômico Diário Oficial do Estado do Rio de Janeiro.
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