Usinas Siderúrgicas de Minas Gerais S.A.

Good morning.

Welcome to the conference call of Uzi Minas, in which the results of the third quarter of 2025 will be discussed. I'm Leonardo Karam, Investor Relations Officer at Uzi Minas. To those who wish to follow the presentation in English, a free translation of the webcast presentation is available on Uzi Mina's Investor Relations website. We also have an interpreter providing simultaneous translation. Please select the audio channel using the icon at the bottom of your Zoom screen. All participants are connected in listen-only mode, and your questions can be submitted in writing through Zoom's Q&A feature. Click on the icon at the bottom of your screen. Participants listening in English may also submit their questions directly in this section. This conference call is being recorded and simultaneously broadcast on the Uzinina's YouTube channel. We would like to remind you that this conference call is exclusively for investors and market analysts. We kindly ask you to identify yourself so that your questions can be addressed. We also request that any questions from journalists be directed to the media relations team at Usiminas via email imprensa at usiminas.com. Before proceeding, we would like to clarify that any forward-looking statements that may be made during this conference call regarding the prospects of the company's business, as well as projections, operational and financial goals related its growth potential, constitute forecasts based on the management expectations regarding the future of Uzi Minas. These expectations are highly dependent on the performance of the steel sector, the country's economic situation, and the situation on the market at the international level, so they are subject to change. With us today is our president, Marcelo Chiara, the vice president of finance and investor relations, Tiago Rodrigues, and our Commercial Vice President Miguel Holmes. First, Marcelo will make a few remarks, then Tiago will present the results. Afterwards, the question asked in the Q&A section will be answered. Now I give the floor to Marcelo. Please, Marcelo. Thank you, thank you very much, thank you very much everyone. Good morning, ladies and gentlemen. It's a pleasure to be here with you to share the results for the third quarter of 2025. This quarter was marked by important advances in our management with the consolidation of our operational stability, continuity of the cost reduction plan and the evolution of our priority CAPEX project. These initiatives reinforce our strategy of ensuring competitiveness and sustainability for the business in the long term. In this quarter, we achieved an adjusted EBITDA of 434 million BRL, with a margin of 7%, representing growth compared to the previous period. I would like to highlight The following. The 3% reduction in COGS per ton in the steel business unit compared to the second quarter as a result of the expense and cost reduction plan. We posted a growth in sales volume in steel business unit despite increasing pressure from imports under unfair conditions. We reported higher prices and volumes in mining, strong cash generation exceeding 600 million BRL in the period, and reduced leverage, mainly due to the control and efficient management of raw material inventories. In the market environment, we remain vigilant and concerned about the increase in subsidized imports due to the excess global production capacity, particularly in China. which continues to negatively impact the entire domestic industry. Imports increased by 33% in the first nine months of 2025 as to flat steel compared to the same period of the previous year. And we do not clearly understand see the effect of the tariff quota system on import penetration. The anti-dumping cases of heavy plates that has been extended for five years as a measure against China and South Korea, as well as the one for metal sheets, where the duty was also applied against China and the one for pre-painted steel, which is at an advanced stage, give us confidence in the technical capacity of the authorities of the ministry, department and industry to recommend effective measures against the serious damage that affects the entire steel value chain in Brazil. The challenging conditions are also impacting industrial goods that include steel components. Data from Alphavea shows that compared to 2024, there was an 11% growth in the registration of important light vehicles and only 2% of domestic light vehicles. In the machinery and equipment sector, data from the National Industry Association ABIMAC show an accumulated annual increase of 9% in imports, with a trade deficit of the sector totaling US$13 billion this year alone. Due to this imbalance in international trade, we have seen important movements, such as that of the United States, which raised its tariff on imported steel, and Europe, which proposes to tighten current safeguard measures, proposing a tariff quota system with a sharp reduction in volumes and an increase in tariffs, with the aim of protecting jobs and the local industry in Europe. For the fourth quarter of 2025, we expect to continue reducing costs due to efficiency and raw material prices, stable net revenues per ton and lower volumes due to the typical seasonality of the period. As for mining, volumes are expected to be slightly lower, but to remain higher in 2025 than in 2024, consistent with our planning. I would like to point out that despite the challenges of the external environment and the pressures on the domestic industry, we remain confident in our ability to adapt and deliver sustainable value to our customers and shareholders. We believe that with discipline, strategic focus and the commitment of our entire team, We will continue to advance and consolidate our leading position in the sector. I thank everyone for their trust and partnership, and we continue together building the future of Usiminas in the Brazilian industry. Thank you. Thank you, Marcel. Good morning, everyone. So, we are now going to start with our presentation about the results for the quarter. We would like to start that we showed improvements in the main performance indicators in the third quarter of 2025, even considering the complex scenario that we are facing in Brazil and abroad, as mentioned by Marcel. Sales volume increased in steel and for mining, 2%. Consolidate EBITDA had an increase of 6% in relation to the previous quarter. And the highlight is the strong cash-free cash generation. of 630 million in a drop of our net debt and our leverage ratio. We can see the consolidated results on the next slide. Net revenue was 6.6 million, slightly lower than the previous period, and the impact was the lower prices in the steel segment. And the revenue was higher the last year, and was driven by mining in particular. Adjusted EBITDA was 434 billion, 7% of margin and slightly higher than the previous quarter as a result of the best operational performance in the steel area. Accumulated EBITDA in the nine months of 2025 amounts to R1.6 billion, 45% when compared to the same period of 2024. Net income did not reflect the best operational results of the quarter, as we mentioned, due to the accounting effects of R3.6 billion related to impairment of assets as well as deferred taxes. accountable for accounting effects and generates no effects on the cash of the company. Otherwise, the net record would be 10.8 million reals in the quarter. Next slide. You have seen the steel... sales volume was higher 1.1 billion million tons a bit higher than the previous quarter showing the resilience of the demands of our main segments the accumulated volume is above what will be posted in 2024 but it's important to mention that in the same period the apparent demand of still increased by six percent in other words this increase of demand was captured by subsidized imports It informs the need of implementing anti-dumping measures, as Marcelo has previously mentioned. Moving to net revenue, the unfair competition that we mentioned affected the prices in the period. We had reductions in the court, especially in the sector of distribution. exports were impacted by the mix, except for high-grade steel, and there was a 3.5% drop, reaching R5.8 billion. In spite of the complex market scenario, we offset the drop in revenue with a reduction in costs and expenses, reaching 7% higher result. And at the of 30.8. EBITDA amounts to 1.1 billion, 44% when compared to 20-24. On the next slide, we show the main variations of the quarterly results. And here we can see the drop of 3.5% of net income per ton generated loss in the results, and the offset came through the reduction of costs in sales that generated an increase of $164 million, which was expected. And this was also driven by the appreciation of the real and also the drop in the price of raw material, but also with the gaining efficiency in our operations. We have a positive effect due to lower SG&A expenses and contingencies. In the next quarter, we continue reducing costs. and our expenses are expected to remain stable. As for mining, the production volume was 4% higher when compared to the second quarter due to the operational yield, which was higher, and sales. had an increase of 2% with 2.5 millions per ton, which was the highest volume of the quarter since 2021. Net revenue was 4% higher compared to previous periods with better reference prices and lower discounts related to quality, but it was partially offset by the devaluation of the dollar. net revenue amounts to 2.8 million and 27% higher than the accumulated revenue of 2024. The cost per tonne for the quarter had an increase, especially due to the freight tariff hike, and the EBITDA of the third quarter was 130 million, and slightly higher when compared to the previous quarter. and accumulated was stood 60% higher than 2024. And now talking about the financial indicators, this quarter we had a strong cash generation with important generation of of working capital due to the reduction of raw materials, which stand at a normalized level nowadays, after an increase that we had in the first quarter, a one-off effect. The capex was 260 million, and we keep advancing with the main projects that are going to generate gains for Uzi Minas, especially the PCI plant that is going to be completed in the beginning of next year, and the photo repair and the coke plants that are going to finish completed in 2028 and 2029. And we ended with free cash flow of 613 million. In relation to working capital, we can see a reduction at a lower volume, but we can see a reduction, especially due to the lower volumes that was estimated for sales in the steel business unit. As for CapEx, the expectation is to follow our guidance close to the lower limit of 1.2 billion reals.

Next slide.