Usinas Siderúrgicas de Minas Gerais S.A.

I'm Leonardo Caran, Investor Relations Officer at Usiminas. To those who wish to follow the presentation in English, a free translation of the webcast presentation is available on Usiminas 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 question can be submitted in writing through the 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 Uzi Minas YouTube channel. We would like to remind you that this conference call is intended exclusively for investors and market analysts. We kindly ask you to identify yourself so that your question 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, I 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 to its growth potential, constitute forecasts based on the management expectation regarding the future of Lusinian S. These expectations are highly dependent on the performance of this civil sector, the country's economic situation, and the situation on international markets, so they are subject to change. With us here today is our president, Marcelo Chara, the vice president of finance and investor relations, Diego Garcia, and our commercial vice president, Miguel Homes. First, Marcelo will make some initial remarks, then Diego will present the results. Afterwards, the questions asked in the Q&A section will be answered. Now I'll give the floor to Marcelo.

You may proceed, sir.

Thank you, Leonardo. Ladies and gentlemen, good morning, everyone, and welcome to the conference call of UZININES. It's a pleasure to be here once again. to discuss the results and the advances of the company for the second quarter of 2026. This quarter was marked by the continuity of the evolution of our management with a focus on the maximization of the profitability, prioritizing operations with larger margins, increase of operational efficiency in reduction of costs and in the discipline in the allocation of capital. Together with that, we advanced in the implementation of the CAPEX project, reinforcing our competitiveness agenda and ensuring a solid basis for the sustainability of the business in the medium and long terms. We reached an EBITDA of R$761 million, with a margin of 12%, accounting for a recovery of the previous period. In steel sector, there was an increase of 5% in net revenue in relation to the first quarter of 2026, and this was driven by the better prices and the better sales mix. In the mining area, we had an increase of 27% in the sales volume when compared to the previous quarter, after the end of the rainy season in the region. However, with marches impacted by the higher prices of maritime freight as a result of the world geopolitical situation. In this quarter, we completed the new plans of PCI, power coal injection in the blast furnace of Ibaquinga, to mitigate the increase of the rate of pulverized coke as a replacement of coke. The project represents an important structural advance for the company, providing operational efficiency and lower intensity of GPE. This initiative reinforces the commitment of the Minas with sustainability and the competitiveness of its operation. In the business environment, We still have a challenge situation marked by the structural excess of the global market, due to the uncertainties as well in relation to the growth of the main economies. Considering this context, the main markets that consume our products have been adopting measures of commercial defense to preserve their local industries, and this has contributed to Thank you very much. The major defense adopted by the Brazilian government in the first quarter of 2026 have generated gradual effects on the market, contributing to the reduction of the flat steel. and the rate of penetration of imports reached 22% in the first half of 2026, about 5 percentage points below the level observed in the same period of the previous year. However, the imports remain at levels which are historically high, sustained by the increase of the shipment from other origins, alternative origins, in addition to China. In parallel, the inventory levels in the chain remain high. This was due to the anticipation of imports that were made before the anti-dumping measures were implemented. The replacement of the manufactured goods have been intensifying in several places. This includes auto parts, machines and equipment, vehicles, and also metal products. And this affects the sustainability of the transformation industry in Brazil and reduces the installed capacity and limits the realization of investments in the country. And this impacts negatively the job generation, income, and value added in Brazil. In this context, we consider to be fundamental the continuation of the investigation of anti-dumping of hot-rolled steels as well the strengthening of the inspection and the effective application of the commercial defense measures already implemented. Technical and effective measures are essential to re-establish the more balanced competition For the next quarter, the expectation is to remain stable in the steel unit operation activities, excluding the extraordinary effects of the last period. An increase of steel in the second quarter, in comparison to the previous period, shows a mix of products which is similar to what we observed previously. Thank you very much. Thank you very much. and the logistics costs are likely to remain high, especially those related to the maritime freight, especially in the road C3, which accounts for 33% of global reference of iron ore. And this level is 10 points compared to the recent We continue making advances in our industry excellence, environment performance, safety of our personnel, competitiveness, and financial discipline. And we continue executing our priority project, especially the reconstruction and the hot repair of coca repair batteries. We would like to thank all the employees Clients, suppliers, shareholders, and the community at large for the confidence, trust, and partnership. We continue moving on together. And I'll send the floor to Diego, who will continue the presentation. Thank you, Marcelo. Good morning, everyone. Thank you very much for attending our results conference call. We're going to start with the highlights of the quarter. The sales had a reduction of 2% when compared to the previous quarter, showing that we are implementing our strategy to have operations more focused on higher margins. There was an increase in the automotive segment. Our sales was 27% higher when compared to the previous quarter. It's driven by the normalization of the shipments after the rainy season that affected the first quarter. Consolidated EBITDA shows an increase, which is significant in comparison to the previous quarter, supported by the steel operations that had better results and a better mix as a result of the legal agreement and the non-operational assets. It more than offset the drop in the mining activity. Fuel revenue increased by 5%, showing an outline of the industrial network, in addition to a sales mix which was favorable, which was written by the automotive sector. In the external market, there was a positive evolution with a growth of 16% as a result of a better mix. Evda of Steel increased by 26%, driven by better mixed prices and extraordinary results that we have already mentioned. This effect more than offset the negative impact of the reduction in volumes and also the increase of the COGS. As a result, the margin was of 13%, 2.4 percentage points above the Our consolidated results, net revenue advanced 4% when compared to the first quarter of 2026, driven by higher prices, as we have already mentioned, and also by the higher volumes in the mining segment. Adjusted EBITDA had an improvement in relation to the previous quarter, supported by the steel area that more than offset the steel segment. Net income repeats what happened as a decrease by 52% reflecting the weaker financials, something that was not repeated in the other quarter, in addition to worse financial results. Sales deal was partially offset by the significant increase of the automotive segment. This better mix, together with higher prices, led to a net revenue per ton almost 4% higher. The increase of adjusted EBITDA reflects the higher net revenue that more than offset the light drop in volume. Here we can see, as we mentioned previously, the significant impact of the improvement in the mix and the improvement in prices. The COGS was higher, excluding appreciation and amortization, explained by higher cost of coal and slabs. Other operational expenses show the non-recurring effect. So let's move on. The volume of sales of INR was 27% higher than the previous quarter, leading to a more normalized level. The first quarter was affected by the rainy season. Net revenues of the mining unit dropped 11%. In addition to the higher volume and the valuation of 1.2% of the reference price of INR, The result was impacted by the higher level of 35% of the maritime freight and by the appreciation of Rio against the dollar. The drop-in of adjusted EBITDA reflects those effects in particular. For the quarter, we show an operational cash flow after $130,000. The variation of the working capital of 184 million was affected by the payment of 360 million in operations of forfeiting. The CAPEX was 13% higher than the previous quarter, especially in relation to the finalization of PCI injection that will ensure better operation efficiency. In line with the discipline of execution of the CAPEX, Uzi Minas reduced the guidance of a CAPEX for the year from 1.4 to 1.2 to 1.4 billion reals. In spite of the strong reduction in operation operating when implementing CAPEX when compared to the previous quarter, the cash flow, the brief cash flow was positive in 35 million. Therefore, UFMN closes the quarter with a net cash of nearly 500 million in comparison to the 390 million of the previous quarter, an evolution of more than 100 million reals, reflecting the better end of the period. Net gross debt ended at 6.8 million, stable in relation to the previous quarter. With amortization, we are thought very significant for the year, for the next two years, with the Minas maintaining its financial discipline with a low leverage and a solid cash position. Leo, over to you.