CSN(SID)2024-08-13 20:27Financial Data and Key Metrics Changes - The company reported an EBITDA of R26.6 billion, providing significant comfort for the company's obligations [6] - Leverage increased slightly from 3.3x to 3.36x due to exchange rate impacts and dividend payments [13] Business Line Data and Key Metrics Changes - Mining: Achieved the best performance since 2016 with production costs reduced from 21.2 per ton, resulting in an EBITDA margin of 48%, up 8.1 percentage points from Q1 2024 [7][18] - Steel: Sales volume exceeded 1.1 million tons, a 3% increase from Q1 2024 and a 7% increase year-over-year. EBITDA in this segment grew by almost 40% [8][15] - Cement: Sold 3.6 million tons, a 20% increase from Q1 2024, with net revenue growing by 15% and an EBITDA margin of 28%, the highest since acquiring LafargeHolcim [8][20] - Logistics: EBITDA grew by 9.2% compared to the previous quarter, benefiting from positive seasonality and product diversification [9] Market Data and Key Metrics Changes - Apparent consumption in Brazil grew by 9%, with domestic sales increasing by 7% [38] - The company noted a 22% import penetration in the second quarter, indicating a competitive market environment [41] Company Strategy and Development Direction - The company is focused on reducing leverage and enhancing operational efficiency across all segments, with a commitment to strategic investments in steel and mining [13][30] - Plans for potential IPOs in the cement and logistics sectors are being considered, contingent on market conditions [61] - The company aims to maintain high production levels in iron ore and cement while managing costs effectively [36] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the second half of 2024, expecting improved results driven by operational enhancements and market demand [26][27] - The company is aware of challenges in the energy segment due to adverse weather conditions but remains committed to maintaining energy levels [10][28] Other Important Information - The company achieved decarbonization goals in the cement segment, aligning with the Paris Accord [22] - There was a significant reduction in accident frequency and severity rates, reflecting improvements in health and safety measures [22] Q&A Session Summary Question: Context on financial deleveraging and potential asset sales - Management discussed ongoing negotiations for cement asset acquisitions and potential sales of mining stakes to strategic partners to reduce leverage [33][37] Question: Recovery in steel plant results and price dynamics - Management highlighted a 9% growth in CSN's sales, with expectations for price increases and the impact of government measures on the local market [34][38] Question: Position regarding Usiminas shares - Management confirmed they are observing the ideal moment to monetize shares and are not in noncompliance with judicial timelines [44][46] Question: Cost and margin outlook for steel - Management indicated that operational efficiency efforts are yielding positive results, with expectations for continued cost reductions in the second half of the year [48][49] Question: Leverage expectations and market competitiveness - Management reiterated the goal of achieving 1x to 2x leverage in the long term, while acknowledging current challenges in the market [51][57] Question: Internationalization of cement and steel - Management confirmed ongoing efforts to expand internationally, particularly in the Americas, while maintaining a focus on domestic market strength [68][70]