CS CSN 2Q24 Earnings Release August 13, 2024 CSNA B3 LISTED SID LISTED NYSE 2Q24 – HIGHLIGHTS CEMENT LOGISTICS 2 Adjusted EBITDA Operational | --- | --- | --- | |------------------------------------------|--------------------|-----------------------------------| | improvements in practically all segments | + 34.5% | R$ 16.6 billion | | | 2Q24 VS 1Q24 | Strong commitment to deleveraging | | Excellent operational | C1 cost reduced by | | | performance : | 10% to | | | | USD 21.2/t | | Versus USD 23,5 in 1Q24 ...

Financial Data and Key Metrics Changes - The company reported a consolidated EBITDA margin of 19% for Q1 2024, impacted by lower iron ore prices and seasonality [8][10] - There was a negative cash flow of BRL 636 million, influenced by lower operating results and interest rates [9] - Net debt increased by BRL 1.2 billion compared to Q1 2023, attributed to commodity price drops [10] Business Line Data and Key Metrics Changes - Mining achieved record sales of over 9 million tonnes, with an EBITDA margin of 40% despite a significant price drop [7][14] - Steel production increased by 5.7%, but the company faced challenges with pricing due to competition from imports [12][13] - Cement maintained stable revenue despite lower volumes, achieving an adjusted EBITDA margin surpassing 25% for the first time [15] Market Data and Key Metrics Changes - The domestic steel market faced pressure from imports, with a significant portion of flat steel coming from China [36][39] - The Brazilian cement market is projected to grow by 2% this year, with April showing positive volume reactions [66] - The company noted a stable demand in the Brazilian market, particularly in civil construction, with expectations for aggressive growth in Q2 [59] Company Strategy and Development Direction - The company aims to reduce leverage below 3 times while pursuing significant capital expenditures in mining and steel [24][46] - Strategic partnerships in energy and minority stakes in mining are being explored to diversify operations [11] - The focus remains on operational excellence and capturing synergies post-acquisition of Lafarge Holcim in the cement sector [68] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about recovering EBITDA in Q2 due to rising prices and improved production control [22][25] - Concerns were raised about the slow governmental response to import competition, particularly from China [30][31] - The company is committed to maintaining operational efficiency and leveraging its competitive advantages in the market [39][68] Other Important Information - The company published its 2023 integrated ESG report, highlighting advances in emissions control and safety measures [8][18] - A significant investment program is underway, focusing on infrastructure and operational improvements [12][24] Q&A Session All Questions and Answers Question: Impact of government measures on import competition - The management discussed the recent government quota system and its potential effects on stabilizing margins in the steel sector, emphasizing the need for more robust measures against unfair competition [34][36] Question: Growth opportunities and capital structure - Management addressed the balance between pursuing growth opportunities and maintaining leverage below 3 times, emphasizing cautious investment strategies [34][46] Question: Overview of the cement industry and investment analysis - The management provided insights into the cement market dynamics, including pricing strategies and operational efficiencies post-acquisition of Lafarge Holcim [63][66] Question: Future margin recovery in steel operations - Management discussed strategies for increasing profitability in the steel sector, focusing on cost reduction and price adjustments in response to market conditions [64][71]

Economic Indicators - Inflation rates measured by the IPCA index were 10.1%, 5.8%, and 4.7% for the years 2021, 2022, and 2023, respectively[532]. - The CDI rate was 4.4%, 12.4%, and 13.0% for the years 2021, 2022, and 2023, respectively[533]. Revenue and Production - The steel segment represented 62.8%, 66.1%, and 50.0% of net revenues in 2021, 2022, and 2023, respectively, with gross profit contributions of 45.3%, 45.7%, and 14.3%[534]. - In 2023, 72.7% of steel revenues were from domestic sales in Brazil, compared to 70.2% in 2022[534]. - Domestic crude steel production in Brazil was 31.9 million tons in 2023, a 6.5% decrease from 2022[536]. - Domestic steel product consumption in Brazil increased by 1.5% to 23.9 million tons in 2023, while domestic sales decreased by 4.4% to 19.4 million tons[537]. - Global crude steel production was 1.89 billion tons in 2023, a slight decrease of 0.0% compared to 2022[535]. - In 2023, the mining segment represented 38% of net revenues and 60% of gross profit, with 89% of mining revenues coming from exports[548]. - Mining net operating revenues increased by R$4,610.5 million, or 36.8%, from R$12,525.1 million in 2022 to R$17,135.6 million in 2023, driven by a 28% increase in sales volume[564]. - Iron ore production reached 42.7 million tons in 2023, a 26.6% increase compared to 2022[564]. - Cement segment revenues increased by 60.0%, from R$2,819.6 million in 2022 to R$4,510.6 million in 2023, due to a 75.8% increase in sales volume[565]. - Energy segment revenues rose by 86.2%, from R$293.0 million in 2022 to R$546 million in 2023, primarily due to the consolidation of CEEE's operations[566]. Financial Performance - Total net operating revenues decreased from R$30,091 million in 2021 to R$22,718 million in 2023[546]. - Total net operating revenues increased by R$1,075 million, or 2.4%, from R$44,362 million in 2022 to R$45,437 million in 2023[561]. - Steel net operating revenues decreased by R$6,623.5 million, or 22.6%, from R$29,341.0 million in 2022 to R$22,717.5 million in 2023[563]. - Domestic operating revenues decreased by R$1,879 million, or 8.5%, from R$23,957 million in 2022 to R$22,078 million in 2023[561]. - Net income for the year plummeted by R$1,764.7 million, or 81.4%, from R$2,167.7 million in 2022 to R$403.0 million in 2023[595]. - Operating income decreased by R$2,455 million, or 47.3%, from R$7,641.5 million in 2022 to R$5,186.7 million in 2023[589]. - Cash provided by operating activities increased by R$5,250 million, or 257.0%, from R$2,042 million in 2022 to R$7,292 million in 2023[602]. - Cash and cash equivalents rose to R$16,046 million as of December 31, 2023, compared to R$11,991 million as of December 31, 2022[600]. - As of December 31, 2023, cash and cash equivalents were R$16,252 million, an increase from R$11,991 million in 2022[609]. - Selling, general and administrative expenses rose by R$1,240.0 million, or 27.6%, from R$3,249.9 million in 2022 to R$4,490.0 million in 2023[584]. Costs and Expenses - Cost of products sold increased by R$2,421 million, or 7.2%, from R$31,054 million in 2022 to R$33,475 million in 2023[568]. - Steel costs of products sold decreased by 9.7%, from R$23,256.3 million in 2022 to R$21,008.0 million in 2023, primarily due to lower sales volume[569]. - Gross profit in the steel segment decreased by R$4,375.2 million, or 71.9%, from R$6,084.7 million in 2022 to R$1,709.5 million in 2023[578]. - Mining costs of products sold increased by R$2,826.5 million, or 39.8%, from R$7,105.4 million in 2022 to R$9,931.9 million in 2023, driven by a sales volume increase of 9,332 tons[573]. - Cement segment costs of products sold increased by R$1,669.9 million, or 328.5%, from R$1,974.4 million in 2022 to R$3,644.4 million in 2023, due to a 75.8% increase in sales volume following the acquisition of LafargeHolcim[574]. - Gross profit in the energy segment surged by R$98.8 million, or 1,734.5%, from R$5.7 million in 2022 to R$104.5 million in 2023[582]. Debt and Financing - Total debt increased from R$40,919 million in 2022 to R$44,859 million in 2023, representing 227.9% of shareholders' equity[611]. - As of December 31, 2023, short-term debt was R$7,613 million and long-term debt was R$37,245 million[611]. - The debt maturity profile indicates that R$6,816 million is due in 2024, with total long-term debt obligations amounting to R$44,859 million[625]. - Cash provided by financing activities decreased by R$3,423 million in 2023, primarily due to a R$939 million decrease in debt amortization payments and a R$4,549 million decrease in new borrowings[605]. Contracts and Agreements - The company entered into a long-term supply agreement with Glencore for the prepayment of up to US$500 million for 13 million tons of iron ore over four years starting in 2024[619]. - In March 2023, the company signed a pre-payment export financing agreement for US$1.4 billion to support long-term projects, including a new pellet feed plant[620]. - In 2023, the total "take-or-pay" contractual obligations amount to R$10,038 million, with significant payments scheduled for the years 2023 to 2026[631]. - The guaranteed payment for iron ore and pellets transportation is at least 85% of the forecast annual revenue, with a set volume of 6.8 million tons for iron ore and pellets, and 3.2 million tons for coal and coke in 2023[632]. - The volume set for iron ore transportation for export from Itaguaí in 2023 is 40.5 million tons, with a payment guarantee of at least 85%[633]. - The transportation agreement for steel products in 2023 has a set volume of 1.8 million tons, with a payment guarantee of at least 80%[634]. - Cement transportation in 2023 has a set volume of 1,147.5 thousand tons, also with a payment guarantee of at least 80%[635]. Innovation and Future Outlook - CSN Inova has 73 ongoing initiatives in 2023, with 33 in planning, 23 piloted, and 17 scaled, indicating a mature innovation portfolio[646]. - CSN Inova Ventures ended 2023 with nine companies in its portfolio, with investments ranging from R$1 million to R$10 million, and new contributions expected in 2024[650]. - In 2023, significant advancements were made in projects utilizing green hydrogen in the steel industry, with the first application of Utis technology scheduled to start in the first semester of 2024[654]. - The Brazilian cement sales reached 62 million tons in 2023, remaining stable compared to 2022, with positive growth opportunities anticipated due to government housing programs[662]. - The outlook for iron ore prices in 2024 is expected to remain above historical averages due to tight supply-demand dynamics, despite challenges in the Brazilian steel market[661].

Shares of National Steel (SID) fell 3% since it reported fourth-quarter 2024 results on Mar 6, delivering earnings per share (EPS) of 13 cents, which missed the Zacks Consensus Estimate of 19 cents. It reported an EPS of 3 cents in the prior-year quarter.Domestic revenues decreased 7.3% year over year to R$5.48 billion ($1.1 billion). The company’s international business revenues improved 25.1% year over year to R$6.52 billion ($1.31 billion).For the December 2023-end quarter, net revenues were R$12 billion ...

Companhia Siderúrgica Nacional (NYSE:SID) Q4 2023 Earnings Conference Call March 7, 2024 9:30 AM ET Company Participants Marcelo Ribeiro - Executive Director of Finance and Investor Relations & Member of Executive Board Benjamin Steinbruch - President of Executive Board, Chairman and Chief Executive Officer Helena Guerra - ESG and Sustainability Director Luis Martinez - Executive Director of Commercial and Logistics Area & Member of Executive Board Divaldo Oliveira - Production Supervisor, Process Engineer ...

Companhia Siderúrgica Nacional (NYSE:SID) Q3 2023 Earnings Call November 14, 2023 9:30 AM ET Company Participants Marcelo Cunha Ribeiro - CFO and IR Executive Director Benjamin Steinbruch - Chairman and Chief Executive Officer Helena Brennand Guerra - ESG and Sustainability Director Luis Fernando Barbosa Martinez - Director Conference Call Participants Guilherme Rosito - Bank of America Caio Greiner - BTG Pactual Daniel Sasson - Itau BBA Operator Good morning, ladies and gentlemen, and thank you for holding ...

SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 6-K Report of Foreign Private Issuer Pursuant to Rule 13a-16 or 15d-16 of the Securities Exchange Act of 1934 For the month of October, 2023 Commission File Number 1-14732 COMPANHIA SIDERÚRGICA NACIONAL (Exact name of registrant as specified in its charter) National Steel Company (Translation of Registrant's name into English) Av. Brigadeiro Faria Lima 3400, 20º andar São Paulo, SP, Brazil 04538-132 (Address of principal executive office) Indica ...

Companhia Siderúrgica Nacional (NYSE:SID) Q2 2023 Results Conference Call August 3, 2023 10:30 AM ET Company Participants Marcelo Cunha Ribeiro - CFO and IR Executive Officer Helena Guerra - Sustainability Director Benjamin Steinbruch - Chairman and CEO Conference Call Participants Caio Greiner - BTG Pactual Daniel Sasson - Itau BBA Thiago Lofiego - Bradesco BBI Caio Ribeiro - Bank of America Carlos De Alba - Morgan Stanley Vanessa Quiroga - Credit Suisse Operator Good morning, ladies and gentlemen, and tha ...

As filed with the Securities and Exchange Commission on April 27, 2023 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ________________________________________________ FORM 20-F ________________________________________________ ☐ REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 OR ☐ TRANSITION REPORT PURSUAN ...

SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 6-K Report of Foreign Private Issuer Pursuant to Rule 13a-16 or 15d-16 of the Securities Exchange Act of 1934 For the month of April, 2023 Commission File Number 1-14732 COMPANHIA SIDERÚRGICA NACIONAL (Exact name of registrant as specified in its charter) National Steel Company (Translation of Registrant's name into English) Av. Brigadeiro Faria Lima 3400, 20º andar São Paulo, SP, Brazil 04538-132 (Address of principal executive office) Indicate ...