CSN(US:SID)2025-08-01 13:32Financial Data and Key Metrics Changes - The company reported an EBITDA of BRL 2.6 billion with a margin of 23.5%, reflecting a 5% increase and a 1.4 percentage point expansion compared to Q1 2025 [5] - Gross debt was reduced by BRL 5.7 billion year-to-date, with a reduction of BRL 2.1 billion in the current quarter, leading to a leverage ratio decrease from 3.33x to 3.24x [5][12][13] Business Line Data and Key Metrics Changes - Mining: Achieved second highest sales volume in history, but EBITDA dropped by 36% due to falling iron ore prices [6][20] - Steel: Despite a 11.5% drop in sales volume, EBITDA increased by 79% year-on-year, with a margin of 10.08% [10][18] - Cement: Sales volume grew by 8% quarter-on-quarter, with a 10% increase in net revenue compared to Q1 2025, resulting in an EBITDA margin of 24% [8][23] - Logistics: Achieved a record EBITDA of BRL 519 million with a margin of 41.4% [9][24] Market Data and Key Metrics Changes - The steel market faced significant competition from imported materials, leading to a loss of market share for the company [16][33] - The company noted a 40-50% penetration of imported products in certain segments, particularly in tinplate and prepainted products [56][81] Company Strategy and Development Direction - The company is focusing on operational excellence, cost reduction, and enhancing productivity across all segments [31][84] - A strategy prioritizing value over volume in the steel segment has been adopted to improve profitability despite market challenges [7][57] - The company is actively seeking partnerships in infrastructure to reduce leverage and improve cash flow [42][46] Management's Comments on Operating Environment and Future Outlook - Management expressed concerns over the chaotic influx of imported products affecting the domestic market and emphasized the need for government intervention [33][81] - The company remains optimistic about demand in Brazil, projecting a recovery in steel production and profitability in the coming quarters [58][60] Other Important Information - The company is committed to ESG initiatives, reporting a 30% reduction in occupational health and safety incidents compared to 2020 [26] - The company is also focusing on decarbonization efforts, achieving an 11% reduction in GHG emissions compared to the baseline year 2020 [28] Q&A Session Summary Question: Details on potential infrastructure partner and Usiminas stake sale - The company is in discussions regarding infrastructure assets, with potential liquidity injection of BRL 8 billion and has not yet defined the next steps for the Usiminas stake sale [42][46] Question: Impact of recent dumping decisions on margins - The company highlighted ongoing issues with imports and the need for government action on anti-dumping measures, while maintaining a focus on product diversification and higher value products [50][57] Question: Measures for cost efficiency in steel production - The company has implemented changes in production processes and is optimistic about cost reductions in the second half of the year [62][65] Question: Expectations for CapEx flexibility and asset sales - The company aims to maintain a lower CapEx focus while exploring asset monetization opportunities, including energy partnerships [66][68] Question: Long steel market dynamics and government conversations - The company noted a decline in long steel sales and emphasized the need for protective measures against imports to stabilize the market [72][78]