CSN(US:SID)2026-01-15 14:02Summary of Companhia Siderúrgica Nacional (CSN) Strategic Update Call Company Overview - Company: Companhia Siderúrgica Nacional (CSN) - Industry: Steel and Mining - Date of Call: January 15, 2026 Key Points Strategic Plan and Deleveraging - CSN aims to reduce leverage by approximately $16 billion to $18 billion through divestment of certain assets in 2026, targeting a leverage ratio of around 1.8 [3][4][10] - The company has already initiated the sale of BRL 3.35 billion in shares to MRS as part of this deleveraging strategy [15][32] - The goal is to enter a new growth cycle of eight years while maintaining a sustainable leverage level [4] Mining Segment - CSN is the seventh-largest iron ore exporter globally, with a strong EBITDA generation and high profitability [4] - The mining segment is expected to achieve an EBITDA uplift of approximately $4 billion per year [4] - The company has $3 billion in reserves supporting an extended mine life [4] Infrastructure Segment - CSN Infrastructure includes seven railway, port, and multimodal assets, with a projected EBITDA of over BRL 60 billion in the near future [5][6] - The company plans to sell a relevant share of infrastructure assets by 2026 to enhance cash flow [6][9] Cement Segment - CSN Cement is a leading player in Brazil's cement production, with EBITDA margins reaching 30%, the highest in the sector [7] - The short-term strategy includes seeking the sale of control of CSN Cement by 2026 [7][10] Steel Segment - CSN Steel is recovering profitability and is one of Brazil's largest integrated flat steel producers [8] - The company is assessing strategic alternatives and partnerships to maximize cash generation in the steel segment [8][9] Energy Segment - CSN Energy is one of Brazil's largest renewable energy platforms, achieving self-sufficiency since 2023 [9] - The segment has EBITDA margins between 30% and 40%, with a focus on energy transition [9] Market Conditions and Challenges - The company faces challenges from high interest rates and competition from imported products, which impact growth and investment [12][13] - CSN emphasizes the need for commitment to investment and growth despite the current economic environment [12][19] Future Outlook - CSN is optimistic about the improvement in profitability and market conditions in 2026, driven by strategic actions taken in 2025 [15] - The company is focused on enhancing its capital structure and reducing leverage to facilitate future investments [19][40] Investor Engagement - The management is actively engaging with investors and exploring strategic partnerships to enhance capital generation [44] - The company is open to future IPOs or sales of stakes in its segments, depending on market conditions and valuations [37][45] Regulatory Considerations - The sale of assets will require regulatory approvals, including from antitrust agencies [50] - The company is prepared to navigate these procedural requirements as part of its strategic initiatives [50] Conclusion CSN is strategically positioning itself for growth through a comprehensive deleveraging plan, focusing on its core segments of mining, infrastructure, cement, steel, and energy. The company aims to enhance profitability while navigating market challenges and engaging with investors for future opportunities.