CSN(US:SID)2023-11-14 20:57Financial Data and Key Metrics Changes - The company reported a 25% increase in capital despite pressures in the global steel market, achieving over R$1 billion in cash generation, which contributed to deleveraging and a reduction in net debt by 4.8% [5][10][11] - EBITDA saw a significant drop of 64% in the steel segment, while mining EBITDA increased by over 76%, reaching nearly R$2 billion [7][15] - The company achieved a working capital evolution of R$1 billion, leading to an operating cash flow of more than R$1 billion for the quarter [8][9] Business Line Data and Key Metrics Changes - The steel segment faced challenges due to imported steel competition, resulting in a slight reduction in total volume sold, although domestic market demand remained positive [13][14] - The mining segment experienced record production and strong price realization, contributing to a 45% increase in EBITDA [15][16] - The cement sector achieved its highest EBITDA in history, with a 4% increase in volumes despite a declining market [16][17] Market Data and Key Metrics Changes - The domestic steel market is experiencing mixed demand, with sectors like construction showing positive trends, while overall market conditions remain challenging due to imported steel [13][14] - The international prices of iron ore positively impacted the mining segment, with the company benefiting from a higher proportion of its own iron ore in sales [15][16] Company Strategy and Development Direction - The company is focused on deleveraging and improving its financial health, aiming for a leverage ratio below two times by 2024 [10][11][28] - There is an emphasis on maintaining a robust liquidity position, with over R$15 billion available to cover short-term indebtedness [11][12] - The company is exploring opportunities for growth through potential mergers and acquisitions in the cement sector, despite regulatory challenges [52][53] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the mining segment's performance, anticipating continued improvements in production and pricing [22][24] - The company highlighted the need for government intervention to address unfair competition from imported steel, advocating for protective measures to support the domestic industry [25][26][28] - The outlook for the cement market remains positive, with expectations of price recovery and increased consumption in the fourth quarter [24][48] Other Important Information - The company reported significant advancements in ESG initiatives, including a reduction in accident rates and water consumption [19][20] - The completion of a sustainable linked finance operation for R$500 million was noted, reflecting the company's commitment to sustainability [20] Q&A Session Summary Question: Capital allocation and buyback strategy - Management indicated a preference for buybacks to support share price recovery while maintaining a consistent dividend policy [30][31] Question: Steel price negotiations and market conditions - The company expects stable demand and prices in the fourth quarter, with ongoing negotiations for price increases amid challenges from imported materials [32][34] Question: Margin outlook for steel production - Management anticipates improvements in margins due to cost reductions and stable pricing, with expectations for a positive performance in the coming quarters [40][41][43] Question: Cement sector growth opportunities - The cement market remains fragmented, presenting potential for future M&A activity, although regulatory hurdles may complicate negotiations [52][53]