Companhia Siderúrgica Nacional Q4 FY2024 earnings call

Management Statement and Operational Highlights

• Deleveraging Commitment: Sold 10% stake in CMIN for BRL4.4 billion to reinforce cash. Decided not to continue with some cement acquisitions to enhance deleveraging.
• Capital Recycling: Analyzing infrastructure, energy assets, and steel plant minority stakes for capital growth.
• Dividends: Decided not to distribute dividends in Q1 2025 to reinforce deleveraging.
• ESG: Excellent safety performance (63% reduction in loss days, 66.3% reduction in accident severity rate), 7% reduction in CO2 emissions in steel mill, 75% PMO representation for diversity.

Segment Performance

• Mining: Fourth quarter 2024 confirmed operational excellence, reached production guidance and CI cost with operational records. Price increased by 35% vs previous quarter, EBITDA margin above 50%.
• Steel: Fourth quarter 2024 had best commercial results since 2021, 10% increase in sales, EBITDA margin 11%.
• Cement: Better price environment offset seasonality, EBITDA margin 33%, highest since purchasing Lafarge Holcim. Contributed BRL1.4 billion (13% of group results).
• Logistics: Drop in invoicing and EBITDA in Q4 due to seasonality, but EBITDA margin ~40%, revenue grew over 11% during the year.

Guidance

• EBITDA guidance for 2025 is higher than 2024.
• P15 in mining to come into operation end of 2027. Steel reorganization plan continuing in 2025. Cement greenfield projects in Parana, Sergipe, Para; Parana project progressing with environmental license expected this year.

Risks

• Impact of general/economic conditions, exchange/interest rates, debt rescheduling/prepayment, protectionist measures, regulatory changes, and competition.
• Antidumping issues affecting steel and cement segments. Uncertain government actions on coal drawing and other products like prepainted steel.

Question and Answer

Q: Overview of expansion projects in mining, steel, cement and trade protection impact on CSN.

A: Benjamin Steinbruch and others discuss P15 in mining (to operate end 2027), steel reorganization plan, cement greenfield projects (Parana project in progress), and trade protection measures affecting steel and cement.

Q: Details on deleveraging plans and steel segment results.

A: Marco Rabello and Luis Martinez talk about deleveraging through EBITDA results and cost control, and steel segment performance with 11% EBITDA margin in Q4 2024.

Q: Antidumping issue, sale of stake at Usiminas, and cement business news.

A: Luis Martinez discusses antidumping processes, Usiminas stake uncertainty, and cement IPO plans with challenges due to equity market window