Companhia Siderurgica Nacional · BMFBOVESPA:CSNA3
Companhia Siderurgica Nacional — Q1 2020 Earnings Presentation
14 slides from Companhia Siderurgica Nacional's earnings presentation, May 15, 2020
Slide 1: Earnings Presentation – 1Q20
Steel Mining Cement Logistics Energy Earnings Presentation– 1Q20 May 15th, 2020
Slide 2: Efforts against COVID-19
EFFORTS AGAINST COVID-19 CSN is funding part of the costs of the Hospital of Campaign, built by the Volta Redonda Cityl. at the Raulino de Oliveira Soccer Stadium. The Hospital has 114 beds of medium complexity and is considered fundamental by the city to avoid overloading the public health system.
Slide 3: Highlights – 1Q20
HIGHLIGHTS – 1Q20 1 Strong operating cash flow of R$506MM, despite the impact of rain on Improving mining operations Operational Results 1 2 2 New US$1.0 Billion bond issuance due 2028 and coupon of 6.75% providing improved liquidity and debt profile Acceleration of Reprofiling Deleveraging Financia
Slide 4: Consolidated Operational & Financial Indicators
Steel Mining Cement Logistics Energy Consolidated Operational & Financial Indicators
Slide 5: Adjusted EBITDA Evolution in 1Q20
ADJUSTED EBITDA EVOLUTION IN 1Q20 EBITDA by Segment (R$MM) 1,580 121 (368) 1,331 4 (5) Ebitda 4Q19 Steel Mining Cement Elimination/ Ebitda 1Q20 Expenses/Others Impact Consolidated EBITDA (R$MM) 1,580 (6) 1,331 (661) 24 246 148 EBITDA Dollar Volume Price Cost/ Others EBITDA 4Q19 Expenses 1Q20 5
Slide 6: Financial Indicators
FINANCIAL INDICATORS Capex - R$MM Financial Cycle - days 846 70 41 314 354 33 1Q19 4Q19 1Q20 1Q19 4Q19 1Q20 Net Working Capital – R$MM Adjusted Cash Flow¹ – R$MM 4,596 1.331 3,639 3,826 (109) 48 (355) (215) (194) 506 1Q19 4Q19 1Q20 Adjusted EBITDA ∆ Capex Tax Financial Adjusted EBITDA Joint Adjusted
Slide 7: Leverage and Liquidity
LEVERAGE AND LIQUIDITY The accelerated devaluation of the Real at the end of the quarter increased the one-off impact on leverage Gross Debt. Net Debt and Cash (R$MM) Debt by Currency 4.78x 4.55x BRL 4.07x 29% 4.47x 3.81x 3.85x 3.65x 3.92x 4.10x 3.72x 3.64x 3.77x 71% USD 36.9 29.9 29.4 29.8 30.6 29.
Slide 8: Debt Amortization Schedule
DEBT AMORTIZATION SCHEDULE CSN continues to carry initiatives to extend its average debt duration and increase liquidity Initiatives 2020 2020 BOND Issue Duration increased 10 months • Tender offer BOND 2020 (Jan-20) Average debt term 4Q19 1Q20 • BOND 2028 issue US $ 1.0 Bi at 6.75% Coupon (Jan-20)
Slide 9: Business Highlights
Steel Mining Cement Logistics Energy Business Highlights
Slide 10: Steel Performance
STEEL PERFORMANCE 1Q20 performance impacted by drop in domestic sales due to COVID-19 pandemic which slowed sales in the last two weeks of March/20 Sales Volume (Thousand tons) Net Revenue (R$MM) and Average price (R$/ton) 19.4% 3,068 3,108 +4% +23 2,998 +2% 1,175 1,161 1,117 1,140 1,072 3,605 3,349
Slide 11: Steel Competitiveness
STEEL COMPETITIVENESS EBITDA per ton recovers in 1Q20, with an increase in the average prices and production Slab Cost (R$/t) Volume of Slab Production at Usina Presidente Vargas (thousand tons) -4% -4% -1% 2,210 2,120 2,035 2,014 102 98 99 85 1Q20 production 2,108 2,022 1,936 1,929 normalizing jan/
Slide 12: Mining Performance
MINING PERFORMANCE Sales volume was strongly impacted by rains and delays in new mining fronts in 1Q20, resulting in a EBITDA drop Net Revenue (R$MM) Total Sales Volume (million tons) -21% 2,522 -37% 10.14 10.33 2,079 1,646 9.21 8.86 1Q19 4Q19 1Q20 EBITDA (R$MM) e EBITDA Mg (%) 5.61 61% 56% 51% -27%
Slide 13: Mining Performance: price realization
MINING PERFORMANCE Despite Platts stability in the quarter, CSN’s CIF + FOB price rose 2% with quotation periods higher than the index and less deduction for FOB freight +0% +1% +2% 89.0 +3.0 88.2 73.3 1Q20 -3.8 -7.1 -7.8 Platts62 Quotational Quality and Price CFR FOB Humidity Price 1Q20 (dmt) Perio
Slide 14: Visit our website: www.csn.com.br
Visit our website: www.csn.com.br Investor Relations: Marcelo Ribeiro– CFO and IR Director Investor Relations Team: Leonardo Shinohara, Jose Henrique Triques, Sandra Saad and Guilherme Vinco invrel@csn.com.br
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