Usinas Siderurgicas De Minas Gerais Sa-usiminas · BMFBOVESPA:USIM3
Usinas Siderurgicas De Minas Gerais Sa-usiminas — Usinas Siderúrgicas de Minas Gerais — Q1 2024 Earnings Presentation
52 slides from Usinas Siderurgicas De Minas Gerais Sa-usiminas's earnings presentation, Apr 23, 2024
Slide 1: Results 1Q24 Webcast and Institutional Presentation
Results 1Q24 Webcast Institutional Presentation Classificação da informação: Uso Interno
Slide 2: Summary
SUMMARY WEBCAST....................................................03 INSTITUTIONAL PRESENTATION...............13 Classificação da informação: Uso Interno
Slide 3: 1Q24 Results Presentation
1Q24 Results Results Presentation April 23, 2024 3 Classificação da informação: Uso Interno
Slide 4: Highlights of the quarter
1Q24 Results 1Q24 Results Highlights of the quarter Iron Ore Sales Steel Sales Steel COGS/t Decrease compared to 4Q23 2million 1million -11% ton ton Adjusted EBITDA Net Profit Investiments (CAPEX) R$ 416mi R$ 36mi R$ 268mi Cash Leverage Disclousure of decarbonization target -15% R$ 5.7bi 0.22x redu
Slide 5: Consolidated net revenue, adjusted EBITDA, net income
1Q24 Results Consolidated NET REVENUE ADJUSTED EBITDA NET INCOME R$ Million R$ Million R$ Million 11% 9% 7% 5% 7,255 975 6,887 6,714 6,781 6,223 0% 5% 783 625 544 301 416 287 366 36 324 (166) (20) 1Q23 2Q23 3Q23 4Q23 1Q24 1Q23 2Q23 3Q23 4Q23 1Q24 1Q23 2Q23 3Q23 4Q23 1Q24 Non-Recurring Effects Margin
Slide 6: Steel Unit
1Q24 Results Steel Unit STEEL SALES NET REVENUE ADJUSTED EBITDA (Kt) R$ Million and per ton (R$/t) R$ Million ∆4Q23: 0% ∆4Q23: -2% 8% 4% 5% 6% 6,478 6,442 1,042 1,028 1,014 1,041 5,906 557 -1% 101 944 121 123 Exports 5,658 5,550 -3% 90 ∆4Q23: +25% 70 6,662 6,082 334 621 5,988 5,890 5,784 497 491 267
Slide 7: Steel Unit quarterly variation in EBITDA
1Q24 Results Steel Unit QUARTERLY VARIATION IN EBITDA R$ Million Highlight is the reduction in costs of R$474mi. Non-Recurring Costs Reduction* Price/Mix EBITDA 1Q24 Effects EBITDA 4Q23 4Q23 EBITDA without Others Volume Non-Recurring Effects 23 de Abril de 2024 → 7 * Excluding the non-recurring effe
Slide 8: Mining Unit
1Q24 Results Mining Unit IRON ORE SALES NET REVENUE ADJUSTED EBITDA (kt) R$ Million and per ton (R$/t) R$ Million and per ton (US$/t) ∆4Q23: -33% ∆4Q23: -18% 32% 31% $101 16% 16% 13% 2,391 $89 2,398 2,383 $82 $77 ∆4Q23: -69% $67 1,962 $28 1,883 $26 1,895 1,753 1,730 1,238 1,255 Exports $12 $11 1,049
Slide 9: Financial Indicators
1Q24 Results Financial Indicators April 23, 2024 9 Classificação da informação: Uso Interno
Slide 10: Cash from operations, capex and free cash flow
1Q24 Results Consolidated CHANGES IN WORKING CAPITAL AND CAPEX FREE CASH FLOW** CASH FROM OPERATIONS* R$ Million R$ Million R$ Million 1,647 1,544 1,364 879 886 784 761 61 121 1,005 910 654 733 580 674 436 379 131 33 256 401 343 291 268 23 382 386 204 232 245 (31) (205) (108) (299) 1Q23 2Q23 3Q23 4Q
Slide 11: Cash, gross debt, net debt and leverage
1Q24 Results Consolidated CASH, GROSS DEBT, NET DEBT AND LEVERAGE GROSS DEBT AMORTIZATION PROFILE - PRINCIPAL ONLY R$ Billion R$ Million Debt Duration: R$: 47 months US$: 28 months 0.07x 0.38x 0.21x 5,7 -0.05x 0.22x 1,7 3,7 6.1 5.9 6.1 5.9 6.1 1.0 0.3 0.4 (0.1) 0.3 4,0 5.8 4.9 5.7 5.7 6.0 0,7 0,7 0,
Slide 12: Decarbonization Plan
1Q24 Results ESG Descarbonization Plan Energy Efficiency Biomass % Renewable Energy Reduction of emissions Optimization of Raw intensity Materials (Scope 1 and 2 - tCO2/tab*) by 2030, compared to the base year 2019**. 12
Slide 13: 1Q24 Institutional Presentation
1Q24 Institutional Presentation Classificação da informação: Uso Interno
Slide 14: Our Agenda
OUR AGENDA 1 The Usiminas 2 Usiminas Management Pillars People Customers Results 3 Governance and Highlights 4 Appendix Classificação da informação: Uso Interno
Slide 15: The Usiminas Overview
The Usiminas Overview Título ✓ One of the biggest producers of flat steel in Brazil. ✓ Present in six states, covering the entire steel chain ✓ Mining and logistics, capital goods, service and distribution centers and customized solutions. ✓ Two steel mills strategically located along Brazil's main
Slide 16: The Usiminas: financial highlights and geographic location
The Usiminas Financial Highlights Geographic Location 2017 2018 2019 2020 2021 2022 2023 Net Revenue (R$ mi) 10,734 13,737 14,949 16,088 33,737 32,471 27,638 annual growth 27% 28% 9% 8% 110% -4% -15% Ajusted EBITDA (R$ mi) 2,186 2,693 1,973 3,194 12,830 4,905 1,753 Margin 20% 20% 13% 24% 38% 15% -64
Slide 17: Complete Solutions in Products and Services
Complete Solutions in Products and Services Mining Steel Unit Ipatinga | Cubatão | Unigal | Mineração Usiminas Soluções Usiminas o A Soluções Usiminas foi incorporada na unidade de Siderurgia a partir do 4T23. Criada em 2009, possui amplo portifólio de produtos e serviços de transformação e distribu
Slide 18: Mining Overview
Mining Soluções Overview completas em produtos e serviços ✓ JV formed in 2010 through a partnership with Sumitomo Corporation (30% economic stake) responsible for mining and railway operations. ✓ Three mining sites in the Serra Azul region (MG), with resources of 2.4 billion tons of iron ore. ✓ Asse
Slide 19: Mining financial highlights
Mining Destaques Financeiros Iron Ore Sales and Price PLATTS (62% FE CFR China) Mining Business Unit - Thousand tons – Prices in US$/ton 160 93 109 120 120 126 111 114 128 124 2,391 8,616 8,683 9,023 8,641 9,055 2,398 2,383 1,883 1,962 4,631 1,895 1,753 1,730 5,916 6,785 5,822 6,617 1,238 1,255 148
Slide 20: Mining: Dry Stacking
Mining Dry Stacking ✓ Disposal of tailings by the dry stacking process, replacing dams ✓ Started operation in December 2021 ✓ R$235 million invested Reclaimed water Filtration plant Waste Waste + Dry Stack Flotation Water Tailings Classificação da informação: Uso Interno
Slide 21: Steel Overview
Steel Mineração Overview ✓ One of the largest producers of flat rolled steel in Brazil. Projetos Friáveis ✓ Two industrial plants in Ipatinga (MG) and Cubatão ✓ Operações iniciadas em 2014 (SP). ✓ Aumento de capacidade de 8 milhões para 12 milhões de ton/ano de minério de ferro ✓ Nominal crude steel
Slide 22: Steel sales evolution and EBITDA
Steel Steel Sales Evolution (Thousand tons) 1,042 4,823 1,028 1,014 1,041 944 121 123 4,105 529 4,209 4,027 101 90 70 3,723 424 609 382 421 927 874 924 920 919 4,294 3,681 3,302 3,601 3,646 1Q23 2Q23 3Q23 4Q23 1Q24 2019 2020 2021 2022 2023 Domestic Market Exports EBITDA (R$ mm) and EBITDA Margin (%)
Slide 23: Steel products and end markets
Steel Chapas Grossas Laminados a Quente Laminados a Frio Galvanizados Civil Civil Construction Civil Construction Condtruction Machinary Civil and Machinary Construction Equipment and White Line Equipment Pipelines White Line Pipelines Auto Industry Capital Goods Auto Industry Wind Energy Auto Indus
Slide 24: Flat steel consumption markets and capacity
Steel Flat steel consumption markets The total crude steel generation capacity is 5 million tons and is located in Ipatinga. Current capacity for generating finished products, considering the galvanizing lines (EG and HDG) and heavy plates at their maximum capacities. Galvanized Heavy Plates Hot Rol
Slide 25: Strategic investments in the Ipatinga plant: Steelworks
Strategic investments in the Ipatinga plant Steelworks 2 • R$535 million in investments by 2023 • Replacement and repair of main metal structures • Recovery of main foundations and scale channels • Recovery and modernization of slab cutting machines Expected benefits Greater efficiency and process C
Slide 26: Strategic investments in the Ipatinga plant: Blast Furnace
Strategic investments in the Ipatinga plant Blast Furnace 3 • R$2.7 billion in investments • Ramp-up continues as planned Expected benefits Compared to the pre-revamp period Fuel efficiency gains: 9% GHG reduction with the incorporation of Productivity gains > 30% Gains in specific coke consumption:
Slide 27: Research and Development
Steel Siderurgia Research and Development Largest steel research center in Latin America ✓ More than 50 years of experience ✓ 17 laboratories ✓ Largest number of steel patents in Latin America (101 letters patent) ✓ Focus on developing new steels and improving production processes Classificação da i
Slide 28: Our Agenda
OUR AGENDA 1 The Usiminas 2 Usiminas Management Pillars People Customers Results 3 Governance and Highlights 4 Appendix Classificação da informação: Uso Interno
Slide 29: People: Social and Environmental Highlights
People Social and Environmental Highlights Highlights 336 Program for the Recovery and 18 Thousand Márcio Cunha Hospital VOU – Usiminas Volunteers Scholarships Preservation of Green Areas received the quadrivalent recognized by Newsweek 1.384 employees registered on the to the São Francisco 12,500 s
Slide 30: People: Mobiliza Todos pela Água Project
People “Mobiliza Todos pela Água” Project In partnership with the municipalities, uses metallurgical co-products in the recovery of springs 36,000 1,600 5,500 Seedlings Springs Springs donated to identified and protected mapped municipalities Classificação da informação: Uso Interno
Slide 31: People: Mobiliza Caminhos do Vale Project
People “Mobiliza Caminhos do Vale” Project Socio-environmental projects as counterpart in Marliéria Socio-environmental considerations in Paraíso and Iapú Increase in tourism and handicraft, and helping Construction of the free flight ramp in the community of the local products flow Achado, 2nd larg
Slide 32: People: Education and Culture
People Education and Culture São Francisco Xavier School Usiminas Institute First educational institution in Brazil to obtain Usiminas invested over R$260 million, encouraging around 2,000 ISO 9001 social projects since 1993 Projects and Programs Xerimbabo Usiminas Project “Plante uma vida” Project
Slide 33: Social and Environmental Highlights: Hospitals
People Social and Environmental Highlights São Francisco Xavier Foundation Márcio Cunha Hospital – Unit I Márcio Cunha Hospital – Unit II Reference center in the area of health in Brazil Internação, Atendimento Ambulatorial, Centro de Diagnóstico por Imagem e Usifamília Carlos Chagas Municipal Hospi
Slide 34: Social and Environmental Highlights: Libertas Hospital
People Social and Environmental Highlights Libertas Hospital New hospital in installation by FSFX, Inicial opening of occupying the old 140 beds headquarters building (380 in total) in Belo Horizonte Classificação da informação: Uso Interno
Slide 35: Results (quarterly)
Results (R$ Million, except otherwise indicated) Net Revenues Ajusted EBITDA and adjusted EBITDA margin 11% 5% 9% 7% 0% 783 625 416 366 7,255 6,887 6,714 6,781 6,223 (20) 1Q23 2Q23 3Q23 4Q23 1Q24 1Q23 2Q23 3Q23 4Q23 1Q24 Capex Net income 879 886 61 975 121 654 544 580 33 436 379 131 287 36 343 291 2
Slide 36: Results (annual)
Results (R$ Million, except otherwise indicated) Net Revenues Ajusted EBITDA and Ajusted EBITDA Margin 38.0% 19.9% 13.2% 15.1% 33,737 32,471 27,638 12,830 6.3% 14,949 16,088 4,905 3,194 1,754 1,973 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 Net Income and Net Margin Capex 3,000 346 2,184 364
Slide 37: Financial Results: Working Capital
Results Financial Results Working Capital (R$ million) 9,845 9,444 7,900 6,895 7,003 1Q23 2Q23 3Q23 4Q23 1Q24 Classificação da informação: Uso Interno
Slide 38: Liquidity and Indebtedness
Liquidity and Indebtedness (R$ billion) Debt Repayment Schedule Cash Position and Indebtedness Current cash position covers all debt until 2029 Debt Duration: R$: 47 months 5,7 US$: 28 months 6.1 5.9 6.1 5.9 6.1 1,7 0.3 1.0 0.4 0.3 3,7 -0.1 5,1 5,1 5,8 4,9 5,7 4,0 0,7 0,7 0,5 0,1 0,1 0,0 - 0,1 1Q23
Slide 39: Our Agenda
OUR AGENDA 1 The Usiminas 2 Usiminas Management Pillars People Customers Results 3 Governança corporativa 4 Appendix Classificação da informação: Uso Interno
Slide 40: Usiminas' Corporate Governance
Usiminas’ Corporate Governance Usiminas’ model of corporate governance meets government and market requirements for listed companies, preserving and encouraging transparency New Shareholders Agreement ✓On July, 2023, the Company’s amended and restated the Usiminas Shareholders Agreement - valid unti
Slide 41: Usiminas' Corporate Governance (Cont'd)
Usiminas’ Corporate Governance (Cont’d) Recently approved programs that ensure safety for the investor, transparency of actions, management control and clarity in communication Integrity Program Policies of the Brazilian Corporate Governance Code P Policy of Destination of Results P Code of Ethics a
Slide 42: Our Agenda
OUR AGENDA 1 The Usiminas 2 Usiminas Management Pillars People Customers Results 3 Governance and Highlights 4 Appendix Classificação da informação: Uso Interno
Slide 43: Over Half a Century of Leadership
Over Half a Century of Leadership Creation of Temporary shutdown Soluções Selling of of the primary areas Listing on Usiminas Ternium stake Automotiva Implementation of Operation Cosipa in Cubatão Stock trading LATIBEX stock One CNPJ: Joint Mining Usiminas codes and policies Restructuring of Start U
Slide 44: Main Highlights
Main Highlights 1 Leadership position in the Brazilian steel market, with presence in strategic international markets 2 Diversification of products and markets 3 Assets strategically located on the main industrial and logistics axis 4 Experienced and specialized administration 5 Solid corporate gove
Slide 45: Leading Position in the Brazilian Steel Market
Leading Position in the Brazilian Steel Market, with Presence in Strategic International Markets Usiminas’ leading position is underpinned by the superior quality of its products and the long-term relationship with key clients Sales Volumes – Steel – (Thousand Tons – Quarterly) 1,028 1,014 1,041 1,0
Slide 46: Diversification Across Products and Markets
Diversification Across Products and Markets Usiminas has capacity to produce a wide variety of steel, allowing for flexibility to adjust its production according to market demands domestically and internationally End Markets Share of Volume, 1Q24, Domestic Market Revenues by Country Share of Net Rev
Slide 47: Assets Strategically Located in the Country's Main Industrial Axis
Assets Strategically Located in the Country’s Main Industrial and Logistic Axis in the Country The location of Usiminas’ assets allows for access to raw materials (e.g. iron ore), consumption centers and logistic terminals (railways, ports) Itabria Belo Horizonte IPATINGA Itaúna São Paulo Porto ITAG
Slide 48: Seasoned and Specialized Management Team
Seasoned and Specialized Management Team Usiminas’ Executive Board consists of professionals with deep knowledge in their respective areas Marcelo Chara CEO Toshihiro Miyakoshi Technology and Quality Vice President Officer • Over 40 years of experience in the steel industry. He served as Executive P
Slide 49: Usiminas' Corporate Governance (Cont'd)
Usiminas’ Corporate Governance (Cont’d) Recently approved programs that ensure safety for the investor, transparency of actions, management control and clarity in communication Integrity Program Policies of the Brazilian Corporate Governance Code P Policy of Destination of Results P Code of Ethics a
Slide 50: Culture of Employee, Social and Environmental Responsibility
Culture of Employee, Social andEnvironmental Responsibility Usiminas translates concepts into practice, conciliating the objective of all stakeholders Employee Investments in professional training and safety prove the ongoing commitment to the qualification, development and life of More than700thous
Slide 51: Rating Agencies' Views
Rating Agencies’ Views Comments from latest changing rating reports Usinas Siderúrgicas de Minas Gerais S.A.'s (Usiminas) Ba2 ratings reflect the company's solid position in the Brazilian flat steel market and its track record of quickly adapting operations to On September 15, 2021, S&P Global Ratin
Slide 52: Classificação da informação: Uso Interno
Classificação da informação: Uso Interno
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