Companhia Siderurgica Nacional · BMFBOVESPA:CSNA3
Companhia Siderurgica Nacional — National Steel — Q2 2022 Earnings Presentation
27 slides from Companhia Siderurgica Nacional's earnings presentation, Aug 16, 2022
Slide 1: Financial Results 2Q22
FINANCIAL RESULTS 2Q22 August 15, 2022
Slide 2: Quarter highlights by segment
Although the mining segment was impacted by a lower price realization in 2022, the steel industry was able to present a resilient performance, along with other businesses, such as cement, logistics and energy that also had a solid operational performance. As a result, adjusted EBITDA for the quarter
Slide 3: Consolidated Results
¹ Adjusted EBITDA is calculated from net income (loss), plus depreciation and amortization, taxes on income, net financial result, income from investment participation, income from other operating income/expenses and includes a proportional participation of 37.27% of the EBITDA of the joint subsidia
Slide 4: Equity result
· The equity result was positive at BRL 54 million in 2Q22, a performance 184% higher than in the previous quarter, as a consequence of the MRS results recovery of levels closer to those recorded last year.
Slide 5: Net income
· In 2Q22, the Company's net income was BRL 369 million , a result 73% lower than last quarter, highlighting the Platts price adjustment impact in the Company, which was partially offset by solid steel results and record cement results. Adjusted EBITDA
Slide 6: Adjusted EBITDA
* The Company discloses its adjusted EBITDA excluding participation in investments and other operating income (expenses), understanding that it should not be considered in the calculation of recurring Operational Cash generation. · In 2Q22, Adjusted EBITDA was BRL 3,262 million, with an Adjusted EBI
Slide 7: Adjusted Cash Flow
¹ Adjusted EBITDA Margin is calculated from the division between Adjusted EBITDA and Adjusted Net Revenue, which considers 100% of the stakes in CSN Mineração's consolidation and 37.27% in MRS. Adjusted Cash Flow¹ Adjusted Cash Flow in 2Q22 reached BRL 830 million in 2Q22, reversing the negative res
Slide 8: Debt
¹ The concept of adjusted cash flow is calculated from adjusted Ebitda, subtracting Ebitda from Jointly Controlled Companies, CAPEX, IT, Financial Results and Changes in Assets and Liabilities², excluding the effect of the Glencore advance. ² Adjusted Working Capital is composed by the change in Net
Slide 9: Debt amortization schedule
¹ Net Debt / EBITDA: To calculate the debt, please consider the final dollar of each period and for net debt and EBITDA the average dollar of the period. The Company remains very active in its objective of extending its debt: during the second quarter of 2022, CSN concluded a long-term operation wit
Slide 10: Foreign Exchange Exposure
The accrued net foreign exchange exposure in the consolidated Balance Sheet of 2Q22 was USD 502 million, as shown in the table below, in line with the company's policy of minimizing the impacts of exchange rate volatility on its results. The Hedge Accounting adopted by CSN correlates with the projec
Slide 11: Investments
Investments A total of BRL 838 million was invested in 2Q22, an increase of 20% compared to the previous quarter, as a result of the advances in mining expansion projects (Itabirito, tailings filtration and port expansion), as well as repairs of UPV's steel operations and coke batteries.
Slide 12: Net Working Capital
Net Working Capital The Net Working Capital applied to the business totaled BRL 4,301 million in 2Q22 , a decrease of 2% when compared to 1Q22, with the reduction in receivables partially offset by punctually high inventories due to the costs of the raw material. The calculation of the Net Working C
Slide 13: Acquisitions in the Energy Sector
¹ Other CCL Assets: Considers employees advances and other accounts receivable. ² Other CCL Liabilities: Considers other accounts payable, dividends payable, installment taxes and other provisions. ³ Inventories: Does not consider the effect of the provision for inventory losses. For the calculation
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Slide 15: Steel sales volume
Total sales reached 1,067.000 tons in the second quarter of 2022 , a volume 7.8% lower than last quarter. When analyzing the evolution in the different markets, it is noticed that domestic sales totaled 724,000 tons of steel products and were 4% lower than in 1Q22, as a result of uncertainties regar
Slide 16: Steel net revenue
· Net revenue in Steel reached BRL 7,706 million in 2Q22 , 2% lower than in 1Q22. As commented earlier, the increase in the sales price was eventually offset by the reduction in the volume sold. In this sense, the average domestic market price in 2Q22 was 5.3% higher than in 1Q22, a performance that
Slide 17: Steel Adjusted EBITDA and margin
· The Company's steel Adjusted EBITDA reached BRL 1,905 million in 2Q22 and was 5.8% lower than in 1Q22, with an EBITDA margin of 24.7% (-0.9 p.p.). Despite the lower profitability and increased cost pressure of some raw materials at the beginning of the year, this performance reinforces the Company
Slide 18: Mining Result
Mining Result The quarter in China was marked by the maintenance of stimulus to the infrastructure sector, lower than expected performance in the real estate market and maintenance of the Covid Zero policy that eventually resulted in the isolation of several major cities, bringing instability and un
Slide 19: Mining production and sales
· Iron ore production totaled 8,283 ktons in 2Q22, an 29% increase compared to 1Q22, as a result of improved production with the reduction of impacts of rain volumes in the period. · Sales volume reached 7,574 ktons in 2Q22, a performance 9.3% higher than the previous quarter as a result of the drie
Slide 20: Cement Result
Cement Result After a challenging start of 2022 with a seasonality accentuated by the high volume of rainfall in January and February, the cement segment continued to face challenges in 2Q22 with raw material cost pressures and commercial activity limited by high inflation and interest rates. Howeve
Slide 21: Cement revenue and EBITDA
* Alhandra's operations were integrated in September 2021. · Net revenue reached an all-time high of BRL 475 million in 2Q22, a performance 23.1% higher than last quarter, driven by volume recovery with higher prices applied in the period. · Unitary costs also rose in the quarter as a result of the
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Slide 24: Forward-looking statements
Some of the statements contained herein are future perspectives that express or imply expected results, performance or events. These perspectives include future results that may be influenced by historical results and statements made in 'Perspectives'. Current results, performance and events may dif
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Slide 27: Signature
For more information, please visit our website: https://ri.csn.com.br/en 25 SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Date: August 15, 2022 COMPAN