Companhia Siderurgica Nacional · BMFBOVESPA:CSNA3
Companhia Siderurgica Nacional — National Steel — Q1 2023 Earnings Presentation
20 slides from Companhia Siderurgica Nacional's earnings presentation, May 4, 2023
Slide 1: 1Q23 Financial Results
1Q23 FINANCIAL RESULTS May 3, 2023 FR nc <7 CSN Companhia Siderirgica Nacional
Slide 2: 1Q23 Operational and Financial Highlights
<> CSN RESULT 1Q23 ‘S80 Paulo, May 3, 2023 - Companhia Sidertirgica Nacional ("CSN") (B3: CSNA3) (NYSE: SID) discloses its first quarter of 2023 (1923) financial results in Brazilian Reais, with all financial statements consolidated in accordance with accounting practices adopted in Brazil issued by
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 22 million in 1Q23, a reduction of 69% compared to last quarter, as a consequence of seasonality and the weaker performance of MRS that was impacted by the rains recorded in the period.
Slide 5: Net loss and Adjusted EBITDA
· In 1Q23, CSN recorded a net loss of R$ 823 million , reversing the profit seen in the previous quarter, as a result of non-recurring impacts, such as iron ore hedge and hedge accounting for exchange rates, with no cash impact. It is also important to note that the effect of the iron ore hedge is o
Slide 6: Adjusted EBITDA
*The Company discloses its adjusted EBITDA excluding participation in investments and other operating income (expenses) because it understands that it should not be considered in the calculation of recurring operating cash generation. · Adjusted EBITDA in 1Q23 was BRL 3,203 million, with an adjusted
Slide 7: Adjusted Cash Flow
¹ Adjusted EBITDA Margin is calculated from the division between Adjusted EBITDA and Adjusted Net Revenue, which considers the 100% stakes in CSN Mineração's consolidation and 37.27% in MRS. Adjusted Cash Flow Adjusted Cash Flow in 1Q23 was negative at BRL 2,134 million, mainly affected by one-off c
Slide 8: Indebtedness
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 and liability management
¹ Net Debt / EBITDA: For debt calculation considers the final dollar of each period and for net debt and EBITDA the average dollar of the period. The Company remains highly active in its goal of extending the amortization term, focusing on long-term operations and the local capital market. Among the
Slide 10: Foreign Exchange Exposure
The accumulated net foreign exchange exposure in the consolidated balance sheet up to 1Q23 was US$ 812 million, as shown in the table below, in line with the company's policy of minimizing the impacts of exchange rate volatility on the result. The adopted Hedge Accounting by CSN correlates the proje
Slide 11: Investments
Investments A total of BRL 746 million was invested in 1Q23, a 28% lower value when compared to the amount invested in 4Q22, as a consequence of seasonality and the fact that the previous quarter was impacted by equipment acquisitions for Tecon (RTGs), fleet rebuild for Casa de Pedra, and replacemen
Slide 12: Dividends
¹ Other CCL Assets: Considers advance employees 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
Slide 13: For more information, please visit our website: https://ri.csn.com.br/ 9
For more information, please visit our website: https://ri.csn.com.br/ 9
Slide 14: Steel sales volumes
Total sales reached 1,033 thousand tons in the first quarter of 2023 , volume 2% higher than in 4Q22. When analyzing the behavior in the different markets, it is noticed that the foreign market was the main responsible for this increase, with a strong performance in all 3 operations. In total, sales
Slide 15: Steel segment Adjusted EBITDA
· The steel segment Adjusted EBITDA reached BRL 754 million in 1Q23 and was 9% lower than in 4Q22, with an EBITDA margin of 13.0% (-0.6 p.p.). This result reflects the lower dynamism of the domestic market and the lower dilution of production costs, which ultimately compromised the profitability of
Slide 16: Mining results
· Iron ore production totaled 8,939 thousand tons in 1Q23, this represents a 38% growth compared to 1Q22 and a 4% decrease compared to 4Q22, in line with the seasonality of the period. Additionally, it is worth noting that after going through the most critical period of rains without major issues in
Slide 17: Cement Result
Cement Result According to the National Union of the Cement Industry (SNIC), cement sales in Brazil fell by 1.2% in the first quarter of this year compared to the same period in 2022, totaling 14.7 million tons of sales. The combination of a period with high rainfall and a slower economy due to high
Slide 18: For more information, please visit our website: https://ri.csn.com.br/ 18
For more information, please visit our website: https://ri.csn.com.br/ 18
Slide 19: For more information, please visit our website: https://ri.csn.com.br/ 19
For more information, please visit our website: https://ri.csn.com.br/ 19
Slide 20: Signature and Forward-Looking Statements
For more information, please visit our website: https://ri.csn.com.br/ 20 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: May 3, 2023 COMPANHIA SI