Syn Prop e Tech SA · BMFBOVESPA:SYNE3
Syn Prop e Tech SA — CSN — 4Q18 & FY2018 Earnings Presentation
15 slides from Syn Prop e Tech SA's earnings presentation, Feb 21, 2019
Slide 1: Earnings Presentation – 4Q18 & 2018
Steel Mining Cement Logistic Energy Earnings Presentation – 4Q18 & 2018 February, 21th 2019
Slide 2: Highlights – 4Q18 & 2018
HIGHLIGHTS – 4Q18 & 2018 1 Adjusted EBITDA of R$5,849 million in 2018, 26% higher YoY and best annual Improvement of result since 2011 Operational Results 1 2 2 Completion of financing process with CEF through issuance of R$2.0Bi in Debentures, bringing R$500MM in new resources. Acceleration of De-
Slide 3: Consolidated Financial & Operational Indicators
Steel Mining Cement Logistic Energy Consolidated Financial & Operational Indicators
Slide 4: Evolution of Operating Results in 2018
EVOLUTION OF OPERATING RESULTS IN 2018 All segments operating at full capacity in 2019 reinforcing the R$7.5 EBITDA forecast generation in the year +25.9% +29.6% 5,849 1,627 1,560 1,420 4,645 1,204 1,242 25% 25% 23% 24% 24% 23% 24% 4Q17 1Q18 2Q18 3Q18 4Q18 2017 2018 +25.9% 5,849 59 -58 674 4,645 529
Slide 5: Financial Indicators
FINANCIAL INDICATORS Capex - R$MM Financial Cycle - days -19 dias 1,500 67 1,318 1,065 49 48 507 344 325 4Q17 3Q18 4Q18 2017 2018 2019 4Q17 3Q18 4Q18 Financial Expenses ex. FX – R$MM Free Cash Flow – R$MM R$3.9bi 2,742 -470 3,919 2,272 LLC 1,670 Sale 683 671 589 838 817 2,249 255 11 4Q17 3Q18 4Q18 2
Slide 6: Leverage and Liquidity
LEVERAGE AND LIQUIDITY Leverage reduction with EBITDA improvement and cash generation Gross Debt, Net Debt and Cash (R$MM) -707 31,482 31,140 30,597 29,577 29,890 4,357 4,083 4,328 3,274 3,070 5.66x 5.82x 4.55x -1.27x 5.34x 4.93x 4.10x 4Q17 1Q18 2Q18 3Q18 4Q18 Net Debt/EBITDA Cash Equivalents Net De
Slide 7: Debt Amortization Schedule
DEBT AMORTIZATION SCHEDULE Debentures Issuance with Caixa concludes bank refinancing and focus becomes capital Market. Prepayment conclusion with Glencore follows the Company deleveraging plan. Lenders already renegotiated ✓ Banco do Brasil (Jan18) ✓ Caixa (Jul18) ✓ Bond 2023 (Fev18) ✓ Santander (Oc
Slide 8: Business Highlights
Steel Mining Cement Logistics Energy Business Highlights
Slide 9: Steel Performance
STEEL PERFORMANCE Strong transfer volumes from foreign market to domestic market, with higher average price per ton Sales Volume (thousand tons) Net Revenue (R$MM) and Average price (R$/ton) 19.4% +3% 3,177 3,192 +16% 2,740 IABR in 2018 = +8,2% 5,069 4,922 INDA in 2018 = +5,4% 4,099 3,768 +10% 3,435
Slide 10: Steel Competitiveness
STEEL COMPETITIVENESS EBITDA per ton remained stable in the 4Q18 compared to 3Q18, maintaning the same level even in the face of the 6% increase in unit costs on the same comparison basis Slab’s Productions Volume at Presidente Vargas Steel Works (thousand tons) Performance per ton (R$/t) 1,099 1,05
Slide 11: Mining Performance
MINING PERFORMANCE Higher sales volume and quality premiums resulted in an increase of 3% in Ebitda Net Revenue (R$MM) +11% Mining Sales Volume (thousand tons) 1.843 1.659 +6% 9.89 1.175 9.56 9.29 8.13 4Q17 3Q18 4Q18 7.47 EBITDA (R$MM) e EBITDA Mg. (%) +3% 811 835 351 49% 45% 30% 4Q17 1Q18 2Q18 3Q18
Slide 12: Mining Performance: 4Q18 price realization
MINING PERFORMANCE Driven by quality premiums, the CFR+FOB price, increased 11% to US$ 63/wmt, higher than the 7% registered by the reference price +7% +6% +11% 71.6 +3.3 73.9 63.1 -1.0 -4.7 -6.1 4Q18 Platts62 Quotation Quality and Price CFR FOB Adjust Moisture Price 4Q18 (dmt) Period commercial 4Q1
Slide 13: Mining Performance: 2018 price realization
MINING PERFORMANCE The CFR+FOB price reached an increase of 9% to US$58,4/wmt in 2018, driven by quality premiums -3% +9% +9% 69.5 +0.9 70.1 58.4 -0.3 -5.7 -6.0 2018 Platts62 Quotation Quality and Price CFR FOB Adjust Moisture Price 2018 (dmt) Period commercial 2018 (dmt) CFR+FOB conditions 2018 (wm
Slide 14: Mining Performance: project delivery and quality
MINING PERFORMANCE Project delivery focused on improving quality and minimizing the use of dams which allowed us to reach a pace of 31Mtpy in 2S18 and premiums above US$3/t. The Dams capex decommissioning expectation of Casa de Pedra, Pires and Fernandinho around R$ 400 million. Projects CMAI I e II
Slide 15: Visit our website: www.csn.com.br
Visit our website: www.csn.com.br Investor Relations: Marcelo Ribeiro– CFO and IR Director Investor Relation Team: Leonardo Shinohara, Jose Henrique Triques e Bruno Souza invrel@csn.com.br