EARNINGS PRESENTATION
4Q23 AND 2023
March 7, 2024
HIGHLIGHTS
1 | The combination of strong price realization with an excellent sales |
performance in mining and the beginning of the operational recovery in | |
the steel industry were the main highlights that guaranteed a solid | |
EBITDA growth in 4Q23. As a consequence, Adjusted EBITDA reached | |
R$3.6 billion, with an EBITDA margin of 29% in 4Q23. | |
2 | The adjusted cash flow in the 4Q23 reached R$ 387 million, and it was |
not greater only due to the greater investments made in the period, in line | |
with the capacity expansion and operation modernization projects at UPV. | |
3 | Second consecutive quarter of decline in the leverage ratio reinforces the |
Company's commitment to reducing its debt level. | |
FINANCIAL PERFORMANCE
CONSOLIDATED OPERATING AND FINANCIAL INDICATORS
ADJUSTED EBITDA AND ADJUSTED MARGIN | ADJUSTED EBITDA EVOLUTION | |
(R$ mm and %) | (R$ mm) | +811 |
+28.8% | |||||||||||||
29% | 30% | (4) | (107) | 3,626 | |||||||||
27% | 28% | 773 | |||||||||||
26% | |||||||||||||
24% | 2,815 | ||||||||||||
149 | |||||||||||||
20% | |||||||||||||
13,816 | 11,907 | +81.5% | +39.3% | -1.3% | |||||||||
∆ 4T23/3T23 | ∆ 4T23/3T23 | ∆ 4T23/3T23 | |||||||||||
3,123 | 3,203 | 2,263 | 2,815 | 3,626 | |||||||||
4Q22 | 1Q23 | 2Q23 | 3Q23 | 4Q23 | 2022 | 2023 | 3Q23 | Steel | Mining | Cement Eliminations/ | 4Q23 | ||
Adjusted EBITDA | Adjusted EBITDA Margin | Adjusted | Expenses/ | Adjusted | |||||||||
EBITDA | Other | EBITDA | |||||||||||
The 28,8% increase in EBITDA in 4Q23 is a direct consequence of price improvement in the mining segment, which added to high sales volume and the recovery of the steel segment, ensured the solid performance of the quarter and compensated for the seasonality at the end of the year.
Source: CSN | 4 |
CONSOLIDATED OPERATING AND FINANCIAL INDICATORS
CAPEX (R$ mm)
+34% | ||||||
1,595 | ||||||
1,036 | 1,191 | 411 | ||||
304 | ||||||
400 | 515 | |||||
430 | ||||||
240 | 669 | |||||
457 | ||||||
396 | ||||||
+33%
4,523
1,020
3,413
715
1,549
1,275
1,954
1,423
WORKING CAPITAL (R$ mm)
2,480 | 1,922 | (624) | ||||||
3,233 | ||||||||
3,178 | 3,269 | |||||||
11,302 | 9,298 | 9,568 | ||||||
999 | ||||||||
131 | 296 | |||||||
-11,924 | -10,850 | -13,212 | ||||||
4Q22 | 3Q23 | 4Q23 | 2022 | 2023 |
Steel Mining Others
4Q22 | 3Q23 | 4Q23 |
Accounts Receivable Inventory Suppliers Others
Source: CSN
Capex totaled R$1,595 million in 4Q23, a performance 33.9% higher than in 3Q23, in line with CSN's history
of concentrating its investments at the end of the year, focusing on advances in modernization projects in | |
steel and capacity growth in mining. | |
Working capital impacted by the increase in accounts receivable and inventories, in line with the increase in | |
commercial activity seen in the period, but more than offset by the increase in the line of suppliers. | 5 |
CONSOLIDATED OPERATING AND FINANCIAL INDICATORS
ADJUSTED CASH FLOW | FREE ADJUSTED CASH FLOW ¹ - 4Q23 |
(R$ mm) | (R$ mm) |
3,626 | 685 | ||||||||||
(292) | |||||||||||
(1,562) | |||||||||||
745 | 1,022 | ||||||||||
387 | |||||||||||
(1,582) | |||||||||||
-146 | |||||||||||
(488) | 387 | ||||||||||
-2,134 | 4Q23 | Jointly | ∆ NWC / | Capex | Financial | Income Tax | Free | ||||
Adjusted | Controled | Assets and | Result | Adjusted | |||||||
4Q22 | 1Q23 | 2Q23 | 3Q23 | 4Q23 | EBITDA | EBITDA | Liabilities² | Cash Flow | |||
4Q23 |
Adjusted Cash Flow in 4Q23 was positive at R$387 million, as a result of the strong operational performance and efficient working capital management, which ended up offsetting the increase in CAPEX and the higher financial expenses of the period.
Source: CSN / Note 1: The concept of Free Cash Flow is calculated based on Adjusted EBITDA, subtracting EBITDA from Jointly Subsidiaries, CAPEX, Income Tax, Financial Result and changes in Net Working Capital¹, excluding | 6 |
the effect of the Glencore advance. / Note 2: The Adjusted Working Capital² for the quarter is composed of the change in Net Working Capital, plus the change in long term Assets and Liabilities, excluding noncash items.
CONSOLIDATED OPERATING AND FINANCIAL INDICATORS
LEVERAGE, LIQUIDITY AND NET DEBT (R$ bn ; Net Debt / EBITDA (x))
140 | ||||||||||||||
120 | ||||||||||||||
100 | 1.69x | 2.21x | 2.45x | 2.78x | 2.63x | 2.58 | Leverage | |||||||
80 | Guidance | |||||||||||||
< 2.00x | ||||||||||||||
60 | 43.06 | 44.45 | 43.92 | 45.93 | 48.04 | |||||||||
40 | 39.36 | |||||||||||||
12.59 | 14.29 | 12.47 | 15.99 | 17.35 | ||||||||||
15.06 | ||||||||||||||
20 | ||||||||||||||
24.30 | 30.47 | 30.16 | 31.45 | 29.94 | 30.69 | |||||||||
0 | 2024 | |||||||||||||
3Q22 | 4Q22 | 1Q23 | 2Q23 | 3Q23 | 4Q23 | |||||||||
Net Debt | Disposabilities | Net Debt/EBITDA (X) | ||||||||||||
NET DEBT BUILD-UP (R$ bn)
+0.75 | ||||||
+2.5% | ||||||
29.94 | 0.29 | 1.26 | 0.76 | 30.69 | ||
(0.39) | (1.17) | |||||
3Q23 | Free Cash Flow | Pre Paid. Mfe | Exchange | Minoritary | ∆ Net Debt. | 4Q23 |
Mfe | Variation | dividends and | MRS/ | |||
paid interest | Other |
on equity
Another quarter marked by a drop in the leverage indicator, reinforcing the Company's commitment to reducing the level of debt.
Source: CSN / Note 1: Net Debt EBITDA Debt considers the final R$/US$ exchange rate of each period; Net Debt and EBITDA considers the average R$/US$ exchange rate of the period. | 7 |
DEBT AMORTIZATION SCHEDULE
16,252
Cash
December/23
Liquidity
Profile after completion of the Liabilities Management Plan
8,245 | |||||||||||||||||||||||||||||
1,201 | |||||||||||||||||||||||||||||
6,816 | 5,323 | 4,803 | 5,780 | ||||||||||||||||||||||||||
3,717 | 572 | 4,097 | |||||||||||||||||||||||||||
4,778 | 3,492 | ||||||||||||||||||||||||||||
433 | |||||||||||||||||||||||||||||
7,044 | |||||||||||||||||||||||||||||
2,758 | 578 | ||||||||||||||||||||||||||||
5,005 | |||||||||||||||||||||||||||||
1,584 | 580 | 5,208 | |||||||||||||||||||||||||||
3,664 | |||||||||||||||||||||||||||||
580 | 3,139 | ||||||||||||||||||||||||||||
2,038 | 2,045 | 1,908 | |||||||||||||||||||||||||||
318 | 0 | ||||||||||||||||||||||||||||
2024 | 2025 | 2026 | 2027 | 2028 | 2029 | 2030 | 2031 | 2032 |
Position in 12/29/2023
Gross Debt²: R$48.04 Bi
Net Debt: R$30.69 Bi
Net Debt/EBITDA: 2.58x
Average Term³: 54 months
380
203 186 69 363 32 397 0 281
177 117 331 397 281
2033 | 2034 | 2035 | 2036 | 2037 |
Cash after amortizations is sufficient to cover
amortizations for the next 3 years
Capital Markets Banks
The Company remains active in its objective of extending the amortization period, focusing on long-term operations and the local capital market. Among the main movements in 4Q23, we highlight the issuance of Bonds in CSN's offshore subsidiary, in the total value of U$ 500 million, maturing in 2030, with the objective of partially repurchasing the 2026 Bond.
Source: CSN / Note 1: IFRS does not consider participation in MRS 37.27%. / Note 2: Gross/Net Managerial Debt considers interest in MRS 37.27% and accrued interest. / Note 3: Average term after conclusion of the Liability | 8 |
Management Plan. |
STEEL
STEEL PERFORMANCE
SALES VOLUME | -5.1% | ||
(Thousand ton.) | |||
4,392 | 4,166 | ||
1,314 | 1,249 | ||
+4.5% | 3,077 | 2,917 | ||||||||||||
1,033 | 1,051 | 1,064 | ||||||||||||
1,008 | 1,018 | |||||||||||||
269 | 364 | 312 | 271 | 302 | ||||||||||
740 | 669 | 739 | 747 | 762 | ||||||||||
4Q22 | 1Q23 | 2Q23 | 3Q23 | 4Q23 | 2022 | 2023 | ||||||||
Domestic Market | Foreign Market | |||||||||||||
12.000
NET REVENUE AND DOMESTIC MARKET AVERAGE PRICE¹ (R$ mm; R$/ton.)
5.969 5.421 5.232
Net Revenue (R$MM)
Average Price (R$/ton.)
6.055 5.344 5.654
4Q22 3Q23 4Q23
ADJUSTED EBITDA AND ADJUSTED EBITDA MARGIN (R$ mm; %)
13.6
3.4 5.9
826 | Adjusted EBITDA (R$MM) | |||||||
331 | ||||||||
183 | ||||||||
Adjusted EBITDA Mg. % | ||||||||
4Q22 3Q23 4Q23
The increase in total sales volume this quarter reflects the Company's operational normalization and the greater commercial activity seen in the foreign market. In the year, the 5.1% drop in sales volume is the result of production bottlenecks faced in the first half of the year.
In relation to EBITDA, it was already possible to observe a recovery in the segment's profitability in 4Q23, a trend that should become even more accentuated in the coming quarters.
10
Source: CSN / Note 1: Average price relative to the Domestic Market
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CSN - Companhia Siderúrgica Nacional published this content on 07 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 07 March 2024 14:37:10 UTC.