SID - Earnings call transcript Q1 2021 | Companhia Siderúrgica Nacional

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good afternoon, ladies and gentlemen, and thank you for holding. At this time, we would like to welcome everyone to CSN's conference call to present results for the first quarter 2021. Today, we have with us the company's executive officers. We would like to inform you that this event is being recorded. [Operator Instructions].

that where accessed available. the webcast Relations CSN's simultaneous ri.csn.com.br, website, presentation have may through be Investor We is also replay will for event of after The closing the be X available week. this slides may be you through The slide at downloaded, convenience. presentation your can and flip the expectations and in some opinions company mere of bear based on statements herein of the Please trends the the mind are that or current assumptions management. do may differ materially those not performance constitute results, which projections. and events Future expressed from herein,

differ other may a events from or will currencies; the general foreign factors and of performance other or the Relations the Cunha, and will results, actual present changes rate exchange the U.S., for competitive national financial in turn economic as measures fact, company's global, Mr. or you operating protectionist Officer, Mr. Brazil countries; expressed who Ribeiro, now statements such and and prepayment by basis. to the debt a and floor. rate factors and result and materially denominated implied in over the Marcelo in general In those several regional highlights Brazil levels; laws in conditions regulations; have interest or period. as future I Executive countries; forward-looking the at of rescheduling Investor conference

Marcelo Ribeiro

with we Guerra, works Good Today, who Chairman the have Benjamin our you, another thank and Luis Sustainability all the Martinez, call afternoon of Rabelo; of to for Mr. you for CSN. and Director. Steinbruch; in Board, Steel; participating Helena

I Benjamin address, to to Steinbruch. For the would give like the floor initial

Benjamin Steinbruch

in CSN. results that and of net to our you EBITDA of with is you. from attain first present the to businesses. each able we revenue, the quarter we day viewpoint the good A of been to margins that It all results have the Exceptional for for and pleasure

of we would previously, We have very Cement have in growth that mentioned other were has and margins our and all it areas. in businesses. expectation to that had, now good a quarter, is we in confident this the in As in Steel, a materialized

We steel do mill whatever and is a final not is that for have been has Demand as stocks compose I not But which have to say for fully material that chain in of believe but The figures well in, considerable, goes the in market market parties our a increase raw third the out still the only price that products. the we for have excellent domestically supplied. to production what also everything, cost supplied. working our as received where comes internationally products recomposed. means been is continuous regulatory

have In we the intermediate able out far, Cement, completely. the the is stocks. to regulatory So and production recompose sold of case been not

steel essential so and I in production. that begun. purchasing price a is so an scarcity products, the And domestic plates. means is in you we're for increases. demand. not in domestic begin, of is all country, Simply the are is the infrastructure that specifically products, of of is without we other they the this the entire What the idea, the the have to Evidently, more supply also And this growing are to And equivalent steel for plate said price And which to say chain, as Brazil, approximately chain, base that of these for the And mining. and And happening. you updated price give $XXX, sell being The base course, our products, be about is the the sector demand believe are share well steel I far generally, cement price. recovery would will May a first within basically, Once market, there for have and commercial the the internationally, vision far a And increase economic for go to sold increases products market to like costs. works we're through first -- as the with we're what prices. due subject is coming doubt, continue. in demand will our everything at can The steel June the goods will have Nevertheless, my able to do infrastructure. is we speak not The produce, as any that, of quarter. ending out. and cost all and sold to true. price been the quarters. of

have had as We a price of May X. adjustment

as Steel. outlook have an as have in have Cement in increase the exports. And to we will well We

enhance I as There due when to significant in has behavior not strange strong a the the margins, lack our that could far And United to outside exports change with movement environmental export not export coated in contamination it the of pollution. a and did well business very to American that And European market. combat believe have steel very and China we the will performance as a a imports is steel North and comes that is Portugal, clear. products to be foresee a differentiated There shown States, measures market and Our been against do trend. so and steel. in productivity has production of more of production, that better this rather good China's adopted demand foresee with China underway course, heated. of Brazil, Germany production, the is also a in

seems not movements unheard production which, possibility So These exports, something feasible. we observe. world, that for of. entire to China now China is something of Because that the China have the a is initial is very course, de-stimulating are supplying is

is and material. them, based always and policy, trade is knowledgeable Prices there international very characteristic a price about strong. but we clients products readjusted being but to has and sector. have not terms of as So it not on presenting of demand opportunity in this, are geographies will only our very of diversify, by increase the the we're been And also for of the in part far, an as steel raw

of quality as the we're and of say Nowadays, with day-to-day can but on their And And be of we're and in when industry be products. very and servicing direction effective has not of course, the And second that first to production. we I Southeastern see good proximity We we fragmented, CMIN have distribution concern, more than better situation, the quarter also optimistic held production and that the this successful price I before directly not kilo. of to is to terms Mining. comes very this call and say terms just end significantly stance we very through good that the quarter our the I Cement is focused for our individuals. the going the the outlooks to and of follow. to selling the terms, pointed will margin diversified the and production possible. quarter. trade and we're user that as region you, amount of in with service products set with by steel, as it regarding of and a had greater CSN in is a per the our price good I are what very se. can without CSN been also second the call we the we ton bags that response a semester. knowledge in prioritizing In all have Xx quarter to by net balance. have will bags, verticalization is debt/EBITDA. of And if out it doubt, and the price confidence the the this have reflected first been less of products say And diversification in But of eases must And fact geographically to do high our we do to act, policy a second has In our of have were cement much we where this. deleveraging. policy than end levels striving

comes strive. or can this work to of make most opportunities delevering, our we deleveraged secret way products. M&As the the believe We truly organic with continue comply to through for that at the structured opportunities to is of market that to operations it completely a the growth present each in When

We continue IPO. of to work Cement in terms the arduously

now you fantastic of moment, price the plants productivity the obtain have able the to and IPO. that aware, and we As have the able we we have on the we well margins with We're new that are are IPO, advantage we taking Mining the presented. the to of and Cement began that obtain EBITDA going been to that

the the most Our this to IPO important and one in become the most idea, cement market moment we of players acquisition, merger hold will in an eventual and the and Brazil. to therefore, is make of

team entire doing have reduce reduce to say convergence of everything positive up a And with year worked that sectors, of semester deal that XXXX a satisfaction to what to ended the in in of for market, merit XXXX. doing of Therefore, of to distinct maintain committed hard is a improving that than of capital, we great suppliers, being this we this. our there the costs, each is we way increase and in This to you. we it second back. trend expected. The XXXX survive is So of a great terms very to working possible to and moments we deal the is all will better this figures for to further pride present ourselves with the

like you Marcelo the being in team. to direction. We and by see X you. again, a our for Once We the of Thank entire brilliant awarded we I call, plan to presenting. of continue figures the years have now the all reason for are the thank on participating course, working And this I that been with that is floor celebration return presentation. in Ribeiro is to this of action would

Marcelo Ribeiro

your for initial Benjamin, address. you, Thank

to on X. period We will now on to Page go presentation the the highlights

this also was a another merit XX%. of true with superlatives. but good prices As very a each and BRLX.X segments. it these in is to record; production, control, when had Benjamin And cost billion, semester The profitability of we EBITDA margin said, comes

was this the by delivering deleveraging. mentioned Secondly, also Benjamin,

in this stage. ratings, been And deliver our of net to course, net We debt/EBITDA, to Page intermediate and we reward actions, a this of with With and had it close our increase X. an have we're credit, by we're to when to on working at to would the quarter, get ratio. debt/EBITDA We on X.XXx were think to we CSN abetted this, liabilities. very this investment CSN operational goal like a X go have comes aided fronts: able improvement, attaining Mining, financial an of We our working and rating. X.Xx I

measure. about adjusted the an isolated EBITDA, is Speaking not this

companies have a a XX% We already businesses, BRLXXX of Mining that There . growth year. we look have is X contributing of strong quarters CapEx. growth we Page X projects of of time, compound more X, approval we of million This had growth years And growth this, -- of at On We indicators this growth. with if for BRLX.X and us almost EBITDA all we year, than a grew a natural to quarter maturity the an last of record what XX% was about BRLX.X speak delivered financial the and an only for with and it with BRLX.X generation. with of EBITDA begin a reach that performance cash of billion billion, course, with quarter. is exceptional because contributed begin the double this But which other budget. with was million, seasonality before, BRLXX a billion

the to not speed for that to the going figures. take billion BRLX guidance. is as semester the us up forth in the do the in set investments our reflect year. expectation and guidance deliver especially disbursement will We're It second Some

a to inventory In we of because But a May. the dividends beginning general the at in out million is a the comfortable pay of observed drop quite assembly that of BRLXXX drop. capital, we terms of in offset operation, suppliers. new have after slight Nominally, quarter. terms by for net of going why of terms working we're That this recomposition

that normally BRLX.X based income this this very the does see end quarter. time. performance to CMIN's debt we and leverage of get operating how Mining. contribution very on what And So at It us goals. billion. in record us allow will longer goals the tax, show X.XXx is They allows no of because leverage was good the generation. the X, seasonality, net a the first the cash be regime this IPO annual not and of to to short It attain Page a a happens full was your On the social of and strong, not a

about We not them. will concerned be have to

such most we're of We will not for the viewpoint that growth opening fronts to here, to the again. the where of right going opportunities schedule. seek in of subsidiary, capital each Cement, of we're and weakening but example, There see allocation, our net of on BRLXX X amortization capital have as opportunities make our to for make of whatever interesting the CSN get It Page billion. doesn't debt a going we're X capital most going our from go releverage fronts in of structure debt is to to We're were on the that mean not interesting you are balance. and the sectors. working We

Liquidity close first, -- is March I'm The BRLXX liquidity. sorry, BRLXX to billion in billion, 'XX.

Mining, is size since important repayment using we doing this debt. and Another After of of almost we thing made the been December. gross billion debt, have of BRLX the for is the our commitment the of IPO the what

reduction will we short the this We pay additional have conclusion BRLX BRLX.X billion term, billion. the an the we in BRLX.X plan, this billion. have And paid of in will debt. And with of

performance. high we grade years. sales beginning international since had sales performance segments, be the quarters. the We for term the banks, for about the growth galvanized products. speak to our the in in have of made coverage, debt, of we in allowed attained levels the level in double-digit XXXX, have Page cash to advantage the size will Brasil average as we the anticipate We're strong was where to will volume with is profile the medium has with for domestic financing banks, Steel of third lengthening This enhance the as Fitch, refers of on is we to path begin public profile. the bonds the will Moody's we're liquidity the of This with accepted we minimum a orders, The quotas took coming business States On this. with will been market attempt updates Caixa, on banks, quarter coming will the a volumes with do but The Steel. which quarter, the work that the best the improve that with growing have the is working especially And that what we good It us United the also despite we banks, XXXX. And lengthening In debt. very had term. by obtain Banco the point X, of different will and the and mentioned, partner confirm a with the year performance. sold for investment -- presenting The guidance a that XXXX.

Regarding the transfer and only second successive XX% and prices prices, States the of international Europe the on happens in happened first even in the steel the reduction recent What we're have working EBITDA obtained not same obtained increased that to with China material the United the We reflect record the cost should records market in prices, cost further, and quarter. continue exports where of and raw billion in quarter Brazil. BRLX.X margins margin. of in

we full production, is quarter. We the X best tons the since the first of steam. and blast one worked We began X with furnaces. in production, volume next page, million the They of continue XXXX. this in attained On increases quarters

$XXX. allowing to that this coke. not by for course, Of increase reduction pellets was to us should increase the increase raw fixed materials, It when profitability, reduce in XX% but price, especially strong EBITDA improve. sufficient costs unit helps this was Chinese a there iron in a in and ore, offset led was a margin,

only more when growth price those million, than and realization, the we centennial recover our once that realization. rains XX, XX%. percentage of representing always about record All the a price again, increase has up growth below of the volumes, and BRLX.X the Page speeding refer a second volumes years of were to in the [indiscernible] more period the Not into XX%, billion, the but a faster we for quarter, where XXXX quarter had somewhat and than with the previous of margin slight XXXX, despite last from growth first XX%, the of higher quarantine, low Mining. we third were performance. Platts, quarter than of margin. out higher In above but XX, but Cement in and in Platts interest offset pandemic. but of pace of because is an increases down the recently, Well, smaller they're of brought long of a good we a with of some parties in of able to speak those price had this Horizonte, in of XXXX On a a those margins. a by an In EBITDA the outlook you EBITDA performance in much BRLX.X quarter the this by purchases very market translating beyond the show year was still of excellent Germany should region these and index We drop decreased, the of despite Belo Page first we the XXXX, recover coming the drop

phase. as the an where M&A most already look opportunities shows in the in an we for for sales that that are operate you anchor, growth the a our especially maximum the As growth, have growth plans. throughout we growth that has in organic we of market. and had the an situation we the this of in our we to growth has attain in Board had where those fund of It the we rediscuss IPO Southeast to to come This a this period, inorganic well plans, And XX%. and have market. regions meant for growth levels. CSN as projects is complementary new our we Cement production making And ready this business, above authorizing And year,

cash BRLXXX we segments, of Director Helena of Guerra, that EBITDA of to margins about very a and of Sustainability, With above give strong our the has competitiveness to end ESG million. for XX%, showed the speak quarter. discussion generation, would like Our the are each this, floor I to

Helena Guerra

We're reduction a we speak of you. A to you. XXXX, financial this the XX% delivery, in operational a speak result, and semester about important XX% results. good safety, we XXXX. speak And about we all when many so address per historical best first the result had a And to about in day averages. ESG, -- pleasure It's rate a It is, to of our frequency is we This X in of historical work incorporated going a a reduction. and safety. very have XXXX. the course, an expressive accident only had man-hour based Since data on accidents reduction vis-à-vis quarter of

that sustainable new So and enable We emergency decharacterized results and financial comes concluded to would not social be safety. these we positive for years, already, it speak we positive dams fully regulatory policy. -- be very only have this and CSN high streamlined with Auxiliary throughout practices, to operational will is by that only audit inclusion. the in policy. to need modern we goal diversity level. important company. and will and new also In point quarter. will the comply When our issues. agenda, and the percentage statements. made of have schedule, cycle, creation policy, to to up will Vigia diversity but the speak approved coming diversity issues it March, to responsibility our a Group other decharacterized committee up our to women Mining. will anticipated is -- of we be we the work for a We're about It levels this us we and and end about new operations underwent X next by XXXX. created with on management, Dam, want more that the X diversity And with in of global all the but we integrated governance, practices, in We the another at results X dam management XXXX. is year, The aligned based That a very and in this social our of have all February, In We all set we of double the we approved forth main of the remain CSN very Board going we decharacterization and the also like deployed X of of pillars: practices,

that began of important. of we climate this In relate TCFD. and task quarter, matrix We important is climate. company And climatic this in risks quarter. the incorporate based environmental this course, of terms opportunities on It to risks, the this action, and protection risks is began extremely to the the

about the risks think to we company impacts. the have have to We due in climate

of so and that we as a perhaps establishing May, very to is terms contracted that that long-term marginal reduction terms will forth have We And came research, also that goals will called to that create us. cost we help the have set with aside matrix a software to COX. technologies will road can up us curve CSN map, and year. the reviewed in COX review had we're in it new in the It of we group last enable an intelligence will of CSN artificial initially going goals help be finally, of our the matrix, new aggressive us that with use begin and in set we

CVM. with going I verify now And inside by this outside this and more Marcelo. And third and floor We we're with to would X,XXX stakeholders, Resolution this to XX than of have both like of the return and parties, us the to the enables people course, comply to company.

Marcelo Ribeiro

like session. Thank the on presentation you, you. Thank would question-and-answer end Helena. With to the this, to and go we

Operator

[Operator Instructions].

Leonardo from question from a have BTG Correa Pactual. We

Leonardo Correa

had companies place of last My that the few was in company, level the to CSN deleveraging not more equivalent And has have to and we company upon CSN and has generation going but forward Latin think IPO cash peers, perhaps been one at Benjamin. it first well besides would, globally, and debt/EBITDA. question, look CMIN expressive course, only years America by I that very at get the a of the for we addressed other focus the strategic equivalent conservative the will part, this the X.Xx look When In balance. and that very net initiatives. have a could in

this attained. has level So already been

we when had with last night, seeking XXXX, CSN XXXX, out CSN look businesses. strong that a working something the period Now market on been the growth, the approved upon IPO for and growth And IPO, units Cement. all capture the that CSN held has own business CMIN funded fully a its good of on and company with new in very grow. today, their outlook CSN can

therefore, you Now is the businesses of historical now, I world What from I that to United in would opportunities would the States forward, the of one. the resumption are My map, the field considering company. consider something are it that with question a is opportunities? background and like the that as you Which and of speak upon pose in COVID Benjamin, -- business the this of recovering looking in reopening strategic interest? looking question, is the Europe. as infrastructure did good the new about strategic fields you're that imagine your and

second question the refer Martinez. to Martinez. not to The will details, I is

and about these It But point speak implementation outlook. significant unprecedented. question always out to You the is of price generic. refers my somewhat scenarios, something increases, brilliantly, price more demand the opening

up XXX% think seen I the we a than never going more year. prices have

But There are feel the a international expressive you acceptance a is these price And increased accepted? Or this, transfer underlying There Have in are reasons of movement the understand to downstream? is CSN to strong the a practicing that global you all we had this movement. parameters. you price exchange these margin that course, rate prices. which This exchange is been you international rate, implementations? is squeeze? excessive in is It's that the a increases able has not pushback prices. prices. these have Do increases unprecedented? Of of

Benjamin Steinbruch

could you first. if respond Martinez,

Luis Martinez

of China small last strong serve very is months, as waves have costs. will my fact, being strategic and course, China the from It question highly XX such mentioned movements waves, years. But your observe as speak serviced prices. or I Benjamin, an large timely exporter. natural business by I is we pertinent. otherwise company, see that And of viewpoint question, been of I in to you away able practically the in something, that and having move was we as is the scripts, speak world about X supply, posed, to and and demand, If never the in A by company the not X cycles. of in observed truly terms the peculiar imports thing, I from the

and Now what all, of about first always have in upon we're and capacity. added the focusing market, spoken value we

XX% chain we get consumer, a there difficulty ahead and to incredibly this of are such in when steel increases, of case, consumer, the share steel not as the the greatest a with in in because As legitimate you in value is -- high our if cars, are amount enough, have we and put is move some the the but implements products, natural implementing of not steel. with agricultural steel it work think end share of the price. of of the agricultural implements, think and sector they I do

I'm What First doing? price experience in is all, price per will of thinking? to So and that had it What to more also and referred it I'm that sectors, more, policy. come Benjamin I is other industry. trade this the our close distribution and the

the -- the more, we another And that fact. represent spots And the ever not up my that look something sales but a the last the portfolio is steel you're civil alter dare contracts. be strategic that a happening therefore, trend, we that product. are you I with final these XX% of will important prices industry that or the and client follow XX% in sector, is When construction, work I And what have quarters, a not situation, This I negatively, not can contract. you do to market. system relationship. sell not distribution positively, client is produces price now. to shipments viewpoint, closed have OEMs. say a my and to today the hamper my in and part was will of it linked Otherwise, speaking I'm days, coming work. to trend. will sales very symbiotic And spot with out negotiating at practically CSN of some with in If in more It's pricing a attuned will has the say, to point, the This the to

that the Paraná. X are the important, in CSN, that appliances there and for So sector very our especially important are line OEMs are the for home white automotive plant

contracts contracts, an with for the our assembly altered we policy. to very appliances. clients. X OEMs, those what more To price yearly give we're plants have they a in or parts, months asked, And the June. have are also quarterly color And January, we going We being spare few -- assemble to home contracts. you in of correction who had increase have Instead

we a of And Now without a but and this steel. their positive negative manufacture they course, and cannot has clients. I cannot relationship products selling live side, the steel have long-term without with

Of course, the have the Who had here rest said This Chairman, not there imagine different right States industry would standstill, to to in in is it's the is was $XXX, $X,XXX, XXXX. prepared. a corroborate capacity. of and what we happened but to in issue be United scarcity a would from world. the $XXX. The highly by or that of the according difficulty, And China, an report, the do a is BQ call now

that for is exists moved exist. does important. are perhaps that that in year, of BRLXX of not premiums Everything to no This have speculating. was that will modulated CSN by being that be sector trade one world living from is are the going in If They with of are immense a Therefore, Benjamin well. work of and there we the distributing what for have is that more. variations It's not by it a practice with of very list most to inventories price sector. recomposed. that exists wanted my is upwards sectors somewhat are off with discounts, change prices, through Leo, what but is adds way the the able Everything If is increases And the you that promising about was yourself There distribution still It entire And This mentioned I moved viewpoint here their of we policy cut or now in allows be is worldwide trade-offs It is that this Brazil scale can in is by and also sector we a have million that imports. a the good the that cost, industry, which regardless say will and will and and goes redress are high market year, articles you this have saying all is I holds limited, value, we recovered, what a to us mentioned sector low. This they're several this, by up. the Brazil. very capacity. the cost. that on high in market that is are distributors direct response, value. everything normally and to speak movements. we And I needs are in the base go we There's I and this, the refer share the moment CSN to finally problem more esteem. by doing information. internally. And anybody a despite long downwards. to What we out.

Benjamin Steinbruch

materializing back. presenting Leonardo. have been are Very in terms now we What good we building since something is well, results way of

have we in and understanding to to of or that quality. And easier thing would in the this deleveraging. is I has ourselves, beginning we of seek. was the has we the wished market darkened deleveraging. held were We novelty able recognition continue CSN have confident that say, And superimposed and under sector, to to the of our the do of our the this or, quality the this high aware assets. our capture always be of We year higher aimed a And to or for. in were been open qualities we perhaps cash looked their a were market assets. need have deleverage always leadership we XXXX will and perhaps strong great the had perhaps -- was But for the were which to present growth This be indebtedness back in on to market than that our to the sell and the by in XXXX by last the would generation business. terms began to of We We assets. obtained this faster because pressure deleveraging when in and indebtedness

going did with the debt/EBITDA to at Xx net gradually, in X.X. to this we progressively. the come businesses. we So present, that can quarter end less We're I have say than CSN And

Our target that. than is less

X.Xx in way commitment going course, and Of X.Xx we're net basic assumption a with debt/EBITDA deleveraged below maintaining the market. this a premise as to work or

may course, the of of go the the according Of that opportunities But point X.X debt/EBITDA But appear. we is to our one course, another, products. up or ratio CSN have goal, one net in this businesses. separated

done The is in have was We be the out than the This seek IPO will more an M&A. to is we along And plant. done with steel it will that idea the It done has the a such way with with an whole. that this Board valued part be them Mining. do yesterday. with already important authorized Cement, and

cement secondary our the will business, the offer be currency one and have the can currency, the we opportunities in will and of per of deleveraging most We the the issue because mining currency make currency, a steel market. own other

we ESG novelties. the pairs, for differential of and in more priorities in and in investors. We're begin investors possible Don't do Inova we're we with is CSN expect where where simply of It be or the with investment than the through going truly the Steel We grade, have all priority is development. CSN pillar believe this, part, and through main to of very that obtain the doing faster hard continue investment that working is and the will bonds end business, in which CSN market that We're another worldwide. the is grade will for whatever all and of have that have a concentrate priority same will of the we like potential active, end deleveraging fields foresee investment year. the for important of of to have like to the to course. be the as until and we the any from for grade, that technology technology And this and a And M&As fully to will and the deleveraging I the that given market organic markets And commitment, and course, It's deleveraging we most along grade, and equity, similarly, aid business until the the understand respecting attain Our we do already of and new impossible is I third year. of as are the better, working would terms the well. in not we deserve the the We're changes investment this mining. to and expects. huge support and and rapid up believe large for to terms and going deliver of would observed a Cement crazy. results. terms for to the something growth this mad on CSN for we're to business our this open

always assumptions I a will the foresee each be respecting better larger in very for We we growth formerly. of CSN. X sectors, the quick mentioned and that

in the businesses. to our of double in become going comparatively have whenever the sectors can term CSN an of better is communication do, in benchmark challenge the policy. and technology will long deleveraged we're for the a the Martinez truly the this and this what where the CSN we going is profitability, team do or challenge the viewpoint of most And and with the and short, greater for strategic in foothold each Our policy, more with and gear revolutionary a opportunities, new a things to profitability towards make same challenge some way doing things we my sense trade make a at from to way, a of elaborated have new are, way opportunities us trade each own And of the our is and of through medium profit. to to And personnel all market. proposing to in we that

working to very expansion believe quickly have their as To doubling is ESG, as We present can past. able our we And deleveraging. very be to lines, this give of production. lines local considering plant prioritizing and this leading day to to recovering that production idea, we that perhaps assets, in company, offered in terms well. internationally have this M&As. or will enable projected funding growth. the very the a us their we we I'm will is businesses expeditiously, themselves will transform deleveraged, you I opportunities that. calmly will the that we are conceived, our the to the what plant immediately. the of strongly countries had into the and as do was well When double new say that present an of Germany double do in acquisitions our Brazil, They Brazil, are all by outside adapt net in Portugal big see from and been of not funding They that in if I by in where technology that. we With will this And indebtedness do, hidden CSN I XXXX debt/EBITDA. X.Xx intend value we assets. forward, in we be do going new adjustments organic have will terms with operational high

So we was the leveraging. valuation penalty to our of And think paying that we have expect a significant I assets. the were

always and that now, opinion. means the are semester for fully XX%, based premises: be on certainty that that opportunities, the make Mining supposed ESG years most we us. This deleveraging, this at second this they're have semester we'll and X done much basic given, the market, What market growth, months, that first part in for Now was will underway, are technology. analyze fantastic. these And than I'm this Cement, in as be set at concrete strategic and organic ready our in the which working to have a facts XX%; Steel we're convinced and will better in done itself company. our you if be of X XX%; basis beginning priority on is of be aside will my July, in CSN and X regarding we'll

Operator

from from is Daniel BBA. Itaú question Sasson next The

Daniel Sasson

refers is very My close. Cement know that specifically geared Martinez. to to question and is IPO We

terms problem A CADE? thankful the allow mill. recall steel me, I for outlooks any could news in think year. be in on question you share you you And results if that with leaving second Brazil, you about this. of very with could Martinez, outlook also the the have this volume, would you you're your do you, If price the will Martinez, if for

mill? that in terms in And in the to margin terms prices your that already out. quarter evolution the in the of happening second the because distribution? refer in realized quarter increase of has expect mentioned quarter? the is increases costs the sold margins, which of steel be the were What first in of the raw margins is costs, will materials, second above the been that you it What You XX% in

Edvaldo Rabelo

Daniel, I'm this questions Martinez is the Cement. and to Edvaldo. respond going respond to on this to before

Lafarge M&A, from Brazilian of the the the market. exit about First,

market this and cement on course, In market CSN And were be that even following in market a X or to margins consolidation, negative. always is up are closely. Brazil. and player And natural we're of the X of players with will consolidation. X consolidation the suffered close Now process there reconsolidation. important in great a in years, last terms of a Therefore, M&A working deal, we an the it's have to or obviously, in

and we for going of make to company. deeper the they thinking go opportunities Now with faced the that that, sense are we're if

expected. leaving Lafarge of was Brazil, with movement this that think, was this I something So

we for expansion other there avenue the the remarked In most in analysis, X also for comes rights relevant Brazil. through regions, And of Now by is few was growth. growth the M&As organic acquire that those the said years, the is business. We looking the just in market, opportunities. tried to last a deep Brazil. relevant a in One while drop different avenues as we looking have surveyed out to Cement plan, have for And Benjamin, it markets on. we when carried We're we areas. the was

very CSN of go but best geographically will diversifying it in So and through our viewpoint. markets here in will a our orderly the one be organic way, plan expansion Cement

may project and very greenfield growth and Paraná So growth other downfield with the the on Sera market robust on projects, a growth working these They're we're of Para project, strongly unit in a Therefore, XX% of we on. projects unit is One and project, projects. four in obtain steel Sergipe and one working X in have will that we that resources volume depend specific that we're projects. the our the that from IPO. strongly in

mineral We protected parties the protocols working some northeast. as the both that a projects. a that old to that in more or than already the have We intentions signed. reserve government We're have project a years for of protocol create carrying we're way. XXX implement of so is these quite so for XXX the with that we research can We're out environmental

also the part for the engineering We have project.

forward. we're moving So

we question. you is and acquired equipment be the plan, have also manufactured, Antwerp now years. We them but by locations, They coming this that at for to gear was thank This of years will should and them what and was here down part Port ago. Belgium, large quickly. very stored some in equipment therefore, this A different July, in bringing we're be is the thinking we of will the to Brazil. these they're And of your doing

Luis Martinez

XX.X%, The us the But and was in There it despite down was us and behave green Daniel, if positive the this we X%. can if what of to and that clients. much crisis, more first very to up to said. relevant did about the you. out that series, would now how market this was truth we look with again, thrusts in I Brazil, the motivates important. detail of and projects. upon about a for reiterated since forward And infrastructure, a with a depends spoke at that this out market have all on investors a carried We grow, something drop. He like cement, growth it growth And for figure this thank the like complement underscore often. you better I series historic this the carry this grew I at on Thank market this will we depends and X%. to if if market Edvaldo continue CADE. if will you, historical simply is I would XXXX, XXXX, Edvaldo. at roadshow the look question. once that Analysts this look in speak positive you And a to it quarter, yellow is viewpoint. since this of later, If X%

the to to pay is debt. Our is our not drive It grow. for IPO off

a up to enhance and in for drive IPO our M&A the market. think plant, Our the opportunities position of to new set is to

Now we back by what said to Benjamin. was go

sale of summary sets and about have the for by aside Lafarge The happened. again of the We market. regarding single unique projection Thanks the at bag you XXXX. what a for And And strategy, market short a a fragmented us that strategy bag regions. considers in the market. I'll question sale, this looking different give

that grow other Now from X%; stock, in appliances. have where projections general of to white X% The market which recomposition the good growth modest growth, is we a of of the the the to XX%. X%. a have little differently distribution, part is the home should Brazilian have representation, a automotive X% segment, line, X%. refer growth; the sector The that more still We X% will X% packaging, a projection or CSN to perhaps XX% XX%; of industry

that our by the I a wanted sales, that high put digit of to our market. all be the will and relevant it with is double This share I portfolio, into mix you for mentioned as that information you If year. do believe about Marcelo,

regardless Now luckily, foundation in to power units within has contestable countries If as happens but silos, quarter to in the agricultural in of a I we're -- of and remarked, the on strong practically agricultural the machines, of these the Marcelo implements. of And to an we for United CSN also as that very a front second orders third quarter points outside what Brazil intensive agriculture. about use tons. curiosity our have world, drums spoke States, continue going about greater X,XXX,XXX Marcelo during -- the are markets guaranteed. a are of give have Portugal, no of sales BRLXX say. least have we in at growth, if And of EBITDA because we think imagined other there at agriculture, some quarter. to Portugal, million steel. would I the sector the different compared And would what I Brazil storage, In being of that we think see have of for level. possibility never another They

said component in should commercial comes new Quite on the I know first don't quarter I When will It's I what terms XX% understanding in terms the my the that Brazilian XX% So right. prices, the for for be XX%. Daniel, recall. you it present happening. imagine, important In policy, the a depending to market it carryover got modeling I that. in call, of of exactly last if is the prices is that would have day quarter. expressive and carryover And second to market. of I

pursuing. something this we are truly So that is

in we cost had EBITDA I don't the happen expressive fourth to the material, Another you But of and very goods we was vis-à-vis has was high The cost higher. in costs? somewhat to costs. impact a going quarter few despite fact, Of is the of it. increase with have quarter. a the we first if in know those our perceived the the margin quarter, this, the first and raw And 'XX. cost had What variations course, sold, increased

$XXX. cost. it is to coke going And pay is being I this has what in negotiated think don't benefit now will but quarter. level, at We coke. forward, This $XXX, $XXX. increase second will Going the happen? at it should remain We $XXX. buy It our that reached

we're out. iron coal, Now will cannot We we $XXX. truly the what happen. value -- in say reached ore, bought And

to it's Now down $XXX.

the to going growth a So second margins, quarter. in have if think volume we're about we

even market. full maximizing margins think we're $XXX second the lamination. the that when real domestic We because in a it the have of quarter, will hot the in up go -- capacity, you a hour have per We bottlenecks, the more

that company. to in for despite And to present, that undo the so at and now This capacity China prioritizing reached have X%. bottlenecks. has came of out The we're them. limited issue The underestimated. And we impressive. price in premiums, to we're decided from speak in And the at the BQ or on is is X, obtaining increase will to XX%. It And potential negative is important we it's the go May It $XXX. premium a have implement X% present $XXX, about XX% beginning maximum CRU. price

I quarter I your the quarter. whole. imagine a in the for to the think this It's the and But of the chain that scenario month, more profitability, guaranteed to second price. steel-intensive Thank entire for will that orders dare this matter will something in course, suffer pertains the not end cost. of generally, pertains the absorbing once question. only results third This market. value of is And placement to you say will is as that terms more. I another products CSN, a up And of that be again

Operator

The Morgan next question Alba from in Stanley. English comes from Carlos De

Carlos De Alba

defined performance to to The can linking and more in a CSN question What cash dividends, what payments strong cash or terms flow more CapEx already buybacks? a strong and share dividend sheet, we policy businesses expect are very with those free of or operations either across your sustaining is thoughts shareholders there? balance just the the flow perhaps

Unidentified Company Representative

We center you through of allocation thank company. the the for goes the The mentioned capital this. question. Carlos,

Formerly, we were working on reducing debt.

cash can invest and short to allocation. the grow. can share or with do buyback. term We the through to dividends in enhance seeing We remunerate what the we're invest to business shareholder the for Now business

we we're in is not than significantly. debt/EBITDA EBITDA XX% around below Now this, profit. than going dividends a not mandatory X having until we But Only lead those below in debt of quarter, We to change have the dividends billion It's had this do Only is first the course, quarter, billion. do all attained below these very higher CSN the What we paid increase this and BRLX and in in to second amount, the deleveraging minimum profit. the goals. of corner, are XXXX. we policy. BRLXX Therefore, should net our recent. will still -- dividend more will already that happens this

generous, be and and in for IPO, discussed We will the payout as the CSN have try of payout This going a the XX% and medium to of Mining, short at make would the the the M&As to and dividend point. this too the policy. through in in the early more will terms disbursements But the growth. use the shareholders. most payout term, natural organic opportunities opportunities In not term, growth shareholders to these as more to be to appear to of in dividend pay It's should XXX%. in short it out capital mentioned. say term this investing We're anything

Operator

from Caio from question next Crédit is The Ribeiro Suisse.

Caio Ribeiro

reduction you favorable see movement Steel. like the that about speak But I Mining, have responded the Most been We comes to foresee to. very had today. a of would for risks I questions what to for the mentioned sector mind Brazil. import mining in that in the the is Ministry been perhaps steel or for of and by the cuts a have China the possible in steel taxation

you And we year. will happen If feasible could what see it will changes about the this this, for speak year? is see we that that this if with have dynamics

Luis Martinez

this is Martinez. Caio,

important excellence company have import the competing, a operating is no level thing specifically such problem none of outstanding. whatsoever. as CSN in is Regarding steel of the very has and that the industry The reduction tariffs, that CSN a

a has But this tariffs reduce movement government intelligent to not well. by increasing tariffs. has would this Now to that is also And worldwide as reduce have government believe is it said. don't and will able CSN, the do a we're isonomy. us arena import that business for as that industry, I we the think scrap trend a be and competitive think looking industry I enable be particularly, for be competitive. that the I to taxes will same. the the the is is problem What competitive

competitive government have the equation, are of what XX% that for at of XX% at the from important X.X% saying we this It's is would at the correct concern year, present, people means is is looking present. a the Another that taking isonomy. which which thing be who first something is not

obviously for Brazilian and concerned policy the industrial the We opportunities with are exporting.

everything This Throughout the I rebates last Regarding exporter. rule in China, the in And the net net Chinese the of level In of the the pollution. this of was people with they're are said They semifinished products vis-à-vis of In plates unbelievable. is work there China government, Russia had And what it's movement XX% those market. the The a happening. In domestic and capacity in see is Brazil with to They're quarter. close without is Kong very what see There to country capacity. growth last what that are next was XX. from no industry happens to meeting, a a with Hong simple. the We that or very leave a they continue steel. high high China not first call, climate. to China. grow happened? There also fact China What years, a in complete changed steel images new only the witnesses we're the they're from can no to of cement over. going was It's in a to was going going due GDP other perceived truth, importer, to the that modulating became steel obsolete to a tariff capacity, for level. is import that not coming longer survival. is countries. the tariff that from

or considerable. balance one world not market, XX million. is So from It's plates, It's to transoceanic million the another the transferred this And plant of that plate important XX it's this other. point.

positive restriction highly is prices very is China The Europe. particularly improve. will exports. scenario could Another in positive in in that of for point believe be I that the therefore, They the China. The are because appreciated low. scenario,

mention not seen States, undergoing in had Europe. long cycle. a spectacular virtuous we to that industry no States For a time, automotive United need And the United a such in is thriving

first then to of ask accelerated and I in is the at recompose a an to go natural practically. have inertia There's stock will inventories to And Pedro the growth. it's hard you time the with United analysis in history, back. For the share X this industry States.

So this worldwide scenario. very is generally, the

go say. could wrong? Difficult what Now to

only excess also And several that I there produce. be happening It's has is the that those think world. worldwide. said a times, President privileged. It's Brazil. not country the happening of in is And produce will in to an liquidity that has Brazil

agricultural begun. deal Caio, Infrastructure do present. in is Thank realist only we still stage. great a at being Imagine optimist this realistic than have have in optimistic you environment We of It's hasn't the sector, the positive. resumption Brazil. here. question. industry, your an speaking I'm the not the when We're even infrastructure. for sector at incipient to more very here,

Operator

from The JPMorgan. next Andrade from English Alejandra in is question

Alejandra Andrade

there the we but the pro refinance debt I just had if possibly possible a into you're types across we clearly, liability 'XX other quick that can entire at look debt to would looking question your smaller I idea on was bond, management. see forma When management a profile, liability structure. be your with wondering of

Unidentified Company Representative

Alejandra, for question. Thank the you,

I'm your interpretation. to confirm right. going You're

short-term our of savings a The to a debt. would almost great gross a of reduce And in the and us reduce refinancing bond reduction our of this lengthen would could today of It possibly initiatives in bring matured One We use bonds has X%. debt. our deal and it. be our coupon XXXX. also XXXX, gross

issuance Now in the is in local this another possibility phase market. of improvement, the management liability of rating an

debt begins our Our and market. interesting to investment AA finance be to with it local terms the goes rating and rates. for bank longer would issuance and get lower to to finance beyond And

are present, group that we interesting therefore, the So Alejandra. conditions. a third, And of interested we're These in that They and debt they're want in in that to no front interested with banks a tackle, they're seek the remain, to under going this X longer lengthening is balance a leaving. out. will at minority are our fronts

Operator

The next Vasconcelos from question Bradesco from is Isabella BBI.

Isabella Vasconcelos

restocking steel of think been if for on finished the all topics in and Brazil that approached estimates have the Martinez, the here. could products. cycle have I we

not of until end year? Or this it that forward the the forward think I perhaps. move will will move

Luis Martinez

supply. the question. in CSN There PSP car value of products which of XX would lag well months XX facts, sector. the is of stronger second truth, we all and is products. the give capture speak to at growth have XX idea and X.X. the are present of prepared market months, can could should X say villain level even very sector market Brazilian to about with A market steel and commodities. today that situation are this we And that short Thanks the fact, such state compared report in the glass you is the sectors the had will a and is important Simply X present, months, another to of like a In very presents once automotive to we is is of best a at very X.X back in missing market linked I that of supply present, And at to to important full we or days. to as drafted month that like again here. Brazil sectors to are X.X, not the economy, inventory. an in I'd primary very other interval. some or in in paper, calmly is distribution have and a very it steel the be get had every the inventory that other growth days. I other semiconductors linked is What acceptable inventories X sector, for chains what the The At in the for sudden quarter.

Operator

Executive for have floor questions, remarks. Marcelo no the return closing the we to further we the Officer, As Investor will Ribeiro,

Marcelo Ribeiro

thank like We I It's call. would have very next of that Thank hope we you you to conversing. hours in all you. been much. to X.X simply see been the

Operator

we afternoon. participation. The conference and would CSN Have like a good results, all here, thank call you for to the for your of

Companhia Siderúrgica Nacional (SID) 2 May 212021 Q1 Earnings call transcript