CORPORATE PRESENTATION 1Q15 Results

Transcription

1 CORPORATE PRESENTATION 1Q15 Results

2 Timeline CSN Voting Capital March 31, 2015 RIO IACO 4.3% CBS 0.9% 1941 CSN is founded VICUNHA 51.4% 1946 Operational start-up 0.7% BNDESPAR 1974/ Expansions in Volta Redonda Steel Mill ADRs 25.1% BM&FBovespa 17.6% 1996/2002 CSN invested US$2.4 Billion 1993 in technological CSN advances privatization 2005 Casa de Pedra and Itaguaí Terminal expansions begin 2007 First iron ore export shipment 2008 Sale of 40% of NAMISA 2009 Cement plant Start - Up 2012 Acquisition of SWT in Germany 2013 Long steel plant in Brazil Start -Up 2 2

3 CSN - Key Business Areas Steel Mining Cement Logistics Energy Flat Steel Long Steel Casa de Pedra NAMISA & Tecar Cement Plant MRS Railway, FTL & Transnordestina Itaguaí Logistics Platform Tecon Thermal & Hydro Electric Plants Net Revenues 1Q15 74% 16% 10% Key Business Highlights 5.6Mt Flat Steel production capacity # 2 flat steel producer in Brazil Focus on high margin products. SWT: Production capacity of 1.1 Mt of steel profiles Long steel plant in Volta Redonda; Start up in 2013 # 6 globally in iron ore exports (32.8 Mt of iron ore shipments in 2014). CSN is self-sufficient in iron ore to produce steel Concession to operate TECAR, from which CSN exports iron ore and imports coke and coal. Use of blast furnaces byproducts and own limestone reserves. Current capacity: 2.4 Mtpy Planned capacity: 5.4 Mtpy. Developed transport infrastructure, from iron ore mines to steel mills and ports. MRS Railway connects the Volta Redonda Steel Mill to Casa de Pedra and terminals at Itaguaí Port, which handles steel exports. CSN has the concession to operate TECON, one of the largest container terminals in Brazil. Apart from containers, TECON also handles CSN s steel products and general cargo. CSN is selfsufficient in energy production. Total energy capacity available: 446 MW. 3 3

4 CSN, an Integrated Company Self-sufficiency in practically all relevant raw materials for steel production, specially captive iron ore mines and power plants, along with equity participation or operating concessions of outstanding infrastructure assets, positions CSN not only as a truly low-cost producer but also an independent and profitable steel producer. Lime & Dolomite mine (Arcos) 260 miles Iron Ore mines (Casa de Pedra & NAMISA) 200 miles MRS railway (equity of 33%) Brazil MG RJ São Paulo (Brazilian largest market) 270 miles Angra Port FCA MRS Volta Redonda Steel Facility Rio de Janeiro Rio de Janeiro Port 80 miles Itaguaí Port 60 miles Iron ore & Coal Terminal and Container Terminal (controled by CSN) 4 4

5 STEEL 5 5

6 Steel Sales Volume and Net Revenues (Thousand t) 4,896 4,216 Sales Volume 5,829 6,117 5,177 4,495 4,650 3,718 1, ,189 1,294 1, Q15 Domestic Market Overseas Subsidiaries Exports Sales by Products 1Q15 Net Revenues (BRL MM) 12,393 10,802 11,492 9,478 3, Q15 Sales by Segment 1Q15 (t) 9% (t) 17% 12% 11% 30% 14% 10% 29% 15% 53% Tin Plate Galvanized Cold Rolled Steel Packaging Automotive Construction/Infrastructure Hot Rolled Steel Profiles Distribution Home Appliance/OEM 6 6

7 SWT Key Figures Stahlwerk Thüringen GmbH Production and Sales Q14 2Q14 3Q14 4Q14 1Q15 Production Rolling Mill (Kt) Sales Sections (Kt) SWT is a producer of steel profiles in Unterwellenborn, (Germany) with an installed productive capacity of 1.1 million ton/year, acquired in January

8 Increase of Steel Capacity In 2014 CSN started the long steel production and sales in Brazil, with a new plant in Volta Redonda; The plant takes advantage of the existing infrastructure and utilities; Production capacity: 500,000 tons/year; Total investment: R$1.6 billion; Long steel production in 2014: 94,000 tons. 8 8

9 MINING 9 9

10 Mining Assets include Logistics - Railway and Port Belo Horizonte MRS Namisa/ Sarzedo Usiminas Acesita CST EFVM Namisa/ Engenho CSN Casa de Pedra Nova Lima Gerdau - Açominas Vitória Namisa/ Fernandinho Brazil Steel Railway - MRS Volta Redonda Steel Mill MG Cosigua Atlantic Ocean RJ São Paulo Cosipa z Santos CSN Itaguaí Port Rio de Janeiro CSN/ NAMISA Facilities LOADING TERMINALS VALE S MINES CITIES STEEL MILLS 10 10

11 First Class Mining Assets According to the audit and certification process carried out by Snowden Mining Industry Consultants in accordance with JORC Code, reserves for Casa de Pedra and Engenho mines were estimate in 3.0 billion tons of iron ore as of Sep, 2014 Million tons Reserves + 85% 3,021 Mass Balance 1,631 RESERVES 2007 = 1.631Mt RESERVES 2014 = 3.021Mt Exploited Ore = 235Mt Mt Increase (+100%) CSN 1979 CSN 1993 Amex 2003 Golder 2007 Snowden

12 (Million t) % 3% Iron Ore Sales Volume and Net Revenues Sales Volume (1) Net Revenues (2) (BRL MM) 5, , % 5% 1% 4,485 4,109 1% 1% 95% 97% 100% 98% 99% 95% 98% 99% 100% 5.4 1% 99% Q15 Exports Domestic Market (1) Total volumes reflect 100% of NAMISA sales Q15 (2) Net revenues consider 60% of NAMISA Sales by Products (1) 1Q15 Exports Destination (1) 1Q15 (t) 8% 13% (t) 7% 6% 17% 62% 87% Lump Ore Pellet Feed Sinter Feed Concentrated Asia Europe Others 12 12

13 CEMENT 13 13

14 Cement Figures CSN takes advantage of the limestone reserves in Arcos and the slag generated by its blast furnaces; Volta Redonda s plant has an annual grinding capacity of 2.4 Mt; (Thousand Tons) 1,755 1,972 Sales Volume 2,046 2,185 CSN is investing to expand its annual grinding capacity to 5.4 Mtpy Q15 (BRL Million) Net Revenues Q

15 LOGISTICS 15 15

16 Logistics Railways and Port MRS Railway Itaguaí Port Transnordestina Logística MRS Logística is a publicly held company with a concession to operate Brazil s Southeastern railway system CSN holds 33.27% of MRS total share capital, sharing control with Vale, Usiminas and Gerdau Concession: November 1996 Concession Maturity October 2026 (renewable) 1Q15 figures: Net Revenues: R$ 720 Million EBITDA: R$282 Million EBITDA Margin: 39% Net Income: R$55 Million TECON: Exports CSN s steel products and export third-party containers Current capacity: General cargo and steel products: 2mtpy Containers: 670 K TEUpy; Legend When completed, the railroad will connect the northeastern cerrado to Pecém/CE and Suape/PE Ports The railroad will transport mainly grains, fertilizers, ores and fuels 1,753 km of track will be built Locomotives: Cars: 1,700 (current) Existing Railway Nova Transnordestina Railway in process of remodeling PA PA SÃO LUÍS Sobral Porto de Pecém FORTALEZA MA TERESINA CRATEÚS Limoeiro do Norte CE PIQUET CARNEIRO Jucurutú RN NATAL Tecon Balsas Uruçuí PI Ribeiro Gonçalves Eliseu Martins Crato MISSÃO VELHA ARARIPINA PARNAMIRIM SALGUEIRO PE C.Grande PB Caruarú JOÃO PESSOA RECIFE Porto de Suape PETROLINA AL MACEIÓ Tecar Barreiras BA Propriá Potential for 85 million annual tons SE (15.4 million ha) 1/4 of the Brazilian Agricultural Frontier Source: MRS Logística 16 16

17 ENERGY 17 17

18 Thermoelectric Power Plant Self-sufficiency in Energy CSN owns a thermoelectric power plant at Volta Redonda steel mill, which provides approximately 60% of its electrical energy needs. The plant processes steam and blown air from CSN s blast furnaces. CSN concluded the installation of a Top Recovery Turbine which provides an additional capacity of 21MW. Hydroelectric Power Plants CSN owns indirectly 29.5% of Itá hydroelectric facility, which has an installed capacity of 1,450 MW. Additionally, CSN owns 17.9% of a consortium that operates Igarapava hydroelectric facility with an installed capacity of 210 MW CSN Total Capacity: 446 MW 256MW Thermoeletric Generation (Volta Redonda) * Concession Maturity (30 years) Itá Oct/2000 Oct/ MW 23 MW Itá Hydroelectric Power Plant Igarapava Hydro Power Plant Igarapava Dec/1998 Dec/2028 (*) including the top recovery turbine 18 18

19 FINANCIALS 19 19

20 Net Revenue * Strong Revenue Growth (BRL MM) ,509 31% 15,229 31% 17,312 35% 16,126 38% % 69% 65% 62% 4,010 44% 56% Q15 Domestic Market Foreign Market (*) According to IFRS 20 20

21 Performance Adjusted EBITDA (R$ MM) and Adjusted EBITDA Margin % (BRL MM) 39% 27% 28% 27% 6,468 4,532 5,404 4,729 22% Q15 EBITDA EBITDA Margin 21 21

22 Visit our website: Investor Relations: (+55 11) / / / invrel@csn.com.br 22 22