CORPORATE PRESENTATION February 2013

Transcription

1 CORPORATE PRESENTATION February 2013

2 Timeline CSN Share Ownership September 30, 2012 VICUNHA 47.9% RIO IACO CBS 4.0% 0.9% % BNDESPAR 1974/ Expansions in Volta Redonda Steel Mill ADRs 25.5% Bovespa 19.8% 1993 CSN privatization 1996/2002 CSN invested US$2.4 Billion in technological advances 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 1941 Operational start-up CSN is founded 2 2

3 Competitive Advantages Fully integrated business model: high quality operations (steel, mining and cement) with logistic infrastructure and self-sufficiency in energy generation; Low cost structure and high profitability; Pricing power based on a large and diversified customers portfolio; Exposure to different business segments and diversified product portfolio; Strong presence in Brazilian steel market; Growing exposure to the iron ore market; Strong liquidity and cash generation; Resilient performance in adverse market conditions; Experienced management team. 3 3

4 CSN - Key Business Areas Steel Mining Cement Logistics Energy Flat Steel Long Steel Casa de Pedra NAMISA & Tecar Cement Plant MRS Railway & Transnordestina Itaguaí Logistics Platform Tecon Thermal & Hydro Electric Plants Net Revenues % of % 35% 10% Key Business Highlights 5.6 mt of flat steel (2011 capacity). # 2 flat steel producer in Brazil Focus on high margin products. Acquisition of German long-steel producer SWT, with annual production of 1.0 mt of steel profiles. # 6 globally in iron ore production (29 mt in 2011). CSN is self-sufficient in iron ore production. CSN has the concession to operate TECAR, from which CSN exports iron ore and imports coke and coal. Operations started in May Uses CSN's blast furnaces byproducts and own limestone reserves. Current sale capacity: 2.4 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: 428 MW (average). 4 4

5 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 one of the most independent and profitable steel producer worldwide. 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) 5 5

6 STEEL 6 6

7 Steel Figures Apparent Consumption of Steel Products in Brazil (Mt) Brazil's Imports of Steel (Mt) Total Steel Products Flat Products Long Products Apparent Consumption of Steel Products Brazil (Mt) Brazil's Imports of Steel (Mt) Source: IABr 0,0 1Q12 2Q12 3Q12 Total Steel Products Flat Products Long Products 1Q12 2Q12 3Q12 7 7

8 Steel Sales Volume and Net Revenues Sales Volume Net Revenues (Thousand t) (BRL MM) 4,891 4,110 4,796 4,896 10,566 8,201 9,926 9,478 4, , , , ,322 1, Q12 1,412 1, Q12 1,589 1, Q , Q12 2,652 2Q12 2,917 3Q12 Domestic Market Overseas Subsidiaries Exports Sales by Products 9M12 Sales by Segment 9M12 (t) 12% 10% (t) 12% 9% 15% 36% 26% 16% Tin Plate Galvanized Cold Rolled Hot Rolled Steel Profiles 42% Steel Packaging Distribution 22% Automotive Construction/Infrastructure Home Appliance/OEM 8 8

9 CSN is currently constructing its first long steel plant in Volta Redonda; Production capacity of 500,000 tons/year of long steel; Increase of Steel Capacity CSN will benefit from the existing infrastructure and utilities in Volta Redonda steel mill; The total investment in long steel production will be of approximately R$ 1.2 billion (R$1.0 billion of which was already invested), including expansion and acquisition of an electric furnace. 9 9

10 SWT Key Figures Production, Sales & EBITDA Margin % 10.7% 9.4% 1Q12* 2Q12 3Q12 Crude Steel Production (kt) Sales (kt) EBITDA Margin * In 2Q12, SWT s results were fully consolidated, whereas in 1Q12 consolidation was proportional to the 2 months of operation following its acquisition on 31/01/

11 MINING 11 11

12 World Mining Figures Source: Platts, TSI, Metal Bulletin, The Baltic Exchange and Umetal 12 12

13 (Million t) % 79% % 97% % 94% Iron Ore Sales Volume and Net Revenues Sales Volume (1) Net Revenues (2) 5% 95% 6.7 3% 97% 6.1 3% 97% 6.6 3% 97% (BRL MM) 2,085 1,964 3,615 5,942 1,194 1, Q12 2Q12 Domestic Market Exports (1) Total sales volume reflects 100% of NAMISA sales. (t) Sales by Products (3) 9M12 6% 5% 12% 3Q12 (t) Q12 (2) Net revenues are consolidated, considering 60% of NAMISA sales since Dec/08, given the acquisition of 40% of NAMISA by the Asian Consortium. Exports Destination (3) 9M12 1% 2Q12 27% 3Q12 77% 72% Lump Ore Pellet Feed Sinter Feed Concentrate (3) 100% of NAMISA Asia Europe Others 13 13

14 Iron Ore Project Expansion Mining Casa de Pedra Mine Current capacity : 21 mtpy CSN Consumption: 7 mtpy Future capacity: 50 mtpy NAMISA (60% ownership) Current capacity: 6.8 mtpy Future capacity: 33 mtpy Acquisition from third-parties: 6.0 mtpy Future sales: 39 mtpy Logistics Itaguaí Port TECAR: exports iron ore and imports coke and coal Current capacity: iron ore shipments of 30 mtpy and coal and coke unloading capacity of 4 mtpy Future capacity: iron ore shipments of 84 mtpy and coal and coke unloading capacity of 8.5 mtpy Railway MRS (33.27% ownership) Namisa/ Sarzedo Namisa/ Engenho CSN Casa de Pedra Steel Railway - MRS São Paulo Cosipa z Santos Belo Horizonte CSN Itaguaí Port Nova Lima Gerdau - Açominas Cosigua Volta Redonda Steel Mill Rio de Janeiro Usiminas Acesita MRS EFVM CST Vitória Namisa/ Fernandinho Atlantic Ocean CSN/ NAMISA Facilities LOADING TERMINALS VALE S MINES CITIES STEEL MILLS 14 14

15 CEMENT 15 15

16 Cement Figures CSN began producing and selling cement in May/09; The Company takes advantage of the limestone reserves in Arcos and the slag generated by CSN s blast furnaces; (Thousand t) Sales Volume 1,755 Apart from the plant in Volta Redonda which has an annual grinding capacity of 2.4 mt, CSN plans to expand grinding capacity to 5.4 mtpy; Target clinker capacity expansion is 3.0 mtpy, from a current capacity of 0.8 mtpy; Until September 2012, R$0.9 billion was already invested Q12 2Q12 3Q12 Net Revenues (R$ MM) Q12 2Q12 3Q

17 LOGISTICS 17 17

18 Logistics Railways and Port MRS Railway Itaguaí Port Nova Transnordestina MRS Logística is a publicly held company with a concession to operate Brazil s Southeastern railway system CSN holds directly and indirectly 33.27% of MRS total share capital, sharing control with Vale, Usiminas and Gerdau Net Revenues: R$ 2,862m in 2011 EBITDA: R$ 1,186m in 2011 EBITDA Margin of 41.4% in 2011 Net Income: R$ 521m in 2011 Total carloads: mt in 2011 Concession: November 1996 Concession Maturity: October 2026 (30 years renewable) TECON: exports CSN s steel products and export third-party containers Current capacity: general cargo and steel products (2 mtpy) and containers (480 K TEUpy); Future capacity: general cargo and steel products (6 mtpy) and containers (610 K TEUpy). Legend CSN owns 76% of the total share capital (in September 2012) 1,728 km of track will be built creating the Nova Transnordestina 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 Locomotives: 100 (current) 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 18 18

19 ENERGY 19 19

20 Self-sufficiency in Energy Thermoelectric Power Plant 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. Currently CSN is building a Top Recovery Turbine which will provide additional capacity of 17MW. Total CAPEX: US$ 30 million. 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: 428 MW Average Utilized Capacity (%) 238 MW Thermoeletric Power Plant Concession Maturity* Renewable Itá Oct 2000 Oct 2030 Yes 167 MW 23 MW Itá Hydroelectric Power Plant Igarapava Hydro Power Plant Igarapava Dec 1998 Dec 2028 Yes * 30 years 20 20

21 FINANCIALS 21 21

22 Strong Revenue Growth Net Revenue by Business Segment Net Revenue by Market (R$ MM) (R$ MM) 16,520 10% 16,520 14,003 10% 15% 10,978 14,451 9% 24% 35% 14,003 23% 10,978 14,451 29% 37% 11% 17% 26% 75% 72% 67% 55% 3,896 10% 30% 60% 4,137 11% 27% 62% 4,267 11% 22% 67% 77% 74% 71% 63% 3,896 39% 61% 4,137 40% 60% 4,267 33% 67% Q12 2Q12 3Q Q12 2Q12 3Q12 Steel Mining Other Domestic Market Foreign Market 22 22

23 1,463 1,113 1,120 1,076 Performance Adjusted EBITDA (R$ MM) & Adjusted EBITDA Margin (%) 35% 29% 27% 25% 4Q11 1Q12 2Q12 3Q12 Adjusted EBITDA EBITDA Margin 23 23

24 Adjusted EBITDA by Segment 9M12 EBITDA by Segment Mining Adjusted EBITDA (R$ MM) 9% 2% 1% Steel Adjusted EBITDA (R$ MM) Q12 2Q12 3Q12 45% 43% 1Q12 2Q12 3Q12 Steel Mining Logistics Energy Cement 24 24

25 Visit our website: Investor Relations: (+55 11) / / [email protected] 25 25