Good morning, ladies and gentlemen, and thank you for holding. At this time, we would like to welcome everyone to the CSN conference call to present results for Q3 of 2023. Today with us, we have the Company’s executive officers. We would like to inform you that this event is being recorded, and all participants will be in listen-only mode during the Company presentation. Following this, we will move on to the Q&A section, at which time further instructions will be provided. We have a simultaneous webcast that may be accessed through CSN's Investor Relations website, where the presentation is also available. There will be a replay service for this call on the website for a period of one week. The slide presentation may be downloaded at this website. Before proceeding, please be advised that some of the statements herein are mere expectations or trends and are based on the current assumptions and opinions of the Company management. Performance and events may differ materially from those expressed herein, which do not constitute projections. In fact, actual results, performances, or events may differ materially from those expressed or implied by forward-looking statements as a result of several factors including overall economic conditions in Brazil and other countries, interest rates and exchange rate levels, future rescheduling or prepayment of debt nominated in foreign currencies, protectionist measures in the U.S., Brazil, and other countries, changes in law and regulations and general competitive factors on a global, regional, or national basis. We will now turn the floor over to Mr. Marcelo Cunha Ribeiro, the CFO and Investor Relations Officer, who will present the highlights of CSN for the period. You may proceed, Mr. Ribeiro.

A good day to all of you and thank you for participating in the CSN call. First of all, we will go on with the presentation and then give the floor to Mr. Benjamin Steinbruch, the Chairman of the Board. We begin with the highlights of the period. Referring to a key aspect of CSN’s business model, which is its diversification, this quarter it became very important, allowing for a robust growth of our capital of 25% despite pressure in the scenario of the steel companies worldwide. We were able to increase our profitability and cash generation reaching more than R$1 billion. This led to deleveraging and reduction of our debt. These are the highlights we will discuss during the presentation. We move on to the next slide, showing you the sequential evolution of our EBITDA, which had a 25% improvement. We are still in a transitional semester that requires further improvements, especially in the steel segment. This quarter, we felt the pressure of imported steel under unfair conditions, which impacted the domestic market. The EBITDA had a drop of 64%, offset by positive evolution in all of the other businesses, notably in mining where we saw more than 76% growth. Our logistics center and cement sector also showed remarkable advancements, with cement achieving its best EBITDA in history at R$2.8 billion, an increase of over R$552 million sequentially. Continuing to operating and financial indicators, you can see a 20% increase in CapEx, specifically R$304 million higher in steel due to important projects, especially the coke batteries and other sintering improvements. We reached R$2 billion in terms of CapEx, with working capital showing positive evolution of R$1 billion, reflecting a healthy inventory situation. On the next page, the working capital allowed us to generate operating cash flow, reaching more than R$1 billion this quarter. This year shows a similar pattern where at the beginning of the year, we face pressure on working capital but are able to reverse these investments and generate substantial cash by the second to the fourth quarter. The cash generation was sufficient for the first time after several quarters to allow a positive evolution in our net debt, which dropped by R$1.5 million or 4.8%. This change was driven by initiatives that guarantee a reduction in leverage, with nominal net debt topping out at 2.6 times, an important step towards our goal of being below two times. We're confident that with continued results and initiatives underway, we can reach this goal in 2024. Our liquidity position remains robust, with more than R$15 billion ensuring healthy short-term debt coverage. This indebtedness will be gradually reduced through forthcoming quarters along with the replacement of short-term instruments by long-term ones. We recently issued debentures of R$700 million in the Brazilian market, and we expect to continue utilizing such instruments in upcoming quarters to enhance our indebtedness management and improve our ratings. Next, we will discuss segment highlights, starting with steel performance, which has faced challenges. Despite competition from imported steel that reduced prices, we managed to grow in the domestic market amidst mixed demand. Sales visibility remains tight due to seasonal fluctuations. EBITDA has been pressured due to another quarter of price drops, with international market dynamics and cost developments failing to fully offset margin declines. However, positive news is found on slide 15, where we report a 13% reduction in slab costs, while we expect a further operational uplift in the approaching quarters. Moving on to the mining segment, we had a very strong quarter with record production levels and strong price realizations due to improved international prices. This led to an increase of 45% in EBITDA, approaching R$2 billion. Our operational management has yielded positive results as well, with notable improvements in shipments and margins. The cement segment also achieved its highest ever EBITDA; however, we still have considerable work ahead. We noticed a 4% year-over-year volume increase, even with a market downturn. We attribute this to effective synergies following the integration of LafargeHolcim. We expect a price enhancement trend to persist, with significant developments in operational efficiency. This concluded our presentation. I would like to give the floor to our ESG manager to discuss additional highlights.

Good morning, everybody, and thank you for allowing me to be here. I would like to share the highlights for the quarter regarding our ESG indicators. During this period, we focused on the stability of our town and completed the de-characterization of civil works. We will now undergo a two-year monitoring of this project. We are also evolving in operational management, finishing the quarter with our lowest accident rate, 13% better than previous years, and a 44% reduction in severity due to accidents involving our employees. In terms of environmental management, we saw a significant reduction in water consumption due to heavy rainfall, achieving a 19% decrease compared to the same period last year. We were also able to generate 1.2 gigawatts of our own energy. Furthermore, we are making progress in promoting diversity within our company, with women's representation now at 15%, moving towards our goal of 28% by 2025. Additionally, we initiated Japan's first sustainable-linked financing of BRL500 million with the Bank of Brazil for the cement sector and published our first Climate Action Report detailing our decarbonization efforts.

Thank you, Helena Guerra, for the highlights. With this, we would like to end the presentation and open the floor for questions. I will now give the floor to Benjamin Steinbruch, the CEO, for his comments.

Good morning, everybody. It's always very satisfying to speak with you after presenting the results for the third quarter. I'm going to make a few remarks about the sector, starting with mining. We had a record production quarter, with market prices aligning positively and exceeding expectations. Control costs have shown well, leading to a strong quarter. The price per ton aligns with considerable market trends, suggesting that we'll have a promising fourth quarter in this segment. In the cement sector, growth continues despite market difficulties. We believe the fourth quarter will exhibit price recoveries and increased consumption, given our ongoing maintenance efforts following the issues experienced in the previous year. We're seeing positive results from the extensive process improvements implemented this year. Infrastructure has taught us that beyond forecast expectations, performances in Germany, Portugal, and the U.S. contribute similarly. Additionally, we're facing significant challenges due to the influx of steel imports, which are creating imbalances in the Brazilian market. It's crucial that the government takes measures to protect domestic production and maintain industry standards. I believe it's time for more stringent actions to safeguard our industry's growth and employment. Overall, CSN remains dedicated to its deleveraging strategy, as safety issues and ESG commitments take precedence, which will lead us toward better outcomes.

Ladies and gentlemen, we will now go on to the question-and-answer session for investors and analysts. Our first question comes from Caio Greiner from BTG Pactual. You may proceed, Caio.

Good morning, everybody. My first question to Marcelo refers to capital allocation. It usually is very expressive at CSN, but we see that CSN is investing in very relevant areas. You have increased your buybacks, and in which operations will the company allocate capital while continuing to pay substantial dividends? My next question is to Martinez. Could you comment on pricing and distribution, especially regarding negotiations to increase steel rates? Will this apply to all products?

Guilherme, thank you for the several questions. The discussion on dividends and buybacks does not have a straightforward answer. Our preference leans towards buybacks to help recover our share price. This is truly about paying our shareholders, and we see this as a superior strategy compared to direct buybacks, which tend to be more discretionary. We intend to maintain consistency while paying dividends, as we just announced R$2.5 billion in dividends. The buyback option remains, but for now, we prefer to be consistent throughout the quarter. Now, I will give the floor to Martinez.

Guilherme, I understood the first part of your question concerning price and distribution. The scenario we’re working with for the fourth quarter expects stable demand at stable prices. Currently, we anticipate a market price around $533 to $550, with variations in the domestic market reflecting about R$3900 to R$4000. Thus, there is no immediate plan to recover prices; our focus is on selling products. Given the substantial amount of imported material, which affects market conditions, we expect a decrease in imports as we move towards the end of the year. Apologies for not fully grasping the second part of your question.

Could you share more details on your negotiations concerning rate increases and whether these rates will be universally applicable to all steel products?

Regarding rate increases, I currently do not have an update. But we are negotiating with government stakeholders who influence this process. As Benjamin mentioned, we are looking to adopt effective strategies observed abroad, particularly regarding anti-dumping measures, ensuring that Brazil is not left behind in the global market.

And I have further questions about the NAV discount?

We are currently undertaking two primary actions to reduce this discount. The significant appreciation of asset values in CSN is evident, as shown through our stable valuation efforts. Additionally, we are focusing on reducing leverage, which is a concern for CSN relative to CMIN and share performance. Reducing leverage will help us unlock NAV value.

Good afternoon, and I apologize for having to disconnect. I have two questions: I would like to explore the margins in the steel sector further. There was a 13% decrease in slabs, but tonnage remained stable. How do you view the margin evolution from the new plant in upcoming quarters? Secondly, regarding your leverage guidance, where do you foresee reductions by the end of 2024, aiming for below two times?

Regarding margins, our focus shows that EBITDA for 2024 should mirror that of 2023. Cash generations will reflect a similar pattern, coupled with amortization and dividends, leaving limited cash for further deleveraging. Any reductions in leverage will depend on external market factors, including commodity prices. Margins at our steel plant have various influential elements, including our operations in Germany achieving double-digit margins previously. These contributions fluctuated between the second and third quarters, hitting a considerable market normalization phase. The volumes in Germany are rising again, and we also see stable pricing to drive an improvement into Q4. We aim for double-digit margins moving forward. As for your query on leverage reductions, it's indeed a challenging task. We're working to ensure we drop below the two-times threshold with stable industry relationships and efficient cost management across carbon and energy markets, and we stay hopeful for a favorable year in 2024.

Good morning, everybody. Congratulations on your results. I would like to inquire about the carryover of the steel price in the previous month compared to historical averages, and what can we expect for the price evolution in Q4?

In terms of price, there will be stability in Q4. Minor variations may occur due to product specifications, but we foresee minimal significant changes. Regarding cement, we're experiencing a steady evolution of synergies that will be integrated into upcoming results. We anticipate margins greater than what we see currently, putting us in a solid position for market recovery.

Hello and good afternoon to everybody. I have two questions for either Martinez or Marcelo. You suggested that reductions in the cost of slabs will come to fruition by Q4. I seek to know if there's further room for slab cost reductions as we move ahead. Also, is there room for future M&A activity to stimulate growth in the sector given past challenges with antitrust regulations?

Regarding costs, we do expect continued reductions, with improvements already seen in October. However, raw material pricing fluctuations may pose challenges ahead. On M&A perspectives in the cement sector, it remains fragmented compared to other mature markets. We will not disregard potential opportunities, but we acknowledge the limitations that local regulations may pose, especially concerning competition discussions. Thank you all for your participation and insightful questions. It's crucial to reiterate our commitment to recovering operational results, and we look forward to our future investor day. We appreciate your presence today, and wish everyone a good day ahead.

The CSN conference call ends here. You may now disconnect and have a very good day. Thank you for using Chorus Call.