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    Ricardo Monegaglia Neto • Safra

    Ricardo Monegaglia Neto's questions to Gerdau SA (GGB) leadership

    Ricardo Monegaglia Neto's questions to Gerdau SA (GGB) leadership • Q1 2025

    Question

    Ricardo Monegaglia Neto asked if Gerdau has a new structural or reference EBITDA margin for its business, considering the recent consolidation of its specialty steel operations into the main Brazil and North America divisions.

    Answer

    CEO Gustavo Werneck responded that over the cycle, both the North America and Brazil divisions should target EBITDA margins in the mid-teens, around 15%. He noted that North America's potential is enhanced by its high-value product mix, while Brazil's profitability will be boosted by cost-reduction projects in mining and energy. He emphasized the portfolio's resilience, where one geography can offset temporary weakness in another.

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    Ricardo Monegaglia Neto's questions to Gerdau SA (GGB) leadership • Q4 2024

    Question

    Ricardo Monegaglia Neto asked if the company's outlook incorporates the new reporting structure and sought an indication of margins for special steel in Brazil and the U.S. He also asked about the incremental EBITDA from strategic projects, specifically how much is already reflected in results and what to expect in 2025.

    Answer

    An executive confirmed the outlook uses the new reporting structure and noted that special steel margins in North America have room for a strong recovery, influenced by scrap prices. For Brazil, the outlook is tied to heavyweight vehicle production, which faces uncertainty. Regarding strategic CapEx, it was explained that projects have a ramp-up curve, and while some benefits will be seen in 2025, more significant EBITDA contributions are expected in 2026, particularly from the Itabirito mining project.

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    Ricardo Monegaglia Neto's questions to Gerdau SA (GGB) leadership • Q1 2024

    Question

    Ricardo Monegaglia Neto asked how the potential Mexico special steel project compares in priority to existing strategic CapEx and if it could extend the current plan. He also questioned the drivers of the strong margin recovery in the Special Steels division, comparing the U.S. and Brazil.

    Answer

    CEO Gustavo Werneck noted that special steel demand is recovering in both the U.S. and Brazil, with a particularly strong outlook for Brazil's heavy vehicle segment. CFO Rafael Japur explained that the Mexico project's significant CapEx disbursements would likely begin in 2026, thus not competing with the current 2021-2026 investment cycle. He also clarified that U.S. special steel margins exhibit greater volatility due to pricing contracts being linked to scrap spreads, unlike in Brazil.

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    Ricardo Monegaglia Neto's questions to Suzano SA (SUZ) leadership

    Ricardo Monegaglia Neto's questions to Suzano SA (SUZ) leadership • Q4 2024

    Question

    Ricardo Monegaglia Neto of Banco Safra S.A. asked for an assessment of current pulp inventory levels at the consumer level and the outlook for wood chip prices in Asia.

    Answer

    Executive Leonardo Grimaldi stated that consumer pulp inventories are at or below balanced levels, creating a tight short-term market. Regarding wood chips, he does not expect a near-term price uptick in China due to increased local availability from a competitor's shutdown and other factors, suggesting producer competitiveness will remain stable.

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    Ricardo Monegaglia Neto's questions to Companhia Siderurgica Nacional SA (SID) leadership

    Ricardo Monegaglia Neto's questions to Companhia Siderurgica Nacional SA (SID) leadership • Q2 2024

    Question

    Ricardo Monegaglia Neto asked for details on the commercial and operational drivers behind the cement division's strong margin performance and whether it is sustainable. He also inquired about the company's internationalization strategy for its cement and steel businesses.

    Answer

    Executive Edvaldo Rabelo and Executive Luis Martinez attributed the cement division's high margin to capturing over 100% of planned synergies from the Lafarge Holcim acquisition, optimizing logistics, and a commercial strategy focused on direct sales to a fragmented customer base. They stated the goal is to consistently operate above a 30% margin. An unnamed executive added that CSN continues to evaluate international expansion in steel, particularly in Europe and the USA, but any move would be carefully structured to not impact the company's leverage.

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    Ricardo Monegaglia Neto's questions to Vale SA (VALE) leadership

    Ricardo Monegaglia Neto's questions to Vale SA (VALE) leadership • Q2 2024

    Question

    Ricardo Monegaglia Neto of Banco Safra S.A. asked if lawsuits in the U.K. and Netherlands could be included in the Mariana settlement, inquired about 2024 production from Vargem Grande, and requested a market outlook for nickel and copper.

    Answer

    Executive Gustavo Duarte Pimenta stated the lawsuits are in different jurisdictions and Vale believes Brazil is the right venue for resolution. Executive Vice President of Operations Carlos Medeiros projected 1 million tons of production from Vargem Grande in 2024. Vale Base Metals Chairman Mark Cutifani expressed a positive outlook for copper, citing strong demand, and noted the risk is to the upside.

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