Algoma Steel Group Inc. · NASDAQ:ASTL
Algoma Steel — Q4 FY2023 Earnings Presentation
16 slides from Algoma Steel's earnings presentation, Jun 22, 2023
Slide 1: Earnings Call Presentation
NASDAQ:ASTL Earnings Call Presentation TSX: ASTL For the Quarter & Fiscal Year ending March 31st, 2023 June 22nd, 2023 in Canadian dollars unless otherwise noted
Slide 2: Disclaimer
Disclaimer CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS This presentation contains “forward-looking information” under applicable Canadian securities legislation and “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 (collectivel
Slide 3: Earnings Call Agenda
Earnings Call Agenda Safety Performance Today’s Presenters: Financial Performance Michael Garcia Chief Executive Officer Market Update Rajat Marwah Strategic Update Chief Financial Officer Questions & Answers 2
Slide 4: Safety Without Compromise
Safety Without Compromise Continued Focus and Improvement in Lost Time Injury Frequency Rate (LTIFR)1 Health & Safety Performance 1.30 • Ongoing commitment to superior Health & Safety performance has led to sustained improvement of safety metrics over time • Health & safety remains our highest prior
Slide 5: Key Performance Highlights
Key Performance Highlights Q4 FY2023 - Ended March 31st, 2023 • Shipment volume was 572K NT in Q4 FY2023, up 25% from 458K NT in Q3 FY2023 and up 4% from 547K NT in Q4 FY2022 • Steel Revenue: was $609 million in Q4 FY2023, up 19% from $512 million in Q3 FY2023 and down 31% from $880 million in Q4 FY
Slide 6: Fourth Quarter Financial Highlights
Fourth Quarter Financial Highlights Q4 FY2023 Q4 FY 2022 Q3 FY2023 Shipping volume (‘000s tons) 572 547 4% 458 25% Net Sales Realization per ton ($/ton) 1,066 1,608 -34% 1,116 -4% Steel Revenue($ million) 609 880 -31% 512 19% Cost of Steel Products Sold ($/NT) 934 947 -1% 1,157 -19% Adjusted EBITDA
Slide 7: Full Year Financial Highlights
Full Year Financial Highlights FY 2023 FY 2022 % YoY Shipping volume (‘000s tons) 2,003 2,297 -13% Net Sales Realization per ton ($/ton) 1,273 1,545 -18% Steel Revenue($ million) 2,550 3,549 -28% Cost of Steel Products Sold ($/NT) 1,004 857 17% Adjusted EBITDA ($ million) 452 1,503 -70% Net Income (
Slide 8: Overview of Net Working Capital Seasonality
Overview of Net Working Capital Seasonality Net Working Capital $M1 $ 573 $ 589 $ 588 $ 568 $ 641 $ 687 $ 762 $ 623 $ 633 $ 825 $ 926 $ 875 $1,250 $1,050 $850 616 $650 486 866 912 480 638 723 470 ($ millions) $450 415 489 490 525 $250 409 435 389 259 313 311 277 175 237 221 $50 149 143 (55) (59) (61
Slide 9: Construction Update
Construction Update Future home of Algoma’s new EAF facility1: Project Statistics2: • Concrete poured : est.15,000m3 • EAF Building Foundations est. 100% complete • EAF Equipment Piling - 95% complete • EAF Equipment Foundations - Underway • Fume Treatment Plant excavation and piling complete • Fume
Slide 10: Project Milestones
Project Milestones Equipment Manufacturing on Track for Delivery • Manufacturing and factory acceptance testing has been completed for key elements of Danieli EAF equipment including: • 6 Electric overhead cranes supporting scrapyard and steel making • Danieli Q-One Module transformer testing • Fume
Slide 11: Market Update
Market Update North American HRC price improving / Plate pricing remains strong Historical Hot Rolled Coil (HRC) and As Rolled Plate Prices (ARP) (US$/ton) Key Market Drivers $2,200 • HRC steel prices have increased $247/NT since Jan CRU Index HRC / ARP 2023, peaking at $1,203 in April. ARP spread o
Slide 12: Committed to our Path Forward, Creating a Track Record of Success
Committed to our Path Forward, Creating a Track Record of Success Strategic Direction Operational & Capital DSPC Automation Ladle Met Furnace #2 Project Aurora EAF Approval PMM Phase 1 LSP Power Plant EAF Project PMM Phase 2 Improvements Upgrade debottlenecks $50M annualized Received board Enhancing
Slide 13: Annex: Revenue and Cost of Sales
Annex: Revenue and Cost of Sales Three months ended Years ended March 31, March 31, 2023 2022 2023 2022 tons Steel Shipments h 4.5% 571,647 547,217 i 12.8% 2,002,715 2,297,159 millions of dollars Revenue i 28.1% C$ 677.4 C$ 941.8 i 27.0% C$ 2,778.5 C$ 3,806.0 Less: Freight included in revenue (54.1)
Slide 14: Annex: Adjusted EBITDA Reconciliation
Annex: Adjusted EBITDA Reconciliation Three months ended Years ended March 31, March 31, millions of dollars 2023 2022 2023 2022 Net (loss) income C$ (20.4) C$ 242.9 C$ 298.5 C$ 857.7 Amortization of property, plant and equipment and amortization of intangible assets 25.6 22.7 95.3 87.0 Finance cost
Slide 15: Annex: Selected Quarterly Information
Annex: Selected Quarterly Information (millions of dollars, except where otherwise noted) 2023 2022 2021 As at and for the three months ended1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Financial results Total revenue C$ 677.4 C$ 567.8 C$ 599.2 C$ 934.1 C$ 941.8 C$ 1,064.9 C$ 1,010.2 C$ 789.1 C$ 638.5 Steel product
Slide 16: NASDAQ:ASTL TSX: ASTL
NASDAQ:ASTL TSX: ASTL 57