Algoma Steel Group Inc. · NASDAQ:ASTL
Algoma Steel — Q1 FY2023 Earnings Presentation
14 slides from Algoma Steel's earnings presentation, Aug 4, 2022
Slide 1: Earnings Call Presentation
NASDAQ:ASTL Earnings Call Presentation TSX: ASTL For the Quarter ending June 30th, 2022 August 4th, 2022 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: EAF Conversion Michael Garcia Chief Executive Officer Financial Performance Market Update Rajat Marwah Chief Financial Officer Strategic Update / Capital Allocation Questions & Answers 2
Slide 4: Safety Without Compromise
Safety Without Compromise Continued Focus and Improvement in Lost Time Injury Frequency Rate (LTIFR) 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 priori
Slide 5: Construction update
Construction update Future home of Algoma’s new EAF facility: Construction Milestones: • Long lead time equipment ordered by OEM supplier (Danieli) • EAF Melt Shop Piling installation in progress. • Foundation contractor selected and underway • Rail and service relocations underway • Detailed engine
Slide 6: Key Performance Highlights
Key Performance Highlights Q1 FY2023 - Ended June 30, 2022 • Shipment volume was 538K NT in Q1 FY2023, down 1.7% from 547K NT in Q4 FY2022 and down 11.9% from 610K NT in Q1 FY2022 • Steel Revenue: was $877.4 million in Q1 FY2023, down 0.3% from $879.9 million in Q4 FY2022 and up 21.4% from $722.9 mi
Slide 7: First Quarter Financial Highlights
First Quarter Financial Highlights Q1 FY2023 Q1 FY 2022 Q4 FY 2022 Shipping volume (‘000s tons) 538 610 -12% 547 -2% Net Sales Realization per ton ($/ton) 1,632 1,185 38% 1,608 1% Steel Revenue($ million) 877 723 21% 880 0% Cost of Steel Products Sold ($/NT) 920 695 32% 947 -3% Adjusted EBITDA ($ mi
Slide 8: Capital Allocation Update
Capital Allocation Update Value Enhancing Uses of Capital: • Strong Balance Sheet: Low leverage / solid cash position • Electric Arc Furnace (EAF) Project: $700 million, 2 year project to transition Algoma to EAF steelmaking, resulting in 3.7 million tons/year of liquid steel capacity and a roughly
Slide 9: Market Update
Market Update North American HRC and Plate prices peaked but remain strong Historical Hot Rolled Coil (HRC) and As Rolled Plate Prices (ARP) (US$/ton) Key Market Drivers $2,200 • HRC steel prices have experienced price declines and shorter mill lead times, however $2,000 ARP spread over HRC continue
Slide 10: 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 Project Aurora Plate Mill EAF Approval EAF Project Improvements Upgrade #2 $50M annualized Modernization Received board Construction started 1 Improves grade
Slide 11: Annex: Revenue and Cost of Sales
Annex: Revenue and Cost of Sales April 1 to April 1 to June 30, June 30, change 2022 2021 tons Steel Shipments i 11.9% 537,524 610,057 millions of dollars Revenue C$ 934.1 C$ 789.1 Less: Freight included in revenue (45.1) (41.8) Non-steel revenue (11.6) (24.4) Steel revenue h 21.4% C$ 877.4 C$ 722.9
Slide 12: Annex: Adjusted EBITDA Reconciliation
Annex: Adjusted EBITDA Reconciliation April 1 to June April 1 to June millions of dollars 30, 2022 30, 2021 Net income C$ 301.4 C$ 203.6 Amortization of property, plant and equipment and amortization of intangible assets 22.6 20.7 Finance costs 4.7 15.1 Interest on pension and other post-employment
Slide 13: 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 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Financial results Total revenue C$ 934.1 C$ 941.8 C$ 1,064.9 C$ 1,010.2 C$ 789.1 C$ 638.5 C$ 430.0 C$ 377.0 C$ 349.4 Steel product
Slide 14: NASDAQ:ASTL TSX: ASTL
NASDAQ:ASTL TSX: ASTL 57