Algoma Steel Group Inc. · NASDAQ:ASTL
Algoma Steel — Q1 FY2024 Earnings Presentation
16 slides from Algoma Steel's earnings presentation, Aug 11, 2023
Slide 1: Earnings Call Presentation
NASDAQ:ASTL Earnings Call Presentation TSX: ASTL For the Quarter ended June 30th, 2023 August 11th, 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 • Ongoing commitment to superior Health & Safety performance has 1.30 led to sustained improvement of safety metrics over time • Health & safety remains our highest prior
Slide 5: Key Performance Highlights
Key Performance Highlights Q1 FY2024 - Ended June 30th, 2023 • Shipping volume was 569K NT in Q1 FY2024, down 0.4% from 572K NT in Q4 FY2023 and up 6% from 538K NT in Q1 FY2023. • Steel Revenue was $755 million in Q1 FY2024, up 24% from $609 million in Q4 FY2023 and down 14% from $877 million in Q1
Slide 6: First Quarter Financial Highlights
First Quarter Financial Highlights Q1 FY2024 Q1 FY2023 Change Q4 FY2023 Change Shipping volume (‘000s tons) 569 538 ↑ 6% 572 ↓ -0.4% Net Sales Realization per ton ($/ton) 1,323 1,632 ↓ -19% 1,066 ↑ 24% Steel Revenue($ million) 755 877 ↓ -14% 609 ↑ 24% Cost of Steel Products Sold ($/NT) 950 920 ↑ 3%
Slide 7: 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 $ 815 $1,250 $1,050 $850 ($ millions) $650 $616 $486 $866 $912 $759 $450 $480 $638 $723 $470 $415 $250 $489 $490 $525 $409 $435 $389 $259 $313 $311 $277 $272 $1
Slide 8: Construction Update
Construction Update Future home of Algoma’s new EAF facility1: Project Statistics2: • Concrete poured: est. > 15,000m3 • EAF Building Foundations est. 100% complete • EAF Equipment Piling - 95% complete • EAF Equipment Foundations - Underway • Fume Treatment Plant excavation and piling complete • Fu
Slide 9: Critical Equipment Arriving on Site
Critical Equipment Arriving on Site MV Avonborg on route to Sault Ste Marie Equipment Manufacturing on Track • Manufacturing and factory acceptance testing has been completed for key elements of Danieli EAF equipment including: • 6 Electric overhead cranes supporting scrapyard and steel making • Dan
Slide 10: Plate Mill Modernization Update
Plate Mill Modernization Update Algoma’s Path to Higher Plate Production Automated Cooling Beds Heavy Gauge Inline Shear Plate Piler Robotic Plate Marking System 9
Slide 11: Market Update
Market Update North American HRC price declining / Plate pricing remains strong Historical Hot Rolled Coil (HRC) and As Rolled Plate Prices (ARP) (US$/ton) Key Market Drivers $2,200 • HRC steel prices have decreased $340/NT since April CRU Index HRC / ARP 2023, peak of $1,203. As rolled plate spread
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 Source: Company Q1 FY2024 Management's Discussion and Analysis 12
Slide 14: Annex: Adjusted EBITDA Reconciliation
Annex: Adjusted EBITDA Reconciliation Source: Company Q1 FY2024 Management's Discussion and Analysis 13
Slide 15: Annex: Selected Quarterly Information
Annex: Selected Quarterly Information Source: Company Q1 FY2024 Management's Discussion and Analysis 14
Slide 16: NASDAQ:ASTL TSX: ASTL
NASDAQ:ASTL TSX: ASTL 57