United States Steel Corporation · NYSE:X
United States Steel — Investor Presentation (May 2019)
16 slides from United States Steel's investor presentation, May 2, 2019
Slide 1: State-of-the-Art Endless Casting and Rolling Investment at Mon Valley
May 2, 2019 State-of-the-Art Endless Casting and Rolling Investment at Mon Valley www.ussteel.com
Slide 2: Forward-looking Statements
Forward-looking Statements These slides are being provided to assist readers in understanding the construction of a state-of-the-art endless casting and rolling facility at the Company’s Mon Valley Works, results of operations, financial condition and cash flows of United States Steel Corporation. T
Slide 3: Strategy Overview
STRATEGY OVERVIEW
Slide 4: Building a Solid Foundation for Our Future
Building a Solid Foundation for Our Future OUR STRATEGY CRITICAL SUCCESS FACTORS . Enhance operational excellence: safe, environmentally responsible, 1 reliable and cost effective Move Down the Cost Curve operations . Create operating leverage: 2 revitalized steelmaking assets with improved operatio
Slide 5: Creating New Boundaries Through Dimensions and Differentiation
Creating New Boundaries Through Dimensions and Differentiation Investment: Asset Revitalization Endless Casting and Rolling New Boundaries: More Automotive Line Pipe HRC AHSS Industrial HRC Ability to HRC Differentiate Less Going thinner Going thicker Thin Steel Gauge Thick 5
Slide 6: The U. S. Steel Value Proposition
The U. S. Steel Value Proposition Creating a compelling and sustainable investment thesis Sustainable Increased through- Reduced long-term Free Cash Flow cycle earnings capital intensity to Create leverage Stockholder Value Our value creation formula 6
Slide 7: Investment Highlights
INVESTMENT HIGHLIGHTS
Slide 8: Our Mon Valley Works is a Logical Choice for Investment
Our Mon Valley Works is a Logical Choice for Investment Mon Valley Works Has An Advantaged Cost Structure . Structural cost advantages from highly efficient operations ‒ Advantaged logistics and energy costs . Replacing the hot strip mill (HSM) unlocks significant value creation & ‒ Enhanced optiona
Slide 9: Best-in-Class Technology, Product Capability and Cost Structure
Best-in-Class Technology, Product Capability and Cost Structure Existing Iron and Steel Making New Technology Will Replace Existing Operations are Unchanged Slab Caster and Hot Strip Mill Iron Making Steel Making Endless Casting and Rolling . Maintains same level of steel making capacity of the Mon
Slide 10: Significantly Reduced Costs and State-of-the-Art Product Capabilities
Significantly Reduced Costs and State-of-the-Art Product Capabilities Endless Casting & Rolling Process vs. Our Current Casting and Rolling Processes Current Process: CC/HSM – For illustrative purposes only SLAB YARD 470 Feet SLAB PROCESSING 2038 Feet PUSHER TYPE REHEAT ROUGHING HOLDING FINISHING MI
Slide 11: Investment Will Be Made in the Existing Edgar Thomson Footprint
Investment Will Be Made in the Existing Edgar Thomson Footprint 11
Slide 12: A Compelling Investment Supported by Flexible Financing
A Compelling Investment Supported by Flexible Financing ~$1.2B 15+% capital return on investment1 investment Opportunistically optimize financing with a combination of the following: 2019 2020 2021 2022 . Vendor-supported financing ~$60M ~$400M ~$650M ~$90M . Senior unsecured notes . Cash / ABL ----
Slide 13: Positions the Mon Valley to Compete and Win
Positions the Mon Valley to Compete and Win Expands Structural Cost Greater Footprint Optionality Advantage at Mon Valley Commercial Expands ability to serve a broader Improves yields significantly Uplift: 52% Other: 15% range of markets and customers Requires less externally Facilitates improved pr
Slide 14: A Cogen Improves Our Environmental Performance and Energy Efficiency
A Cogen Improves Our Environmental Performance and Energy Efficiency Cogeneration Facility Environmental Benefits Improves the energy efficiency of the Mon Valley Works Complex Significantly reduces air emissions and significantly improves overall environmental performance of our . A cogeneration fa
Slide 15: Industry Leading Technology and Key Competitive Advantage
Industry Leading Technology and Key Competitive Advantage Move down the cost curve … Win in attractive markets … Move up the talent curve … Reduced conversion Better through- costs cycle financial Increased capability Further develop performance to compete and win sustainable, best-in- in attractive
Slide 16: Investor Relations
INVESTOR RELATIONS Kevin Lewis General Manager 412-433-6935 klewis@uss.com Eric Linn Manager 412-433-2385 eplinn@uss.com www.ussteel.com
United States Steel — Investor Presentation (May 2019) on 6ix