United States Steel Corporation · NYSE:X
United States Steel — Q4 2021 Earnings Presentation
17 slides from United States Steel's earnings presentation, Jan 28, 2022
Slide 1: Fourth Quarter & Full Year 2021 Earnings Call
Fourth Quarter & Full Year 2021 Earnings Call January 28, 2022 David Burritt President and Chief Executive Officer Christie Breves Senior Vice President and Chief Financial Officer Rich Fruehauf Senior Vice President, Chief Strategy and Sustainability Officer Kevin Lewis Vice President, Investor Rel
Slide 2: Forward-looking statements
Forward-looking statements These slides are being provided to assist readers in understanding the results of operations, financial condition and cash flows of United States Steel Corporation as of and for the fourth quarter and full year of 2021. Financial results as of and for the periods ended Dec
Slide 3: Explanation of use of non-GAAP measures
Explanation of use of non-GAAP measures We present adjusted net earnings (loss), adjusted net earnings (loss) per diluted share, earnings (loss) before interest, income taxes, depreciation and amortization (EBITDA) and adjusted EBITDA, which are non-GAAP measures, as additional measurements to enhan
Slide 4: Record performance in 2021 and bullish for 2022
CURRENT LANDSCAPE CHALLENGES SOLUTION PATH FORWARD Record performance in 2021 and bullish for 2022 Delivering on Best for All Transitioning to a less capital and carbon intensive business model while becoming the best steel competitor ✓ Mini Mill #2 ✓ NGO electrical steel line at Big River Steel ✓ C
Slide 5: Delivered record performance for our stakeholders in 2021
5 5 Delivered record performance for our stakeholders in 2021 Confident in 2022 and well positioned to execute our Best for All strategy Returning excess capital to stockholders Advancing towards our Best for All future 2021 successes creating 2022 opportunities
Slide 6: Delivered for our stakeholders in 2021: A Year of Records
6 Advancing towards our Best for All future Delivered for our stakeholders in 2021 6 A Year of Records 2021 Safety & Environmental Financial Performance Customer & Operational Excellence More details on the following slide
Slide 7: Record financial performance in 2021
7 Advancing towards our Best for All future Record financial performance in 2021 7 2021 Adj. EBITDA ~$5.6B 2021 FCF ~$3.2B 2021 Leverage1 0.7x Record 28% adjusted EBITDA margin reflects the improved quality of our earnings Meaningful incremental free cash flow expected in 2022 Strong balance sheet a
Slide 8: Record financial performance in 2021
8 Advancing towards our Best for All future Record financial performance in 2021 8 T u b u la r U S S E M in i M il l N A F R 2021 EBITDA performance: 4Q 2021 EBITDA performance: ~$1.0B 30% EBITDA margin $407M 41% EBITDA margin $293M 26% EBITDA margin $42M 16% EBITDA margin ~$3.1B 25% EBITDA margin
Slide 9: 2022 outlook
Advancing towards our Best for All future 2022 outlook Structural demand factors intact Enhanced Customer Partnerships Transformed Balance Sheet Accelerating order activity from higher fixed price OEM contracts Partnering with customers to develop unique solutions Creating the foundation for a balan
Slide 10: 1Q 2022 outlook
Advancing towards our Best for All future 1Q 2022 outlook Renewed annual fixed- price contracts reflected in Flat-rolled segments higher realized selling price Seasonal iron ore mining impacts Seasonal impacts to spot-oriented industries 10 10
Slide 11: Disciplined approach to capital allocation
Advancing towards our Best for All future Disciplined approach to capital allocation PRIORITIES CONSIDERATIONS OBJECTIVES 1 Balance sheet strength Through-cycle adjusted debt to EBITDA range 3.0x – 3.5x range 2 Announced Best for All investments Cash to next twelve-month (NTM) capex and cash of no l
Slide 12: Q&A
Q&A
Slide 13: Remarks
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Slide 14: Reconciliation of 2021 leverage
Reconciliation of 2021 leverage 14 Adjusted Debt ($ millions) YE 2021 Short-term debt and current maturities of long-term debt $28 Long-term debt, less unamortized discount and debt issuance costs 3,863 Operating leases 194 Unfunded pension / OPEB 0 Total Adjusted Debt $4,085 Divided by: LTM EBITDA1
Slide 15: Reconciliation of segment EBITDA
Flat-rolled ($ millions) 3Q 2021 4Q 2021 FY 2020 FY 2021 Segment (loss) earnings before interest and income taxes $1,015 $890 ($596) $2,630 Depreciation 120 127 496 491 Flat-rolled Segment EBITDA $1,135 $1,017 ($100) $3,121 U. S. Steel Europe ($ millions) 3Q 2021 4Q 2021 FY 2020 FY 2021 Segment (los
Slide 16: Reconciliation of adjusted EBITDA
Reconciliation of adjusted EBITDA ($ millions) 3Q 2021 4Q 2021 FY 2020 FY 2021 Reported net (loss) earnings attributable to U. S. Steel $2,002 $1,069 ($1,165) $4,174 Income tax provision (benefit) 260 (54) (142) 170 Net interest and other financial costs 80 130 232 602 Reported (loss) earnings befor
Slide 17: Investor Relations
INVESTOR RELATIONS Kevin Lewis Vice President 412-433-6935 klewis@uss.com Eric Linn Director 412-433-2385 eplinn@uss.com www.ussteel.com