Suncoke Energy, Inc. · NYSE:SXC
Suncoke Energy — Barclays High Yield Bond & Syndicated Loan Conference 2013
44 slides from Suncoke Energy's conference presentation, May 22, 2013
Slide 1: Barclays High Yield Bond & Syndicated Loan Conference
Exhibit 99.1 Barclays Yield Syndicated May Conference 21, Bond 2013 High Loan &
Slide 2: Presenters
Ryan Treasurer & Investor Osterholm and Relations VP, Finance
Slide 3: Forward-Looking Statements
Forward-Looking Some opinions, Inc. Forward-looking plans, effects by “potential,” Although this all. SunCoke statements. of cause see presentation beliefs speak statement except This Reconciliations 3Investors 1933, the the Moreover, the presentation (“SunCoke”) presentation actual only of Partners
Slide 4: About SunCoke
ABOUT SUNCOKE % SunCoke Energy” SCP
Slide 5: About SunCoke Energy
About Largest in blast Int’l Cokemaking ~89% Mining 5.9 2012 General SunCoke Coal Coke Domestic ~11% High reserves ~1.5 Revenue: Adjusted (includes (1) Barclays the For million Coke million furnace mining U.S. quality is Americas of SunCoke aindependent an Partner in Adjusted HYBSL—May definition EB
Slide 6: Secure, long-term supply contracts with leading steelmakers
The More Cokemaking since Only plants operate in Supply coke Secure, contracts Customers steelmakers Steel (1) Barclays U.S. Source: Leading needs(1) and company 2006 than in about new long-term HYBSL—May with AK approximately doubled include with Company greenfield Independent Capacity 22% Steel le
Slide 7: Our proximity to customers' steelmaking facilities
SunCoke Our proximity Harbor Indiana Haverhill Vitoria, Jewell 114M of Granite Odisha, *65% Barclays reserves cokemaking owned tons Coke Middletown* City Brazil India HYBSL—May Operations 1* to Coal our Haverhill by SXCP customers’ operations Mining TM2*2013 are integrated 7strategically steelmaking
Slide 8: Domestic cokemaking business model
Domestic We solution What Capital SunCoke Permits Energy Engineering, & Plant Environmental Reliable, Coke Barclays (Pass-Through) Construction deliver Production Contract Supply SunCoke (Profit Funding and which HYBSL—May High-Quality Fixed Cokemaking coke Approvals Procurement Environmental and Pr
Slide 9: SunCoke's cokemaking technology
SunCoke’s Our Technology environmental Industry-leading Leverage pressure substantially Convert emissions into electrical Generate of 110,000 annual Barclays production electric industry-leading steam coke tons waste to HYBSL—May about power negative power and Cokemaking (MACT) reduce ofheat signatu
Slide 10: Organizational structure
SXC/SXCP 3Domestic facilities ~2.6M 235% 2% 56% 100% 65% capacity SXCP Business domestic (1) Barclays U.S. cokemaking Net GP LP interest IDR Coke coking tons interest tointerest SunCoke with HYBSL—May Represents cokemaking Coke SXC ~0.6M of Organizational with intons Brazil: with India: facilities (
Slide 11: Strategic roles of SXC and SXCP
Strategic Develop cokemaking Grow business advantaged Optimize GP investor Barclays & limited international in new Steel HYBSL—May Roles coal SXCP cost business coke partner facing of ofSXC projects capital MLPand 2013 with Grow SXCP 11 U.S. TM & Canada
Slide 12: Our Market Opportunity
OUR MARKET OPPORTUNITY 3 SunCoke Energy” SCP
Slide 13: U.S. and Canada coke imports and prices
U.S. andWorld SunCoke’s providing Representative Source: Barclays Canada HYBSL—May uscoke thePrice Delivered is opportunity Opportunity competitive (DTC), 2013 CokeCoke toTM 13 on displace Prices—$/ton Market price, imported quality Report, U.S. and coke CRU and reliability, Canada and company Coke
Slide 14: U.S. coke capacity is aging
U.S. Replace Aging Total Average coke DTE 27% 29% 22% 38 10 Producers & Merchant SunCoke 6% (excl Canada 56% Source: estimates Barclays Foundry Other Steel and of production Integrated SXC) 2012 Cokemaking coke CRU—The aging Age Canada HYBSL—May 58% U.S. estimates Apparent Imports capacity %coke &of
Slide 15: Coke replacement opportunity
Coke We coming Evaluation — Facilities for 19 4.0 SXC tpy Source: Barclays Customer Blast Battery batteries Replacement million facility estimate Market permitting Industry years CRU, furnace HYBSL—May with condition of in tons 6nearly Analysis quality and batteries Kentucky all Metallurgical Fundam
Slide 16: India steel growth drives coke demand
The driven Per Growing 2011 Coke Steel/Coke 60 India Market Metric of Millions 10 02Electric Sources: Barclays 16 012E 30 28 Capita India 57 offers Metallurgical 62 Supply by 2020E 40 India 50 Power 123 20 CRU, HYBSL—May Steel growing Growth Steel Tons attractive 460 Brazil Deficit Deficit Metallurg
Slide 17: India growth opportunity
The serve India power EBITDA better Construction one-half Expect and Barclays India isthan short VISA aless HYBSL—May per merchant as Growth the platform than ton capital SunCoke U.S. isin Opportunity expected coke over U.S. cost for will market time 2013 per growth achieve to ton 17 TM be that esti
Slide 18: 1Q 2013 Financial Performance
1Q 2013 FINANCIAL PERFORMANCE 18
Slide 19: Q1 2013 highlights
Q151 Completed Strong Position Adjusted $>$550M Combined >$300M $127 2013 Barclays 582013 Q1—2012 Liquidity Operations Cost Highlights HYBSL—May EBITDA liquidity cash SXCP per as Q1—2013 Solid ton IPO of per $150 Production TMQ1 Formed ton Cokemaking 2013 Coal Q1—2012 19 India Costs CashReduced Join
Slide 20: SXC: Adjusted EBITDA and earnings
SXC: Adjusted (in $55.5 $52.3 Improved Middletown Earnings Accelerated $0.24 Debt items $0.03 Q1 (1) Barclays 20 millions) For 2012 issuance ($0.10 Q1 Weak offset Harbor Income a Q1 HYBSL—May definition Per EBITDA(1) 2013 cokemaking coal by depreciation operation Adjusted 2013 EPS) Share ($0.06 attr
Slide 21: SXC: Domestic coke business summary
SXC: Overall Adjusted Domestic (Tons (2) appendix. cost recurring (3) Barclays billing Includes orDomestic inreview. market cokemaking thousands) HYBSL—May EBITDA startup Coke a $2.8 $4.2 adjustment 21 Production Coke costs million per million business Business at tonMiddletown. 2013 favorable on of
Slide 22: SXC: Coal mining summary
SXC: ($ Price/Ton(2) Driven Sales Delivered per Jewell –and $159 Rationalized reduced Upgraded Q1 Coal Purchased Reject (1) (2) (3) penalties Barclays $129 in Avg. For Excludes ‘12 ton yr/yr millions, Mining action Sales, Sales Production in volume Coal Rate underground in by cash aQ2 Q1 headcount S
Slide 23: SXCP results summary
SXCP Sustained provide 448 428 $11.4 442 $29.4 Coke Adj. $23.9 $15.3 $12.4 Net Attributable Q1 (1) Barclays 23 For ‘12 Income $EBITDA 424 Production 41.5 $30.1 $22.0 $13.2 $12.4 Q1 aQ1 Proforma aHYBSL—May definition strong solid 2013 ‘13 ($ Net 1.66x toAttributable in SXCP (1) results Highlights Inc
Slide 24: Financial Strength and Outlook
FINANCIAL STRENGTH AND OUTLOOK
Slide 25: SXC cash position and liquidity
SXC Ended even ($ ($225.0) to $382.0 $6.4 ($17.5) Includes ($30.5) $16.2M $239.2 Harbor SXCP Q4 Cash Balance (net (1) Barclays 25 SXCP inExcludes 2012 of $23.9 millions) after Liquidity Net IPO quarter fees) ($3.7) Indiana $200.9 for Amortization Attributable ($67.7) Q1 HYBSL—May Income making $106.
Slide 26: Liquidity and capital structure
Liquidity Both ($ SXC Cash Revolver B1/B+ Total Net (1) B1/BB- and (2) (3) (4) million Barclays 26 inBased For Debt committed millions) SXC Position Liquidity Debt SXC, less mid-point). HYBSL—May (3) (1) Capacity &on and (2) (1) $63 Debt $298 /2013E the reflects at $499 /2013E SXC SXCP at $351 milli
Slide 27: SXC 2013 guidance
SXC: Metric Adjusted Consolidated Attributable EPS (diluted) Capital Effective Cash Domestic Coal (1) (2) (3) Barclays For Includes See Attributable Production Tax Flow 2013 2013 apage Expenditures HYBSL—May reconciliation EBITDA Tax Rate Coke from Guidance ~$38 to Guidance 35 $205 Rate 12%—20% SXC
Slide 28: 2013 priorities
2013to Operational Business Sustain facilities potential Resolve Renew with refurbishment opportunities Implement project Granite venture Execute plan Maintain Barclays performance return Priorities decrease at coke momentum City transaction Indiana refurbishment coal NOV Obtain HYBSL—May U.S. Asset
Slide 29: Questions?
QUESTIONS? x SunCoke Energy” SxCP
Slide 30: Investor Relations
Investor Relations: www.suncoke.com 630-824-1987
Slide 31: Appendix
APPENDIX % SunCoke Energy™ SCP
Slide 32: Investing in Indiana Harbor refurbishment
Investing Indiana Degraded challenged Approximately early Ovens track Refurbished of Anticipate Ongoing summer Expect return 32 After up to positive on that renewal to Harbor complete 10% constructive refurbishment up maintain oven improvements finalizing need coke ovens toresults $85M 25% Refurbish
Slide 33: Primary advantages of Heat Recovery technology
Primary Advantages Negative Minimal MACT Cogeneration More No High Higher Lower experience 1. 33 Maximum wall comfort fungible capital turndown CSR standard pressure Cokemaking fugitive Pressure of coke Achievable potential level cost by-product Heat for limitations emissions flexibility quality Ove
Slide 34: North American growth strategy
North First Opportunistic acquisitions adjacent Coal Cokemaking FOCUS Processing Acquisition cokemaking term agreements In owners Initiated Degree operations issues and potentially Customer to business customer 34 remain active timing off priority Handling/ America will ofFOCUS take assets discussio
Slide 35: 2013E capital expenditures and investments
2013E For ($ $25m On-Going Environmental Remediation Expansion Total Approx. To Investments India 35 in fund Year millions) CapEx JV coke Capital investment — $176 (Visa Ended Approx. Approx. and $15 Approx. Approx. &Middletown $24 SXC Expenditures SunCoke) expected Refurbishment $24m December $15 $
Slide 36: Omnibus and commercial agreements
Omnibus Purpose: 5Support default Parent or Right Tenor MLP cokemaking — but 36years other Commercial Non-compete Indemnifications Purchase MLP will has of –currently makes or from Period have arrangement of preferential will First governs preferential Agreement execution Commercial and assets date
Slide 37: SXCP: Prospectus-based distribution outlook
SXCP: Based Prospectus ($ Adjusted Cash Less: Accrual Ongoing Public Estimated Excess Minimum Total (1) expense, (2) 37 and Adjusted Total interest estimated unit on units partnership distributable 2013 for unit interest capital EBITDA solid coverage Distributable annual Revised replacement in EBITD
Slide 38: Definitions and Reconciliations
DEFINITIONS AND RECONCILIATIONS
Slide 39: Definitions
Definitions sales discounts expense. reduction unconsolidated or EBITDA thereof otherwise operating considered Adjusted interests. SXC 39 operating discounts or may SXCP, However, does EBITDA, EBITDA EBITDA/Ton of performance performance. represent beanot EBITDA income substitute apparent not tons a
Slide 40: Adjusted EBITDA reconciliations
$Reconciliations Q1 Net and Subtract: EBITDA Add: unconsolidated noncontrolling Adjusted SXC 40in2013 Income amortization millions Adjustment 43.9 Sales FY Depreciation, Interest Income 50.9 EBITDA 262.7 Discount 6.4 2012 254.5 interests affiliate 102.5 from 68.2 (23.9) Tax expense, toQ4 52.3 attrib
Slide 41: Segment Adjusted EBITDA reconciliations
Reconciliations $Domestic FY Q4 Q3 Q2 Q1 Sales Adjusted 41in2012 2013 millions, Volume EBITDA International except (thousands of Segment 61.1 249.4 69.8 62.4 54.8 per perTon Jewell 1.6 10.2 0.9 0.7 0.1 ton 11.9 of50.8 57.8 57.4 57.9 62.5 58.1 (4.6) 10.7 9.3 7.4 Adjusted tons) data 6.0 33.4 (5.6) (6.
Slide 42: SXC 2013E Adjusted EBITDA reconciliation
SXC Reconciliation 2013E (in Net Depreciation, Total Income Sales Adjustment EBITDA Adjusted (1) (2) 42 millions) Represents Income –financing discounts Net 2013E Expected tax $199 attributable EBITDA Income expense to $40 Low Depletion unconsolidated Adjusted SXC $221 costs, 6$57 2013E 6High $205 a
Slide 43: SXCP 2013E Adjusted EBITDA reconciliation
SXCP 2013E (in Net Depreciation, Total Income Sales EBITDA Adjusted (1) 43 millions) Represents Income financing discounts –2013E Net tax Expected $EBITDA attributable Income 132.9 expense $Low Depletion 79.2 Adjusted costs, (0.6) $High 2013E $attributable to 140.6 4.7 89.9 132.3 (0.6) to Adjusted n
Slide 44: SXCP distributable cash flow reconciliation
SXCP Flow ($ Changes Net Depreciation Add: Financing Income Sales Adjusted Ongoing Less: Replacement Cash Distributable Minimum Distribution 44 inincome cash Millions) interest Reconciliations discounts – tax Adjusted in (used capex EBITDA expense, Quarterly expense working $Coverage (7.6) 7.6 accru
SunCoke Energy — Barclays High Yield Bond & Syndicated Loan Conference 2013 on 6ix