United States Steel Corporation · NYSE:X
United States Steel — Q1 2021 Earnings Presentation
18 slides from United States Steel's earnings presentation, Apr 30, 2021
Slide 1: First Quarter 2021 Earnings Call
First Quarter 2021 Earnings Call April 30, 2021 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 Relations and Corp
Slide 2: Forward-looking statements
2 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 first quarter of 2021. They should be read in conjunction with the consolidated financial
Slide 3: Non-GAAP measures
3 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 enhance the understanding of our operating
Slide 4: Business update: what you will hear on today's call
4 Business update What you will hear on today’s call: OPTIMISM OPTIONALITY OPPORTUNITY ‘Stronger for longer’ steel market Big River Steel creating value Industry-leading sustainability announcements
Slide 5: Stronger for longer steel market
Stronger for longer steel market Informing our perspective 5 Healthy Customer Order Book Supportive Steelmaking Costs Low Steel Supply Chain Inventories Continued confidence in strong demand and market fundamentals Elevated steelmaking input costs for blast furnaces and EAFs Restocking period needed
Slide 6: Big River Steel creating value
6 6 Big River Steel creating value Well-timed acquisition of Big River Steel 32% EBITDA margin Continued margin expansion from Phase 2 expansion Strong per ton profitability reflects a highly variable cost structure $362 EBITDA per ton Well-timed acquisition of the remaining stake in Big River Steel
Slide 7: Outperforming the competition
Big River Steel creating value Outperforming the competition Efficiencies from Phase 2 expansion delivering strong margin performance 32% 19% 22% 1Q 2021 EBITDA margin % 7 Mini mill competitor #1 Mini mill competitor #2 Note: Big River Steel statistics calculated based off their January 15 – March 3
Slide 8: Industry-leading sustainability announcements: differentiated product offering
8 8 Industry-leading sustainability announcements Differentiated product offering 1 Compared to the traditional, integrated steelmaking process. up to 75% reduction in CO2 emissions1 Our most advanced high-strength steels … MADE SUSTAINABLY WORLD-CLASS finishing assets BEST … for our customers … for
Slide 9: Industry-leading sustainability announcements: differentiated sustainability proposition
9 9 Industry-leading sustainability announcements Differentiated sustainability proposition Only LEED® certified steel mill in the United States Helping customers meet their own decarbonization goals Only North American-based steel company to join ResponsibleSteel1 Reinforces commitment to our 2050
Slide 10: Reevaluating capital allocation; canceling the Mon Valley project
10 10 Reevaluating capital allocation through the following lenses: Mon Valley Works remains a critical asset: ➢ Sustainability ➢ Value creation ➢ Lower capital / carbon intensity ➢ Low-cost steelmaking ➢ Advantaged logistics and energy costs ➢ Serves strategic end-markets Canceling the Mon Valley p
Slide 11: Strengthened balance sheet
Strengthened balance sheet Restored financial flexibility Restored secured debt capacity and removed secured notes limitations2 Extended maturity profile with 2029 senior unsecured notes Reduced annual run-rate interest expense by ~$100M1 ~$1.2B debt reduction in 1Q 20211 ✓ ✓ ✓ ✓ 11 1 Excluding the
Slide 12: Strong start to 2021: financial highlights
• Total first quarter adjusted EBITDA1 of $551 million, ahead of our guidance on March 12 • Ending liquidity of ~$2.9 billion • Cash and cash equivalents of ~$0.8 billion • Acquired technologically advanced Big River Steel without increasing pension/OPEB liabilities • Record setting Flat-rolled and
Slide 13: Recap
Recap • ‘Stronger for longer’ steel market • Big River Steel creating value • Industry-leading sustainability announcements 13
Slide 14: Q&A
Q&A
Slide 15: Closing Remarks
Closing Remarks
Slide 16: Reconciliation of segment EBITDA
16 Reconciliation of segment EBITDA Flat-rolled ($millions) 4Q 2020 1Q 2021 Segment (loss) earnings before interest and income taxes ($73) $146 Depreciation 123 120 Flat-rolled Segment EBITDA $50 $266 U. S. Steel Europe ($ millions) 4Q 2020 1Q 2021 Segment (loss) earnings before interest and income
Slide 17: Reconciliation of adjusted EBITDA
Reconciliation of adjusted EBITDA 17 ($ millions) 4Q 2020 1Q 2021 Reported net (loss) earnings attributable to U. S. Steel $49 $91 Income tax provision (benefit) (94) 1 Net interest and other financial costs 88 333 Reported (loss) earnings before interest and income taxes $43 $425 Depreciation, depl
Slide 18: Investor Relations
INVESTOR RELATIONS Kevin Lewis Vice President 412-433-6935 klewis@uss.com Eric Linn Senior Manager 412-433-2385 eplinn@uss.com www.ussteel.com