Algoma Steel Group Inc. · NASDAQ:ASTL
Algoma Steel — Q2 FY2024 Earnings Presentation
17 slides from Algoma Steel's earnings presentation, Nov 3, 2023
Slide 1: Earnings Call Presentation
NASDAQ:ASTL Earnings Call Presentation TSX: ASTL For the Quarter ended September 30, 2023 November 3rd, 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 1.30 • Ongoing commitment to superior Health & Safety performance has led to sustained improvement of safety metrics over time • Health & safety remains our highest prior
Slide 5: Key Performance Highlights
Key Performance Highlights Q2 FY2024 - Ended September 30th, 2023 • Shipping volume was 549K NT in Q2 FY2024, down 4% from 569K NT in Q1 FY2024 and up 26% from 435K NT in Q2 FY2023. • Steel Revenue was $666 million in Q2 FY2024, down 12% from $755 million in Q1 FY2024 and up 21% from $552 million in
Slide 6: Quarterly Financial Highlights
First Quarter Financial Highlights Q2 FY2024 Q2 FY2023 Change Q1 FY2024 Change Shipping volume (‘000s tons) 549 435 ↑ 26% 569 ↓ -4% Net Sales Realization per ton ($/ton) 1,213 1,266 ↓ -4% 1,323 ↓ -8% Steel Revenue($ million) 666 552 ↑ 21% 755 ↓ -12% Cost of Steel Products Sold ($/NT) 1,021 1,037 ↓ -
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 $ 836 $1,250 $1,050 $850 $823 ($ millions) $650 $616 $486 $866 $912 $759 $450 $480 $638 $723 $470 $415 $250 $489 $490 $525 $409 $435 $389 $259 $313 $311 $
Slide 8: Construction Update - Rendering becoming Reality
Construction Update - New Facilities Rendering becoming Reality Project Statistics2: By the numbers: Cumulative Concrete Dust Hoods Fume Treatment Plant Foundations Spending $456M 16,778 cu/m 10% complete 85% complete Remaining 9 Q-One No.2 Baghouse SIF Loan $92.5M Structural Steel Transformers Inst
Slide 9: Plate Mill Modernization Update
Plate Mill Modernization Update Algoma’s Path to Higher Plate Production First Plate Trial at the Inline Shear Phase I - Quality Focus Phase 2- Productivity Focus Phase 2- Outage Elements – New Primary De-scaler (improves surface – In-Line Plate Cutting with Heavy Gauge April Outage: quality) Inline
Slide 10: Market Update
Market Update North American HRC price rebounding/ Plate pricing remains strong Historical Hot Rolled Coil (HRC) and As Rolled Plate Prices (ARP) (US$/ton) Key Market Drivers $2,200 • Index HRC pricing fell approx. 25% over Q2 CRU Index HRC / ARP F2024, exacerbated by market uncertainty $2,000 surro
Slide 11: 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 Ladle Met Furnace EAF Approval PMM Phase 1 LSP Power Plant EAF Project PMM Phase 2 PMM Phase 2 Improvements #2 Received board Enhancing quality and Installation of new Construction Commissioni
Slide 12: Appendices
Appendices ALGOMA — STEEL INC. — 11
Slide 13: Recent Updates
Recent Updates For more updates follow our social channels on: @AlgomaSteelInc Algoma Steel Inc 12
Slide 14: Annex: Revenue and Cost of Sales
Annex: Revenue and Cost of Sales Source: Company Q2 FY2024 Management's Discussion and Analysis 13
Slide 15: Annex: Adjusted EBITDA Reconciliation
Annex: Adjusted EBITDA Reconciliation Source: Company Q2 FY2024 Management's Discussion and Analysis 14
Slide 16: Annex: Selected Quarterly Information
Annex: Selected Quarterly Information Source: Company Q2 FY2024 Management's Discussion and Analysis 15
Slide 17: NASDAQ:ASTL TSX: ASTL
NASDAQ:ASTL TSX: ASTL 57