United States Steel Corporation · NYSE:X
United States Steel — FY2015 Earnings Presentation
27 slides from United States Steel's earnings presentation, Jan 27, 2016
Slide 1: Fourth Quarter and Full Year 2015 Earnings Conference Call and Webcast
United States Steel Corporation Fourth Quarter and Full Year 2015 Earnings Conference Call and Webcast January 27, 2016 © 2011 United States Steel Corporation Exhibit 99.1
Slide 2: Forward-looking Statements
Forward-looking Statements This presentation contains information that may constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. We intend the forward-looking statements
Slide 3: Adjusted EBITDA – Total Corporation and Segments
Adjusted EBITDA – Total Corporation $ Millions Flat-Rolled EBITDA $ Millions U. S. Steel Europe EBITDA $ Millions 4Q 2015 2Q 2015 1Q 2015 1Q 2015 2Q 2015 3Q 2015 Note: For reconciliation of non-GAAP amounts see Appendix 2Q 2015 1Q 2015 3Q 2015 Fourth Quarter and Full Year 2015 Results 3 United State
Slide 4: Cash and Liquidity
Cash from Operations $ Millions 3Q 2015 2Q 2015 1Q 2015 FY 2015 4Q 2015 Total Estimated Liquidity $ Millions YE 2014 YE 2013 YE 2012 YE 2015 Cash and Liquidity 4 United States Steel Corporation Cash and Cash Equivalents $ Millions Net Debt $ Millions YE 2012 YE 2013 YE 2014 YE 2015 YE 2012 YE 2013 Y
Slide 5: Carnegie Way
5 Carnegie Way 55% 12% United States Steel Corporation A strong performance in 2015 and a strong start in 2016 $815 million of Carnegie Way benefits realized in 2015 2015 is now the new base year for comparison $250 million of carryover impact in 2016 from projects that were implemented at various p
Slide 6: Carnegie Way Transformation Improving Earnings Power
Carnegie Way Transformation Improving Earnings Power 6 United States Steel Corporation 2015 vs. 2014 Flat-Rolled EBITDA 2015 vs. 2014 $ Millions 2014 EBITDA Commercial Costs & Other Income 2015 EBITDA Price ($1,071) Volume ($2,303) $1,716 $647 $1,166 $155 $61/ton ̶ Carnegie Way Benefits Carnegie Way
Slide 7: Carnegie Way transformation
7 Carnegie Way transformation Phase 1: Earning the right to grow in search of: • Economic profits • Customer satisfaction and loyalty • Process improvements and focused investment Phase 2: Driving profitable growth with: • Innovation and Technology • Differentiated customer solutions • Focused M&A S
Slide 8: Business Update
8 United States Steel Corporation Business Update Steelmaking facilities Flat-Rolled finishing facilities Iron ore mining facilities Tubular facilities U. S. Steel Europe Operating updates
Slide 9: Operating updates: Flat-Rolled, U. S. Steel Europe, Tubular
9 United States Steel Corporation Flat-Rolled Record-setting auto sales in 2015 at 17.47 million vehicles Construction spend is up nearly 11% through November, compared to 2014 Major unit shipments up over 6% in 2015 according to the Assc. of Home Appliance Manufacturers (AHAM) Service center carbon
Slide 10: 2016 Outlook
10 United States Steel Corporation 2016 Outlook 2016 Adjusted EBITDA Guidance At current market conditions, which include spot prices, import volumes and supply chain inventory levels, we would expect 2016 adjusted EBITDA to be near breakeven. As overall market conditions improve we would expect a
Slide 11: Q & A
United States Steel Corporation Fourth Quarter and Full Year 2015 Earnings Conference Call and Webcast Q & A January 27, 2016 © 2011 United States Steel Corporation United States Steel Corporation 11
Slide 12: Appendix
© 2011 United States Steel Corporation Appendix 12 United States Steel Corporation
Slide 13: Flat-Rolled Segment
EBIT $ Millions Average Realized Prices $ / Ton 1Q 2015 2Q 2015 3Q 2015 Fourth Quarter and Full Year 2015 Flat-Rolled Segment 1Q 2015 2Q 2015 3Q 2015 Shipments Net tons (Thousands) 1Q 2015 2Q 2015 4Q 2015 13 United States Steel Corporation EBITDA $ Millions 1Q 2015 2Q 2015 3Q 2015 4Q 2015 FY 2015 4Q
Slide 14: Tubular Segment
EBIT $ Millions Average Realized Prices $ / Ton 1Q 2015 2Q 2015 3Q 2015 Fourth Quarter and Full Year 2015 Tubular Segment 1Q 2015 2Q 2015 3Q 2015 Shipments Net tons (Thousands) 1Q 2015 2Q 2015 3Q 2015 14 United States Steel Corporation EBITDA $ Millions 1Q 2015 2Q 2015 3Q 2015 4Q 2015 FY 2015 4Q 201
Slide 15: U. S. Steel Europe Segment
EBIT $ Millions Average Realized Prices $ / Ton 1Q 2015 2Q 2015 3Q 2015 Fourth Quarter and Full Year 2015 U. S. Steel Europe Segment 1Q 2015 2Q 2015 3Q 2015 Shipments Net tons (Thousands) 1Q 2015 2Q 2015 3Q 2015 15 United States Steel Corporation EBITDA $ Millions 1Q 2015 2Q 2015 3Q 2015 4Q 2015 FY
Slide 16: Major end-markets summary Flat-Rolled Segment
16 Major end-markets summary Flat-Rolled Segment United States Steel Corporation Automotive 2015 auto sales set a new record at 17.47 million vehicles; up 3% versus 2014. Inventories finish year at same 61 days of vehicles; NAFTA built inventory slightly lower. 2016: N.A. production forecast up to 1
Slide 17: Market industry summary Tubular Segment
17 Market industry summary Tubular Segment United States Steel Corporation Sources: Baker Hughes, US Energy Information Administration, Preston Publishing, Internal Oil Directed Rig Count The oil directed rig count averaged 567during 4Q, a decrease of 14% q-o-q. There are currently 510 active oil ri
Slide 18: Major end-markets summary U. S. Steel Europe Segment
18 Major end-markets summary United States Steel Corporation U. S. Steel Europe Segment Sources: Eurofer, USSK Marketing, IHS, BDS Automotive In 4Q, EU car production reached 4.4 million units, an increase of 5.4% y-o-y. Total EU 2015 car production is forecasted to end up 6.7% higher to 18 million
Slide 19: U. S. Steel Commercial – Contract vs. Spot
U. S. Steel Commercial – Contract vs. Spot Contract vs. spot mix – twelve months ended December 31, 2015 Firm 32% Market Based Quarterly * 20% Flat-Rolled Market Based Monthly * 13% Tubular U. S. Steel Europe Spot 26% Cost Based 9% Contract: 74% Spot: 26% Firm 39% Market Based Quarterly* 2% Spot 38%
Slide 20: Other Items
20 United States Steel Corporation Other Items Capital Spending 2015 actual $500 million 2016 estimate $350 million Depreciation, Depletion and Amortization 2015 actual $547 million 2016 estimate $495 million Pension and Other Benefits Costs 2015 actual $251 million 2016 estimate will be provided af
Slide 21: Global OSHA Recordable Incidence Rates
21 Global OSHA Recordable Incidence Rates 2010 through 2015 United States Steel Corporation Safety Performance Rates Frequency of Injuries (per 200,000 manhours) Data for 2010 forward includes Lone Star Tubular Operations, Bellville Tubular Operations, Rig Site Services, Tubular Processing Houston,
Slide 22: Carnegie Way Transformation Improving Earnings Power
Flat-Rolled $ Millions Tubular $ Millions Note: For reconciliation of non-GAAP amounts see Appendix Carnegie Way Transformation Improving Earnings Power 22 United States Steel Corporation 2014 EBITDA Commercial Costs & Other Income 2015 EBITDA 2014 EBITDA Commercial Costs & Other Income 2015 EBITDA
Slide 23: Net Debt
23 United States Steel Corporation Net Debt Net Debt ($ millions) FY 2015 FY 2014 FY 2013 FY 2012 Short-term debt and current maturities of long-term debt $45 $378 $323 $2 Long-term debt, less unamortized discount 3,116 3,120 3,616 3,936 Total Debt $3,161 $3,498 $3,939 $3,938 Less: Cash and cash equ
Slide 24: Adjusted Results ($ millions)
24 United States Steel Corporation Adjusted Results ($ millions) FY 2015 4Q 2015 3Q 2015 2Q 2015 1Q 2015 Reported net earnings (loss) ($1,508) ($999) ($173) ($261) ($75) Loss on shutdown of coke production facilities 65 ─ ─ ─ 65 Loss on shutdown of Fairfield Works Flat-Rolled Operations (a) 53 ─ 53
Slide 25: Adjusted Results ($ per share)
25 United States Steel Corporation Adjusted Results ($ per share) FY 2015 4Q 2015 3Q 2015 2Q 2015 1Q 2015 Reported diluted EPS (LPS) ($10.32) ($6.83) ($1.18) ($1.79) ($0.52) Loss on shutdown of coke production facilities 0.44 ─ ─ ─ 0.45 Loss on shutdown of Fairfield Works Flat-Rolled Operations (a)
Slide 26: Adjusted Results ($ millions) – EBITDA
26 United States Steel Corporation Adjusted Results ($ millions) FY 2015 4Q 2015 3Q 2015 2Q 2015 1Q 2015 Reported (loss) earnings before interest and income taxes (EBIT) ($1,055) ($306) ($170) ($392) ($187) Depreciation expense 547 129 136 138 144 EBITDA (508) (177) (34) (254) (43) Loss on shutdown
Slide 27: Adjusted Results Segment EBITDA
27 United States Steel Corporation Adjusted Results Segment EBITDA – Flat-Rolled ($ millions) FY 2015 4Q 2015 3Q 2015 2Q 2015 1Q 2015 FY 2014 Segment EBIT ($237) ($88) ($18) ($64) ($67) $709 Depreciation $392 $90 99 99 104 457 Segment EBITDA $155 $2 $81 $35 $37 $1,166 Reconciliation of segment EBITD