Suncoke Energy, Inc. · NYSE:SXC
Suncoke Energy — Q1 2015 Earnings Presentation
26 slides from Suncoke Energy's earnings presentation, Apr 23, 2015
Slide 1: SunCoke Energy, Inc. Q1 2015 Earnings Call
Exhibit 99.2 SunCoke Q1 Conference April 2015 23, Earnings 2015 Energy, Call Inc.
Slide 2: Forward-Looking Statements
Forward-Looking Some Exchange performance management’s strategies, regulations. “plan,” Although given risks included differ forward-looking expectations, intention presentation, This Reconciliations GAAP SXC slide presentation are Q1 materially that ofmeasures “intend,” beyond the 2015 in or manage
Slide 3: Management Perspective
Management Delivered Increased Maintained Continued Reaffirm (1) SXC For Q1a 2015 definition FY quarterly solid developing financial 2015E Perspective Earnings Q1 operating and dividend Consolidated flexibility pipeline reconciliation Call by&of to safety 28% long-term Adj. support of performance EB
Slide 4: SXC Q1 2015 Earnings Overview
EPS ($/share) $39.5 $49.1 ($0.02) Q1’15 ($ ($9.6) (1) (2) Adj. Domestic Benefited Q1 Reflects Reaffirm Consolidated SXCinFor Coke 2015 ‘14 ‘15 from EBITDA millions) millions, Q1 ($11.2) vs. aLoss Overview Q1 ($0.03) impacts 2015 Adjusted Earnings definition 2015 Coke coke from Cont. ‘15 from Adjuste
Slide 5: Adjusted EBITDA Q1 2014 to Q1 2015
Adjusted Solid ($ $2.7M $1.9M ($1.1M) $2.4M $2.4 $3.5 $39.5 $3.0M ($2.8M) $1.9 $1.6 $0.5 $4.0M curtailment Impacts restructuring Domestic Corporate Coal International Indiana Q1 (excl. Coke Harbor Costs Logistics Income, Adj. from (1) and (2) SXCinIncludes Q1 2014 2015 Adjusted •millions) ($3.1) $1.
Slide 6: Continued Domestic Coke Production and Adjusted EBITDA per Ton
Continued Domestic (Production $67/ton 152 149 Q1 Adjusted (1) SXC For ‘13 158 171 Q1aQ2 $59/ton 153 176 2015 definition EBITDA/ton Coke to ‘13 in150 154 deliver Earnings thousands Q3 Business Production $61/ton 944 182 ‘13 and stable 155 177 Q4 Middletown reconciliation Call $58/ton of Summary 155
Slide 7: Liquidity and Balance Sheet
Liquidity Solid Attributable $57.1 $23.8 ($0.1) $33.3 SXCP ($23.9) ($5.3M) ($3.0M) ($20.0M) $45.0M $73.6 $12.1M Q4 Cash Cont. (1) SXC Includes 2014 Q1 Balance cash Ops. ($9.1) ($15.5) ($8.3) revolver ––2015 Net Position –Net Pre-funded Ongoing Environmental position & Repurchase proceeds $165.4 $139
Slide 8: Strategic Updates
STRATEGIC SXC Q1 2015UPDATES Earnings Call
Slide 9: SXC Investment Thesis
Well positioned Stable, Secure, Minimal Strong Conservatively Maintain Growth Building Growing Returned Anticipate Significant SXC Investment Q1 Balance Long-term take-or-pay Opportunities 2015 commodity robust Return financial ~$110M executing continued Shareholder Earnings levered Sheet pipeline t
Slide 10: Stable Business Model with Long-Term Take-or-Pay Contracts
Stable Key Fixed Termination Take-or-Pay 15 Avg. years 9 Pass-through Cost Coal Operating Taxes Changes Contract Customers Long-term, Commodity No Counterparty Positioned (1) also SXC years –AK early provide Contract 20 of Blending Remaining Q1 Fee (ex. Cokemaking Steel Coal 2015 Value Duration in t
Slide 11: Financing Flexibility at SXC and SXCP
Flexibility Multiple Structuring Financing Executed Amended Potential Approximately Accumulating Ability SXC & to Q1 SXCP 2015 levers for amendment Leverage compete SXCP Flexibility toand SXC Fund excess Earnings Balance $165M $400M atshelf SXC &for Growth Both SXCP cash to to and Sheets of combined
Slide 12: Actively Developing Growth Platforms
Platforms Actively M&A Growth Disciplined Strategic Financial Leverage Actionability Provide Stable Limited Qualifying Ability Appropriately Several Activated Salt Continued SXC Calcined Q1 Guardrails cash to industrial Opportunities platform commodity 2015 developing Fit core Fit compete Carbon for
Slide 13: Balanced Long-Term Capital Allocation Strategy
Balanced Deploying Support Maintain Return Plan Intend Expect Adjusted Drive SXC to Q1 Long-Term to Capital to increase Growth 2015 return leverage cash Capital increase balanced coverage Earnings toexcess quarterly Allocation Shareholders Shareholder capacity per capital unit cash Call ratio divide
Slide 14: Clear Strategy and Continuing Initiatives
Clear Continuing Q2 Initiatives Asset Completed Anticipate Complete Jewell Indiana Initiated Increased Returned Amended Begin Call Seek Intend Evaluate Strategy 1 SXC Market ‘15 remaining additional Q1 Pathway Drops executing to &2H Harbor quarterly for 2015 accretive increase Brazil conditions ~$11
Slide 15: SXC Investment Thesis
Well positioned Stable, Strong Growth Growing Significant SXC Investment Q1 Balance Long-term Opportunities 2015 Return Shareholder Earnings Sheet to of Thesis Business deliver Capital Value Call long-term toModel Shareholders Proposition shareholder returns
Slide 16: Questions
SXC Q1 2015 Earnings Call QUESTIONS
Slide 17: Investor Relations
Investor SXC Q1 Relations 2015 Earnings 630-824-1907 Call www.suncoke.com
Slide 18: Appendix
SXC Q1 2015 Earnings Call APPENDIX
Slide 19: Definitions
Definitions depreciation discounts accepted operating GAAP represent EBITDA companies. Adjusted certain Legacy SXC business. Q1measures retained Costs 2015 accounting attributable represents EBITDA/Ton EBITDA and performance related TM and should equals Earnings Coal-related amortization and tofrom
Slide 20: Reaffirm 2015 Guidance Summary
Reaffirm 2014 Metric 2015 Adjusted Continuing $225 $237.8 2 $190 $210.7 Consolidated Attributable $115 $150.0 Capital ~$125 ~$90 Domestic ~4.2 ~4.3 Dom. $59 $55 60 Operating $125 $112.3 Cash million $7.0 1 $ – $10 (1) SXC 10million 30 545/Please –/ton million Actual Q1 Taxes(2) Guidance ton million
Slide 21: Reconciliation of Net Income to Adjusted EBITDA
Reconciliation ($ FY Q4 Q3 Q2 Q1 $18.7 $50.1 ($3.8) ($48.6) ($55.8) ($101.8) $0.4 Subtract: $6.4 $12.7 Net (4.7) (3.6) (15.5) (6.0) (41.4) (18.5) (40.1) (106.0) (2.0) $23.1 $65.6 $2.2 ($7.2) $24.9 ($15.7) $4.2 $2.4 Depreciation $11.1 $15.5 Interest 19.8 19.0 18.8 19.5 77.1 24.4 24.1 22.5 25.1 96.1 2
Slide 22: Reconciliation of Adjusted EBITDA from Discontinued Operations
Reconciliation ($ FY Q4 Q3 Q2 Q1 Net Depreciation, ($4.7) ($3.6) ($15.5) ($6.0) ($41.4) ($18.5) ($40.1) ($106.0) ($2.0) Interest 4.1 6.0 18.9 4.4 4.7 I0.8 Asset (1.6) (0.9) (6.2) (9.7) (3.0) (49.5) (1.4) (12.3) (66.2) (0.1) 1 E 88.0 16.4 29.1 -A 0.2 0.3 0.4 17.6 18.5 (1.0) SXC ($1.6) $0.0 ($0.1) ($4
Slide 23: Reconciliation by Segment
Reconciliation Corporate Coal India Domestic ($ Dicontinued Continuing Brazil Coke Legacy Operations Other Logistics Combined $47.9 $1.9 $49.1 ($9.6) $2.6 $4.1 $52.7 3,794 46 439 950 $0.69 ($15.07) $9.34 $55.63 $210.7 ($17.1) ($10.0) $237.8 ($40.2) $14.3 ($3.1) $18.9 $247.9 19,037 177 1,516 4,184 $0
Slide 24: 2015E Adjusted EBITDA Guidance Reconciliation
($djusted 2015E High Low Subtract: $38 $21 Net (13) (16) Depreciation, $51 $37 Interest 89 Income 66 68 20 12 Adjustment 15 A 4 Legacy $245 $225 (15) (20) $210 $190 Adjusted (80) (75) (1) $130 $115 Represents (2) SXCinIncome millions) Q1Guidance costs, expense, tax 2015 Net EBITDA Adjusted SunCoke’s
Slide 25: Consolidated Balance Sheet Metrics and Liquidity
As Consolidated Balance ($ Attributable to 1 Cash Revolver 148 250 398 222 342 563 102 597 699 Full 29 505 534 2 $ Total Net 0.8x 3.4x 3.0x (1) 0.2x 2.9x 2.3x Adjusted SXC 65 35 92 74 174 123 SXCP SXC inof Represents Debt Debt/2015E Year millions) Q1 Liquidity Debt Debt/2015E 3/31/2015 Sheet 2015 EB
Slide 26: Capital Expenditures
Capital 2014 Ongoing(2) E $44 4 Indiana 46 24 Ongoing: 118 T 7 2015 125 ($ 2 Ongoing(4) SXCP(1) 1 6 9 Expansion $45 Environmental 0 Total 30 3 5 $ Represents (1) $90 (2) and Includes (3) Consolidated (4) SXC 37058264otal nvironmental insole millions) Q1 CapEx Expected Expenditures Harbor flue $3M on