Algoma Steel Group Inc. · NASDAQ:ASTL
Algoma Steel — SPAC Merger (June 2021)
15 slides from Algoma Steel's SPAC merger presentation, Jun 21, 2021
Slide 1: Earnings Call Presentation Fourth Quarter & Full Year Fiscal 2020 Results
Earnings Call Presentation Fourth Quarter & Full Year Fiscal 2020 Results June 2021 in Canadian dollars unless otherwise noted
Slide 2: Disclaimer (1/2)
Disclaimer (1/2) ADDITIONAL INFORMATION AND WHERE TO FIND IT This presentation is not a proxy statement or solicitation of a proxy, consent or authorization with respect to any securities or in respect of the transaction and does not constitute an offer to sell, buy or exchange or the solicitation o
Slide 3: Disclaimer (2/2)
Disclaimer (2/2) Given these risks, uncertainties and other factors, readers should not place undue reliance on forward-looking statements or information as a prediction of actual results. The forward-looking statements and information reflects management’s current expectations and beliefs regarding
Slide 4: Earnings Call Agenda
Earnings Call Agenda Safety Performance / COVID-19 Update Key Performance Highlights Today’s Presenters: Financial Overview Michael McQuade Market Outlook Chief Executive Officer Guidance Rajat Marwah Strategic Update Chief Financial Officer EAF Transformation Opportunity Proposed Transaction Questi
Slide 5: Safety without compromise
Safety without compromise Continued focus and improvement in Lost Time Injury Frequency Rate (LTIFR) Health & Safety Performance • Ongoing commitment to superior Health & Safety performance has 1.30 led to sustained improvement of safety metrics over time • Health & safety remains our highest priori
Slide 6: Key Performance Highlights
Key Performance Highlights Q4 FY 2021 • Shipment volume was 622 kNT in Q4 FY 2021, up 14% from 548 kNT in Q3 FY 2021 and up slightly from 620 kNT in Q4 FY 2020 • Steel Revenue: was $633 million in Q4 FY 2021, up 50% from $421 million in Q3 FY 2021 and up 28% from $493 million in Q4 FY 2020 • EBITDA
Slide 7: Fourth Quarter Financial Highlights
Fourth Quarter Financial Highlights Q4 Q4 Change % Q3 FY 2020 FY 2021 Q4 YoY Q4 YoY FY 2021 Shipping volume (‘000s tons) 620 622 2 0% 548 Net Sales Realization per ton ($/ton) 712 942 230 32% 701 Steel Revenue ($ million) 493 633 140 28% 421 Cost of Steel Products Sold ($/ton) 667 643 (24) (4%) 647
Slide 8: Fiscal Year 2021 Financial Highlights
Fiscal Year 2021 Financial Highlights Change % FY 2020 FY 2021 YoY YoY Shipping volume (‘000s tons) 2,305 2,102 (203) (8.8%) Net Sales Realization per ton ($/ton) 756 768 12 1.7% Steel Revenue($ million) 1,918 1,766 (152) (7.9%) Cost of Steel Products Sold ($/ton) 732 646 (86) (12%) EBITDA ($ millio
Slide 9: Overview of Net Working Capital Seasonality
Overview of Net Working Capital Seasonality Total Working $ 639 $ 716 $ 738 $ 585 $ 594 $ 644 $ 639 $ 573 $ 584 $ 606 $ 607 $ 595 Capital $M1 $800 Accounts Payable Trade accounts receivable Inventory $700 $600 509 $500 486 384 415 473 495 543 452 437 490 525 millions) $400 489 $ $300 ( $200 292 302
Slide 10: Market Update
Market Update North American HRC and Plate prices reaching all-time highs due to increased demand for construction, automotive and other end markets North American Macro Drivers Attractive Trends in Key End Markets • Automotive markets are recovering from impact of COVID-19 • Significant GDP growth
Slide 11: First Quarter Outlook
First Quarter Outlook Shipments (‘000s kNT) First Quarter FY 2022 directional guidance: 700 600 Shipments (NT) 615K+/- 500 Net Sales Realization per ton 400 300 EBITDA $250M+/- 200 100 Liquidity1 $300M+/- 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY 2019 FY 2020 FY 2021 Net Sales Realization per ton ($/
Slide 12: Strategic Update
Strategic Update Strategic Direction FY2021 Achievements •Ladle Metallurgy Furnace project marked milestone First Arc in February (See Strategic Video Here) Capital Spending •Plate Mill Modernization on track to deliver improved product capability and STRENGTHEN BUILD quality THE CORE GROWTH People
Slide 13: Proposed EAF Transformation
Confidential & subject to applicable confidentiality agreements Proposed EAF Transformation Raw Materials Materials Ironmaking Steelmaking Preparation Expected Benefits Iron Ore✓ +900k tons of incremental liquid Mill steel capacity Capacity✓ ~70% fewer total CO2 emissions Today) (3 million tonne ann
Slide 14: Proposed Transaction Overview
Proposed Transaction Overview Assumes full earnout is realized based on expectation for US$901 million of EBITDA Estimated Sources & Uses (US$mm) Illustrative Pro Forma Valuation (US$mm, except per share) Sources: Share Price: $10.00 Shares Issued to Algoma Shareholders $1,125 Estimated SPAC Cash in
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