Algoma Steel Group Inc. · NASDAQ:ASTL
Algoma Steel — Q3 FY2023 Earnings Presentation
14 slides from Algoma Steel's earnings presentation, Feb 14, 2023
Slide 1: Earnings Call Presentation
NASDAQ:ASTL Earnings Call Presentation TSX: ASTL For the Quarter ending December 31st, 2022 February 14th, 2022 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 Q3 FY2023 - Ended December 31st, 2022 • Shipment volume was 458K NT in Q3 FY2023, up 5% from 435K NT in Q2 FY2023 and down 17% from 553K NT in Q3 FY2022 • Steel Revenue: was $512 million in Q3 FY2023, down 7% from $552 million in Q2 FY2023 and down 49% from $1,010 million
Slide 6: Third Quarter Financial Highlights
Third Quarter Financial Highlights Q3 FY2023 Q3 FY 2022 Q2 FY2023 Shipping volume (‘000s tons) 458 553 -17% 435 5% Net Sales Realization per ton ($/ton) 1,116 1,827 -39% 1,266 -12% Steel Revenue($ million) 512 1,010 -49% 552 -7% Cost of Steel Products Sold ($/NT) 1,157 946 22% 1,033 12% Adjusted EBI
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 $1,250 $1,050 $850 616 $650 486 866 912 480 638 470 ($ millions) $450 415 489 490 525 $250 409 435 389 259 313 311 175 237 221 $50 149 143 (55) (59) (61) (79) (122) (
Slide 8: Construction update
Construction update Future home of Algoma’s new EAF facility1: Project Statistics2: • Concrete poured : est.10,500m3 • EAF Building Foundations est. 93% complete • EAF Equipment Piling est. 30% complete • Fume Treatment Plant excavation est. 90% complete • Reinforcing bar used: est.1,227NT • Excavat
Slide 9: Market Update
Market Update North American HRC price improving / Plate pricing remains strong Historical Hot Rolled Coil (HRC) and As Rolled Plate Prices (ARP) (US$/ton) Key Market Drivers $2,200 • HRC steel prices have rebounded since late CRU Index HRC / ARP 2022 and lead times have improved, however $2,000 ARP
Slide 10: 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 DSPC Automation Ladle Met Furnace Project Aurora Plate Mill EAF Approval EAF Project Improvements Upgrade #2 $50M annualized Modernization Received board Construction started 1 Improves grade
Slide 11: Annex: Revenue and Cost of Sales
Annex: Revenue and Cost of Sales Three months ended Nine months ended December 31, December 31, 2022 2021 2022 2021 tons Steel Shipments i 17.0% 458,341 552,544 i 18.2% 1,431,068 1,749,942 millions of dollars Revenue C$ 567.8 C$ 1,064.9 C$ 2,101.1 C$ 2,864.2 Less: Freight included in revenue (43.7)
Slide 12: Annex: Adjusted EBITDA Reconciliation
Annex: Adjusted EBITDA Reconciliation Three months ended Nine months ended December 31, December 31, millions of dollars 2022 2021 2022 2021 Net (loss) income C$ (69.8) C$ 123.0 C$ 318.9 C$ 614.1 Amortization of property, plant and equipment and amortization of intangible assets 24.7 21.5 69.7 64.3
Slide 13: Annex: Selected Quarterly Information
Annex: Selected Quarterly Information (millions of dollars, except where otherwise noted) 2023 2022 2021 As at and for the three months ended1 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Financial results Total revenue C$ 567.8 C$ 599.2 C$ 934.1 C$ 941.8 C$ 1,064.9 C$ 1,010.2 C$ 789.1 C$ 638.5 C$ 430.0 Steel product
Slide 14: NASDAQ:ASTL TSX: ASTL
NASDAQ:ASTL TSX: ASTL 57