Suncoke Energy, Inc. · NYSE:SXC
Suncoke Energy — Jefferies Steel Summit April 2013
35 slides from Suncoke Energy's conference presentation, Apr 10, 2013
Slide 1: Jefferies Steel Summit April 2013
Exhibit 99.1 Exhibit Steel Jefferies April Summit 10,99.1 2013
Slide 2: Mike Thomson, President and Chief Operating Officer
Mike Thomson President Chief Operating & Officer
Slide 3: Forward Looking Statements
Forward Some as projections plans, “predict,” Although these the its 1) looking This GAAP are 3Jefferies cautionary defined amended. filings urged control presentation plans, of competitive financial statement. statements statement the Steel Looking to with management “potential,” in of with intenti
Slide 4: About SunCoke
ABOUT Steel 4Jefferies SUNCOKE Summit April 2013
Slide 5: About SunCoke
About production coke 5vol. metallurgical production SunCokeLargest of steelCokemaking =coal 4.3mreserves independent tonsGeneral in business Virginia producer Partner generates and and of West metallurgical 58% 89% Virginia~1.5 owner of Adjusted ofcoke SunCoke million in EBITDA(1) theEnergy tons Am
Slide 6: The Leading Independent Cokemaker in the Americas
The More •Secure, Cokemaking (1) Jefferies SunCoke (In 2,490 Jewell 2006200720082009201020112012 65,940 Only Supply Customers thousands Source: Leading than 4,190 Coke company long Steel nearly Cokemaking doubled Company 4,740 include Indiana term Independent operations of Summit 20% tons) totake 5,
Slide 7: 2012 Results Overview
Results Middletown Entire 2012 Coal Higher Expect Implementing Strong Cash FY (1) (2) 7Jefferies For 2012 remains Earnings cokemakeing balance U.S. liquidity continued than adriven Steel free definition cokemaking expected startup cash of aaggressive Summit by Overview challenge position nearly diff
Slide 8: 2012 Accomplishments
2012 Accomplishments Jefferies Proved Took Built Positioned Executed Delivered Achieved Increased 8Submitted financial action our Steel successful liquidity solid 2012 positive permit for cokemaking to Summit future strength optimize operations financial application coal and Middletown growth April
Slide 9: Post IPO Organizational Structure
Post 32% Vitoria, ~113 65% (1) 9Jefferies U.S. Net GP SXCP interest million coking interest to Brazil Steel SXC IPO in ton facilities Summit with 56% 2and Organizational coal cokemaking 1.7 SXCP’s LP reserves April with million interest ownership ~2.6 2013 facilities of tons Structure 100% primarily
Slide 10: Strategic Roles of SXC and SXCP
Strategic Develop Optimize GP Grow Steel Jefferies 10 &facing limited international U.S. Steel new Roles coal &MLP coke Canada partner Summit of with SXC projects business investor cokemaking April advantaged and SXCP 2013 in SXCP business cost of capital
Slide 11: India Entry: VISA SunCoke JV
India term VISA Invested Approx. Balance Expect Near Long Chinese Jefferies 11 Entry: term SunCoke Adjusted sold Heat 1/3rd Steel $67 focus growth VISA in million Recovery Summit ofmerchant JV on EBITDA coke through SunCoke positions execution for and April Coke: 49% market, per all development 2013
Slide 12: SunCoke's Cokemaking Technology & Coke in the Blast Furnace
SUNCOKE’S Jefferies 12 Steel COKEMAKING Summit April 2013 TECHNOLOGY & COKE IN THE BLAST FURNACE
Slide 13: SunCoke's Cokemaking Technology
SunCoke’s Our Jefferies 13 industry Steel Cokemaking leading Summitcokemaking April Technology 2013 technology meets U.S. EPA Maximum Achievable Control Technology (MACT) Standards
Slide 14: SunCoke's Heat Recovery Process
SunCoke’s SunCoke Pressurization Volatile Solid Negative MACT Positive Potential Yes No Process Jefferies 14 combustion – Wastes sulfuric standard produces Organic pressure Steel for pressure Heat Heat emission acid Air Summit Recovery Recovery for Compounds toxic Emissions newof April waste batteri
Slide 15: Coke Is a Vital Material to Blast Furnaces
Most Blast Coke We 1Top Jefferies 15short believe Gas Furnaces furnaces efficient iston aSteel vital of stronger, hot Summit blast are material andmetal the Coke furnaces larger most April to (NTHM) blast coke efficient 2013 require furnace is becoming and 800steel proven 900 making lbs/NTHM more me
Slide 16: SunCoke's Value Proposition & Contract Provisions
SUNCOKE’S Jefferies 16 Steel VALUE Summit April PROPOSITION 2013 & CONTRACT PROVISIONS
Slide 17: SunCoke's Value Proposition
SunCoke’s Turndown Coal & Environment Provide Larger, Demonstrated High Capital Stringent Power Jefferies 17 Reliable Flexibility Flexibility Quality quality prices stronger Efficiency preservation an Steel U.S. Flexibility assured Value Coke coke and /Economic sustained Summit regulatory coke Suppl
Slide 18: Key Take or Pay Contract Provisions
Key Take & Transportation Customers -We Represents -Fixed Cost Operating These Jefferies 18 Taxes are Contract of orcosts fee coal Pay obligated Steel Costs costs ismust profit are Fixed is fixed Provisions Summit passed passed are take and to Fee for passed deliver all return through life April Coa
Slide 19: Our Market Opportunity
OUR MARKET Jefferies 19 Steel Summit OPPORTUNITY April 2013
Slide 20: U.S. and Canada Coke Demand
U.S. and Replace Total Source: 20 2011 CRU, aging Canada Coke The coke Demand: Opportunity Annual batteries 19.5 Outlook operated million forby Metallurgical tons integrated steel Cokeproducers 2012. Jefferies Steel Summit April 2013 2012
Slide 21: Replace Aging Coke Batteries Opportunity
Coke We SXC •Evaluation 19 6Facilities Source: 21 Customer Blast Battery batteries batteries estimate Market Industry furnace CRU, condition with 4.1 of quality 4.0 nearly Analysis all Metallurgical million Fundamentals Potential competitiveness million existing 4 million tons tons for batteries Acq
Slide 22: SunCoke's Representative Coke Price Comparison
SunCoke’s Representative Based $325 Other Coke Chinese Ukrainian 21SunCoke U.S. 4.5 2005 Imports Source: Jefferies 22Includes 4.9 and $317 2006 Price (1) Domestic on 5.1 World SunCoke 40% Coke Steel Canada Coke Price—Contracted Coke February Coke approx. $384 3.3 2007 coke Comparison Export Price Su
Slide 23: The Growing India Merchant Coke Market
The62 Growing Coke Active Electric Per 2011 India Millions 70 28 2012E Sources: Jefferies 23 60 Capital India 57 offers Steel/Coke Brazil Metallurgical Supply 50 2020E Merchant Power 123 Steel of CRU, 40 Steel Growth Steel Metric attractive China 30 460 Deficit Summit Market Deficit 20 Metallurgical
Slide 24: 2013 Priorities & Outlook
2013 PRIORITIES Jefferies 24 Steel Summit & OUTLOOK April 2013
Slide 25: 2013 SXC Priorities
2013SXC Grow Sustain •Execute •Resolve •Renew Implement Execute Maintain Obtain Domestic Achieve SXCP Reposition Coal Efficient Put Evaluate Close International Identify Jefferies 25 Priorities The VISA permit momentum coke and potential Indiana coal smooth Steel Capital adjacent & refurbishment NOV
Slide 26: SXC: Estimated 2013 Adjusted EBITDA
SXC: Estimated ($ $0 ($35 $266 FY (1) 26 in $10 For 2012 $50) millions) $205 2013 $0 a Domestic definition ($5 2013 $10 $230 Adjusted $10) results International and EBITDA(1) to reconciliation be impacted Coke Outlook of by Coal Adjusted weak Mining coal EBITDA, Corporate business,please partly 2013
Slide 27: SXC: 2013 Guidance Summary
SXC: Metric Adjusted Consolidated EPS Cash Coal (1) (3) Jefferies 27 For Includes Attributable Production Flow 2013 2013 a Steel reconciliation EBITDA from Guidance ~$39 Guidance $205 Summit Operations ~tomillion 1.4 (1) –SXC $230 Summary million April ofShareholders of 2013E million ~$140 sales 201
Slide 28: Questions
Jefferies Steel Summit April 2013 QUESTIONS 28
Slide 29: Appendix
Jefferies Steel Summit April 2013 APPENDIX 29
Slide 30: Definitions
Definitions for sales However, Accordingly, Our not in GAAP, measure be Adjusted attributable Free controlling ability from Jefferies 30 other apparent sales be Adjusted Cash operating and considered toand businesses. of discounts Steel generate EBITDA EBITDA/Ton other we Flow interests. operating t
Slide 31: FY 2012 Adjusted EBITDA Reconciliations
$Reconciliations FY Net and Subtract: EBITDA Add: unconsolidated non Adjusted SXC Jefferies 31in2012 Income amortization controlling millions Adjustment 262.7 Sales Steel FY Depreciation, Financing Income 254.5 EBITDA Discount 142.8 102.5 2011 Summit affiliate 125.9 interests from (80.8) Tax to58.9
Slide 32: Free Cash Flow Reconciliation
(in millions) Cash Free Jefferies 32 Cash fromSteel Flow operations FYSummit Reconciliation $119.7 2012 $206.1 April 2013 Less cash used for investing activities (84.1) Less payments to non controlling interest (2.3)
Slide 33: Expected 2013E Adjusted EBITDA Reconciliation
Expected 2013E (in Net Depreciation, Total Income Sales Adjustment EBITDA Adjusted (1) (2) Jefferies 33 millions) Represents Income financing discounts 2013E tax Steel $198 attributable EBITDA 2013E expense to $43 Low Depletion Summit unconsolidated Adjusted SXC $220 costs, 7$60 EBITDA 7High $205 at
Slide 34: 2013E Capital Expenditures and Investments
2013E ($ On Environmental $15 Investments Total SXC Expansion To SXCP Jefferies 34 in fund Going $15 millions) includes CapEx expenditures Capital investment Remediation Steel Approx. includes Approx. Approx. &approximately Summit SXC Expenditures Approx. $49 in approx. prefunded SXCP $67 $109 Expan
Slide 35: Pro Forma Cash, Debt and Liquidity Position
ProForma (IN Cash Revolver Total Net (1) SXCP (2) junction retained of (3) based nm For Jefferies 35 obligations SunCoke –MILLIONS) aDebt Position Retained Not Performa Liquidity Debt definition on cash for with Steel $88.3 (2) (2)/2013E Capacity meaningful Liquidity (2) (2)/2013E retained prefundin