United States Steel Corporation · NYSE:X
United States Steel — FY2022 Earnings Presentation
30 slides from United States Steel's earnings presentation, Feb 2, 2023
Slide 1: Fourth Quarter & Full Year 2022 Earnings Presentation
Fourth Quarter & Full Year 2022 Earnings Presentation www.ussteel.com February 2, 2023
Slide 2: Legal disclaimers
Legal disclaimers These slides are being provided to assist readers in understanding the results of operations, financial condition and cash flows of United States Steel Corporation as of and for the fourth quarter and full year of 2022. Financial results as of and for the periods ended December 31,
Slide 3: Explanation of use of non-GAAP measures
Explanation of use of non-GAAP measures We present adjusted net earnings, adjusted net earnings per diluted share, earnings before interest, income taxes, depreciation and amortization (EBITDA) and adjusted EBITDA, which are non-GAAP measures, as additional measurements to enhance the understanding
Slide 4: Advancing towards our Best for All future
CURRENT LANDSCAPE CHALLENGES SOLUTION PATH FORWARD Advancing towards our Best for All® future 4 Bullish on U. S. Steel’s future Delivering on Best for All Transitioning to a less cost- / capital- and carbon- intensive business model while becoming the best steel competitor Balanced capital allocatio
Slide 5: Advancing towards our Best for All future
ADVANCING TOWARDS OUR BEST FOR ALL FUTURE Gary Works pig iron machine – completed in the fourth quarter 2022 ahead of schedule & on budget.
Slide 6: Delivering for all our stakeholders
6 6 Advancing towards our Best for All future Delivering for all our stakeholders Providing customers with profitable steel solutions for people and planet to reward stockholders Delivering profitable solutions and rewarding stockholders ✓ ✓ ✓ Growing competitive advantages Improving through-cycle p
Slide 7: Growing competitive advantages
7 7 Advancing towards our Best for All future Growing competitive advantages LOW-COST IRON ORE MINI MILL STEELMAKING BEST-IN-CLASS FINISHING CAPABILITIES U. S. Steel’s Competitive Advantages:
Slide 8: Key to stockholder value / ESG transformation
8 8 Advancing towards our Best for All future Key to stockholder value / ESG transformation Supplying up to 500,000 tons annually to Big River Steel of internally sourced pig iron Expanding into DR-grade pellet capabilities to serve the growing EAF market On-track for expected $1.3 billion annual th
Slide 9: Expanding our low-cost iron ore advantage
9 9 Advancing towards our Best for All future Expanding our low-cost iron ore advantage Gary Works Pig Iron Completed ahead of schedule Completed on budget DR-grade Pellets On budget On schedule $60M budget 4Q ‘22 start-up $30M EBITDA1 $150M budget $150M budget 2024 start-up Creating value through i
Slide 10: Executing on Mini Mill / finishing investments
10 10 Advancing towards our Best for All future Executing on Mini Mill / finishing investments BRS Non-grain Oriented (NGO) Electrical Steel Line On schedule On budget On budget On schedule On budget On schedule $450M budget 3Q ‘23 start-up $140M EBITDA2 $280M budget 2Q ‘24 start-up $60M EBITDA2 $3B
Slide 11: Future earnings power to reward stockholders
11 11 Advancing towards our Best for All future Future earnings power to reward stockholders BR2 MINI MILL STEELMAKING $650M Run-rate EBITDA by ‘26 NGO STEEL BEST-IN-CLASS FINISHING $140M Run-rate EBITDA by ‘26 COATING LINE BEST-IN-CLASS FINISHING $60M Run-rate EBITDA by ‘26 2022 20242023 2025 $830M
Slide 12: Fourth Quarter & Full Year Update
FOURTH QUARTER & FULL YEAR UPDATE Big River 2 – on schedule / on budget for 2024 start-up.
Slide 13: Improving on record safety performance
Full year 2022 update Improving on record safety performance 0.10 0.07 0.06 0.05 20222019 2020 2021 BLS - Iron & Steel: 0.90 Benchmark 1 : OSHA Days Away from Work 2 Safety first: Multiple years of record-setting performance 131 Bureau of Labor Statistics – Iron & Steel 2021 data. 2 Occupational Saf
Slide 14: Fourth quarter 2022 financial updates
Reported Net Earnings (Loss) $ Millions Profit Margin: $1,430 $898 $1,104 $516 $226 1Q 2022 4Q 20222Q 20224Q 2021 3Q 2022 Adjusted Net Earnings (Loss) $ Millions Adjusted Profit Margin: $1,524 $1,139 $1,422 $650 $234 4Q 20224Q 2021 2Q 20221Q 2022 3Q 2022 Total Segment EBIT1 $ Millions Total Segment
Slide 15: Full year 2022 financial updates
Reported Net Earnings (Loss) $ Millions Profit Margin: $957 $15 ($920) $4,400 $2,742 FY 2019FY 2018 FY 2020 FY 2021 FY 2022 Adjusted Net Earnings (Loss) $ Millions Adjusted Profit Margin: $1,239 $95 ($805) $4,801 $3,442 FY 2019FY 2018 FY 2020 FY 2021 FY 2022 Segment EBIT1 $ Millions Segment EBIT Mar
Slide 16: Flat-Rolled EBITDA bridges
EBITDA Bridge $ Millions, 3Q 2022 vs. 4Q 2022 EBITDA Margin: 30% 23%21% $1,017 $636 $902 $631 $284 4Q 2021 3Q 2022 1Q 2022 2Q 2022 4Q 2022 19% $631 $284 Raw Materials Commercial3Q 2022 $1 ($399) 4Q 2022 $5 Operating Costs $46 Other Commercial: The unfavorable impact is primarily the result of lower
Slide 17: Mini Mill segment EBITDA and statistics
Segment EBITDA $ MillionsOperating Statistics EBITDA Bridge $ Millions, 4Q 2021 vs. 4Q 2022 Mini Mill segment1 Key statistics EBITDA Bridge $ Millions, 3Q 2022 vs. 4Q 2022 $40 ($28) Raw Materials ($164) 3Q 2022 Commercial 4Q 2022 $0 $95 Operating Costs $1 Other Commercial: The unfavorable impact is
Slide 18: U. S. Steel Europe segment EBITDA
Segment EBITDA $ MillionsOperating Statistics EBITDA Bridge $ Millions, 4Q 2021 vs. 4Q 2022 $293 ($1) 4Q 2021 ($124) Commercial ($190) Operating Costs Raw Materials ($26) Other ($48) 4Q 2022 Other: The unfavorable impact is primarily the result of increased energy costs partially offset by lower var
Slide 19: Tubular segment EBITDA bridges
EBITDA Bridge $ Millions, 4Q 2021 vs. 4Q 2022 $42 $217 $193 4Q 2021 Commercial ($2) Raw Materials $11 Operating Costs ($27) Other 4Q 2022 Commercial: The favorable impact is primarily the result of higher average realized prices. Raw Materials: The favorable impact is primarily the result of lower s
Slide 20: Contract / spot mix by segment
78% 22% Firm (25%) Cost based (5%) Market based quarterly (28%) Market based monthly (18%) Spot (24%) Firm (5%) Cost based (5%) Market based quarterly (4%) Market based monthly (47%) Spot (39%) Firm (38%) Cost based (2%) Market based quarterly (2%) Market based monthly (6%) Spot (52%) Program (78%)
Slide 21: 2023 outlook
Income Statement Depreciation, Depletion, and Amortization Pension and Other Benefits Costs / (Income) $123M in EBITDA; ($167M) in net interest & other financial costs $777 ($44) million million Flat-rolled Segment1 Estimated 3rd Party Shipment Volumes Operating Metrics 8.5 – 9.0 Mini Mill Segment1
Slide 22: Global operating footprint
Operating Indefinitely Idled N o rt h A m e ri c a n F la t- R o ll e d T u b u la r E u ro p e MinntacIron ore pellets Keetac – 22.4 Cokemaking Clairton – 4.3 Gary BF #4 BF #6 BF #8 BF #14 1.5 7.5 Granite City BF ‘A’ BF ‘B’ 1.4 2.8 Mon Valley BF #1 BF #3 – 2.9 Košice BF #3BF #2BF #1 – 5.0 Fairfield
Slide 23: Cash and liquidity
Cash and liquidity $938 $682 $138 $4,090 $3,505 YE 2018 YE 2019 YE 2020 YE 2021 YE 2022 Cash from Operations $ Millions Cash and Cash Equivalents $ Millions Total Estimated Liquidity $ Millions Net Debt $ Millions $1,000 $749 $1,985 $2,522 $3,504 YE 2018 YE 2019 YE 2020 YE 2021 YE 2022 $2,830 $2,284
Slide 24: Appendix
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Slide 25: Additional Big River Steel LLC summary data
Additional Big River Steel LLC1 summary data In c o m e S ta te m e n t B a la n c e S h e e t C a s h F lo w Customer Sales 4Q 2022 Intersegment Sales Net Sales EBIT2 $524M $29M $553M ($72)M Total Assets $3,566M Depreciation Capital Expenditures4 $35M $113M 2029 senior secured notes $720M Environme
Slide 26: Segment EBITDA reconciliation
Flat-Rolled ($ millions) 4Q 2021 1Q 2022 2Q 2022 3Q 2022 4Q 20221 FY 2021 FY 20221 Segment earnings before interest and income taxes $890 $513 $777 $505 $159 $2,630 $1,951 Depreciation and amortization 127 123 125 126 125 491 499 Flat-Rolled Segment EBITDA $1,017 $636 $902 $631 $284 $3,121 $2,450 U.
Slide 27: Reconciliation of net debt
Net Debt ($ millions) YE 2018 YE 2019 YE 2020 YE 2021 YE 2022 Short-term debt and current maturities of long-term debt $65 $14 $192 $28 $63 Long-term debt, less unamortized discount and debt issuance costs 2,316 3,627 4,695 3,863 3,914 Total Debt $2,381 $3,641 $4,887 $3,891 $3,977 Less: Cash and cas
Slide 28: Reconciliation of reported and adjusted net earnings
Reconciliation of reported and adjusted net earnings ($ millions) 4Q 2021 1Q 2022 2Q 2022 3Q 2022 4Q 2022 FY 2021 FY 2022 Reported net earnings attributable to U. S. Steel $1,069 $882 $978 $490 $174 $4,174 $2,524 Debt extinguishment 10 ─ ─ (2) ─ 290 (2) Asset impairment charges 245 6 151 ─ 6 273 163
Slide 29: Reconciliation of adjusted EBITDA
Reconciliation of adjusted EBITDA ($ millions) 4Q 2021 1Q 2022 2Q 2022 3Q 2022 4Q 2022 FY 2021 FY 2022 Reported net earnings attributable to U. S. Steel $1,069 $882 $978 $490 $174 $4,174 $2,524 Income tax (benefit) expense (54) 246 284 154 51 170 735 Net interest and other financial costs 130 (10) (
Slide 30: Investor Relations
INVESTOR RELATIONS Kevin Lewis Vice President 412-433-6935 klewis@uss.com Eric Linn Director 412-433-2385 eplinn@uss.com www.ussteel.com @USS_Investors