United States Steel Corporation · NYSE:X
United States Steel — Q3 2021 Earnings Presentation
18 slides from United States Steel's earnings presentation, Oct 29, 2021
Slide 1: Third Quarter 2021 Earnings Call
Third Quarter 2021 Earnings Call October 29, 2021 David Burritt President and Chief Executive Officer Christie Breves Senior Vice President and Chief Financial Officer Rich Fruehauf Senior Vice President, Chief Strategy and Sustainability Officer Kevin Lewis Vice President, Investor Relations and Co
Slide 2: Forward-looking statements
Forward-looking statements 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 third quarter of 2021. They should be read in conjunction with the consolidated financial s
Slide 3: Explanation of use of non-GAAP measures
Explanation of use of non-GAAP measures We present adjusted net earnings (loss), adjusted net earnings (loss) per diluted share, earnings (loss) before interest, income taxes, depreciation and amortization (EBITDA) and adjusted EBITDA, which are non-GAAP measures, as additional measurements to enhan
Slide 4: Continued progress towards SM
Continued progress towards Best for AllSM 4 4 ✓ Delivering a quarter of records ✓ Driving significant progress in 2021 ✓ Returning capital to stockholders
Slide 5: Continued progress towards SM
Continued progress towards Best for AllSM CURRENT LANDSCAPE CHALLENGES WE FACE SOLUTION PATH FORWARD Continuing record performance in 2021 and bullish for 2022 Delivering on Best for All Transitioning to less capital and carbon intensive business model while becoming the best steel competitor ✓ Mini
Slide 6: Third quarter 2021 highlights
Third quarter 2021 highlights Delivering on Best for All Safety1 0.07 0.42 0.60 Enterprise Adj. EBITDA % Mini Mill EBITDA %2 Total Liquidity Mini mill peer A Industry benchmark 34% 32% ~29% Integrated peer A Mini mill peers A & B 42% 30% 28% Mini mill peer A Mini mill peer B $4.5B $3.8B $2.3B $2.2B
Slide 7: Growing competitive advantages
Transitioning to a Best for All future Growing competitive advantages LOW-COST IRON ORE MINI MILL STEEL - MAKING BEST-IN- CLASS FINISHING CAPABILITIES Research & innovation Deep customer relationships 7 7 Competitive advantages built on a strong foundation:
Slide 8: Translating iron ore advantage to our EAFs
Transitioning to a Best for All future Translating iron ore advantage to our EAFs 8 8 Advantaged pig iron strategy through potential strategic partnership Annual production of up to 500k tons Partner would install pig machine at Gary Works Excess iron production at Gary Works to feed pig machine Uni
Slide 9: Expanding the mini mill steelmaking advantage
Transitioning to a Best for All future Expanding the mini mill steelmaking advantage Capital Spending Tons of Raw Steel Capability Run-rate EBITDA by ‘26 MINI MILL #2 MINI MILL STEELMAKING Comprehensive suite of finishing assets AHSS galvanizing / hot-roll galvanizing / painting / slitting Expanding
Slide 10: Addressing strategic market growth
Transitioning to a Best for All future Addressing strategic market growth ~$280M Capital Spending ~325k Tons of Finishing Capability Run-rate EBITDA by ‘26 COATING LINE BEST-IN-CLASS FINISHING CAPABILITY ~$60M Expanding our presence in value-add construction Galvalume steel for exposed building pane
Slide 11: Returning capital to stockholders
Transitioning to a Best for All future Returning capital to stockholders Reinstating $0.05/share quarterly dividend Authorizing $300 million stock repurchase program Continued strong free cash flow generation Potential non-core asset sales, including real estate Potential exercise of Stelco’s $500 m
Slide 12: Strong third quarter performance: Financial highlights
• Total third quarter adjusted EBITDA1 of $2.0 billion; record EBITDA and EBITDA margin • ~$1.3B of free cash flow in the quarter • Transformed balance sheet • Returning capital to stockholders $703 $1,135 3Q 20212Q 2021 Flat-rolled Segment EBITDA1 $ Millions EBITDA1 Margin: 23% 32% U. S. Steel Euro
Slide 13: 2022 Outlook
2022 Outlook • Signing successful customer contracts • Creating value for stockholders • Delivering value for customers 13
Slide 14: Q&A
Q&A Big River Steel – Non-grain Oriented Electrical Steel Line Construction
Slide 15: Closing Remarks
* KK * * AMERICA’S MOST LOVED WORKPLACES Closing Remarks
Slide 16: Reconciliation of segment EBITDA
Reconciliation of segment EBITDA Flat-rolled ($millions) 2Q 2021 3Q 2021 Segment (loss) earnings before interest and income taxes $579 $1,015 Depreciation 124 120 Flat-rolled Segment EBITDA $703 $1,135 U. S. Steel Europe ($ millions) 2Q 2021 3Q 2021 Segment (loss) earnings before interest and income
Slide 17: Reconciliation of adjusted EBITDA
Reconciliation of adjusted EBITDA ($ millions) 2Q 2021 3Q 2021 Reported net (loss) earnings attributable to U. S. Steel $1,012 $2,002 Income tax provision (benefit) (37) 260 Net interest and other financial costs 59 80 Reported (loss) earnings before interest and income taxes $1,034 $2,342 Depreciat
Slide 18: 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