Suncoke Energy, Inc. · NYSE:SXC
Suncoke Energy — Non-Deal Roadshow (March 2013)
47 slides from Suncoke Energy's roadshow presentation, Mar 11, 2013
Slide 1: Investor Meetings March 2013
Exhibit 99.1 Investor2013 1March Meetings
Slide 2: Forward-Looking Statements
Forward-Looking Some 1934, Partnership, Forward-looking operating by similar plans, SunCoke the results All Although of or This are 2Investor the future the provided Securities forward-looking presentation as of date intentions use to expressions. Meetings—March amended. the events differ and perfor
Slide 3: About SunCoke
ABOUT SUNCOKE a SunCoke Energy”
Slide 4: About SunCoke
About Largest Coke Cokemaking 5.9 2012 General Coal High ~1.5 (1)For Investor Business SunCoke (excludes 4.0% Int’lCoke 11.3%million Miningmillion mining U.S. quality isSunCoke 12 months 67.5% Domestic Other 17.1% Revenue: Adjusted aJewell 4(includesindependent an Partner Coal definition Meetings—Ma
Slide 5: Largest independent cokemaker in the Americas
Thethousands More Only Supply Secure, Customers Cokemaking SunCoke (In 5,940 5,390 2006 2,490 4,190 4,740 Jewell Haverhill (Virginia)(Indiana)(Ohio)(Brazil) (1) 5(Ohio)(Illinois)(Ohio) Leading company 2007 than 5,940 5,390 Source:Coke Investornearly long-term IIdoubled 2008 include Granite Indiana I
Slide 6: SunCoke facilities located in proximity to customers
SunCoke proximity Indiana Haverhill City Granite Harbor Jewell Coke 114M Our reserves Vitoria, Brazil Investor 6*65%cokemaking metallurgical Mining owned tons in Coal Middletown* mining Meetings—March Central Operations 1* toofour Haverhill bybusiness SXCP customers’ Appalachia operations coal 2*is
Slide 7: Steelmaking, Coke and SunCoke's Cokemaking Technology
STEELMAKING, 7& SUNCOKE’S COKEMAKING COKE TECHNOLOGY
Slide 8: Coke is an important fuel in blast furnace steelmaking
pellets Iron Scrap burden Flux BEST Nat Up Fuel 80-120 furnaces 120-180 Coal a800-900 Investor Blast efficient Top Coke blast We coke important 81seek ofton fuel reducing to believe Gas ore/ hotto Coke Limestone is furnace of Furnaces furnaces is 198 IN 3100 to becoming optimize ahot short Meetings—
Slide 9: Impact of natural gas on blast furnace coke
Impact Natural We The Alternative natural Blast Source: US$/MMBtu 9Investor estimate less Furnace of gas Gas gas CRU, Meetings—March coke Low environment, technologies cannot in natural used Fuel SXC The Natural completely the Pricing Blast Analysis gasmore Gas and take potentially Furnace 2013 Pric
Slide 10: SunCoke's cokemaking technology meets MACT standards
SunCoke’s Our Investor 10 industry-leading Meetings—March Cokemakingcokemaking Technology 2013 technology meets U.S. EPA Maximum Achievable Control Technology (MACT) Standards
Slide 11: SunCoke's pressurization and emissions advantages
SunCoke’s SunCoke Pressurization Potential Air Power compounds Hazardous Volatile Solid Investor 11 Emissions Wastes Generationio Organic Meetings—March for Heat Inputs Heat emission No Negative MACT Recovery Recovery Compounds toxic None Cogenerates of standard solid Yes pressure hazardous Traditio
Slide 12: SunCoke's Value Proposition & Contract Provisions
SUNCOKE S VALUE PROPOSITION & CONTRACT PROVISIONS 12
Slide 13: SunCoke's High Coke Value Proposition
SunCoke’s High Coke Turndown Coal Flexibility Flexibility—Burn Capital & Efficiency Environment /Economic Trade-offs Investor 13 Reliable Flexibility High Quality Supply Capital Meetings—March Demonstrated quality by-product Value Power particularly Larger, Stringent Provide preservation Proposition
Slide 14: Key Customer Contract Provisions: Take-or-Pay
Key Customers Take-or-Pay -We Represents Fixed -Fixed Cost Coal contracted Operating Costs Transportation & Investor 14 Taxes are Contract of Cost negotiated Fee fee coal obligated Meetings—March Operating is coal-to-coke must profit is pay fixed Provisions passed-through These take contract budget
Slide 15: Growth Strategy
GROWTH STRATEGY a SunCoke Energy” SxCP
Slide 16: 2013 Business Priorities
2013to Operational Business Sustain facilities potential Resolve Renew with refurbishment opportunities Implement project Granite venture Execute plan Maintain Investor performance return Priorities decrease at coke momentum City transaction Indiana refurbishment coal NOV Meetings—March Obtain U.S.
Slide 17: Replace Aging U.S. Coke Capacity
Replace Aging Average coke 9S 24% 27% 37 Canada (excl 51% U.S. Total Other Integrated 5% DTE 18% SunCoke Merchant & 6% 8% Source: 17unCoke Foundry Imports and & of production SXC) 2011 Steel Cokemaking Canada coke years CRU, aging Age% Canada U.S. Producers Coke 63% capacity The coke &of Coke Demand
Slide 18: Coke Market Analysis and Potential Acquisitions
Coke We SXC Evaluation Customer Blast Battery Facilities for 19 4.0 Replacement estimate Market furnace Industry Source: 18 condition batteries with quality ofnearly Analysis competitiveness all million CRU, Fundamentals Potential for existing 6batteries tons4Acquisition million 4.1 Facilities batte
Slide 19: SunCoke coke price competitive with imports
Representative Based $325 $300 $384 $25 Other Coke Chinese 21SunCoke $317 Source:Price (1) Domestic Investor U.S. 4.9 2.0 3.3 onWorld 8. and 04.5 2005 Imports Source: 19 200640% Coke sFebruaryebruary Price—Contracted coke Comparison Export (2) Delivered Includes 5.1 1.9 CRU 1.7 SunCoke 2007 Coke is
Slide 20: India entry with VISA Steel joint venture
India publicly-traded chrome Well-run management SXC Will representation (approx. balance All VISA Closing customary Chinese Coke: Steam: Built: Odisha, Photo Investor 20 steam supply to Entry: Steel SunCoke 2007 courtesy 400K 20 hold and into India expected Heat Meetings—March 1/3rd organization pr
Slide 21: Our India Vision and Growth Strategy
Our India Initial Growth Form SunCoke venture opportunities Evaluate improve existing operations Utilize Establish market emerging Develop presence Investor design 21 VISA Entry debt VISA plant follow-on Vision asset Meetings—March Reinvest & capacity joint Strategy model Grow leading Near- presence
Slide 22: SunCoke's Financial Results
SUNCOKE’S FINANCIAL RESULTS 22
Slide 23: Earnings Results Overview
Earnings Results Middletown Entire Coal Higher Expect Implementing Strong Cash FY Q4 $0.12 $0.39 $0.87 $1.40 (diluted) Adjusted .Q $69.7 $138.8 $265.7 (1) 4 2011 (2) 2012 remains balance U.S. liquidity Investor 23 continued than driven Q4 free Overview EBITDA(1) Forcokemaking expected astartup 2012
Slide 24: Cash balance sources and uses, FY 2012
FYin2011 Ended ($ Primarily $80.8($10.3) ($80.6) $16.9 $18.3($15.9) $102.5 24 2012 millions) $239.2 Cash Balance Taxes 2012 Accounts Accrued Q4 $127.5 Investor NetInventories: Sources reflects: Payable)with 2012solid & Amortization Uses Meetings—March Liabilities: FY Income Payable: $56.1m cash of20
Slide 25: Domestic Coke Segment Summary
(Jewell Adjusted (Tons 1,068 142 1,015 172 68 290 308 177 Domestic ($ (3) Q462/ton 58/ton(4) $(1) $70 $32 $50 $56 $55 $62 $15 $21 $11 in‘11 Jewell (2)31 51 (3) market costs (4) 153 175 286 291 174 millions, $9at1,095 $40 $13inCoke /tonIndiana Coke $ 154 177 291 299 176 thousands) /ton(2) Q1EBITDA Co
Slide 26: Coal Mining Segment Summary
($ Price/Ton(2) $171 $159 $138 $20 $137 $9 $7 $2 Q4 Purchased Reject FY Segment Cash Jewell Coal (~$15/ton) Taking Rationalizing Implementing Investing (1) (4) (2)in $11 $6 ‘11 2012 $20 Adjusted Adj millions, Mining Sales, Sales Producton action $167 $165 (3) production Rate underground aggressive Q
Slide 27: SunCoke Energy Partners, LP Results
SUNCOKE ENERGY PARTNERS, LP RESULTS 27
Slide 28: Post-IPO Organizational Structure
Post-IPO SunCoke 2.0% incentive 3+5.0% Public Common Energy (NYSE: 35% ~114 General ?65% ?$88.3 ?$61.4 (1) (2) (3) general interest partnership 42.1% Haverhill What expense, Investor 28 2013E SXC) 55.9% distribution Energy, Organizational Remains interest million is interest million in partner Based
Slide 29: Strategic Roles of SXC and SXCP
Strategic Develop Optimize GP Grow Steel Investor 29 &facing limited international U.S. Meetings—March new Roles coal &MLP coke Canada partner of with SXC projects business investor cokemaking advantaged and 2013 SXCP in SXCP business cost of capital
Slide 30: ProForma Liquidity and Debt Metrics
ProForma (1) cash (2) offering (3) $88.3 nm For Investor 30 SunCoke Not aretained definition million meaningful completed Meetings—March Liquidity cash total 2013E includes forecast. and retained debt in Adjusted a&reconciliation conjunction $67M Debt equal includes 2013 Metrics and to EBITDA $720 $
Slide 31: Pro Forma Adjusted EBITDA and Distributable Cash Flow
Proand 12 ($ Adjusted Cash Less: Accrual Ongoing Estimated Excess Minimum Units Annual Public Subordinated General Total Common (1) expense, (2) (3) Parent’s Investor 31 Months Adjusted Total Common Forma interest estimated 32.1 unit Percentage units partnership common distributable distributions pa
Slide 32: 2013 Guidance
2013 GUIDANCE a SunCoke Energy” SCP
Slide 33: SXC: Estimated 2013 Adjusted EBITDA
SXC: Estimated ($ $0-$10 FY $205-$230 $266 ($35-$50)($5-$10) Adjusted EBITDA Domestic (1) 33 in2012 millions) 2013 $0—$10 For Domestic (1)(Jewell Coke Coke) 2013 Adjusted a definition Business results International &EBITDA(1) Other toand Costs be impacted reconciliation EBITDA Coke Outlook by Coal (
Slide 34: SXC: EPS outlook
SXC: EPS ((1), ~ ~($0.07) $0.80) ($0.45- $0.14) $1.40 FY $0.55 $0.30- $0.85 $0.60- ~$0.10 34 outlook 2013 ~($0.30) (Diluted) Depletion $0.09- &Diluted $0.20 Amortization (before (1) 2012tax) For EPS reflects ~($0.08) Earnings Depreciation,lower Unitholders aAccelerated Depreciation 2013E definition
Slide 35: SXC: Original and Revised 2013 Guidance
SXC: Original Guidance Metric Adjusted Consolidated Attributable EPS (diluted) Capital Investments(2) Effective Cash Domestic Coal (1) 35 (3) Attributable Production Tax Flow 2013 InvestorExpenditures For 2013 EBITDA Tax Rate 2013 Coke Includesfrom Guidance to a$205 Rate reconciliation Revisedvised
Slide 36: Investor Relations
Investor Relations: 630-824-1907 www.suncoke.com 36
Slide 37: Appendix
APPENDIX a SunCoke Energy” SxCP
Slide 38: Definitions
Definitions aattributable EBITDA comparable in operating Adjusted SXC Free understanding may Investor 38portion ournot Cash orbusiness SXCP be Meetings—March of since attributable EBITDA EBITDA/Ton performance Flow comparable to to nonconventional equity of other as they that equals aapplicable. bus
Slide 39: Definitions: Distributable Cash Flow
Definitions Distributable use the distributions investment The considered principles investing similarly Investor 39 Partnership to Partnership assess: Meetings—March titled activities. (GAAP). an ofto Cash various alternative measures sthe believes operating Flow Partnership’s Additionally, Distrib
Slide 40: Reconciliations of Net Income to Adjusted EBITDA
$Reconciliations Net and Subtract: EBITDA Add: unconsolidated non Adjusted SXC Investor 40in amortization(80.8)(23.3)(18.9)(20.2)(18.4)(58.4)(16.0)(14.7)(14.7)(13.0) Income controlling millions Adjustment 262.7 Sales Meetings—March Depreciation, Financing Income 254.5 EBITDA Discount 68.2 102.5 FYaf
Slide 41: Reconciliation of Segment Adjusted EBITDA 2012
Reconciliation Reconciliations Jewell $Other FY Q4 Q3 Q2 Q1 Sales Adjusted Investor 41in2012 millions, Volume Domestic Meetings—March EBITDA except (thousands ofInternational Segment 50.5 9.4 13.6 12.5 15.0 per per53.0 Ton 198.9 56.2 49.9 39.8 ton ofAdjusted 71.1 55.3 74.3 73.5 80.6 2013 10.2 tons)
Slide 42: Reconciliation of Segment Adjusted EBITDA 2011
Reconciliation Reconciliations Jewell $Other FY Q4 Q3 Q2 Q1 Sales Adjusted Investor 42in2011 millions, Volume Domestic Meetings—March EBITDA except (thousands ofInternational Segment 46.1 13.9 10.6 11.0 per perTon 2.3 87.7 20.8 37.7 26.9 ton ofAdjusted 65.7 63.9 72.8 62.4 62.9 2013 1.0 tons) data 13
Slide 43: 2012 Initial Guidance vs Actual Results
2012 Initial Metric (as Adjusted EPS Capital & Free Cash Effective Corporate Coke Coal Investor 43 Investments of(assuming Cash Production Tax Guidance Production February 2012 Guidance Expenditures Meetings—March EBITDA Tax Rate Costs Flow(2) Rate 10% and a2,$30—$35 ~2012 4.0—4.2 22% 2012) 1.8 20%
Slide 44: Free Cash Flow Reconciliation
(in millions) Cash Less Free Investor 44 Cash cash from Meetings—March sh Flow operations FY used$119.7 Reconciliation 2012 for investing $206.12013activities ctivities (84.1) Less payments to non controlling interest (2.3)
Slide 45: Expected 2013E Adjusted EBITDA Reconciliation
Expected 2013E (in Net Depreciation, Total Income Sales Adjustment EBITDA Adjusted Investor 45 millions) Income financing discounts 2013E tax Meetings—March $198 attributable EBITDA 2013E expense to $43 Low Depletion unconsolidated $220 costs, 7$60 EBITDA 7High $205 attributable 3to net 10noncontrol
Slide 46: 2013E Capital Expenditures and Investments
2013E ($ $25m On-Going Environmental Approx.—$15 Remediation Expansion Total Approx. To Investments India Investor 46 in fund millions) CapEx JV coke Capital investment Meetings—March $176 (Visa Approx. Approx. and Approx. Approx. &Middletown $24 SXC Expenditures SunCoke) $15 expected Refurbishment
Slide 47: SXCP ProForma Adjusted EBITDA Reconciliation
SXCP For months December ($ Net Add: Minimum Adjusted Subtract: ProForma (1) (2) million fee (4) (5) Middletown, (6) incremental Investor 47 inRepresents Reflects in the Income Millions) Income Interest Depreciation, Sales ProForma conjunction Adjusted three annually), ended Meetings—March On-going