United States Steel Corporation · NYSE:X
United States Steel — Q4 2020 Earnings Presentation
19 slides from United States Steel's earnings presentation, Jan 29, 2021
Slide 1: Fourth Quarter and Full Year 2020 Earnings Call
Fourth Quarter and Full Year 2020 Earnings Call January 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 Development Officer Kevin Lewis Vice President, Investor Rela
Slide 2: Forward-looking statements
2 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 for the fourth quarter and full year of 2020. Financial results as of December 31, 2020 provided herein are
Slide 3: Non-GAAP measures
3 We present adjusted net (loss) earnings, adjusted net (loss) earnings per diluted share, (loss) earnings before interest, income taxes, depreciation and amortization (EBITDA) and adjusted EBITDA, which are non-GAAP measures, as additional measurements to enhance the understanding of our operating
Slide 4: Business update
4 Business update Creating Value in the Trough Big River Steel: The Future is Now 2021 Outlook: Optimism, Optionality, & Opportunity What you will hear on today’s call:
Slide 5: Creating value in the trough: 2020 accomplishments
Creating value in the trough 2020 accomplishments 5 Executed on our #1 strategic priority; creating a Best of BothSM footprint through completion of the Big River Steel acquisition Acquired Big River Steel Divested non- core assets Delivered on our commitment to extract value from our attractive por
Slide 6: The future is now
Big River Steel the future is now 6 Full ownership unlocks additional opportunities Full collaboration to maximize customer value and develop new products Increased flexibility to serve the growing Southern U.S. and Mexico markets Low-GHG1 emission steelmaking to provide the sustainable steel custom
Slide 7: Phase 2-A expansion
Big River Steel phase 2-A expansion 7 7 The start up and ramp up of Big River’s Phase 2-A expansion is the fastest ever achieved worldwide with SMS group CSP-Mill Technology. The Big River and SMS teams should be proud of this tremendous achievement.
Slide 8: Strong end to 2020
Big River Steel strong end to 2020 8 8 Phase 2-A expansion already running near 90% raw steel capability Month of December 2020 Statistics 2 Excludes $62 million of restricted cash for the completion of Phase 2-A expansion. 3 Includes unrestricted cash and ABL availability. Excludes $62 million of r
Slide 9: 2021 outlook: reasons we are confident
2021 outlook reasons we are confident 9 Optimism Low inventories across the supply chain Improving demand in key end-markets Optionality Lower capital intensity Differentiated capabilities 1 Advanced High Strength Steel. Opportunity Proprietary AHSS1 finishing technology Sustainable steel offerings
Slide 10: Fourth quarter 2020 financial highlights
• Total fourth quarter adjusted EBITDA1 of $87 million, ahead of our guidance on December 17 • Full year adjusted EBITDA of ($162) million • Ending liquidity of ~$3.2 billion • Cash and cash equivalents of ~$2.0 billion • Pension and OPEB funded status strong at 98% and 115%, respectively • Average
Slide 11: Combined Maturity Profile
Combined Maturity Profile, as of December 31, 2020 Flexible and aligned with Best of Both strategy Preserved Big River capital structure maintaining its attractive characteristics 20262021 2049+20242022 $518M $35M 2023 2025 $224M $583M $1,814M $1,115M 2027 2028 $1,090M $40M$37M 2029 2030- 2048 $586M
Slide 12: Recap
Recap • Created value in the trough • Executed our #1 strategic priority … marking the beginning of our Best of Both future • Strong 2021 poised for earnings growth and value 12
Slide 13: Q&A
Q&A
Slide 14: Closing Remarks
Closing Remarks
Slide 15: Reconciliation of segment EBITDA
Segment EBITDA – Flat-rolled ($ millions) 3Q 2020 4Q 2020 Segment earnings before interest and income taxes ($159) ($73) Depreciation 126 123 Flat-rolled Segment EBITDA ($33) $50 Segment EBITDA – U. S. Steel Europe ($ millions) 3Q 2020 4Q 2020 Segment earnings before interest and income taxes $13 $3
Slide 16: Reconciliation of adjusted EBITDA
($ millions) 3Q 2020 4Q 2020 Reported net (loss) earnings attributable to U. S. Steel ($234) $49 Income tax provision (benefit) (24) (94) Net interest and other financial costs 47 88 Reported (loss) earnings before interest and income taxes ($211) $43 Depreciation, depletion and amortization expense
Slide 17: Reconciliation of December EBITDA
17 ($ millions) December 2020 Reported net earnings $33 Income tax provision 1 Net interest and other financial costs (18) Reported (loss) earnings before interest and income taxes $16 Depreciation and amortization expense 13 EBITDA $29 Reconciliation of Big River Steel December EBITDA
Slide 18: Reconciliation of net debt
18 Net Debt ($ millions) YE 2020 Short-term debt and current maturities of long-term debt $0 Long-term debt, less deferred revenue 1,848 Total Debt $1,848 Less: Cash and cash equivalents1 110 Net Debt $1,738 Reconciliation of Big River Steel net debt 1 Unrestricted and restricted cash
Slide 19: Investor Relations
INVESTOR RELATIONS Kevin Lewis Vice President 412-433-6935 klewis@uss.com Eric Linn Senior Manager 412-433-2385 eplinn@uss.com www.ussteel.com