Suncoke Energy, Inc. · NYSE:SXC
Suncoke Energy — Goldman Sachs Metals & Mining/Steel Conference 2013
35 slides from Suncoke Energy's conference presentation, Nov 20, 2013
Slide 1: Goldman Sachs Metals & Mining/Steel Conference, November 20, 2013
Exhibit 99.1 Exhibit& Goldman Metals November Conference Mining/Steel 99.1 Sachs 20, 2013
Slide 2: Forward-Looking Statements
Forward-Looking Some 1934, Inc. and Forward-looking operating by similar Although plans, SunCoke the results All caution obligation applicable This are 2Goldman the provided Securities forward-looking assumptions (“SunCoke”) presentation as of intentions use to expressions. should amended. the diffe
Slide 3: About SunCoke
ABOUT SUNCOKE 3Goldman Sachs Metals & Mining/Steel Conf. - Nov 2013
Slide 4: About SunCoke
About Largest the Coke Cokemaking ~6 Secure, 5General Coal ~114 ~1.4 4Goldman coal million Americas million logistics mining million ishandling SunCoke long-term independent essential Partner Sachs tons tons operations business tons of terminals and Metals TM in mined of take-or-pay capacity: blast
Slide 5: SXC/SXCP Organizational Structure
SXC/SXCP 2% 56% 100% (~114M SXC Omnibus Commercial support; Preferential Coal Logistics(35% assets, Granite Represents KRT (October ~1/3 Domestic Lake Cokemaking (August Jewell 5Goldman GP of LP growth Middletown owns: provides Terminal IDRs Coke ifinterest Indiana City interest 2013)(65% tons 5dive
Slide 6: Recent Highlights
Recentraised Continued Sustained Reduced Maintained Positioned Indiana Financial Leveraged Completed Received SXCP Expect 6Goldmanto Highlights Harbor—renewed coal favorable flexibility Sachs end high-level Operations SXCP for two top Q4 cash year Future quartile acquisitions Metals distribution as
Slide 7: Our Market Opportunity
OUR MARKET SunCokeEnergy 7Goldman Sachs Metals TM OPPORTUNITY & Mining/Steel Conf.—Nov 2013
Slide 8: SunCoke's Strategy
SunCoke’s Strategy Fuel SunCoke Facilities Secure Highly Meet Well-positioned Integrated Producers Potential Customer EAF DRI 8Steelcan our now Coal imports U.S. long-term, competitive /both steel Challenges aligned Strengths Mission the Products concentration Power Coke EPA Existing to dominant imp
Slide 9: Transformational Growth Strategy
Transformational Customer Fuel coke, Historical Capitalize Replicate Leverage Integrated Steel Leading processing Future to Raw Suppliers Goldman theour Material Coal coal steel EAFs supplier steel our Sachs DRI Products Producers Coke and on Handling and industry Iron MLP our Business customers Pro
Slide 10: Steel Value Chain Disaggregation
Steel Raw mining processing/ Disaggregation transportation Carbon Transport Elements be Maintain assets and Free Fund Requires Goldman 10 disaggregated reliable up material materials Value construction onsteel Ferrous and trusted long-term, strategic of Sachs Processing Chain basis redeploy steel st
Slide 11: The Cokemaking Opportunity
The We years U.S. Total Average coke DTE 27% 29% 22% 38 Other Producers & Merchant SunCoke 6% (excl Canada 56% Source: estimates Goldman Foundry estimate Steel Cokemaking & of production Integrated SXC) 2012 and 58% Canada coke CRU Age% U.S. estimates Sachs another Apparent 10 Imports nearly capacit
Slide 12: The Coal Logistics Opportunity
The Coal and Potential Adjacent A Prep understand, service Tolling, with agreements commodity Large combined Terminals Goldman Barges business provide Coal handling/blending market we fee-based asset Integration: Logistics Sachs with constrained are we limit exposure providing opportunity size famil
Slide 13: The Iron Ore Processing Opportunity
The Iron Concentration is: it through What U.S. Size 952 Direct Reducing In 0metric Operating 4.5 Under Capacity Steelmakers Development Market Goldman size 131>20 particulars millions Separating 46 0Ferrous ore metric Canada enriching ~50 10 Reduction tons Under Participants crushing, processing/ha
Slide 14: Growth Area Summary
Area TM Summary: and/or existing facilities take Iron Investment Processing Organic Growth (SXC) •Indiana acquisition M&A (SXCP) beyond timeframe Goldman 14Currently India Discussing agreements Ore oftargeted acquisition refurbishment follow-ons 2013 Harbor focus: •Strategy cokemaking •new with Cont
Slide 15: Questions?
Goldman Energy QUESTIONS? SunCoke 15 Sachs Metals TM & Mining/Steel Conf. - Nov 2013
Slide 16: Appendix
APPENDIX xt SunCoke Energy™ SCP
Slide 17: About SunCoke and the Cokemaking Process
ABOUT SUNCOKE AND THE COKEMAKING PROCESS 17
Slide 18: SunCoke Modern Cokemaking Facilities
SunCoke Modern to Harbor Indiana Haverhill Vitoria, Jewell of Granite Odisha, est. JV *65% 18 customers’ reserves est. 1998 2011 2007 1962 2009 owned Coke 2013 Middletown* City Braz India facilities 114M Operations 1* Coal Haverhill est. by integrated tons SXCP 2005 strategically Mining and est. 2*s
Slide 19: SunCoke's Technology
SunCoke’s Technology environmental Industry-leading Leverage Convert Only build, U.S. development 19 greenfield company and waste negative operate Cokemaking (MACT) inheat signature to coke ~cokemaking design, 20 new pressure into years standards steam Technology to technology substantially and ande
Slide 20: Operations Excellence
cost Operations The 1Implement practices Standardize maintenance reliable, Compiled Blend optimization Enhanced Yield improvement Maximum Larger stronger Lower 2 Master Gross 20 SunCoke Less Improved Developed operating and predictable coke Use operating oven comprehensive natural coal best Blast Ex
Slide 21: Secure, Cokemaking Business Model
Cokemaking Secure, Termination Take-or-pay Margin (i.e., against Cost SunCoke Contract Attributes Maintenance Taxes income Government Fixed Return (1) notice 21 AK pass-thru ofFee (other and on Steel changes Coal protection taxes) long-term Transportation Cost for Capital Operating pay Provisions th
Slide 22: Blast Furnace Iron Making
Blast Iron burden Scrap Top Flux blast BEST Up Nat Fuel Coal fuel Most furnaces 800 aof 22ton fuel to Gas 900 needs Iron Coke Up Limestone 120-180 furnace of Furnaces efficient We 198 IN to pellets hot 80-120 to lbs/NTHM oxides require ore/ produce CLASS believe method 600 more metal steel Blast fur
Slide 23: U.S. Steel Production and Imports
U.S. Crude 112 -1% 99 89 BoF 59% 64 EAF 2000 Factor Apparent in 140 117 120 100 80 60 40 0223% 20 16% Source: 23 000 MM 101 90% 65 45% 38% 110 117 132 90 53% Market 73% 24% 47% 2001 steel 103 tons WSD, 30% 105 116 110 131 steel 41% Utilization 2002 101 production CAGR Import 119 –109 135 33% Steel A
Slide 24: SXC and SXCP Financial Results
SXC AND SXCP FINANCIAL RESULTS 24
Slide 25: SXC Earnings Highlights
SXC Earnings $0.32 $73.7 $0.45 $0.08 $0.24 2012 $0.03 Strong Position Adjusted ~$270M $58 Combined $57 $127 Revolver ~$300M Sept Q1 1) 2) For Excludes Q2 $58 30, YTD 2013 $118 $66.8 $0.09 aLiquidity Q3 definition $59 2013 Operations $62 Per EBITDA capacity cash Q1 (2) 2013 2012 the $55.5 Share Cost
Slide 26: Indiana Harbor Expectations from Operations
Expect from Operations Missed volumes operating targets; coke implemented Conducted engineering to 2013E: conditions Indiana (100% Refurbishment 2H 2014E: Anticipate 2015E: 26 2015 2014 2013 2012 2011 evaluate 2014 cover contract yields complete basis Adjusted expect $10M $15M yield, purchased Harbo
Slide 27: SXCP Solid Platform for Growth
SXCP Solid platform Adjusted ($ $37.0 $41.5 $13.3 $11.4 $29.4 $34.7 $23.7 $30.1 Net $23.9 $26.4 $12.1 $10.6 $12.4 $17.4 $11.8 1Q12 Attributable $18.7 $22.6 1.66x Distributable Coverage Q1(1) Cash Q3 Minimum +15% distribution May $0.4750 $0.4325 $0.4225 $0.3071 Aug Nov Feb (1) (2) 27 inReflects For I
Slide 28: Liquidity Position
Liquidity Both ($ Cash Revolver Total Net $400M SXC $330M $150M SXCP (1) for (2) (3) spend (4) appendix 28 inBased environmental For Debt millions) SXC Position Liquidity Debt committed SXC, Term 7.625% 7.375% (3) /2013E Capacity for &on and (2) (1) Debt $309 definition the Loan reflects at $499 /20
Slide 29: Definitions and Reconciliations
DEFINITIONS AND RECONCILIATIONS 29
Slide 30: Definitions
Definitions attributable income included and Management provides our accordance EBITDA Adjusted SXC 30 operating Adjusted or tax SXCP in useful reflects represents EBITDA EBITDA/Ton expense. EBITDA. with tobelieves EBITDA performance. our asinformation GAAP. sales applicable. equity represents attri
Slide 31: Definitions: Distributable Cash Flow
Definitions Distributable use the The considered principles investing Additionally, Ongoing improves of Replacement estimated estimate approved 31 other calculating ability Partnership’s viability to Partnership assess: companies, will capital activities. by the based (GAAP). of anof our the be effi
Slide 32: Reconciliation of Net Income to Adjusted EBITDA
$Reconciliation Q3 Net and Subtract: EBITDA Add: unconsolidated noncontrolling Adjusted SXC 32in2013 Income amortization(23.2)(23.4)(23.9)(80.8)(23.3)(18.9)(20.2)(18.4) millions Adjustment 40.8 Sales Q2 Depreciation, Interest Income 48.2 EBITDA 41.7 discount 12.3 2013 49.3 from interests(9.9)(10.7)(
Slide 33: 2013 Capital Expenditures & Investments
2013 For ($ Consolidated SXC and SXCP $49 $14 On-Going capital Environmental Haverhill Remediation $23 $21 -$$2 $58 Expansion Indiana $183 $115 $68 $130 $35 $95 Total Prefunded VisaSunCoke Investments $313 $150 $163 Lakeshore JV 33 58inYear ~$20M millions) includes Estimated CapEx reflects expenditu
Slide 34: SXCP Distributable Cash Flow Reconciliation
SXCP Flow Full As Reported ($ Changes Depreciation(7.6)(7.6)(7.6)(8.3) Net Depreciation Add: Interest Income Sales Adjusted Ongoing Less: Replacement Cash Make Payment with Distributable Quarterly (2)(2) Distribution (1) (2) 34 in As Proforma Based cash income Year the Millions) interest Reconciliat
Slide 35: Investor Relations
Investor Relations: www.suncoke.com 630-824-1987
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