Algoma Steel Group Inc. · NASDAQ:ASTL
Algoma Steel — Q4 FY2022 Earnings Presentation
18 slides from Algoma Steel's earnings presentation, Jun 15, 2022
Slide 1: Earnings Call Presentation
Earnings Call Presentation For the Quarter and Fiscal Year ending March 31st, 2022 June 15th, 2022 in Canadian dollars unless otherwise noted
Slide 2: Disclaimer
Disclaimer CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS This presentation contains “forward-looking information” under applicable Canadian securities legislation and “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 (collectivel
Slide 3: Disclaimer continued
Disclaimer continued IMPORTANT INFORMATION FOR SHAREHOLDERS The SIB referred to in this presentation has not yet commenced. The information relating to the SIB contained in this presentation is for informational purposes only and is not intended to and does not constitute an offer to purchase or the
Slide 4: Earnings Call Agenda
Earnings Call Agenda Safety Performance Today’s Presenters: EAF Conversion Michael McQuade Retired Chief Executive Officer, Board Member Financial Performance Michael Garcia Chief Executive Officer Market Update Rajat Marwah Strategic Update / Capital Allocation Chief Financial Officer Questions & A
Slide 5: Safety Without Compromise
Safety Without Compromise Continued Focus and Improvement in Lost Time Injury Frequency Rate (LTIFR) Health & Safety Performance 1.30 • Ongoing commitment to superior Health & Safety performance has led to sustained improvement of safety metrics over time • Health & safety remains our highest priori
Slide 6: Algoma's EAF Conversion Project: a generational opportunity
Algoma’s EAF Conversion Project: a generational opportunity Raw Materials Materials Ironmaking Steelmaking Preparation Expected Benefits of EAF ~Adds ~700kt of finished steel Iron Ore capacity aligning steelmaking Blast Furnace Mill (Algoma Today) capacity to rolling capacity Capacity Reduced co
Slide 7: Construction update
Construction update Future home of Algoma’s new EAF facility: Construction Milestones: • Long lead time equipment ordered by OEM supplier (Danieli) • EAF Melt Shop Piling installation in progress. • Foundation contractor selected and underway • Rail and service relocations underway • Detailed engine
Slide 8: Key Performance Highlights
Key Performance Highlights Q4 FY 2022 - Ended March 31, 2022 • Shipment volume was 547K NT in Q4 FY 2022, down 1% from 553K NT in Q3 FY 2022 and down 12% from 622K NT in Q4 FY 2021 • Steel Revenue: was $880 million in Q4 FY 2022, down 13% from $1,010 million in Q3 FY 2022 and up 50% from $586 millio
Slide 9: Fourth Quarter Financial Highlights
Fourth Quarter Financial Highlights Q4 FY 2022 Q4 FY 2021 Q3 FY 2022 Shipping volume (‘000s tons) 547 622 -12% 553 -1% Net Sales Realization per ton ($/ton) 1,608 942 71% 1,827 -12% Steel Revenue($ million) 880 586 50% 1,010 -13% Cost of Steel Revenue ($/NT) 989 680 45% 985 0% Adjusted EBITDA ($ mil
Slide 10: Fiscal Year 2022 Financial Highlights
Fiscal Year 2022 Financial Highlights FY 2022 FY 2021 % YoY Shipping volume (‘000s tons) 2,297 2,102 9% Net Sales Realization per ton ($/ton) 1,545 768 101% Steel Revenue($ million) 3,549 1,615 120% Cost of Steel Revenue($/NT) 894 694 29% Adjusted EBITDA ($ million) 1,503 199 654% Net Income ($ mill
Slide 11: Market Update
Market Update North American HRC and Plate prices peaked but remain strong Historical Hot Rolled Coil (HRC) and As Rolled Plate Prices (ARP) (US$/ton) Key Market Drivers $2,200 • HRC steel prices have experienced price declines and shorter mill lead times, however $2,000 ARP spread over HRC have con
Slide 12: Capital Allocation Update
Capital Allocation Update Value Enhancing Uses of Capital: • Strong Balance Sheet: Low leverage / solid cash position • Electric Arc Furnace (EAF) Project: $700 million, 2 year project to transition Algoma to EAF steelmaking, resulting in 3.7 million tons/year of capacity and a roughly 70% reduction
Slide 13: Committed to our path forward, creating a track record of success
Committed to our path forward, creating a track record of success Strategic Direction Operational & Capital DSPC Automation Ladle Met Furnace Project Aurora Plate Mill EAF Approval EAF Project Improvements Upgrade #2 $50M annualized Modernization Received board Construction started 1 Improves grade
Slide 14: Annex: Revenue and Cost of Sales
Annex: Revenue and Cost of Sales Change Change (FY2022 to FY2022 (FY2021 to FY2021 FY2020 FY2021) FY2020) tons Steel Shipments h 9.3% 2,297,159 i 8.8% 2,102,086 2,305,039 millions of dollars Revenue C$ 3,806.0 C$ 1,794.9 C$ 1,956.9 Less: Freight included in revenue (172.9) (150.4) (175.1) Non-steel
Slide 15: Annex: Revenue and Cost of Sales
Annex: Revenue and Cost of Sales January 1 to March 31 change FY 2022 FY 2021 tons Steel Shipments i 12.0% 547,217 621,843 millions of dollars Revenue C$ 941.8 C$ 638.5 Less: Freight included in revenue (48.0) (47.3) Non-steel revenue (13.9) (5.6) Steel revenue h 50.3% C$ 879.9 C$ 585.6 Cost of stee
Slide 16: Annex: Adjusted EBITDA Reconciliation
Annex: Adjusted EBITDA Reconciliation January 1 to March 31 millions of dollars FY 2022 FY 2021 Net income C$ 242.9 C$ 100.1 Amortization of property, plant and equipment and amortization of intangible assets 22.8 21.0 Finance costs 4.3 15.9 Interest on pension and other post-employment benefit obli
Slide 17: Annex: Selected Quarterly Information
Annex: Selected Quarterly Information (millions of dollars, except where otherwise noted) 2022 2021 As at and for the three months ended1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Financial results Total revenue C$ 941.8 C$ 1,064.9 C$ 1,010.2 C$ 789.1 C$ 638.5 C$ 430.0 C$ 377.0 C$ 349.4 Steel products 879.9 1,009.5 9
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