Slide 1: SunCoke Energy, Inc. Q2 2018 Earnings Conference Call
SunCoke Energy, Inc. Q2 2018 Earnings Conference Call July 26, 2018
Slide 2: Forward-Looking Statements
Forward-Looking Statements This slide presentation should be reviewed in conjunction with the Second Quarter 2018 earnings release of SunCoke Energy, Inc. (SXC) and conference call held on July 26, 2018 at 11:00 a.m. ET. Except for statements of historical fact, information contained in this present
Slide 3: Q2 2018 Highlights
Q2 2018 Highlights Safety and operating performance across coke and logistics fleet in line with expectations Strong Q2 ’18 Adj. EBITDA of $67.3M; ended quarter with ample liquidity of >$370M Remain on track with 2018 oven rebuild campaign at IHO; first set of completed ovens demonstrating solid ope
Slide 4: Q2 2018 Financial Performance
Q2 2018 Financial Performance Q2 2018 Earnings Q2 ‘18 EPS of $0.06 up from loss of $0.38 in ($/share) ($ in millions) the prior year quarter Earnings per Share Consolidated (diluted) Adj. EBITDA (1) • Strong cokemaking and logistic operating $0.06 performance • Absence of $11.6M loss on debt ($0.38)
Slide 5: Adjusted EBITDA – Q2 '17 to Q2 '18
Adjusted EBITDA – Q2 ‘17 to Q2 ‘18 (1) Q2 ‘18 performance driven by strong domestic coke production and record CMT transloading volume ($ in millions) $9.7 $0.9 $67.3 $3.7 • Primarily due to $5.5 lower employee- related costs $47.5 • Driven by record sales volumes at CMT • ($1.2M) Higher • $3.1M – S
Slide 6: Domestic Coke Business Summary
Domestic Coke Business Summary Q2 ‘18 cokemaking performance supports FY 2018 outlook Domestic Cokemaking Performance Delivered Adj. EBITDA/ton(1) of ~$53 on ~1.0 million tons of production (Production, Kt) $57/ton $56/ton $53/ton • Higher maintenance and operating costs $46/ton partially offset by
Slide 7: Logistics Business Summary
Logistics Business Summary Improved Q2 ‘18 performance driven primarily by significant increase in CMT volumes Logistics Performance Delivered Q2 ‘18 Adj. EBITDA of $19.7M (Tons Handled, Kt) $35.1M $19.7M • Increased volumes due to continued $12.6M $13.6M $10.0M favorable coal export market dynamics
Slide 8: Q2 2018 Liquidity
Q2 2018 Liquidity Maintain strong consolidated liquidity of >$370M, including >$200M of SXC standalone liquidity (Consolidated) Q2 ‘18 Total Debt $886M (1) Gross Leverage 3.58x $28.0 ($28.2) $147.0 ($7.1) $3.3 $143.0 Consolidated Revolver • Strong Q2 operating • $10.3M Granite City performance Remed
Slide 9: 2018 Key Initiatives
2018 Key Initiatives Deliver Operations Excellence and Optimize Asset Base • Drive strong operational and safety performance while optimizing asset utilization Complete 2018 Indiana Harbor Oven Rebuild Campaign • Complete 67 planned A-battery oven rebuilds and deliver near-breakeven FY ‘18 Adj. EBIT
Slide 10: Questions
QUESTIONS tt SunCoke Energy*
Slide 11: Investor Relations
Investor Relations 630-824-1907 www.suncoke.com
Slide 12: Appendix
APPENDIX tt SunCoke Energy*
Slide 13: Definitions
Definitions Adjusted EBITDA represents earnings before interest, taxes, depreciation and amortization (“EBITDA”), adjusted for any impairments, loss (gain) on extinguishment of debt, changes to our contingent consideration liability related to our acquisition of CMT and/or loss on the disposal of ou
Slide 14: Reconciliation to Adjusted EBITDA
Reconciliation to Adjusted EBITDA YTD YTD ($ in millions) Q1 '17 Q2 '17 Q3 '17 Q4 '17 FY '17 Q1 '18 Q2 '18 Q2 '18 Q2 '17 Net cash provided by operating activities $ 29.5 $ 24.9 $ 73.9 $ 20.2 $ 148.5 $ 57.3 $ 28.0 $ 85.3 $ 54.4 Depreciation, depletion and amortization expense 33.3 33.3 30.6 31.0 128.
Slide 15: Reconciliation of Segment Adjusted EBITDA and Adjusted EBITDA per Ton
Reconciliation of Segment Adjusted EBITDA and Adjusted EBITDA per ton Reconciliation of Segment Adjusted EBITDA and Adjusted EBITDA per Ton Domestic Corporate (1) ($ in millions, except per ton data) Coke Brazil Coke Logistics and Other(2) Consolidated Q2 2018 Adjusted EBITDA $52.9 $4.8 $19.7 ($10.1
Slide 16: Balance Sheet & Debt Metrics
Balance Sheet & Debt Metrics As of 06/30/2018 Balance SXC Attributable Attributable Consolidated to SXCP ($ in millions) to SXC Cash $ 143 $ 12 $ 131 Available Revolver Capacity 229 153 76 Total Liquidity $ 372 $ 165 $ 207 Gross Debt (Long and Short-term) $ 886 $ 841 $ 45 Net Debt (Total Debt less C
Slide 17: 2018 Guidance Summary
2018 Guidance Summary Guidance remains unchanged from January 2018 announcement 2018 2017 Guidance Results Metric (published Jan. ‘18) (1) Adjusted EBITDA Consolidated $234.7M $240M – $255M Attrib. to SXC $148.3M $160M – $171M (2) Capital Expenditures $74.5M ~$95M Domestic Coke Production 3.86 Mt ~3
Slide 18: 2018 Capital Expenditures
2018 Capital Expenditures 2017 CapEx ($ in millions) SXC SXCP Consolidated Ongoing (ex. IHO rebuilds) $6 $19 $25 IHO Oven Rebuild Initiative 30 0 30 Total Ongoing CapEx(1) $36 $19 $55 Other / Expansion 0 1 1 Environmental Project (Gas Sharing) 0 18 18 Total CapEx $36 $38 $74 2018 Expected CapEx ($ i
Slide 19: 2018E Guidance Reconciliation
2018E Guidance Reconciliation 2018E 2018E ($ in millions) Low High Net cash provided by Operating activities $150 $165 Depreciation and amortization expense (137) (129) Changes in working capital and other 22 14 Loss from equity method investment (5) (5) Net Income $30 $45 Loss from equity method in
Slide 20: Thermal Coal Export Profitability
Thermal Coal Export Profitability Solid API2 benchmark price should continue to support CMT ILB producers’ competitiveness in maintaining viable exports $93 $4 ($15) Believe ILB export thermal solidly profitable at Q2 ‘18 ($16) API2 benchmark pricing of ($6) ~$93/t ($21) • Based on average ILB cash