Suncoke Energy, Inc. · NYSE:SXC
Suncoke Energy — BMO 2025 Global Metals, Mining and Critical Minerals Conference
39 slides from Suncoke Energy's conference presentation, February 2025
Slide 1: SunCoke Energy Investor Presentation
SunCoke Energy Investor Presentation February 2025
Slide 2: Forward-Looking Statements
Forward-Looking Statements 2 This presentation contains “forward-looking statements” (as defined in Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended). Forward-looking statements often may be identified by the use of such words a
Slide 3: SunCoke Overview
SunCoke Overview 3 Largest independent coke producer in North America with best-in-class operations in Cokemaking and Logistics Business Segments Key Financial Highlights Cokemaking Consolidated Adjusted EBITDA(1) • 4.2M tons of furnace coke capacity with capability to produce both foundry and blast
Slide 4: Advantaged Assets Driving Value Creation
Advantaged Assets Driving Value Creation 4 Advantaged Assets with Steady Cash Flow Balanced Capital Strong Balance Sheet Leading Market Positions Generation Allocation Strategy • Industry leading • ~$190M cash • Supported by • Significant value cokemaking and available on balance contracts under lon
Slide 5: Strategically Located Network of Assets
Strategically Located Network of Assets 5 North American Operations Cokemaking Advantages • Domestic assets strategically located to serve domestic blast furnaces as well as export market – Three facilities co-located with customer BF and remaining two facilities benefit from advantaged rail logisti
Slide 6: Cokemaking Overview
Cokemaking Overview
Slide 7: Durable Model with Strong Market Dynamics
Durable Model with Strong Market Dynamics 7 7 Stable Long-term Favorable Long-term Coke Superior Asset Characteristics Business Model Supply/Demand Dynamics • Steady cash flow • Newest fleet of • Aging fleet of by-product generation cokemaking facilities and coke batteries continue to equipment in t
Slide 8: Long-term, Contracted Earnings Stream
Long-term, Contracted Earnings Stream 8 8 Long-term, take-or-pay contracts generate stable cash flow and insulate business from industry cyclicality Take-or-Pay Contract Provisions Contract Observations General Provisions • Customers required to take the contract-maximum coke • Take-or-pay nature pr
Slide 9: Shrinking Coke Supply Base Creates Opportunity
Shrinking Coke Supply Base Creates Opportunity 9 If aging by-product battery closures continue, will create opportunity for SunCoke Aging Cokemaking Facilities(1) Aging Capacity Creates Opportunity Average Age % of US and Canada Coke • Closures driven by combination of deteriorating facilities Capac
Slide 10: SunCoke's Superior Assets Well Positioned for Long Term
SunCoke’s Superior Assets Well Positioned for Long Term 10 Value Proposition Competitive Advantage • Efficient operating cost structure and capital • SunCoke’s average asset age is ~25 years investment requirements Superior Asset Age compared to ~44 years for all other US/Canadian capacity currently
Slide 11: Heat Recovery vs By-Product Design Comparison
Heat Recovery vs By-Product Design Comparison 11 SunCoke Heat Recovery Traditional By-Product Steam Gas (COG) Light Oil Water Tar Air VM Air Air Natural Gas (or other source) SunCoke Heat Recovery Traditional By-Product Pressurization Negative Pressure Positive Pressure Air Emissions MACT Standard f
Slide 12: Environmental Signature – Best Available Technology
Environmental Signature – Best Available Technology 12 SunCoke’s operations minimize environmental impact and offer the best available technology for an important input to the steel industry SunCoke’s CO2e Emissions SunCoke’s innovative, superior heat recovery technology sets the 0.14 0.14 0.15 0.12
Slide 13: Safety Excellence
Safety Excellence 13 SunCoke’s industry leading safety performance sets the standard for safe cokemaking SunCoke’s Total Recordable Incident Rate(1) SunCoke’s 2024 TRIR 0.50 0.99 Comparable Industry Rates (2023 BLS Data) 0.81 0.76 Company 0.69 Record Iron and Steel Mills 2.1 0.50 Other Petroleum and
Slide 14: Growth/Diversification Opportunities
Growth/Diversification Opportunities 14 Successful entry into profitable spot blast and foundry coke markets; Non-binding LOI to produce granulated pig iron provides opportunity to further diversify and enter the metallics market Foundry Coke Spot Blast Coke Granulated Pig Iron • Foundry coke is a d
Slide 15: Logistics Overview
Logistics Overview
Slide 16: Advantaged Logistics Facilities
Advantaged Logistics Facilities 16 Strategically located facilities with multimodal connectivity • Gulf Coast facility with direct rail access and cape size loading capabilities • Annual outbound throughput capacity of ~15Mt and storage capacity of ~1.5Mt • Largest export terminal on the U.S. Gulf C
Slide 17: Strategic Network of Low Cost Facilities
Strategic Network of Low Cost Facilities 17 Well Positioned • Strategically located assets with access to barge, rail and truck Domestic Logistics • Provide key logistics services for various metallurgical and thermal coal producers and Facilities consumers • Only dry-bulk, rail-serviced terminal on
Slide 18: Q4 and FY 2024 Financials
Q4 and FY 2024 Financials )
Slide 19: Q4 & FY 2024 Financial Performance
Q4 & FY 2024 Financial Performance 19 Q4 and FY 2024 Earnings Review Q4 2024 EPS of $0.28 per share, up $0.12 versus prior ($/share) ($ in millions) year quarter (1) Diluted EPS Adj. EBITDA • Primarily driven by lower depreciation expense +$0.44 +$4.0 FY 2024 EPS of $1.12, up $0.44 per share from th
Slide 20: Domestic Coke Business Summary
Domestic Coke Business Summary 20 FY 2024 Domestic Coke Adjusted EBITDA driven by lower coal-to-coke yields; lower margins at Granite City and Haverhill for 2025 Domestic Coke Performance (Coke Production, Kt) $234.7M $185M - $192M $61.4M $57.9M $58.1M $57.3M $55.2M 4,033 3,988 1,025 1,031 1,023 583
Slide 21: Logistics Business Summary
Logistics Business Summary 21 FY 2024 Logistics Adjusted EBITDA results driven by higher transloading volumes at domestic terminals and higher API2 price adjustment benefit at CMT; similar year-over-year coal export volumes at CMT and higher volumes at domestic terminals driving 2025 outlook Logisti
Slide 22: FY 2024 Capital Deployment
FY 2024 Capital Deployment 22 Maintained strong liquidity position of $539.6M; cash flow deployed strategically towards operational capital needs and increased dividends to shareholders (Consolidated) 12/31/2023 12/31/2024 Revolver Total Debt $500M $500M Availability: Gross Leverage (1) 1.86x 1.83x
Slide 23: Adjusted EBITDA and FCF Trend
(1) (2) Adjusted EBITDA and FCF Trend 23 (2) (2) Track record of steady Free Cash Flow generation; effective use of FCF for dividends and debt paydown; expect continuation of dividends in 2025 ($ in millions, except per share amounts) $0.44 $0.48 $0.36 $0.28 $0.24 $0.24 $298 $275 $269 $273 $218 $206
Slide 24: 2025 Guidance
2025 Guidance )
Slide 25: 2025 Guidance Summary
2025 Guidance Summary 25 Expect 2025 Consolidated Adjusted EBITDA(1) of $210M - $225M; 2025 Free Cash Flow(2) of $100M - $115M 2024 2025 Metric Results Guidance* (1) Adjusted EBITDA Consolidated $272.8M $210M - $225M Domestic Coke EBITDA $234.7M $185M - $192M Logistics EBITDA $50.4M $45M - $50M Dome
Slide 26: 2025 Domestic Coke Business Outlook
2025 Domestic Coke Business Outlook 26 2025 Domestic Coke Adjusted EBITDA estimated to be $185M - $192M; lower margins at Granite City and Haverhill Domestic Coke Performance 2025 Domestic Coke outlook impacted by Granite City contract extension at lower (Coke Sales, Kt) economics and lower margins
Slide 27: 2025 Logistics Business Outlook
2025 Logistics Business Outlook 27 2025 Logistics Adjusted EBITDA estimated to be $45M - $50M; anticipate similar volumes across the segment year-over-year Logistics Performance 2025 Logistics business outlook similar to 2024 operating performance (Tons Handled, Kt) • Extended the take-or-pay coal h
Slide 28: Appendix
APPENDIX )
Slide 29: Non-GAAP Financial Measures Definitions
29 NON-GAAP FINANCIAL MEASURES In order to assist readers in understanding the core operating results that our management uses to evaluate the business, we describe our non-GAAP measures referenced in this presentation below. In addition to U.S. GAAP measures, this presentation contains certain non-
Slide 30: Balance Sheet & Debt Metrics
Balance Sheet & Debt Metrics 30 As of 12/31/2024 As of 12/31/2023 ($ in millions) Cash $ 190 $ 140 Available Revolver Capacity $ 350 $ 350 Total Liquidity $ 540 $ 490 Gross Debt (Long and Short-term) $ 500 $ 500 Net Debt (Total Debt less Cash) $ 310 $ 360 LTM Adjusted EBITDA $ 273 $ 269 Gross Debt /
Slide 31: 2025 Guidance Reconciliation / Free Cash Flow Reconciliation
2025 Guidance Reconciliation 31 ($ in millions) Low High Net Income $52 $69 Depreciation and amortization expense 121 117 Interest expense, net 26 24 Income tax expense 11 15 Adjusted EBITDA (Consolidated) $210 $225 Free Cash Flow Reconciliation 2024 2025E ($ in millions) Actuals Low High Operating
Slide 32: Net Income to FCF Reconciliation
Net Income to FCF Reconciliation 32 2025E ($ in millions) Low End High End Net Income $52 $69 Depreciation and amortization expense 121 117 Interest expense, net 26 24 Income tax expense 11 15 Adjusted EBITDA (Consolidated) $210 $225 Cash interest, net (23) (21) Cash taxes (17) (21) Total capex (65)
Slide 33: Reconciliation to Adjusted EBITDA
Reconciliation to Adjusted EBITDA 33 ($ in millions) Q4 '23 FY '23 Q1 '24 Q2 '24 Q3 '24 Q4 '24 FY '24 Net Income $ 15.3 $ 63.5 $ 21.1 $ 23.3 $ 33.3 $ 25.8 $ 103.5 Depreciation and amortization expense 35.6 142.8 33.3 28.7 28.1 28.8 118.9 Interest expense, net 6.3 27.3 6.3 5.8 5.7 5.6 23.4 Income tax
Slide 34: Adjusted EBITDA and Adjusted EBITDA per ton
Adjusted EBITDA and Adjusted EBITDA per ton 34 Reconciliation of Segment Adjusted EBITDA and Adjusted EBITDA per Ton Corporate and Domestic Coke Brazil Coke Logistics Consolidated ($ in millions, except per ton data) Other(1) FY 2024 Adjusted EBITDA $234.7 $9.9 $50.4 ($22.2) $272.8 Sales Volume (tho
Slide 35: Historical Reconciliations to Adjusted EBITDA and Free Cash Flow
Historical Reconciliations to Adjusted EBITDA 35 ($ in millions) FY '20 FY '21 FY '22 FY '23 Net Income $ 8.8 $ 48.8 $ 104.9 $ 63.5 Depreciation and amortization expense 133.7 133.9 142.5 142.8 (Gain) Loss on extinguishment of debt, net (5.7) 31.9 - - Interest expense, net 56.3 42.5 32.0 27.3 Income
Slide 36: Steel Production Input Cycle
Steel Production Input Cycle 36 site) Source: Global Efficiency Intelligence, November 2019 report: “An International Benchmarking of Energy and CO2 Intensities”
Slide 37: SunCoke's Cokemaking Process
SunCoke’s Cokemaking Process 37
Slide 38: Foundry Coke Overview
Foundry Coke Overview 38 Foundry coke customers focus on fundamentally different parameters than blast furnace coke customers with respect to coke size and quality Foundry coke is used in cupolas to produce casted iron products for the Construction, Industrial, and Automotive Industries
Slide 39: SunCoke Energy
3 SunCoke Energy”
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