Cleveland-cliffs Inc. · NYSE:CLF

Cleveland-cliffs — Q3 2024 Earnings Presentation

18 slides from Cleveland-cliffs's earnings presentation, Nov 5, 2024

1. Slide 1: Third-Quarter 2024 Earnings Presentation

   CLEVELAND-CLIFFS INC. Third-Quarter 2024 Earnings Presentation November 4, 2024 © 2024 Cleveland-Cliffs Inc. All Rights Reserved.

2. Slide 2: Forward-Looking Statements

   FORWARD-LOOKING STATEMENTS This presentation contains statements that constitute "forward-looking statements" within the meaning of the federal securities laws. All statements other than historical facts, including, without limitation, statements regarding our current expectations, estimates and pro

3. Slide 3: Q3 2024 Highlights

   Q3 2024 HIGHLIGHTS Closed Stelco Transaction on November 1, 2024 $4.6 billion Revenues 3.8 million tons Steel Shipments $124 million Adjusted EBITDA1 $218 million Pro Forma Q3 USD Adjusted EBITDA (with synergies) $40 per ton Cost Reduction Quarter-Over-Quarter $3.8 billion Liquidity as of 9/30/24 3

4. Slide 4: Q3 2024 End Market and Product Overview

   Q3 2024 END MARKET AND PRODUCT OVERVIEW 11% 14% Slab, Rail, Other Steel Producers 28% 30% Direct 4% Coated Automotive Plate (primarily End galvanized) Product Market 26% Mix Infrastructure & Mix Manufacturing 36% Hot-Rolled 17% Cold-Rolled 30% Distributors & 4% Converters Stainless & Electrical High

5. Slide 5: Results Trend

   RESULTS TREND Steelmaking External Sales Volumes Adjusted EBITDA1 4.1 4.0 4.0 $614 3.9 3.8 Net Tons (Millions) $414 Millions $323 $279 $124 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Steelmaking Average Selling Price SG&A $162 $1,203 $1,175 $144 $1,125 $132 Dolla

6. Slide 6: Near Term Priorities

   NEAR TERM PRIORITIES Five key management focus items Focus on cost and operating efficiencies $40 per ton reduction quarter-over-quarter in Q3 2024 Maximize commercial strengths Continue to emphasize automotive market while diversifying geographically Benefit from Stelco cost structure TOPCapitalize

7. Slide 7: Lower 2025 Capex Target

   LOWER 2025 CAPEX TARGET Cliffs’ Standalone (excluding Stelco) Capex Significant Repair & Maintenance Cycle Completed 2025 Capex Target $943  $600 million targeted total standalone capex  Updated strategic capital timeline and refined spend $705 estimates Dollars in Millions $646 $600-$650 $600  R

8. Slide 8: Stelco Transaction Timeline

   STELCO TRANSACTION TIMELINE Stelco transaction closed on November 1, 2024 Stelco U.S. DOJ Competition Investment Stelco Shareholder Antitrust Canada Act Canada Act Transaction Vote Close Completed Completed Completed Completed November 1, (99.97%) 2024 Post Acquisition Priorities • Take advantage of

9. Slide 9: Q3 2024 Highlights (Stelco)

   Q3 2024 HIGHLIGHTS US $480 million Revenues 639 thousand tons Steel Shipments US $725 per net ton Average Selling Price US $64 million Adjusted EBITDA 13% Adj. EBITDA Margin US $32 million Capital Expenditures 9 © 2024 Cleveland-Cliffs Inc. All Rights Reserved.

10. Slide 10: Updated Operational Footprint

    UPDATED OPERATIONAL FOOTPRINT United Taconite Hibbing Northshore Minorca Tilden MI MN Ontario WI Hamilton Works MI NY Lake Erie Windsor & Ontario Works FPT FPT Ontario Cleveland-Cliffs Headquarters (Cleveland)Hibbing Taconite Mine Dearborn Michigan Dearborn (85.3% owned) Burns Harbor Plate & PA Gary

11. Slide 11: Premier and Dynamic North American Steel Producer

    PREMIER AND DYNAMIC NORTH AMERICAN STEEL PRODUCER 2023 US & Canada Shipments – Top Steel Producers (million net tons) Includes flat and long products 23.3 19.0 12.8 11.6 (1) 6.5 5.0 3.0 2.9 2.2 (2) 1.7 Pro Forma Source: Company Filings | Note: (1) Based on AM NA total shipments of 11.6 million net t

12. Slide 12: Stelco's Industry Leading Cost Advantages

    STELCO’S INDUSTRY LEADING COST ADVANTAGES Five key drivers of Stelco’s cost advantage: Iron Ore Optimal Currency Healthcare Low Energy Supply Operating Advantage Costs Rates Agreement Layout • Favorable-cost • Favorable • Benefits from • Lake Erie Works • Favorable pellet agreement CAD/USD Canada’s

13. Slide 13: Substantial Cost Synergy Opportunities

    SUBSTANTIAL COST SYNERGY OPPORTUNITIES ~$120 million in annual savings with no impact to union jobs Primary Opportunities  Use of excess low-cost coke within U.S. footprint  Increased efficiency at low-cost Lake Erie Works with HBI use in BF & BOF  Optimization of overlapping capabilities and mat

14. Slide 14: Balance Sheet

    BALANCE SHEET Flexibility to execute strategic, operational and financial opportunities Liquidity Secured Leverage Capacity Target (Net debt / TTM Adj. EBITDA) $3.8 Billion ~$2 Billion 2.5x 5-Year Debt Maturity $685 No near-term maturities with In Millions clear runway until 2027 ABL Facility $47 20

15. Slide 15: Cash Flow From Operations Since 2022

    CASH FLOW FROM OPERATIONS SINCE 2022 Balanced Approach In Use Of Cash Flow Uses of Cash Flow From Operations From Operations $1.5 billion Reduced net debt by $1.5 billion Net Debt Reduction / Cash Build $2.1 billion Capex Includes 2022 capex of $943 million $5.3 during peak repair & maintenance cycl

16. Slide 16: Pension and OPEB Liability Reduction

    PENSION AND OPEB LIABILITY REDUCTION $3.8 billion reduction in pension/OPEB net liabilities since AM USA acquisition Historical Net Pension and OPEB Liabilities $4,207 91% $4,007 $3,931 reduction $3,847 since 2021 $2,872 $2,784 $2,702 Net Liabilities in $ Millions $2,495 $813 $778 $747 $717 $586 $54

17. Slide 17: Cleveland-Cliffs' Adjusted EBITDA Reconciliation

    CLEVELAND-CLIFFS’ ADJUSTED EBITDA RECONCILIATION Three Months Ended September 30, June 30, March 31, December 31, September 30, ($ in millions) 2024 2024 2024 2023 2023 Net income (loss) $(230) $9 $(53) $(139) $275 Less: Interest expense, net (102) (69) (64) (63) (70) Income tax benefit (expense) 76

18. Slide 18: © 2024 Cleveland-Cliffs Inc. All Rights Reserved.

    © 2024 Cleveland-Cliffs Inc. All Rights Reserved.

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