Commercial Metals Company · NYSE:CMC
Commercial Metals — Q3 FY2021 Earnings Presentation
21 slides from Commercial Metals's earnings presentation, Jun 17, 2021
Slide 1: Q3 FY 2021 Supplemental Slides
Q3 FY 2021 SUPPLEMENTAL SLIDES JUNE 17, 2021
Slide 2: Cautionary Statements
CAUTIONARY STATEMENTS This presentation contains or incorporates by reference a number of "forward-looking statements" within the meaning of the federal securities laws with respect to general economic conditions, key macro-economic drivers that impact our business, the effects of ongoing trade acti
Slide 3: A Clear Path to Value Creation
A CLEAR PATH TO VALUE CREATION Q3 FY21 Supplemental Slides | June 17, 2021 3 ✓ Leading positions in core product and geographical markets ✓ Focused strategy that centers on key capabilities and competitive strengths ✓ Vertical structure that optimizes returns for the entire value chain ✓ Strong fina
Slide 4: Key Takeaways from Today's Call
KEY TAKEAWAYS FROM TODAY’S CALL Q3 FY21 Supplemental Slides | June 17, 2021 4 Generated record financial results at the consolidated and segment levels • Record Core EBITDA from continuing operations • Highest-ever adjusted EBITDA for North America and Europe segments Continued execution on in-fligh
Slide 5: Sustainable from the Start, Naturally
Q3 FY21 Supplemental Slides | June 17, 2021 5 SUSTAINABLE FROM THE START, NATURALLY CMC WILL SOON PUBLISH A GREATLY ENHANCED CORPORATE SUSTAINABILITY REPORT Establishes ambitious, environmental targets Expands environmental, social, and governance disclosures Outlines our leadership position on envi
Slide 6: Growth Initiatives and Market Update
• Will utilize current excess melt capacity, adding roughly 200,000 tons of finished steel output • Helps to leverage fixed costs • Expected to add $20 million of annual EBITDA through-the- cycle 3 R D P O L IS H R O L L IN G L IN E • Total capital spending below original budget • Project timing loo
Slide 7: Consolidated Operating Results – Quarterly
155 230 48 36 (10) 1 0 50 100 150 200 250 Q3 2020 North America Segment EBITDA Europe Segment EBITDA Corporate & Eliminations Non-Operating Items Q3 2021 Q3 FY21 Supplemental Slides | June 17, 2021 7 CONSOLIDATED OPERATING RESULTS – QUARTERLY Q3 ’20 Q4 ’20 Q1 ‘21 Q2 ‘21 Q3 ‘21 External Finished Stee
Slide 8: North America – Quarterly
145 150 139 158 173 710 731 697 663 619 385 363 346 351 425 0 20 40 60 80 100 120 140 160 180 200 0 100 200 300 400 500 600 700 800 Q3 ’20 Q4 ‘20 Q1 '21 Q2 '21 Q3 '21 Adjusted EBITDA per Ton of Finished Steel Shipped Downstream Products Margin Over Scrap (1 Qtr Lag) Steel Products Margin Over Scrap
Slide 9: Europe – Quarterly
50 100 150 200 250 300 350 Q3 ’20 Q4 ‘20 Q1 '21 Q2 '21 Q3 '21 Steel Product Margins Over Scrap Controllable Costs Adjusted EBITDA per Ton 38 60 36 46 124 198 196 199 204 288 0 20 40 60 80 100 120 140 100 140 180 220 260 300 Q3 ’20 Q4 ‘20 Q1 '21 Q2 '21 Q3 '21 Adjusted EBITDA per Ton Steel Products Ma
Slide 10: Cash Flow Profile
($4) ($26) ($108) $73 $149 $226 $272 ($150) ($100) ($50) $0 $50 $100 $150 $200 $250 $300 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 LTM Q3 FY'21 ADJUSTED EBITDA LESS CAPITAL EXPENDITURES AND DISBURSEMENTS TO STAKEHOLDERS 1 CMC’s cash flow capabilities have been greatly enhanced through our stra
Slide 11: Balance Sheet Strength
$330 $300 $300 $400 2021 2022 2023 2024 to 2025 2026 2027 2028 to 2030 2031 26 66 150 397 $443 Revolver BALANCE SHEET STRENGTH U.S. Accounts Receivable Facility Poland Credit Facilities Poland Accounts Receivable Facility (US$ in millions) Revolving Credit Facility 5.375% Notes Cash and Cash Equival
Slide 12: Leverage Profile
46% 42% 37% 33% 32% 24% 18% 21% 22% 20% 0% 10% 20% 30% 40% 50% 60% 3.9x 3.2x 2.5x 1.9x 1.6x 1.2x 0.9x 1.1x 1.2x 1.0x NM 0.5x 1.0x 1.5x 2.0x 2.5x 3.0x 3.5x 4.0x 4.5x Source: Public filings, Internal data Notes: 1. Total debt is defined as long-term debt plus current maturities of long-term debt and s
Slide 13: Appendix: Non-GAAP Reconciliations
Q3 FY21 Supplemental Slides | June 17, 2021 13 A P P E N D IX : N O N -G A A P R E C O N C IL IA T IO N S
Slide 14: Return on Invested Capital
3 MONTHS ENDED 5/31/2021 Earnings from continuing operations before income taxes $168,583 Plus: interest expense 11,965 Plus: Acquisition and integration related costs prior to acquisition close – Operating profit $180,548 Operating profit $180,548 Less: income tax at effective rate 40,804 Net opera
Slide 15: Adjusted EBITDA Reconciliation
3 MONTHS ENDED 12 MONTHS ENDED 5/31/2021 2/28/2021 11/30/2020 8/31/2020 5/31/2020 2/29/2020 11/30/2019 5/31/2021 8/31/2020 8/31/2019 8/31/2018 8/31/2017 Earnings from continuing operations $130,408 $66,233 $63,911 $67,782 $64,169 $63,596 $82,755 $328,334 $278,302 $198,779 $135,237 $50,175 Interest e
Slide 16: Adjusted Earnings Reconciliation
3 MONTHS ENDED 12 MONTHS ENDED 5/31/2021 2/28/2021 11/30/2020 8/31/2020 5/31/2020 2/29/2020 11/30/2019 5/31/2021 8/31/2020 8/31/2019 8/31/2018 8/31/2017 Earnings from continuing operations $130,408 $66,233 $63,911 $67,782 $64,169 $63,596 $82,755 $328,334 $278,302 $198,779 $135,237 $50,175 Loss on de
Slide 17: Adjusted Segment EBITDA Margin
3 MONTHS ENDED 5/31/2021 2/28/2021 11/30/2020 8/31/2020 5/31/2020 North America Adjusted EBITDA from continuing operations $207,330 $171,612 $155,634 $174,219 $159,394 North America net sales 1,558,068 1,257,486 1,195,013 1,224,849 1,167,081 North America Adjusted EBITDA Margin 13.3% 13.6% 13.0% 14.
Slide 18: Adjusted EBITDA less Capex and Disbursements
12 MONTHS ENDED 9 MONTHS ENDED 5/31/2021 8/31/2020 8/31/2019 8/31/2018 8/31/2017 8/31/2016 8/31/2015 5/31/2021 5/31/2020 Earnings from continuing operations $328,334 $278,302 $198,779 $135,237 $50,175 $62,001 $58,583 $260,552 $210,520 Interest expense 54,207 61,837 71,373 40,957 44,151 62,121 76,456
Slide 19: Net Debt Reconciliation
3 MONTHS ENDED 5/31/2021 2/28/2021 11/30/2020 8/31/2020 5/31/2020 2/29/2020 11/30/2019 8/31/2019 5/31/2019 2/28/2019 11/30/2018 8/31/2018 5/31/2018 Long-term debt $1,020,129 $1,011,035 $1,064,893 $1,065,536 $1,153,800 $1,144,573 $1,179,443 $1,227,214 $1,306,863 $1,310,150 $1,307,824 $1,138,619 $1,13
Slide 20: Definitions for Non-GAAP Financial Measures
DEFINITIONS FOR NON-GAAP FINANCIAL MEASURES ADJUSTED EARNINGS FROM CONTINUING OPERATIONS Adjusted earnings from continuing operations is a non-GAAP financial measure that is equal to earnings from continuing operations before debt extinguishment costs, certain gains on sale of assets, certain facili
Slide 21: Thank You
THANK YOU CORPORATE OFFICE 6565 N. MacArthur Blvd Suite 800 Irving, TX 75039 Phone: (214) 689.4300 INVESTOR RELATIONS Phone: (972) 308.5349 Fax: (214) 689.4326 IR@cmc.com Q3 FY21 Supplemental Slides | June 17, 2021 21