United States Steel Corporation · NYSE:X
United States Steel — Q1 2022 Earnings Presentation
28 slides from United States Steel's earnings presentation, Apr 28, 2022
Slide 1: First Quarter 2022 Earnings Presentation
First Quarter 2022 Earnings Presentation www.ussteel.com April 28, 2022
Slide 2: Forward-looking statements
Forward-looking statements These slides are being provided to assist readers in understanding the results of operations, financial condition and cash flows of United States Steel Corporation as of and for the first quarter 2022. Financial results as of and for the periods ended March 31, 2022 provid
Slide 3: Explanation of use of non-GAAP measures
Explanation of use of non-GAAP measures We present adjusted net earnings, adjusted net earnings per diluted share, earnings (loss) before interest, income taxes, depreciation and amortization (EBITDA) and adjusted EBITDA, which are non-GAAP measures, as additional measurements to enhance the underst
Slide 4: Bullish for 2022 and advancing towards our Best for All future
CURRENT LANDSCAPE CHALLENGES SOLUTION PATH FORWARD Bullish for 2022 and advancing towards our Best for All future Delivering on Best for All Transitioning to a less capital and carbon intensive business model while becoming the best steel competitor Expanding competitive advantages Balanced capital
Slide 5: Advancing towards our Best for All future
ADVANCING TOWARDS OUR BEST FOR ALL FUTURE
Slide 6: Balanced approach to capital allocation
6 6 Advancing towards our Best for All future Balanced approach to capital allocation INVESTING: Unlocking future earnings power with strategic projects Disciplined and efficient approach to value creation REWARDING: Returning excess capital to stockholders
Slide 7: Unlocking future earnings power
7 7 Advancing towards our Best for All future Unlocking future earnings power LOW-COST IRON ORE MINI MILL STEELMAKING BEST-IN-CLASS FINISHING CAPABILTIES GARY WORKS PIG IRON Expanding our low-cost iron ore advantage to our Mini Mill segment 1 NGO = Non-grain oriented MINI MILL #2 Furthering our pres
Slide 8: Delivering benefits beginning in 2023
8 8 Advancing towards our Best for All future Delivering benefits beginning in 2023 MINI MILL #2 MINI MILL STEELMAKING $650M Run-rate EBITDA by ‘26 NGO STEEL BEST-IN-CLASS FINISHING $140M Run-rate EBITDA by ‘26 COATING LINE BEST-IN-CLASS FINISHING $60M Run-rate EBITDA by ‘26 $15M 20252024 $830M 2022
Slide 9: Fully-funded Best for All strategic projects
9 9 Advancing towards our Best for All future Fully-funded Best for All strategic projects ~$3.8B ~$5.3B NGO electrical steel Mini Mill #2 BRS coating line Q1 2022 Cash & Liquidity Strategic Capex (Gary Pig + MM#2 + BRS NGO + BRS Coating) Q1 2022 Cash Q1 2022 Credit facilities De-risked strategy exe
Slide 10: Balanced approach to capital allocation
10 10 Advancing towards our Best for All future Balanced approach to capital allocation INVESTING: Unlocking future earnings power with strategic projects Disciplined and efficient approach to value creation REWARDING: Returning excess capital to stockholders
Slide 11: Returning excess capital to stockholders
11 11 Advancing towards our Best for All future Returning excess capital to stockholders $800M $300M stock buyback (announced Oct. ’21) $500M stock buyback (announced Jan. ’22) $150M Completed as of 12/31/2021 YE 2021 Credit facilities $123M Completed in 1Q 2022 $0.05 per share Quarterly dividend Qu
Slide 12: First Quarter 2022 Update
FIRST QUARTER 2022 UPDATE
Slide 13: Improving on record safety performance
First quarter 2022 update Improving on record safety performance 0.10 0.07 0.06 0.04 2019 2020 2021 YTD 2022 BLS - Iron & Steel: 0.70 Benchmark 1 : OSHA Days Away from Work 2 Safety first: Consecutive years of record-setting performance 131 BLS – Iron & Steel 2020 data. 2 Occupational Safety and Hea
Slide 14: Financial updates
Reported Net Earnings (Loss) $ Millions Profit Margin: $283 $964 $1,543 $1,038 $891 1Q 20221Q 2021 2Q 2021 3Q 2021 4Q 2021 Adjusted Net Earnings (Loss) $ Millions Adjusted Profit Margin: $362 $1,084 $1,831 $1,524 $1,139 1Q 20221Q 2021 2Q 2021 3Q 2021 4Q 2021 Segment EBIT1 $ Millions Segment EBIT Mar
Slide 15: EBITDA Bridge
EBITDA Bridge $ Millions, 4Q 2021 vs. 1Q 2022 EBITDA Margin: 11% 32%23% $266 $703 $1,135 $1,017 $636 1Q 20224Q 20212Q 20211Q 2021 3Q 2021 30% $636 $22 Commercial $1,017 4Q 2021 ($197) ($79) Raw Materials Operating Costs ($127) Other 1Q 2022 Commercial: The unfavorable impact is primarily the result
Slide 16: Mini Mill segment
Segment EBITDA $ MillionsOperating Statistics EBITDA Bridge $ Millions, 1Q 2021 vs. 1Q 2022 Mini Mill segment1 Key statistics EBITDA Bridge $ Millions, 4Q 2021 vs. 1Q 2022 $407 $318 Raw Materials 4Q 2021 ($120) Commercial $23 Operating Costs ($6) $14 Other 1Q 2022 Commercial: The unfavorable impact
Slide 17: U. S. Steel Europe segment
Segment EBITDA $ MillionsOperating Statistics EBITDA Bridge $ Millions, 1Q 2021 vs. 1Q 2022 $130 $287 $465 ($146) 1Q 2021 Commercial OtherRaw Materials ($39) ($123) Operating Costs 1Q 2022 Other: The unfavorable impact is primarily the result of increased energy costs, the weakening of the Euro vs.
Slide 18: Tubular segment EBITDA bridge
EBITDA Bridge $ Millions, 1Q 2021 vs. 1Q 2022 ($17) $89 1Q 2021 Raw Materials ($3) Commercial $115 ($8) Operating Costs $2 Other 1Q 2022 Commercial: The favorable impact is primarily the result of higher average realized prices, partially offset by increased levels of low-priced imports. Raw Materia
Slide 19: Utilization rates impacted by planned outages
First quarter 2022 update Utilization rates impacted by planned outages ~77% Adjusted Raw Steel Utilization NA Flat-rolled segment Adjusted for Granite City ‘B’ blast furnace planned outage and indefinitely idled Granite City ‘A’ blast furnace capacity U. S. Steel Europe segment ~100% Adjusted Raw S
Slide 20: Global operating footprint
45-day planned outage underway at Gary BF #8 Operating Indefinitely Idled N o rt h A m e ri c a n F la t- ro ll e d T u b u la r E u ro p e MinntacIron ore pellets Keetac – 22.4 Cokemaking Clairton – 4.3 Gary BF #4 BF #6 BF #8 BF #14 – 7.5 Granite City BF ‘A’ BF ‘B’ 1.4 2.8 Great Lakes2 – – Mon Vall
Slide 21: Cash and liquidity
Cash and liquidity $938 $682 $138 $4,090 $771 YE 2019YE 2018 YE 2020 YE 2021 1Q 2022 Cash from Operations $ Millions Cash and Cash Equivalents $ Millions Total Estimated Liquidity $ Millions Net Debt $ Millions $1,000 $749 $1,985 $2,522 $2,866 YE 2019YE 2018 YE 2020 YE 2021 1Q 2022 $2,830 $2,284 $3,
Slide 22: Appendix
(ss) APPENDIX
Slide 23: Additional Big River Steel summary data
Additional Big River Steel summary data In c o m e S ta te m e n t B a la n c e S h e e t C a s h F lo w Customer Sales 1Q 2022 Intersegment Sales Net Sales EBIT1 $718M $130M $848M $278M Total Assets $4,850M Depreciation and Amortization Capital Expenditures3 $40M $73M 2029 senior secured notes $720
Slide 24: Segment EBITDA reconciliation
Flat-rolled ($ millions) 1Q 2021 2Q 2021 3Q 2021 4Q 2021 1Q 2022 Segment earnings before interest and income taxes $146 $579 $1,015 $890 $513 Depreciation 120 124 120 127 123 Flat-rolled Segment EBITDA $266 $703 $1,135 $1,017 $636 U. S. Steel Europe ($ millions) 1Q 2021 2Q 2021 3Q 2021 4Q 2021 1Q 20
Slide 25: Reconciliation of net debt
Net Debt ($ millions) YE 2018 YE 2019 YE 2020 YE 2021 1Q 2022 Short-term debt and current maturities of long-term debt $65 $14 $192 $28 $60 Long-term debt, less unamortized discount and debt issuance costs 2,316 3,627 4,695 3,863 3,917 Total Debt $2,381 $3,641 $4,887 $3,891 $3,977 Less: Cash and cas
Slide 26: Reconciliation of reported and adjusted net earnings
Reconciliation of reported and adjusted net earnings ($ millions) 1Q 2021 2Q 2021 3Q 2021 4Q 2021 1Q 2022 Reported net earnings attributable to U. S. Steel $91 $1,012 $2,002 $1,069 $882 Debt extinguishment 255 ─ 26 10 ─ Asset impairment charges ─ 28 ─ 245 ─ Restructuring and other charges 6 31 ─ 91
Slide 27: Reconciliation of adjusted EBITDA
Reconciliation of adjusted EBITDA ($ millions) 1Q 2021 2Q 2021 3Q 2021 4Q 2021 1Q 2022 Reported net earnings attributable to U. S. Steel $91 $1,012 $2,002 $1,069 $882 Income tax provision (benefit) 1 (37) 260 (54) 246 Net interest and other financial costs 333 59 80 130 (10) Reported earnings before
Slide 28: Investor Relations
INVESTOR RELATIONS Kevin Lewis Vice President 412-433-6935 klewis@uss.com Eric Linn Director 412-433-2385 eplinn@uss.com www.ussteel.com @USS_Investors