Suncoke Energy, Inc. · NYSE:SXC
Suncoke Energy — Non-Deal Roadshow (March 2015)
39 slides from Suncoke Energy's roadshow presentation, Mar 2, 2015
Slide 1: Investor Meetings March 2015
Exhibit 99.1 Exhibit2015 Investor March 99.1 Meetings
Slide 2: Forward-Looking Statements
Forward-Looking Some 1934, (SXC) and growth historical “should” Although plans, SXC Commission statement. their statements after This are 1Investor provided on presentation the entirety and as of intentions or information opportunities, Meetings date amended. the or SXCP, SunCoke facts management Fo
Slide 3: SXC and SXCP
SXC andMeetings 2Investor SXCP – March 2015
Slide 4: Who We Are
WHO WE 3Investor Meetings ARE – March 2015
Slide 5: Role of General Partner and SXCP Capitalization
Role ofGeneral SXCP Capitalized Allocate Long-term, Significant Access 4Investor to SXC Meetings capital debt growth fee-based, toand finance and Partner toSXCP –shareholders opportunities equity March and take-or-pay & 56% markets develop 2015 LP via via owner contracts growth dividends acquisition
Slide 6: Business Platforms: Cokemaking, Coal Logistics, Industrial Materials
Business Raw Current Future Coal Cokemaking Industrial 6.3M 4.2M Fee-based, Technology Strategically Fee Long-term Actively 5Investor per materials Logistics tons Platforms ton Business Meetings pursuing Verticals Materials total in customer take-or-pay handled, meets located U.S. processing global
Slide 7: Our Operations
Our Operations Lake Indiana Coke Advantaged Support KRT Granite Vitoria, Jewell Middletown Coal Haverhill 114M *Odisha, SXC SXCP 6Investor Segment Operations Mining* –Terminal Plant tons Coke 3City Harbor Brazil India strategic Meetings Terminals 21classified of located Characteristics inbound reser
Slide 8: Strategic Customers and Our Assets
Strategic Our Asset Customer Primary Indiana Ashland Middletown Comment Granite Cleveland One Construction Auto $19 Largest $64 Installing 7Source: million cokemaking ofSupported the BF Harbor City Company Product Customer new most in BFwestern casters reline productive Line assets websites, Blast i
Slide 9: Cokemaking: Secure, Fixed-Fee Contract Model
Cokemaking Secure, Fixed Termination Avg. Pass-through Cost SunCoke Significantly (1) notice 8Investor AKof Remaining Fee and Steel Coal long-term Meetings Contract -pay Take-or-Pay Provisions contract -Business minimizes provisions: Coal significant Contract take-or-pay –Attributes Blending March a
Slide 10: Coal Logistics Platform
Coal Logistics Platform Strategically Experienced Broadening 9Investor Meetings forcustomer Growth management located complements – March assets baseteam diversifies with 2015 ourcapable access cokemaking credit to ofbarge, driving and business market rail growth and and risk truck broadens exposure
Slide 11: Key Investment Considerations
Key Investment Stable, Long-term, Strong Essentially Potential Pursuing Visible Executing Effective SXC Investor 10 returned Balance Long-Term Dropdown Meetings Growth raw Capital transition no fee-based, materials nearly net Sheet Considerations Allocation Opportunities debt –Structure Cash March t
Slide 12: Growth Strategy
GROWTH Investor 11 Meetings STRATEGY – March 2015
Slide 13: Transformational Growth Strategy
Transformational Fuel Capitalize Replicate Leading Investor 12 our raw Meetings steel business onmaterials strengths customers Strategy –model March processing inwith raw 2015 coke materials and andhandling power processing company and handling
Slide 14: Broadening SunCoke's M&A Universe
Broadening SunCoke’s M&A There SunCoke Strategic Financial Leverage Actionable Provide Stable Qualifying Near Ability Investor 13 term are Guardrails cash to platform Meetings Fit has can manufacturing/logistics Fit acompete actionable income Growth significant flow our broadened beGrowth an with fo
Slide 15: New Platforms Pursuing Examples
New Platforms Pursuing Examples Activated Carbon Industrial Calcined Salt Limestone Wood Soda Continued Investor 14 Ash/Bicarb Pellets Black Meetings Coke M&A Clays Carbon of pursuit development New for across Verticals of –Growth March coal a of range handling/logistics steel-facing 2015of material
Slide 16: Value Growth: GP/LP Cash Flow Opportunity
Value Growth GP/LP $400M Drop Receive SXCP $0.01-$0.03 SXC LP: GP/IDR: for Greenfield M&A Significant (1) price 50/50 GP/IDR Investor 15 each illustrative Greenfield $2M $1M receives /down of debt-public at acquires interest Cash to Opportunity on-going $400M-$500M Meetings cash SXCP Growth $6M $2M
Slide 17: Guidance and Distribution Outlook
GUIDANCE Investor 16 Meetings AND–DISTRIBUTION March 2015 OUTLOOK
Slide 18: Consolidated 2015 Guidance Summary
Consolidated 2014 Metric 2015 Adjusted $237.8 $225 Capital ~$125 ~4.2 $59 $7.0 ~$90 ~4.3 $55—$60 $10—$15 (1) Investor 17 Please /million Actual Guidance – ton million million million $245 Expenditures Meetings $112.3 EBITDA(1) see / ton million tons million Guidance appendix $210.7 $125—$145 million
Slide 19: GP/LP Distributions With and Without Dropdowns
GP/LP ($ Without $350M $80M $57M $47M $12 $68 $52 No $44 High-end With Expect –~$100M 2015E—2017E Assumes 2014A LP GP w/ Investor 2017E 18Will in Dropdowns Distributions Dropdowns /-IDRs millions) Dropdowns $14 $76 $55 -balance Distribution significant after-tax to $90M $62M dropdowns, Meetings Adj.
Slide 20: Dropdown Strategy: Executing
Dropdown Executing Completed Initiated –Expect Considerable Investor 19Anticipate Bias towards ExpecttoMeetings quarterly toexecute against Strategy two resize remaining flexibility moving dropdowns at and strategy dividend – March least structure SXC faster toone support tosince 2015 per senior dro
Slide 21: Total Cash Return Yield
Total 500 2.6% 4.6% SXC 12.1% 0.0% 5.0% 10.0% 15.0% Russell Cash Note: SXC’s S&P Investor 20 Capital return Cash top dividend 2000 Meetings (Average) & quartile Return Russell yield Allocation (Average) yield defined Yield –cash 2000 March is yield annualized dividend repurchase as2015 sum demonstra
Slide 22: SXCP Distribution Growth
Investors SXCP ($/unit) $0.4125 +14% +42% 7th $0.5275 $0.5150 0.5000 $0.4750 $0.4325 $0.4225 $0.3071 May $0.5854 $0.5408 (1) Total If Initial (3) Investor 21 company Distribution Based consecutive ‘13 3-year distribution Distribution MQD(2) Meetings Aug have ondid has CAGR 2015 ‘13 benefitted not qu
Slide 23: Shareholder Value Creation
Shareholder Pursue Acquire Organic Inorganic Capital Optimize Investor 22 organic Optimization Projects industrial-facing Meetings capital Platforms Value value growth structure creation –Creation March projects processing and via 2015allocation organic in steel andand value-chain handling inorganic
Slide 24: Appendix
Investor Meetings – March 2015 APPENDIX 23
Slide 25: Definitions
Definitions taxes, reduction not measure measures be EBITDA Adjusted related Legacy Investor 24 considered be depreciation, considered costs Costs Meetings of represents EBITDA, EBITDA/Ton EBITDA and inthe sales reclassified because equals aoperating substitute and alternatives –from represents woul
Slide 26: Definitions
Definitions plus measure SXCP’s unitholders; the We net Distributable Additionally, companies, Ongoing improves of Replacement estimated estimate approved Investor 25 calculating viability income, believe amounts operating ability Meetings that will capital by the based that thereby operating of our
Slide 27: SXC Guidance and Reconciliations
SXC GUIDANCE Investor 26 Meetings –AND March RECONCILIATIONS 2015
Slide 28: 2015E Adjusted EBITDA Guidance Reconciliation
2015E ($ Low Net expense Adjustment $190 (1) (2) Investor 27 inRepresents (75) Income High millions) $210 Guidance 2015E (80) 12 Meetings 20 to $21 Adjusted unconsolidated Legacy Adjusted SunCoke’s $38 Reconciliation – March Subtract: EBITDA expense EBITDA share 2015 affiliate Net 15 attributable of
Slide 29: Capital Expenditures
Capital 2014 Indiana Ongoing: 2015 ($ Ongoing Expansion Environmental Total (1) (2) (3) (4) Investor 28 inConsolidated Represents Includes millions) Capex Expected CapEx Expenditures Harbor Meetings (2) (4) Discontinued 4 ongoing 10$3M $27 $28 0from (Consolidated) 64SXC SXCP Project Capex Refurbishm
Slide 30: Balance Sheet and Cash Metrics
Asin Balance ($ Cash Total Full 2.3x (1) (2) Investor 29 Assumes of Represents Year 3.1x millions) $139 Debt 12/31/2014 Sheet Balance Meetings Adj. 0.0x (Long $33 full EBITDA & FY $106 effect SXC Debt and Proforma –2014 March $188 Short-term) Attributable Metrics offrom Adjusted Granite $82 2015 Pos
Slide 31: SXCP Guidance and Reconciliations
SXCP GUIDANCE Investor 30 Meetings – AND MarchRECONCILIATIONS 2015
Slide 32: SXCP 2015 Outlook
Distributable 2015 ($ Adjusted Ongoing Estimated Total 1.08x Coke Coal (1) (2) (3) Investor 31 inTotal Cash 2015 millions, Tons Logistics Outlook distribution Operating Sales 1.19x Meetings guidance tax distribution capital EBITDA Distributable Distributions(2) Handled Tons impact cash except Operat
Slide 33: Expected 2015E Reconciliation
Expected 2015E ($ Net Depreciation Interest Income EBITDA Adjusted Ongoing Less: Replacement Cash Distributable (1) for (2) Investor 32 in Adjusted 2015E Cash Income millions) Taxes(2)(1)(1) interest 2015E expense, tax Meetings tax capex attributable EBITDA 2015E post expense $impact EBITDA and accr
Slide 34: Additional Information About SunCoke, Our Technology and Coke Demand
ADDITIONAL AND Investor 33 COKE Meetings DEMAND INFORMATION – March 2015 ABOUT SUNCOKE, OUR TECHNOLOGY
Slide 35: SXC/SXCP Organizational Structure
SXC/SXCP 2% SXC Commercial Environmental Preferential First Domestic International Coal Lake KRT Cokemaking Middletown Haverhill Granite Indiana Jewell *Investor 34Segment GP rights Mining* Logistics owns: provides Terminal Coke interest City Harbor Meetings (98% (2% Coke classified torights Organiz
Slide 36: SunCoke's Industry-Leading Cokemaking Technology
SunCoke’s Our Industry-leading Leverage Convert Generate Investor 35 industry-leading waste Meetings about negative Cokemaking heat 9environmental MW–pressure into March cokemaking ofsteam Technology electric 2015 to substantially and signature power technology electrical per reduce 110,000 power me
Slide 37: Coke Market Outlook
Coke Expect Domestic Industry Stable Forecast Expected 62 38 05(Mt 20 40 60 80 100 [Graphic 47 2008 22 31 34 33 35 37 0% 20% 40% 60% 80% 100% 59 57 55 52 51 50 Capacity EAF BF/BOF Source: Investor 36 1 Production) market 2009 Market BF/BOF stable AISI, Meetings Outlook stable Appears Utilization sta
Slide 38: U.S. Coke Market Dynamics
Coke Macro U.S. Industry By-product Early Alternative –Recent (Mtpa 645.0 -40 Battery Source: Investor 37Represents Meter 4.5 -95 &Market 6-meter capacity) thesis 4.0 coke Canada Age -1410 CRU By-product Meetings Outlook 3.5 coke battery playing ~1.3 Dynamics Met. -1915 battery 3.0 Coke projects bat
Slide 39: Coke in Blast Furnace Steelmaking
Iron Flux Best Natural Coal Fuel Most Top Blast BFs Coke 1We Investor 38short believe Gas are Iron Coke in Limestone Up Furnaces Furnace efficient iston Class Class(lbs/st) Gas amost Meetings to Ore/Pellets vital 600 of 80-120 stronger, Up (lbs/st) efficient hot Steelmaking BFs material and to 30met