United States Steel Corporation · NYSE:X
United States Steel — Q4 2019 Earnings Presentation
16 slides from United States Steel's earnings presentation, Jan 31, 2020
Slide 1: Fourth Quarter & Full Year 2019 Earnings Call
Fourth Quarter & Full Year 2019 Earnings Call David Burritt President and Chief Executive Officer Christie Breves Senior Vice President and Chief Financial Officer Rich Fruehauf Senior Vice President, Chief Strategy and Development Officer Kevin Lewis General Manager, Investor Relations January 31,
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 for the fourth quarter and full year of 2019. They should be read in conjunction with the consolidated financ
Slide 3: Explanation of Use of Non-GAAP Measures
Explanation of Use of Non-GAAP Measures We present adjusted net earnings (loss), adjusted net earnings (loss) 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 enhan
Slide 4: Reasons We Are Confident
Reasons We Are Confident OUR MARKET VIEW OUR FOCUS ON CASH OUR U. S. STEEL TEAM 4
Slide 5: Significant Actions Taken in 2019 to Support Strategy Execution
Significant Actions Taken in 2019 to Support Strategy Execution ✓ Set all-time best safety records ✓ Strengthened customer relationships ✓ Announced significant investments in “best of both” technology ✓ Raised $1.1 billion to support nimble execution ✓ Reduced fixed costs ✓ Announced GHG1 emissions
Slide 6: Current Market Conditions
Current Market Conditions Flat-rolled U. S. Steel Europe Tubular ▪ Market has bottomed ▪ Improving prices ▪ Limited catalysts for improved market activity Current ▪ Order book is healthy ▪ Greater market activity at this time Market Conditions ▪ Demand to remain solid ▪ Better supply/demand balance
Slide 7: Keys to Execution in 2020
Keys to Execution in 2020 Remain nimble Advance Transition and preserve strategic footprint optionality projects 7
Slide 8: Fourth Quarter 2019 Financial Highlights
Fourth Quarter 2019 Financial Highlights Flat-rolled Adjusted EBITDA1 $ Millions $167 • Total fourth quarter adjusted EBITDA1 of $4 million, ahead of our guidance $42 on December 19 Adjusted 3Q 2019 4Q 2019 1 EBITDA 7% 2% Margin: • Quarter performance ~$30 million U. S. Steel Europe Adjusted EBITDA1
Slide 9: Our Priorities for the Balance Sheet
Our Priorities for the Balance Sheet Maintain Debt Maturity Strong Financial Profile Liquidity Flexibility Management Targeting at least … to support continued $1.5 billion of total liquidity execution of our “best of No significant notes at any point throughout both” strategy throughout maturities
Slide 10: Our Current View of the First Quarter
Our Current View of the First Quarter • Seasonality of mining • Lower Flat-rolled shipments in 1Q 2020 vs. 4Q 2019 to prepare for the blast furnace #4 outage in April • Full quarter impact of our portion of Big River Steel’s depreciation and amortization and net interest expense 10
Slide 11: Recap
Recap • Confident in our future • Delivered in 2019 to support strategy execution • Focused on executing in 2020 11
Slide 12: Q & A
Q & A
Slide 13: | Forbes 2019
| Forbes 2019 | GLOBAL oT WORLD'S BEST f EMPLOYERS 2000 5 BESTI PLACES TO WORK | pee 2020 | for LGBTQ Equality | ime 100% CORPORATE EQUALITY INDEX f° |
Slide 14: Reconciliation of Segment EBITDA
Reconciliation of Segment EBITDA Segment EBITDA – Flat-rolled 3Q 2019 4Q 2019 ($ millions) Segment earnings before interest and income taxes $46 ($79) Depreciation 121 121 Flat-rolled Segment EBITDA $167 $42 Segment EBITDA – U. S. Steel Europe 3Q 2019 4Q 2019 ($ millions) Segment earnings before int
Slide 15: Reconciliation of Adjusted EBITDA
Reconciliation of Adjusted EBITDA ($ millions) 3Q 2019 4Q 2019 Reported net earnings attributable to U. S. Steel ($84) ($680) Income tax provision (44) 233 Net interest and other financial costs 48 71 Reported earnings before interest and income taxes ($80) ($376) Depreciation, depletion and amortiz
Slide 16: Investor Relations
INVESTOR RELATIONS Kevin Lewis General Manager 412-433-6935 klewis@uss.com Eric Linn Manager 412-433-2385 eplinn@uss.com www.ussteel.com