Algoma Steel Group Inc. · NASDAQ:ASTL
Algoma Steel — Q4 FY2024 Earnings Presentation
18 slides from Algoma Steel's earnings presentation, Jun 21, 2024
Slide 1: Earnings Call Presentation
NASDAQ:ASTL Earnings Call Presentation TSX: ASTL For the Quarter & Fiscal Year ended March 31st, 2024 June 21st, 2024 in Canadian dollars unless otherwise noted
Slide 2: Disclaimer
Disclaimer CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS This presentation contains “forward-looking information” under applicable Canadian securities legislation and “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 (collectivel
Slide 3: Earnings Call Agenda
Earnings Call Agenda Safety Performance Today’s Presenters: Financial Performance Michael Garcia Chief Executive Officer Strategic Update Rajat Marwah Market Update Chief Financial Officer Questions & Answers 2
Slide 4: Safety Without Compromise
Safety Without Compromise Continued Focus and Improvement in Lost Time Injury Frequency Rate (LTIFR)1 Health & Safety Performance 1.30 • Ongoing commitment to superior Health & Safety performance has led to sustained improvement of safety metrics over time • Health & safety remains our highest prior
Slide 5: Key Performance Highlights
Key Performance Highlights Q4 FY2024 - Ended March 31st, 2024 • Shipping Volume was 451K NT in Q4 FY2024, down 13% from 516K NT in Q3 FY2024 and down 21% from 572K NT in Q4 FY2023. • Steel Revenue was $568 million in Q4 FY2024, up 2% from $557 million in Q3 FY2024 and down 7% from $609 million in Q4
Slide 6: Fourth Quarter Financial Highlights
Fourth Quarter Financial Highlights Algoma Q4 FY2024 Quarterly Adjusted EBITDA Margin was 6.7% Source: Company Q4 & Full Year FY2024 Management's Discussion and Analysis 5 Adjusted EBITDA and Adjusted EBITDA margin are non-IFRS financial measures. See Annex: Adjusted EBITDA Reconciliation on Slide 1
Slide 7: Full Year Financial Highlights
Full Year Financial Highlights Source: Company Q4 & Full Year FY2024 Management's Discussion and Analysis 6 Adjusted EBITDA and Adjusted EBITDA margin are non-IFRS financial measures. See Annex: Adjusted EBITDA Reconciliation on Slide 15
Slide 8: Overview of Net Working Capital Seasonality
Overview of Net Working Capital Seasonality Net Working Capital $M1 $ 573 $ 589 $ 588 $ 568 $ 641 $ 687 $ 762 $ 623 $ 633 $ 825 $ 926 $ 875 $ 815 $ 849 $ 897 $ 830 $1,250 $1,050 $850 $823 $887 $650 ($ millions) $808 $616 $486 $866 $912 $759 $450 $480 $638 $723 $470 $415 $250 $489 $490 $525 $409 $435
Slide 9: Construction Update
Construction Update 20 foot diameter duct installation View of scrap bay and B/C aisle - New Facilities Assembly of EAF bottom shell Project Statistics2: By the numbers2: Concrete Cumulative 22,033 cu/m Dust Hoods EAF Substation Spending $563M Structural steel 100% complete 98% complete 11,000 tons
Slide 10: Plate Mill Modernization Update
Plate Mill Modernization Update Algoma’s Path to Higher Plate Production Plate 1 - Quality Focus ✓ New Primary De-scaler (improves surface quality) ✓ Automated Surface Inspection System, detects and maps quality ✓ New Hot Leveler (improves flatness) ✓ Automation Upgrade of the 166 Mill (expands grad
Slide 11: Market Update
Market Update North American HRC and plate pricing decline over Q4 and into Q1 Historical Hot Rolled Coil (HRC) and As Rolled Plate Prices (ARP) (US$/ton) Key Market Drivers $2,200 • Index HRC decreased approx. 36% ($399/NT) from CRU Index HRC / ARP highs in January 2024 down to recent pricing of $2
Slide 12: Committed to our Path Forward, Creating a Track Record of Success
Committed to our Path Forward, Creating a Track Record of Success Strategic Direction Operational & Capital Ladle Met Furnace EAF Approval PMM Phase 1 LSP Power Plant EAF Project PMM Phase 2 PMM Phase 2 Improvements #2 Received board Enhancing quality and Installation of new Construction Commissioni
Slide 13: Appendices
Appendices ALGOMA — STEEL INC. — 12
Slide 14: Recent Updates
Recent Updates For more updates follow our social channels on: @AlgomaSteelInc Algoma Steel Inc 13
Slide 15: Annex: Steel Revenue and Cost of Sales
Annex: Steel Revenue and Cost of Sales Source: Company Q4 & Full Year FY2024 Management's Discussion and Analysis 14
Slide 16: Annex: Adjusted EBITDA Reconciliation
Annex: Adjusted EBITDA Reconciliation Source: Company Q4 & Full Year FY2024 Management's Discussion and Analysis 15
Slide 17: Annex: Selected Quarterly Information
Annex: Selected Quarterly Information Source: Company Q4 & Full Year FY2024 Management's Discussion and Analysis 16
Slide 18: NASDAQ:ASTL TSX: ASTL
NASDAQ:ASTL TSX: ASTL 57