Suncoke Energy, Inc. · NYSE:SXC
Suncoke Energy — Investor Presentation (June 2012)
18 slides from Suncoke Energy's investor presentation, Jun 20, 2012
Slide 1: Exhibit 99.1
Exhibit 99.1
Slide 2: Forward-looking statements and non-GAAP disclaimer
Some of the information included in this presentation contains “forward-looking statements” (as defined in Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended). Such forward-looking statements are based on management’s beliefs and
Slide 3: About Cokemaking
Slide 4: About Cokemaking
Slide 5: About Cokemaking
Slide 6: Desulfurization Unit
Desulfurization Unit Boiler Flow of Hot Gas Cleaned Exhaust Common Tunnel Sulfur Steam’ Coke Oven Uptake Damper Power Grid Water Inlet Generator Steam Turbine
Slide 7: Blast furnaces are the most efficient and proven method of reducing iron oxides
Blast furnaces are the most efficient and proven method of reducing iron oxides into liquid iron Coke is a vital material to blast furnace steel making We believe that stronger, larger coke is becoming more important as blast furnaces seek to optimize fuel needs
Slide 8: Natural gas cannot replace 100% of coke needs in a blast furnace
- Natural gas cannot replace 100% of coke needs in a blast furnace - At best, we believe natural gas can replace about 30% - In order to optimize use of natural gas, stronger and larger coke is required - Alternative iron oxide-reducing technologies take time to implement, require significant capita
Slide 9: Largest independent producer of metallurgical coke in the Americas
- Largest independent producer of metallurgical coke in the Americas - Six cokemaking facilities (five in the U.S. and one in Brazil) - Approximately 5.9 million tons per year cokemaking capacity - 1,180 employees (980 U.S. / 200 Brazil) - CY 2012 Guidance results driven by strong coke business perf
Slide 10: Fundamental shift in value allocation between miners and steel makers
- Fundamental shift in value allocation between miners and steel makers in the last decade - Urbanization boom in emerging economies and iron ore and coal industry consolidation triggered price super cycle - Traditional fixed-cost intensive businesses now must focus on variable cost structure - In r
Slide 11: Our turnkey solution is structured to provide a balanced sharing of risks/rewards
Our turnkey solution is structured to provide a balanced sharing of risks/rewards with our customers What SunCoke Offers Typical Coke Contract Provisions pital Funding & Ownership Term Commitment (7+ years) Coal Cost Component (Pass-Through) Fixed Fee SUNCOKE ’ : ENERGY ila Cnt eon nt CUSTOMER Opera
Slide 12: HRSG Model
HRSG MODEL DETAILED FINITE ELEMENT ANALYSIS SunCoke Energy EXPECTED BENEFITS Me CAPITAL EFFICIENT, FLEXIBLE DESIGN aller footprint, 50+% turndown MAXIMIZES USE OF LOW COST COAL High vol. B&C, CSR>60
Slide 13: Committed to growth strategy
SunCoke Energy GROWING STEEL MARKET ‘COKE SUPPLY DEFICIT ELECTRIC POWER DEFICIT -COMMITTED TO GROWTH STRATEGY - Discussing opportunities with mercha: coke producers in India - Targeting potential entry by early 2013
Slide 14: Strategically Optimize Assets
Strategically Optimize Assets SunCoke Energy
Slide 15: Slide 15
Slide 16: Adjusted EBITDA
Adjusted EBITDA represents earnings before interest, taxes, depreciation, depletion and amortization (“EBITDA”) adjusted for sales discounts and the deduction of income attributable to non-controlling interests in our Indiana Harbor cokemaking operations. EBITDA reflects sales discounts included as
Slide 17: Reconciliation from Adjusted Operating Income and Adjusted EBITDA to Net Income
coh MS FROM ADJUSTED OPERATING INCOME AND ADJUSTED EBITDA TO NET INCOME FY ‘11 | Q4‘11 | 03 ‘11 | 02 ‘11 | Q1 ‘11 ‘Adjusted Pro Forma Operating Income ‘Add: Pro Forma impact of ArcelorMittal settlement Subtract: Legal and settlement charges related to ArcelorMittal Settlement & Indiana Harbor Arbitr
Slide 18: Noncontrolling interests
Noncontrolling interests Adjusted EBITDA SunCoke Energy