Slide 1: Earnings Call Presentation
NASDAQ:ASTL Earnings Call Presentation TSX: ASTL For the Quarter ending September 30, 2022 November 8th, 2022 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: EAF Conversion Michael Garcia Chief Executive Officer Financial Performance Market Update Rajat Marwah Chief Financial Officer Strategic Update / Capital Allocation 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: Construction update
Construction update Future home of Algoma’s new EAF facility: Foundation Progress (as at Oct 12, 2022): - New Facilities BOSP: Basic Oxygen Steel Production (existing) DSPC: Direct Strip Production Complex (existing) EAF Meltshop: Electric Arc Furnace (new consisting of 2 independent -250NT Danieli
Slide 6: Key Performance Highlights
Key Performance Highlights Q2 FY2023 - Ended September 30, 2022 • Shipment volume was 435K NT in Q2 FY2023, down 19% from 538K NT in Q1 FY2023 and down 26% from 587K NT in Q2 FY2022 • Steel Revenue: was $552 million in Q2 FY2023, down 37% from $877 million in Q1 FY2023 and down 41% from $937 million
Slide 7: Second Quarter Financial Highlights
Second Quarter Financial Highlights Q2 FY2023 Q2 FY 2022 Q1 FY2023 Shipping volume (‘000s tons) 435 587 -26% 538 -19% Net Sales Realization per ton ($/ton) 1,266 1,594 -21% 1,632 -22% Steel Revenue($ million) 552 937 -41% 877 -37% Cost of Steel Products Sold ($/NT) 1,033 857 21% 920 12% Adjusted EBI
Slide 8: Capital Allocation Update
Capital Allocation Update Strategic Uses of Capital: • Strong Balance Sheet: Low leverage / solid cash position • Electric Arc Furnace (EAF) Project: $700 million, 2 year project to transition Algoma to EAF steelmaking, expected to result in 3.7 million tons/year of liquid steel capacity and a rough
Slide 9: Market Update
Market Update North American HRC price under pressure / Plate pricing remains strong Historical Hot Rolled Coil (HRC) and As Rolled Plate Prices (ARP) (US$/ton) Key Market Drivers $2,200 • HRC steel prices have experienced price CRU Index HRC / ARP declines and shorter mill lead times, however $2,00
Slide 10: 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 DSPC Automation Ladle Met Furnace Project Aurora Plate Mill EAF Approval EAF Project Improvements Upgrade #2 $50M annualized Modernization Received board Construction started 1 Improves grade
Slide 11: Annex: Revenue and Cost of Sales
Annex: Revenue and Cost of Sales Source: Company Q2 FY2023 Management's Discussion and Analysis 10
Slide 12: Annex: Adjusted EBITDA Reconciliation
Annex: Adjusted EBITDA Reconciliation (i) See "Non-IFRS Measures" on Slide 2 as well as in the Company's Q2 FY2023 Management's Discussion and Analysis for information regarding the limitations of using Adjusted EBITDA and other Non-IFRS Financial Measures. (ii) Adjusted EBITDA Margin is Adjusted EB
Slide 13: Annex: Selected Quarterly Information
Annex: Selected Quarterly Information (millions of dollars, except where otherwise noted) 2023 2022 2021 As at and for the three months ended1 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Financial results Total revenue C$ 599.2 C$ 934.1 C$ 941.8 C$ 1,064.9 C$ 1,010.2 C$ 789.1 C$ 638.5 C$ 430.0 C$ 377.0 Steel product
Slide 14: NASDAQ:ASTL TSX: ASTL
NASDAQ:ASTL TSX: ASTL 57