United States Steel Corporation · NYSE:X
United States Steel — Corporate Update (June 2021)
13 slides from United States Steel's corporate update, Jun 8, 2021
Slide 1: Big River Steel to Become the Leader in NGO Electrical Steels
Big River Steel to Become the Leader in Non-Grain Oriented (NGO) Electrical Steels Building an NGO electrical steel line at Big River Steel June 8, 2021
Slide 2: Forward-looking statements
2 Forward-looking statements These slides are being provided to assist readers in understanding the investment in a non-grain oriented (NGO) electrical steel line by United States Steel Corporation. This presentation contains information that may constitute “forward-looking statements” within the me
Slide 3: Summary
3 NGO electrical steel line at Big River Steel Summary Meeting the growing electric vehicle (EV) demand with the best NGO capabilities Funding the investment with cash generated from Big River Steel’s robust profitability and cash flow Delivering unmatched NGO electrical steel characteristics compar
Slide 4: Summary: Electrical steel line at Big River Steel
4 NGO electrical steel line at Big River Steel Summary Electrical steel line at Big River Steel Expected annual production capability 200,000 tons 3Q 2023 First coil expected in September 2023 Investment Highlights:
Slide 5: Meeting the growing electric vehicle demand
5 NGO electrical steel line at Big River Steel Meeting the growing electric vehicle demand Electrical Steels: Non-grain oriented (NGO) Grain oriented (GO) focus of investment Ideal for power generation Ideal for power transfer Steel grades needed to transform electrical power into usable energy
Slide 6: Meeting the growing electric vehicle demand
6 NGO electrical steel line at Big River Steel Meeting the growing electric vehicle demand 2019A Electric Vehicle Demand1 in millions Investing to meet strategic customers’ needs 1 Source: Market research syndicating electric steel demand projections across wall street research, Steel-Insights 2020,
Slide 7: Meeting the growing electric vehicle demand
7 NGO electrical steel line at Big River Steel Meeting the growing electric vehicle demand By 2025 1 Electrification spending by 2025 in anticipation of 40% vehicle volume fully electric by 2030 of new vehicle sales should be electrified models 40% new global electric vehicles by 2025 1 Based on thi
Slide 8: Investing where we have unique differentiation
8 NGO electrical steel line at Big River Steel Investing where we have unique differentiation STATE-OF-THE-ART TECHNOLOGY AT BIG RIVER STEEL PROXIMITY TO TARGETED CUSTOMER BASE ENHANCING EARNINGS PROFILE Commercializing thinner and wider NGO electrical steels to partner with customers Strategically
Slide 9: Investing where we have unique differentiation
9 NGO electrical steel line at Big River Steel Investing where we have unique differentiation Big River Steel Campus EAF Steelmaking Casting & Rolling NGO line Capturing additional value at Big River Steel by utilizing its highly capable EAF steelmaking technology Expanding the Big River Steel footp
Slide 10: Unmatched NGO characteristics
10 NGO electrical steel line at Big River Steel Unmatched NGO characteristics By 2027, over 90% of NGO consumption is expected to be 0.25 – 0.50mm product1 Pursuing LEED certification for new NGO line and expanding our sustainable verdeXTM steel brand Opportunities to partner on broader decarbonizat
Slide 11: Strong return profile with low capital intensity
11 NGO electrical steel line at Big River Steel Strong return profile with low capital intensity $50M $325M $75M 2021 20232022 2024 2025 2026+ $60M $120M $140M 2022 20232021 2024 2025 2026+ Expected CAPEX: ~$450 million Expected EBITDA: ~$140 million per year Permitting already in place Significant
Slide 12: Higher through-cycle margin product mix
12 60% 17% 23% Hot rolled coil (60%) Cold rolled coil (17%) Coated (23%) Product mix: 3rd party shipments 50% 27% 16% 7% Hot rolled coil (50%) Cold rolled coil (27%) Coated (16%) NGO (7%) NGO electrical steel line at Big River Steel Higher through-cycle margin product mix 400 basis point improvement
Slide 13: Investor Relations
INVESTOR RELATIONS Kevin Lewis Vice President 412-433-6935 klewis@uss.com Eric Linn Director 412-433-2385 eplinn@uss.com www.ussteel.com