Algoma Steel Group Inc. · NASDAQ:ASTL
Algoma Steel — Q3 FY2022 Earnings Presentation
13 slides from Algoma Steel's earnings presentation, Feb 11, 2022
Slide 1: Earnings Call Presentation
Earnings Call Presentation For the Quarter ending December 31st, 2021 February 11th, 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 McQuade Chief Executive Officer Financial Performance Rajat Marwah Market Update 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) Health & Safety Performance • Ongoing commitment to superior Health & Safety performance has 1.30 led to sustained improvement of safety metrics over time • Health & safety remains our highest priori
Slide 5: Algoma's EAF Conversion Project: a generational opportunity
Algoma’s EAF Conversion Project: a generational opportunity Raw Materials Materials Ironmaking Steelmaking Preparation Expected Benefits of EAF ~Adds ~700kt of finished steel Iron Ore capacity aligning steelmaking Blast Furnace Mill (Algoma Today) capacity to rolling capacity Capacity Reduced co
Slide 6: Key Performance Highlights
Key Performance Highlights Q3 FY 2022 - Ended December 31, 2021 • Shipment volume was 553K NT in Q3 FY 2022, down 6% from 587K NT in Q2 FY 2022 and up 1% from 548K NT in Q3 FY 2021 • Steel Revenue: was $1,010 million in Q3 FY 2022, up 8% from $937 million in Q2 FY 2022 and up 163% from $384 million
Slide 7: Third Quarter Financial Highlights
Third Quarter Financial Highlights Q3 FY Q3 FY 2021 Q2 FY 2022 2022 Shipping volume (‘000s tons) 553 548 1% 587 -6% Net Sales Realization per ton ($/ton) 1,827 701 161% 1,594 15% Steel Revenue($ million) 1,010 384 163% 937 8% Cost of Steel Products Sold ($/NT) 946 647 46% 857 10% Adjusted EBITDA ($
Slide 8: Market Update
Market Update North American HRC and Plate prices peaked but remain above previous all-time highs Historical Hot Rolled Coil (HRC) and As Rolled Plate Prices (ARP) Key Market Drivers (US$/ton) • HRC steel prices have experienced price $2,200 declines and shorter mill lead times, however ARP spread o
Slide 9: 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 10: Annex: Revenue and Cost of Sales
Annex: Revenue and Cost of Sales October 1 to December 31 April 1 to December 31 change FY 2022 FY 2021 change FY 2022 FY 2021 tons Steel Shipments h 0.9% 552,544 547,733 h 18.2% 1,749,942 1,480,243 millions of dollars Revenue $ 1,064.9 $ 430.0 $ 2,864.2 $ 1,156.4 Less: Freight included in revenue (
Slide 11: Annex: Adjusted EBITDA Reconciliation
Annex: Adjusted EBITDA Reconciliation October 1 to December 31 April 1 to December 31 millions of dollars FY 2022 FY 2021 FY 2022 FY 2021 Net income (loss) $ 123.0 $ (73.5) $ 614.1 $ (176.2) Amortization of property, plant and equipment and amortization of intangible assets 21.5 22.8 64.3 65.5 Finan
Slide 12: Annex: Selected Quarterly Information
Annex: Selected Quarterly Information (millions of dollars, except where otherwise noted) 2022 2021 2020 As at and for the three months ended1 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Financial results Total revenue $ 1,064.9 $ 1,010.2 $ 789.1 $ 638.5 $ 430.0 $ 377.0 $ 349.4 $ 502.2 Steel products 1,009.5 936.5 722.
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