United States Steel Corporation · NYSE:X
United States Steel — Q1 2022 Earnings Presentation
19 slides from United States Steel's earnings presentation, Apr 29, 2022
Slide 1: First Quarter 2022 Earnings Call
First Quarter 2022 Earnings Call April 29, 2022 David Burritt President and Chief Executive Officer Christie Breves Senior Vice President and Chief Financial Officer Rich Fruehauf Senior Vice President, Chief Strategy and Sustainability Officer Kevin Lewis Vice President, Investor Relations and Corp
Slide 2: Forward-looking statements
Forward-looking statements 2 2 These slides are being provided to assist readers in understanding the results of operations, financial condition and cash flows of United States Steel Corporation as of and for the first quarter 2022. Financial results as of and for the periods ended March 31, 2022 pr
Slide 3: Explanation of use of non-GAAP measures
Explanation of use of non-GAAP measures 3 3 We present adjusted net earnings, adjusted net earnings per diluted share, earnings (loss) before interest, income taxes, depreciation and amortization (EBITDA) and adjusted EBITDA, which are non-GAAP measures, as additional measurements to enhance the und
Slide 4: Advancing towards our Best for All future
Advancing towards our Best for All® future 4 4 CURRENT LANDSCAPE CHALLENGES SOLUTION PATH FORWARD Bullish for 2022 and advancing towards our Best for All future Delivering on Best for All Transitioning to a less capital and carbon intensive business model while becoming the best steel competitor Bal
Slide 5: Today's discussion
5 5 RECORD FIRST QUARTER PERFORMANCE … on pace for record second quarter performance STRONG EXECUTION ACROSS THE ENTERPRISE … portfolio of differentiated assets to deliver profitable steel solutions for people and planet RETURNING CAPITAL TO STOCKHOLDERS … in-line with our capital allocation framewo
Slide 6: Record first quarter performance
6 Advancing towards our Best for All future Record first quarter performance 6 RECORD 1Q net earnings RECORD 1Q adjusted EBITDA RECORD liquidity
Slide 7: Strong execution across the enterprise
7 7 Advancing towards our Best for All future Strong execution across the enterprise N. AMERICAN FLAT-ROLLED MINI MILL U. S. STEEL EUROPE TUBULAR
Slide 8: Strong execution across the enterprise: North American Flat-rolled
8 Advancing towards our Best for All future Strong execution across the enterprise 8 The U. S. Steel advantage: Meeting customers’ needs: N . A M E R IC A N F L A T -R O L L E D Commercial excellence supported by best-in- class finishing lines Low-cost iron ore Balanced portfolio of contract, indexe
Slide 9: Expanding mini mill presence
Expanding mini mill presence 9 9 M IN I M IL L The U. S. Steel advantage: Meeting customers’ needs: Building Mini Mill #2 … producing the ‘green’ steels customers crave Unmatched process / product innovation Adding first-of-its-kind technology in the U.S. to best serve customers Advanced grades, mad
Slide 10: U. S. Steel Europe
10 10 U . S . S T E E L E U R O P E The U. S. Steel advantage: Meeting customers’ needs: Serving the growing V4 region Highly efficient operations Locally produced steel Advancing towards our Best for All future Strong execution across the enterprise Reliable source of high-quality steel in the regi
Slide 11: Tubular
11 11 T U B U L A R The U. S. Steel advantage: Meeting customers’ needs: API / semi-premium / premium connections Proprietary connections Insourced rounds production Faster response time for customers Comprehensive suite of solutions for drillers More efficient production Advancing towards our Best
Slide 12: Returning capital to stockholders
Advancing towards our Best for All future Returning capital to stockholders PRIORITIES CONSIDERATIONS OBJECTIVES 1 Balance sheet strength Through-cycle adjusted debt to EBITDA range 3.0x – 3.5x range 2 Announced Best for All investments Cash to NTM1 capex and cash of no less than $1.5B 1:1 ≥ $1.5B c
Slide 13: Record first quarter performance: 1Q 2022 Adj. EBITDA
1Q 2022 Adj. EBITDA Advancing towards our Best for All future Record first quarter performance 13 1Q 2022 Adj. EBITDA ~$1.3B N. American Flat-rolled Mini Mill U. S. Steel Europe Tubular $636M 1Q 2022 Adj. EBITDA $318M 1Q 2022 Adj. EBITDA $287M 1Q 2022 Adj. EBITDA $89M
Slide 14: Generational opportunity: Repositioning our business
Advancing towards our Best for All future Generational opportunity at U. S. Steel Repositioning our business Progressing on strategic projects Seizing the moment Groundbreaking for Mini Mill #2 by executing our Best for All strategy on-time and on-budget and building momentum 14
Slide 15: Q&A
Q&A Mini Mill #2 Construction
Slide 16: Closing Remarks
(s) 2 Responsible’ Steel |seus* Closing Remarks
Slide 17: Reconciliation of segment EBITDA
Flat-rolled ($ millions) 1Q 2022 Segment (loss) earnings before interest and income taxes $513 Depreciation 123 Flat-rolled Segment EBITDA $636 U. S. Steel Europe ($ millions) 1Q 2022 Segment (loss) earnings before interest and income taxes $264 Depreciation 23 U. S. Steel Europe Segment EBITDA $287
Slide 18: Reconciliation of adjusted EBITDA
Reconciliation of adjusted EBITDA 18 ($ millions) 1Q 2022 Reported net earnings attributable to U. S. Steel $882 Income tax provision (benefit) 246 Net interest and other financial costs (10) Reported earnings before interest and income taxes $1,118 Depreciation, depletion and amortization expense 1
Slide 19: 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 @USS_Investors