Cleveland-cliffs Inc. · NYSE:CLF

Cleveland-cliffs — Q4 2023 Earnings Presentation

15 slides from Cleveland-cliffs's earnings presentation, Jan 30, 2024

  1. Slide 1: Full-Year and Fourth-Quarter 2023 Earnings Presentation

    Full-Year and Fourth-Quarter 2023 Earnings Presentation © 2024 Cleveland-Cliffs Inc. All Rights Reserved.

  2. Slide 2: Forward-Looking Statements

    FORWARD-LOOKING STATEMENTS This presentation contains statements that constitute "forward-looking statements" within the meaning of the federal securities laws. All statements other than historical facts, including, without limitation, statements regarding our current expectations, estimates and pro

  3. Slide 3: 2023 Highlights

    2023 HIGHLIGHTS $22 billion Revenues 16.4 million tons Record Steel Shipments $1.9 billion Adjusted EBITDA1 $1.6 billion Free Cash Flow1 $2.9 billion Net Debt1 $1.3 billion Net Debt1 Reduction $4.5 billion Total Record Liquidity 3 © 2024 Cleveland-Cliffs Inc. All Rights Reserved. 1Reconciliations fo

  4. Slide 4: 2023 End Market and Product Overview

    2023 END MARKET AND PRODUCT OVERVIEW 11% 14% Slab, Rail, Other Steel Producers 29% 35% Direct 5% Coated Automotive Plate (primarily End galvanized) Product 26% Market Mix Infrastructure & Mix Manufacturing 36% Hot-Rolled 15% Cold-Rolled 25% Distributors & 4% Converters Stainless & Electrical Highlig

  5. Slide 5: Historical Annual Revenue and Steel Shipments

    HISTORICAL ANNUAL REVENUE AND STEEL SHIPMENTS Revenue from 2019 to 2023 Steel Shipments from 2019 to 2023 Third consecutive year with revenues Record Steel Shipments in 2023 above $20 billion $23 billion 16.4 $22 billion 15.9 $20 10X billion growth 14.8 over 2 years $5 billion Net Tons (Millions) 3.

  6. Slide 6: Results Trend

    RESULTS TREND Steelmaking External Sales Volumes Adjusted EBITDA1 4,202 $775 4,085 4,106 $614 4,039 Net Tons (Thousands) Millions 3,838 $279 $243 $123 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Steelmaking Average Selling Price Liquidity $1,255 $4,539 $4,362 $1,2

  7. Slide 7: 2023 Cash Flow from Operations

    2023 CASH FLOW FROM OPERATIONS 2023 Uses of Cash Flow From Operations $1.3 billion Net Debt Reduction / Reduced net debt by $1.3 billion Cash Build $646 million with a fully undrawn ABL as of Capex 12/31/2023 and cash balance of ~$200 million $2.3 Full-year 2023 capital expenditure 31% lower than 20

  8. Slide 8: Significant Cost Reductions

    SIGNIFICANT COST REDUCTIONS Steel Unit Costs Down $80 Per Ton During 2023 2023 Cost Savings Highlights Normalized repair and maintenance Unit Cost Per ~$80/t Ton of Steel Decrease Lower input costs Higher productivity Annual Run $1.3 Billion Rate In Savings Clearing of higher-cost inventory Savings

  9. Slide 9: Substantial Debt Reduction Progress

    SUBSTANTIAL DEBT REDUCTION PROGRESS Net Debt1 ($mm) Highlights $5,624  Achieved stated net debt Lowest debt $5,295 $5,308 level since target of under $3 billion by $5,190 acquiring end of 2023 $4,993 steel assets $4,621  Used majority of free cash $4,419 $4,500 flow to pay down debt $4,223  Q4 20

  10. Slide 10: Pension and OPEB Liability Reduction

    PENSION AND OPEB LIABILITY REDUCTION $3.6 billion reduction in pension/OPEB net liabilities since AM USA acquisition Historical Net Pension and OPEB Liabilities $4,207 86% $4,007 $3,931 reduction $3,847 since 2021 Negotiated lower healthcare premiums through economies of scale $2,872 $2,784 $2,702 N

  11. Slide 11: ABL Facility and Record Liquidity

    ABL FACILITY AND RECORD LIQUIDITY $2.2 Billion Reduction in Borrowings in 18 months and Record Liquidity Borrowings Under ABL Facility Record Liquidity $2,245 $2,171 $198 $4,539 $2,090 $1,864 $4,341 Borrowings in $ Millions In $ Millions $833 $325 $0 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 ABL Bor

  12. Slide 12: Capital Returned to Shareholders

    CAPITAL RETURNED TO SHAREHOLDERS Diluted Share Count Evolution Q2 2021 585 million shares Q4 2023 14% reduction 505 million shares 2023 Repurchased 10.4 million shares at an average price of $14.68 per share ~$600 million remaining under current repurchase program as of Q4 2023 Reached net debt targ

  13. Slide 13: Record Automotive Year

    RECORD AUTOMOTIVE YEAR 2023 was highest level of annual shipments to automotive since becoming a steel Record company Contributed to overall annual record steel shipments of company Shipments Helped to offset weaker service center demand 2023 North American light vehicle production was highest annua

  14. Slide 14: 2024 Outlook Projections

    2024 OUTLOOK PROJECTIONS Strong shipments, lower costs, and normalized capital expenditures Steel Shipments Steel Unit Costs 16.5 million net tons $30/t reduction from 2023 Adjusted EBITDA Capital Expenditures ~$500 million benefit from $675-$725 million cost reductions (Holding 2023 HRC pricing con

  15. Slide 15: © 2024 Cleveland-Cliffs Inc. All Rights Reserved.

    © 2024 Cleveland-Cliffs Inc. All Rights Reserved.

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