Suncoke Energy, Inc. · NYSE:SXC
Suncoke Energy — Q4 2015 Earnings Presentation
22 slides from Suncoke Energy's earnings presentation, Jan 28, 2016
Slide 1: SunCoke Energy Q4 2015 Earnings Conference Call
Exhibit 99.2 SunCoke Energy, Inc. Q4 2015 Earnings Conference call January 28, 2016 sunCoke Energytm
Slide 2: Forward-looking statements
information amended. Partners, currently opportunities, facts or are uncertainties. SXCP differ looking should publicly This measures SXCthe reasonable, slide presentation and Q4 materially negative has be statements any 2015 L.P. may available. are All taken presentation included included forward-l
Slide 3: Q4 and full-year 2015 achievements
Achieved of 2aFlattened definition $180Morganization, solid toand $190M safety, reconciliation (2)environmental reduced Initiated ofcorporate Adjusted additional and operating staff EBITDA, measures by 20% performance please toand strengthen rationalized see appendix. across Indiana discretionary co
Slide 4: Q4 Adjusted EBITDA (Consolidated)
Q4 andincluded EBITDA(3) (Consolidated)(1) Consolidated results volumes which and Full during higher Year $57.6 Adj. an Q42015 $54.3 Legacy EBITDA estimated $75.2 2015 Overview $51.9 ($17.6) include Costs of $20M $2.4 ~$186M(1) Q4 Coal volumes TMcontribution Consolidated ‘15 Q4’15 Logistics EPSfrom
Slide 5: Q4 Adjusted EBITDA reconciliation Q4 2014 to Q4 2015
–Adjusted Mining reconciliation Final revenue Coal EBITDA(1) Logistics ofaccrual Adjusted –Convent from Q4EBITDA, ‘14 legacy to Marine Q4contract please ‘15 Q4TM2015 see • •($appendix. ($6.2M) Adj. 4.1M) EBITDA ––International Lower LowerInt’l coke yield Coke sales & Coke volumes Legacy • includes (
Slide 6: Full-year Adjusted EBITDA FY 2014 to FY 2015
Adjusted ($4.3M) Haverhill Adj. Includes, EBITDA –EBITDA(1) among Chemicals Lower (Consolidated) other coke • –$3.5M items, sales FY ‘14 •($12.6M) –(1) $12.4M Brazil to(excl. FY ‘15 coke –non-cash IHO) Lower TM FY(2) Full-year 2014 nominal (Consolidated) pension Indiana results O&M termination Harbo
Slide 7: Domestic Coke Business Summary
DomesticCall Earnings Coke6 Business Summary TM For a definition and reconciliation of Adjusted EBITDA and Adjusted EBITDA/Ton, please see appendix. Revised guidance provided October 2015. SXC Q4 2015
Slide 8: Capital allocation and cash balance
• ($ 9.6M) Capital & Other – SXCProceeds dividendtopayment SXCP Public $ 41.9Cash • ($ 2.8M) Balance – Unit Extinguishment repurchasesUnitholders (SXCP) Q3 SXC 2015Q4 Income, 2015 Earnings net of D&A CallWorking 7 Capex Net Debt Capital Allocation Distributions Q4 2015 Cash Balance Gain on Debt
Slide 9: 2015 results and 2016 guidance
Delivered (1) Production $2M acquisition. Consolidated $4M 2015 –4.1 Actual $9M–results 4.2 $180M For Convent Mt a in-line definition 4.1 – $190M Mt contribution with ~4.1 and (3) revised Mt reconciliation $185.8M Dom. during guidance Coke (3) FY$210M 2015 Adj. of and2015 remain EBITDA was – and $23
Slide 10: Managing profitability and balance sheet
Managing profitability Balance Sheet Through by•executing Deliver Challenging $210M oven rebuilds –Market $235Mand Conditions Consol. reducing Adj. • Remain O&M EBITDA costs flexible guidance Deliver & responsive Operations & executetode-levering Excellence industry backdrop •strategy Drive strong w
Slide 11: Questions
QUESTIONS SXC Q4 2015 Earnings Call 10
Slide 12: Investor Relations
Investor Relations 630-824-1907 www.suncoke.com
Slide 13: Appendix
APPENDIX SXC Q4 2015 Earnings Call 12
Slide 14: Non-GAAP definitions
revenue included deferred Adjusted considered measure information operating any SXC/SXCP Rationalization revenues, otherand revenue of an EBITDA measure performance costs alternatives the add-back represents to interest, investors operating associated Costs adjusts of represents more taxes, financia
Slide 15: Adjusted EBITDA reconciliation
Reconciliation 112.3 and (25.6) 22.8 150.3 ——Adjustment EBITDA $46.3 December which excluded expense. Harbor. goodwill 28.6 $53.9 30.8 $24.5 6.5 resulted SXC Includes from attributable 29.0 59.4 31, 16.4 $33.1 Nonrecurring Q4 impairment 2013, Interest sales to in (24.4) 103.1—Nonrecurring to 2015 Ad
Slide 16: Segment Adjusted EBITDA and per-ton reconciliation
Reconciliation millions, (thousands 436 Ton $1.15 EBITDA $12.2 depreciation 5,555 $53.60 Q1 except ($1.4) $247.9 2015 Adjusted of $7.58 ($7.0) expense. tons) of Adjusted per $18.9 Segment ($22.90) $3.4 4,115 EBITDA ton SXC ($3.1) data) ($19.7) EBITDA 1,760 Adjusted $2.02 Q4per Coke ($16.0) 2015 124
Slide 17: Outlook
Outlook Anticipate resets O&M in cost-sharing includes ‘18operational (1) 2013A benefit mechanism stability 2014A of additional 2014PF which will fuel took 19 2015A substantial oven effect 2016 rebuilds beginning long-term to annually to beincompleted improvement 2015. budgeted SXCduring reimburseme
Slide 18: Significant controllable corporate cost reduction
Significant Controllable Reduction Corporate services ($14.7M),(e.g., (direct ($22.0M) Since reduction Corporate legal 2013 & costs, allocated) and inTotal Expense Corporate ~($10M) public Corporate $6.8M (1) company in expenses, $40.5M 2013, $7.2M Cashcosts, 2014 Expense $36.5M driven $13.7M banker
Slide 19: Balance sheet, leverage and liquidity
As of and Adj. guidance) Short-term) EBITDA 12/31/2015 and 4.6x the1,004 SXC full 3.9xyear 899 Attributable 0.9x 105 impact Proforma NetofDebt Balance a dropdown Net (Total Debt Consolidated Debt /of FY23% less 2015Cash) intoAdj. Granite SXCP 881 EBITDA Attributable 850 City.30 SXC 4.1x FY Q4 3.7x 2
Slide 20: Debt maturities and liquidity
Maintain• SXCP $182M sufficient secured liquidity termposition, loan: $50M with• no SXCnear-term unsecured debt bonds: maturities $45M($SunCoke in millions; Energy as of2015 December Investor 31,Day 2015) 19 SXCP unsecured bonds: $552M SXC Maturities SXCP Maturities • SXCP secured revolver:
Slide 21: 2016E Adjusted EBITDA reconciliation
2016E — Asset $235 operating recognized to $28SXCP Coal million Adjusted and 2016E Logistics public income goodwill as deduction earnings ($EBITDA unitholders. inrelated deferred millions) impairment in atattributable 2016. to year-end. revenue(1) the Adjusted LowActual timing —High Nonrecurring Rep
Slide 22: Capital expenditures
Capital $27 Logistics: loader) approximately Expenditures Ship $18$34M loader $45 Coal TM in(pre-funded) ongoing 2015 Logistics: CapEx Coke $0 Ship $5 CapEx ($ in loader $5millions) 2016 and(pre-funded) $4M Expected SXC ongoing SXCP CapEx $0 Coal $12 Consolidated ($$12 Logistics. in millions) 2015 c