Algoma Steel Group Inc. · NASDAQ:ASTL
Algoma Steel — Q4 FY2021 Earnings Presentation
15 slides from Algoma Steel's earnings presentation, June 2021
Slide 1: Earnings Call Presentation
Earnings Call Presentation Fourth Quarter & Full Year Fiscal 2020 Results June 2021 in Canadian dollars unless otherwise noted
Slide 2: Disclaimer (1/2)
Disclaimer (1/2) ADDITIONAL INFORMATION AND WHERE TO FIND IT This presentation is not a proxy statement or solicitation of a proxy, consent or authorization with respect to any securities or in respect of the transaction and does not constitute an offer to sell, buy or exchange or the solicitation o
Slide 3: Disclaimer (2/2)
Disclaimer (2/2) Given these risks, uncertainties and other factors, readers should not place undue reliance on forward‐looking statements or information as a prediction of actual results. The forward‐looking statements and information reflects management’s current expectations and beliefs regarding
Slide 4: Earnings Call Agenda
Earnings Call Agenda Safety Performance / COVID-19 Update Key Performance Highlights Today’s Presenters: Financial Overview Michael McQuade Chief Executive Officer Market Outlook Guidance Rajat Marwah Strategic Update Chief Financial Officer EAF Transformation Opportunity Proposed Transaction Questi
Slide 5: 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 6: Key Performance Highlights
Key Performance Highlights Q4 FY 2021 • Shipment volume was 622 kNT in Q4 FY 2021, up 14% from 548 kNT in Q3 FY 2021 and up slightly from 620 kNT in Q4 FY 2020 • Steel Revenue: was $633 million in Q4 FY 2021, up 50% from $421 million in Q3 FY 2021 and up 28% from $493 million in Q4 FY 2020 • EBITDA
Slide 7: Fourth Quarter Financial Highlights
Fourth Quarter Financial Highlights Q4 Q4 Change % Q3 FY 2020 FY 2021 Q4 YoY Q4 YoY FY 2021 Shipping volume (‘000s tons) 620 622 2 0% 548 Net Sales Realization per ton ($/ton) 712 942 230 32% 701 Steel Revenue ($ million) 493 633 140 28% 421 Cost of Steel Products Sold ($/ton) 667 643 (24) (4%) 647
Slide 8: Fiscal Year 2021 Financial Highlights
Fiscal Year 2021 Financial Highlights Change % FY 2020 FY 2021 YoY YoY Shipping volume (‘000s tons) 2,305 2,102 (203) (8.8%) Net Sales Realization per ton ($/ton) 756 768 12 1.7% Steel Revenue($ million) 1,918 1,766 (152) (7.9%) Cost of Steel Products Sold ($/ton) 732 646 (86) (12%) EBITDA ($ millio
Slide 9: Overview of Net Working Capital Seasonality
Overview of Net Working Capital Seasonality Total Working $ 639 $ 716 $ 738 $ 585 $ 594 $ 644 $ 639 $ 573 $ 584 $ 606 $ 607 $ 595 Capital $M1 $900 $800 Accounts Payable Trade accounts receivable Inventory $700 $600 509 486 ($ millions) $500 384 415 473 495 543 437 452 490 $400 489 525 $300 $200 292
Slide 10: Market Update
Market Update North American HRC and Plate prices reaching all-time highs due to increased demand for construction, automotive and other end markets North American Macro Drivers Attractive Trends in Key End Markets • Automotive markets are recovering from impact of COVID-19 • Significant GDP growth
Slide 11: First Quarter Outlook
First Quarter Outlook Shipments ('000s kNT) First Quarter FY 2022 directional guidance: 700 600 Shipments (NT) 615K+/- 500 400 Net Sales Realization per ton 300 EBITDA $250M+/- 200 100 Liquidity1 $300M+/- 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY 2019 FY 2020 FY 2021 Net Sales Realization per ton ($/
Slide 12: Strategic Update
Strategic Update Strategic Direction FY2021 Achievements • Ladle Metallurgy Furnace project marked milestone First Arc in February (See Strategic Video Here) Capital Spending • Plate Mill Modernization on track to deliver improved product capability and quality STRENGTHEN BUILD THE CORE GROWTH Peopl
Slide 13: Proposed EAF Transformation
Confidential & subject to applicable confidentiality agreements Proposed EAF Transformation Raw Materials Materials Ironmaking Steelmaking Preparation Expected Benefits Iron Ore +900k tons of incremental liquid Blast Furnace Mill steel capacity (Algoma Today) Capacity ~70% fewer total CO2 emissi
Slide 14: Proposed Transaction Overview
Proposed Transaction Overview Assumes full earnout is realized based on expectation for US$901 million of EBITDA Estimated Sources & Uses (US$mm) Illustrative Pro Forma Valuation (US$mm, except per share) Sources: Share Price: $10.00 Shares Issued to Algoma Shareholders $1,125 Estimated SPAC Cash in
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