美國鋼鐵 (X) 2023 Q4 法說會逐字稿

Hello, everybody. Thank you for watching. And please take some time to review our fourth quarter and full year 2023 earnings materials available here. In light of the pending merger with Nippon Steel Corporation, or NSC, we are not posting a traditional earnings call this quarter. However, we want to highlight our fourth quarter financial results and provide an update on the business. The key word is Excited. Excited about the U.S. Steel now and for the future, excited to have achieved another record safety year, excited to have delivered another strong financial quarter, excited that our in-flight strategic projects are another quarter closer to start-up and excited, of course, by the announcement of the terrific transaction with NSC. Together, U.S. Steel and NSC are looking forward to creating the best deal maker with world-leading capabilities.

大家好。感謝您的觀看。請花一些時間查看此處提供的我們第四季度和 2023 年全年收益資料。鑑於與新日鐵公司 (NSC) 即將進行的合併，我們本季不會發布傳統的財報電話會議。然而，我們想強調我們第四季度的財務業績並提供業務的最新情況。關鍵字是興奮。對美國鋼鐵公司現在和未來感到興奮，對實現又一個創紀錄的安全年感到興奮，對又一個強勁的財務季度感到興奮，對我們正在進行的戰略項目又一個接近啟動的季度感到興奮，當然，我們感到興奮，透過宣布與 NSC 的出色交易。美國鋼鐵公司和 NSC 期待共同打造具有世界領先能力的最佳交易撮合者。

We continue to work towards closing the transaction in the second or third quarter of 2024. The preliminary proxy statement filed with the SEC on January 24, has more information on the merger. As we progress towards closing, we remain focused on the performance of the business and on harnessing the megatrends of deglobalization, decarbonization and digitization with artificial intelligence. Our mission is unchanged to deliver profitable and sustainable steel solutions for people and planet.

我們將繼續努力在 2024 年第二或第三季完成交易。1 月 24 日向 SEC 提交的初步委託書包含有關合併的更多資訊。隨著關閉的進展，我們仍然專注於業務績效，並透過人工智慧利用去全球化、脫碳和數位化的大趨勢。我們的使命始終如一，為人類和地球提供有利可圖且可持續的鋼鐵解決方案。

Now let me turn things over to Jess, who will provide a brief update on our fourth quarter 2023 results.

現在讓我將事情交給 Jess，她將提供我們 2023 年第四季業績的簡短更新。

Thanks, Dave. Our fourth quarter capped off another strong year of financial performance in 2023 for U.S. Steel with better-than-expected results in the quarter and great momentum as we begin 2024. For the full year, we reported net earnings of $895 million or $3.56 per diluted share. Fourth quarter adjusted net earnings were $167 million or $0.67 per diluted share. Now both EPS and adjusted EBITDA of $330 million benefited from better performance across our Mini Mill and Tubular segments as well as from favorable impacts of year-end adjustments in inventory in our North American Flat-Rolled segment.

謝謝，戴夫。第四季為美國鋼鐵公司2023 年又一個強勁的財務業績年度畫上了圓滿的句號，季度業績好於預期，2024 年伊始勢頭強勁。全年淨利潤為8.95 億美元，攤薄後淨利潤為3.56美元分享。第四季調整後淨利為 1.67 億美元，或攤薄後每股收益 0.67 美元。現在，每股收益和調整後的 EBITDA 均為 3.3 億美元，這得益於我們的小型軋機和管材部門更好的業績，以及北美扁材部門年末庫存調整的有利影響。

We kept our foot on the gas, continuing to support the on-time execution of our in-flight strategic projects with $425 million of strategic CapEx spent in the fourth quarter. We expected our free cash flow would be negative at $244 million as that strategic CapEx spending was offset by the $181 million of investable cash flow generated by the business. Our balance sheet, it remains strong as steel as we ended the year with $5.2 billion of total liquidity, including $2.9 billion of cash. Our leverage at year-end remains super low at 2x adjusted gross debt to EBITDA.

我們繼續保持動力，繼續支持我們的戰略項目的按時執行，第四季度戰略資本支出為 4.25 億美元。我們預計我們的自由現金流將為負數 2.44 億美元，因為戰略資本支出被業務產生的 1.81 億美元可投資現金流所抵消。我們的資產負債表仍然堅如磐石，截至年底我們的流動資金總額為 52 億美元，其中包括 29 億美元的現金。我們年底的槓桿率仍然超低，為調整後總債務與 EBITDA 的 2 倍。

Let's take a deeper dive into our operating segment results for the fourth quarter. Our Flat-Rolled segment delivered $128 million of EBITDA. As expected, lower steel prices resulted in sequentially lower EBITDA quarter-over-quarter. And in December, we commissioned our direct reduced grade pellet investment at our Keetac mining operations on time and on budget. And this is another proof point of our continuing the successful execution of our strategy. I'll note that the Flat-Rolled segment EBITDA in Q4 includes about $10 million of startup costs related to the Keetac project. Our Mini Mill segment generated $74 million of EBITDA. And notably, the rise in steel prices throughout the quarter led to increasing earnings through quarter end, including 19% EBITDA margin in December. Included in those Mini Mill results are about $12 million of nonrecurring anticipated start-up costs for our in-flight projects at Big River. Adjusting for those expenses, EBITDA margins in our Mini Mill segment would have been a healthy 14% in Q4.

讓我們更深入了解第四季度的營運部門業績。我們的扁材軋製部門實現了 1.28 億美元的 EBITDA。正如預期的那樣，鋼材價格下跌導致 EBITDA 環比下降。 12 月，我們按時、按預算在 Keetac 採礦作業中投入了直接降低品位的球團礦投資。這是我們繼續成功執行我們的策略的另一個證明。我要指出的是，第四季度的扁平軋製業務 EBITDA 包括與 Keetac 專案相關的約 1000 萬美元的啟動成本。我們的小型工廠部門產生了 7,400 萬美元的 EBITDA。值得注意的是，整個季度鋼材價格的上漲導致季度末盈利增加，其中 12 月的 EBITDA 利潤率達到 19%。這些小型工廠的業績包括我們在 Big River 進行中的項目的約 1200 萬美元的非經常性預期啟動成本。調整這些費用後，我們的小型工廠部門的 EBITDA 利潤率在第四季度將達到健康的 14%。

Moving to our European business. We delivered $3 million of EBITDA during the quarter. The favorable impact of higher shipping volumes in the fourth quarter was not enough to offset lower sales prices and an unfavorable mix versus the third quarter. And finally, we generated $126 million of EBITDA in the Tubular segment during the fourth quarter. The sequential improvement was driven mainly by increased customer demand, stronger operational performance and lower raw material costs.

轉向我們的歐洲業務。本季我們實現了 300 萬美元的 EBITDA。第四季出貨量增加的有利影響不足以抵銷銷售價格下降以及與第三季相比的不利組合。最後，第四季我們在管狀部分產生了 1.26 億美元的 EBITDA。環比改善主要是由於客戶需求增加、營運績效增強和原材料成本下降。

Looking ahead to the first quarter of 2024, in our Flat-Rolled segment, we expect a sequential improvement in Q1 EBITDA. That will come primarily from stronger steel prices and the impact of successful fixed-priced contract negotiations, also be partially offset by the typical seasonal headwinds we see in Q1 from our mining operations in Minnesota. At our Mini Mill segment, we anticipate a sizable improvement in Q1 EBITDA sequentially. The trend I mentioned of rising spot steel prices in the segment as we ended Q4 carries forward, providing momentum for expected higher EBITDA from Big River in Q1.

展望 2024 年第一季度，在我們的扁材軋製領域，我們預計第一季 EBITDA 將持續改善。這主要來自鋼材價格走強以及固定價格合約談判成功的影響，同時我們在第一季度看到的明尼蘇達州採礦業務典型的季節性逆風也部分抵消了這一影響。在我們的小型工廠部門，我們預計第一季的 EBITDA 將連續大幅改善。我提到的第四季度末該領域現貨鋼材價格上漲的趨勢繼續延續，為第一季度 Big River 的預期更高 EBITDA 提供了動力。

Our European segment will remain challenged as we start the year. Headwinds in raw material and CO2 costs are expected to more than offset anticipated higher selling prices in the first quarter. In Tubular, we expect a decrease in both volumes and pricing to drive lower sequential EBITDA in the first quarter. But remember, we are still experiencing sustained higher pricing and margins than historical trends for Tubular. And when you add that all up, the first quarter adjusted EBITDA for U.S. Steel is expected to land in the range of $400 million to $450 million. It should come as no surprise that we are receiving questions from stakeholders at this exciting time in U.S. Steel's history.

今年伊始，我們的歐洲業務仍將面臨挑戰。原材料和二氧化碳成本的不利因素預計將遠遠抵消第一季預期的較高銷售價格。在 Tubular 中，我們預計銷售量和價格的下降將導致第一季 EBITDA 下降。但請記住，與 Tubular 的歷史趨勢相比，我們的定價和利潤率仍然持續較高。當你把所有這些加起來時，美國鋼鐵公司第一季調整後的 EBITDA 預計將在 4 億至 4.5 億美元之間。在美國鋼鐵公司歷史上這個令人興奮的時刻，我們收到利害關係人的提問也就不足為奇了。

So here's Dave, to provide responses to some of the more frequently asked questions we have been receiving. Dave?

戴夫來回答我們收到的一些更常見的問題。戴夫？

Thanks, Jess. At the outset of the strategic alternatives review process that we announced in August 2023, the Board's stated focus was on running a fair and competitive process and maximizing stockholder value. I can confidently say the transaction with NSC checks both of these boxes. We've heard from many of you over the past several weeks. So let me spend a few moments addressing some questions that may be on your mind.

謝謝，傑西。在我們於 2023 年 8 月宣布的策略替代方案審查流程開始時，董事會表示重點是運行公平和競爭的流程以及最大化股東價值。我可以自信地說，與 NSC 的交易滿足了這兩個條件。在過去的幾周里，我們收到了許多人的來信。因此，讓我花一些時間來解答您可能想到的一些問題。

The merger with NSC was the best proposal received based on value, form of consideration, certainty of payment, certainty of closing and other factors.

考慮到價值、對價形式、付款的確定性、成交的確定性和其他因素，與 NSC 的合併是收到的最佳提案。

First, value, $55 per share all cash was the highest offer we received as a result of the competitive strategic alternative security process. And second, in the board's judgment, a transaction with NSC has the best deal certainty. The transaction with NSC is subject to certain regulatory approvals, and we're confident that we will clear those processes in a timely manner. Details about the Board's recommendation and decision can be found in our preliminary proxy statement, which has been filed with the Securities and Exchange Commission on January 24 and is available on our website.

首先，價值，每股 55 美元（全現金）是我們在競爭性策略替代安全流程中收到的最高報價。其次，根據董事會的判斷，與 NSC 的交易具有最佳的交易確定性。與 NSC 的交易須獲得某些監管部門的批准，我們有信心及時清理這些流程。有關董事會建議和決定的詳細信息，請參閱我們的初步委託書，該委託書已於 1 月 24 日向美國證券交易委員會提交，並可在我們的網站上查看。

U.S. Steel and NSC continue to work towards expeditiously closing the transaction. We're excited that NSC has been front and center with key stakeholders, making clear their commitment to them and to the transaction. We continue to expect closing to occur in the second or third quarter of 2024. In the meantime, we are focused on running our business to serve our customers and continuing to deliver strong safety, operating and financial performance.

美國鋼鐵公司和 NSC 繼續努力盡快完成交易。我們很高興 NSC 一直站在主要利益相關者的前沿和中心，明確表示對他們和交易的承諾。我們仍然預計交易將於 2024 年第二或第三季完成。同時，我們將專注於營運業務以服務客戶，並繼續提供強勁的安全、營運和財務業績。

The transaction with NSC has benefits for all of our stakeholders. For employees, NSC has expressed their commitment to retaining and investing in our talent and to honoring all collective bargaining agreements. For customers, the transaction with NSC will improve the competitive landscape and bring a well-capitalized global steel leader with experience and expertise in blast furnace operations, decarbonization and innovation to the American industry.

與 NSC 的交易對我們所有的利害關係人都有好處。對於員工，國家安全委員會已表達了保留和投資人才以及遵守所有集體談判協議的承諾。對客戶而言，與 NSC 的交易將改善競爭格局，並為美國工業帶來資本雄厚、在高爐營運、脫碳和創新方面擁有豐富經驗和專業知識的全球鋼鐵領導者。

For communities, the transaction will secure jobs in our communities and support safe operations in all U.S. Steel facilities. Together, U.S. Steel and NSC will continue to positively impact communities to enhance and improve quality of life and to support projects and opportunities that advance safety, education and environmental stewardship. U.S. Steel will retain its name, continue to mine, melt and make steel in the United States of America and maintain its headquarters in Pittsburgh, which will retain 1,000 jobs in corporate research, commercial, information technology and other areas. As I stated in our December 18 deal announcement, not only does the merger with NSC maximize value for stockholders, but it truly achieves the best for all.

對於社區而言，該交易將確保我們社區的就業機會並支持所有美國鋼鐵設施的安全運作。美國鋼鐵公司和 NSC 將共同繼續對社區產生積極影響，以提高和改善生活質量，並支持促進安全、教育和環境管理的計畫和機會。美國鋼鐵公司將保留其名稱，繼續在美國開採、熔化和製造鋼鐵，並將總部保留在匹茲堡，該公司將保留企業研究、商業、資訊科技和其他領域的 1,000 個工作機會。正如我在 12 月 18 日的交易公告中所說，與 NSC 的合併不僅為股東實現了價值最大化，而且真正實現了所有人的最佳利益。

We are confident the transaction will close. Our Board conducted a robust strategic alternatives review process, grounded in facts and data and with the assistance of many experts -- and we anticipated that the transaction would receive serious scrutiny. That's smart. That's as it should be. We are confident that the relevant regulatory agencies will see the great outcomes this transaction will allow for not only our stockholders but also for our customers, employees and communities, and our economy and country, both U.S. Steel and NSC are committed to doing what it takes to close this transaction and are committed to working with all parties involved.

我們有信心交易將會完成。我們的董事會基於事實和數據並在許多專家的協助下進行了強有力的策略替代審查流程，我們預計該交易將受到嚴格審查。這很聰明。這是應該的。我們相信，相關監管機構將會看到這項交易不僅有利於我們的股東，也有利於我們的客戶、員工和社區，以及我們的經濟和國家，美國鋼鐵公司和 NSC 都致力於採取必要措施完成此項交易並致力於與所有相關方合作。

No doubt, U.S. Steel will continue to mine, melt and make the best steel in America today. And after the transaction closing, while supporting jobs and maintain its headquarters in Pittsburgh.

毫無疑問，美國鋼鐵公司將繼續開採、熔化和製造當今美國最好的鋼鐵。交易完成後，同時支持就業並維持其總部位於匹茲堡。

Thanks for watching and for reviewing our earnings materials. We are truly excited about the future for U.S. Steel and are grateful for your support. Above all, we are very grateful to U.S. Steel's employees and the work they do every day. I truly believe they are the best in the steel industry. They're focused on safety and environmental excellence, their dedication to customer satisfaction and their embodiment of our steel principles have brought us to where we are today.

感謝您觀看並審閱我們的收益資料。我們對美國鋼鐵公司的未來感到由衷的興奮，並感謝您的支持。最重要的是，我們非常感謝美國鋼鐵公司的員工以及他們每天所做的工作。我堅信他們是鋼鐵業中最好的。他們專注於安全和環境卓越，致力於客戶滿意度以及對我們鋼鐵原則的體現，使我們取得了今天的成就。

Now let's get back to work safely.

現在讓我們安全返回工作崗位吧。