26 January 2023
Investor Call Presentation
Fourth Quarter and Full Year 2022
Health and Safety
Entrepreneurial Culture
Customer Commitment
Strategic Growth z
Innovation
Financial Strength
Forward Looking Statements and Non-GAAP Financial Measures
Forward-Looking Statements
This presentation contains some predictive statements about future events, including statements related to conditions in domestic or global economies, conditions in steel, aluminum, and recycled metals market places, Steel Dynamics' revenues, costs of purchased materials, future profitability and earnings, and the operation of new, existing or planned facilities. These statements, which we generally precede or accompany by such typical conditional words as anticipate", "intend", "believe", "estimate", "plan", "seek","project", or "expect", or by the words "may", "will", or "should", are intended to be made as "forward-looking", subject to many risks and uncertainties, within the safe harbor protections of the Private Securities Litigation Reform Act of 1995. These statements speak only as of this date and are based upon information and assumptions, which we consider reasonable as of this date, concerning our businesses and the environments in which they operate. Such predictive statements are not guarantees of future performance, and we undertake no duty to update or revise any such statements. Some factors that could cause such forward-looking statements to turn out differently than anticipated include: (1) domestic and global economic factors; (2) global steelmaking overcapacity and imports of steel and North American aluminum flat rolled supply deficit, together with increased scrap prices; (3) pandemics, epidemics, widespread illness or other health issues, such as the COVID-19 pandemic; (4) the cyclical nature of the steel industry and the industries we serve; (5) volatility and major fluctuations in prices and availability of scrap metal, scrap substitutes, and our potential inability to pass higher costs on to our customers; (6)cost and availability of electricity, natural gas, oil, or other energy resources are subject to volatile market conditions; (7) increased environmental, greenhouse gas emissions and sustainability considerations or regulations;
- compliance with and changes in environmental and remediation requirements; (9) significant price and other forms of competition from other steel and aluminum producers, scrap processors and alternative materials;
-
availability of an adequate source of supply of scrap for our metals
recycling operations; (11)cybersecurity threats and risks to the security of our sensitive data and information technology; (12) the implementation of our growth strategy; (13) litigation and legal compliance; (14) unexpected equipment downtime or shutdowns; (15) governmental agencies may refuse to grant or renew some of our licenses and permits; (16) our senior unsecured credit facility contains, and any future financing agreements may contain, restrictive covenants that may limit our flexibility; (17) the
impacts of impairment charges; (18) unanticipated difficulties in integrating or starting up new assets; and (19) risks and uncertainties involving product and/or technology development.
More specifically, refer to Steel Dynamics' more detailed explanation of these and other factors and risks that may cause such predictive statements to turn out differently, as set forth in our most recent Annual Report on Form 10-K under the headings Special Note Regarding Forward-Looking Statements and Risk Factors, in our quarterly reports on Form 10-Q, or in other reports which we file with the Securities and Exchange Commission. These are available publicly on the Securities and Exchange Commission website, www.sec.gov, and on the Steel Dynamics website, www.steeldynamics.com under "Investors - SEC Filings".
Note Regarding Non-GAAP Financial Measures
Steel Dynamics reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). Management believes that EBITDA, Adjusted EBITDA, Adjusted Operating Income, Free Cash Flow, and Adjusted Free Cash Flow non-GAAP financial measures, provide additional meaningful information regarding Steel Dynamic's performance and financial strength. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, Steel Dynamics' reported results prepared in accordance with GAAP. In addition, because not all companies use identical calculations, EBITDA, Adjusted EBITDA, Adjusted Operating Income, Free Cash Flow and Adjusted Free Cash Flow included in this presentation may not be comparable to similarly titled measures of other companies. The reconciliations of these non-GAAP measures to their most comparable GAAP measures are contained in the appendix at the end of this presentation.
Differentiated, Sustainable, Metals Growth Company | 26 January 2023 2 | |
Safety is Our Number One Value
Total Recordable Injury Rate1 | Total 2022 Recordable Injury Rate1 By Platform | ||
Steel | Steel | Metals | |
Fabrication | Recycling |
2.3 | 4.2 | 4.1 | ||||
1.8 | 1.9 | 1.9 | 1.8 | |||
2.8 | ||||||
2.3 | ||||||
1.7 | 1.6 | |||||
2018 | 2019 | 2020 | 2021 | 2022 |
Steel Dynamics | Industry² | |
Lost Time Injury Rate1
0.61 | |||||
0.33 | 0.39 | ||||
0.32 | |||||
0.25 | |||||
2018 | 2019 | 2020 | 2021 | 2022 |
- Total Recordable Injury Rate is defined as OSHA recordable incidents x 200,000 / hours worked and Lost Time Injury Rate is defined as OSHA days away from work cases x 200,000 / hours worked.
- Source: 2021 U.S. DOL Bureau of Labor Statistics
Differentiated, Sustainable, Metals Growth Company | 26 January 2023 3 | |
Solid Fourth Quarter 2022 Performance
Historically strong revenue at $4.8 billion
Net Income of $635 million
Adjusted EBITDA1 of $906 million, a 19% margin
EPS/Adjusted EPS2
Record Steel Fabrication operating income
Repurchased 2.4% of our shares outstanding
- The adjusted EBITDA reconciliation to GAAP net income is provided in the appendix to this presentation.
- The adjusted net income reconciliation is provided in the appendix to this presentation.
.
K e y h i g h l i g h t s
$4.8 billion
R e v e n u e
$635 million
N e t i n c o m e
$906 million
A d j u s t e d E B I T D A 1
$3.61/$4.37
E P S / A d j u s t e d E P S 2
$682 million
O p e r a t i n g i n c o m e
$413 million
S h a r e r e p u r c h a s e s
Differentiated, Sustainable, Metals Growth Company | 26 January 2023 4 | |
Solid Fourth Quarter 2022 Performance
Strong results reflect execution on our long-term strategy, and our differentiated circular business model
Dollars in millions, except per share data
% Sequential | % Prior Year | |||
Q4 2022 | Q3 2022 | Q4 2021 | Change | Change |
Net Sales | $4,826 | $5,652 | $5,311 |
Operating Income | 759 | 1,220 | 1,429 |
Net Income attributable to Steel Dynamics, | 635 | 914 | 1,091 |
Inc. | |||
Diluted Earnings per Share | 3.61 | 5.03 | 5.49 |
Adjusted Diluted Earnings per Share¹ | 4.37 | 5.46 | 5.78 |
Adjusted EBITDA² | 906 | 1,346 | 1,527 |
Operating Income | |||
Steel Operations | 178 | 658 | 1,367 |
Steel Fabrication Operations | 682 | 677 | 238 |
Metals Recycling Operations | 14 | 10 | 44 |
- (9)
- (47)
- (42)
- (34)
- (24)
- (41)
- (87)
- 187
- (67)
¹ The adjusted net income reconciliation is provided in the appendix to this presentation.
2 The adjusted EBITDA reconciliation to GAAP net income is provided in the appendix to this presentation. Note: Calculations may not tie due to rounding
Differentiated, Sustainable, Metals Growth Company | 26 January 2023 5 | |
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SDI - Steel Dynamics Inc. published this content on 26 January 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 January 2023 12:32:07 UTC.