Role of SXC and SXCP SXCP General Partner & 56% LP Long-term, fee-based, take-or-pay owner with 100% of IDRs contracts that generate stable cash flow with minimal commodity risk Capitalized to finance and develop growth projects…
Business Verticals Raw materials processing and handling company with growth opportunities in cokemaking, coal logistics & other industrial verticals Current Business Future Platforms Cokemaking Coal Logistics Industrial…
Our Operations Operations located to serve our customers most strategic assets Lake Terminal Indiana (Coal Logistics) Harbor Coke Plant Characteristics KRT 3 Terminals (Coal Logistics) Advantaged inbound and outbound logistics…
Strategic Customer Blast Furnace Assets Our cokemaking assets supply coke to our customers strategic blast furnaces Customer Asset Supported Primary Product Line Comment One of the most productive BF in Middletown Auto the…
Cokemaking Business Model Secure, long-term take-or-pay contracts generate stable cash flow with limited commodity risk Fixed Fee Take-or-Pay (1) Termination Provisions / Contract Duration 15-20 years SunCoke Avg. Remaining…
Coal Logistics Coal Logistics complements our cokemaking business and broadens exposure to industrial customers Platform for Growth Strategically located assets with access to barge, rail and truck Experienced management team…
Key Investment Considerations TM Stable, Long-Term Cash Flow Long-term, fee-based, take-or-pay contracts at strategic customer assets Strong Balance Sheet Essentially no net debt at SXC and conservative 3.1x leverage at SXCP…
GROWTH STRATEGY Investor Meetings March 2015 11
Transformational Strategy Capitalize Leading raw Fuel our Leverage MLP on strengths in Replicate materials steel customers raw materials structure processing with coke business processing and model to drive value and handling…
Broadening our Growth Universe SunCoke has broadened its scope of verticals for M&A SunCokes Growth Thesis M&A Guardrails Leverage manufacturing/logistics core Strategic Fit competencies There are a significant number of…
New Platforms for Growth Pursuing M&A across a range of material handling verticals in addition to greenfield projects Examples of New Verticals Activated Carbon Carbon Black Industrial Clays Limestone Salt Calcined Coke Wood…
Value of Growth to SXC TM Greenfield growth combined with M&A, utilizing both SXCs and SXCPs balance sheets, has potential to create significant value Growth Opportunity GP/LP Cash Flow(1,2) 400M to 500M investment at 6x EBITDA…
GUIDANCE AND DISTRIBUTION OUTLOOK Investor Meetings March 2015 16
Consolidated Guidance Summary TM Metric 2014 Actual 2015 Guidance Adjusted EBITDA(1) Continuing Operations 237.8 million 225 245 million Consolidated 210.7 million 190 210 million Attributable to SXC 150.0 million 115 130…
GP/LP Distribution Growth to SXC TM Expect significant amount of GP/LP distributions over the next 3 years ( in millions) 350M to 400M upfront after-tax No Dropdowns proceeds Without dropdowns, expect High-end of distribution…
Dropdown Strategy TM Executing against strategy to drop down all domestic cokemaking assets to SXCP through 2016 Completed two dropdowns since expiration of tax sharing agreement in January 2014 Initiated quarterly dividend per…
SXC Capital Allocation TM SXCs top quartile cash yield demonstrates commitment to returning capital to shareholders 15.0% Total Cash Return Yield 12.1% 10.0% 5.0% 4.6% 2.6% 0.0% SXC S&P 500 (Average) Russell 2000…
SXCP Distribution Growth Investors have benefitted from top quartile(1) distribution growth; Q4 15E distribution represents 42% increase over MQD(2) SXCP Distribution Growth (/unit) +42% +14% 0.4125 MQD(2) 0.5854 0.5000…
Shareholder Value Creation TM Shareholder value creation via organic and inorganic growth projects, backed by disciplined capital management Pursue organic Acquire industrial- growth projects in facing processing steel…
APPENDIX Investor Meetings March 2015 23
SXC GUIDANCE AND RECONCILIATIONS Investor Meetings March 2015 26
2015E Guidance Reconciliation TM 2015E 2015E ( in millions) Low High Net Income 21 38 Subtract: Net Loss from Discontinued Operations (16) (13) Net Income from Continuing Operations 37 51 Depreciation, depletion and…
Capital Expenditures 2014 Capex ( in millions) SXC SXCP(1) Consolidated Ongoing (2) 27 17 44 Expansion 4 0 4 Environmental Project 1 45 46 Indiana Harbor Refurbishment 24 0 24 Total CapEx from Continued Operations 56 62 118…
Balance Sheet & Debt Metrics TM (1) As of 12/31/2014 Proforma Post-Granite City Transaction Balance Balance SXC Attributable SXC Attributable Attributable Attributable Consolidated to SXCP Consolidated to SXCP ( in millions) to…
SXCP GUIDANCE AND RECONCILIATIONS Investor Meetings March 2015 30
2015 Outlook Distributable cash flow outlook reflects Granite City dropdown benefit; potential upside should we tighten our cash coverage ratio over time 2015 Outlook ( in millions, except per unit data) Low High Adjusted EBITDA…
Expected 2015E EBITDA Reconciliation 2015E 2015E ( in millions) Low High Net Income 69 79 Depreciation and amortization 57 57 Interest expense, net 56 56 Income tax expense 1 1 Adjusted EBITDA 183 193 EBITDA attributable to…
ADDITIONAL INFORMATION ABOUT SUNCOKE, OUR TECHNOLOGY AND COKE DEMAND Investor Meetings March 2015 33
SXC/SXCP Organizational Structure TM SXC owns: 2% GP interest 56% LP interest 100% IDRs Domestic Coal Mining* International Coke (110M tons SXC provides via Omnibus Coke reserves) Agreement: Commercial contract…
SunCokes Cokemaking Technology TM Our industry-leading cokemaking technology meets U.S. EPA MACT standards and makes larger, stronger coke Industry-leading environmental signature Leverage negative pressure to substantially…
Coke Market Dynamics TM Expect stable coke demand on rebounding steel production Domestic Steel Production & Capacity Utilization Industry Outlook (Mt Production) 100 100% Stable BF/BOF production outlook driven by automotive…
Coke Market Dynamics TM Macro thesis playing out with recent coke battery retirements U.S. & Canada Coke Battery Age Distribution Industry Outlook (Mtpa capacity) 4 Meter By-product By-product coke battery 5.0 6 Meter…
Blast Furnaces and Coke TM Best in Class (lbs/st) Iron Iron Ore/Pellets 3,100 Burden Scrap 198 Flux Limestone 30 Fuel Coke 600 Top Gas Blast Furnace Steelmaking BFs are most efficient and proven method of reducing iron…
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