Worthington Steel
Investor Presentation | September 2024
Investment Highlights
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Well-positioned to capitalize on opportunities resulting |
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from the energy transition with our electrical steel products |
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Long-standing customer relationships focused on |
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value creation and best-in-class service delivery |
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3. |
Strong balance sheet and ample liquidity to pursue |
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attractive growth opportunities via strategic capital |
investments and/or value-enhancing acquisitions
4. Successful, experienced management team with a proven playbook and track record of delivering value
2
Building A Differentiated Steel Processing Company
1971 Worthington Steel
Established market leading joint ventures to bring additional value to our customers
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Worthington Steel |
changed its name to |
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Worthington Industries to |
Introduction of |
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founded in 1955 with a |
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reflect new areas of business |
Worthington Steel |
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focus on providing |
Worthington |
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is poised to |
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custom |
Business |
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drive value as a |
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processed steel |
First public stock |
System |
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standalone |
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offering in 1968 |
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company |
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Steel Pickling Company |
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1955 |
1960s |
1970s - 1980s |
1990s - 2000s 1992 |
1996 |
2007 |
2010s |
2020s |
2023 |
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Introduction of the |
Rapid growth |
Codified |
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Worthington |
powered by innovation |
safety program |
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Philosophy |
with unique culture |
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and Profit Sharing |
focused on the |
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"Golden Rule" |
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Automotive Components |
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Cleveland Facility |
Nagold, Germany |
Strip Steel Assets
BlankLight® Assets
Strategic acquisitions to expand Worthington's core
competencies and enter attractive end-markets
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Spin-off Unlocks Shareholder Value
1
Enhanced Agility
and Sharpened
Strategic Focus
- Pursue strategy and growth initiatives with a focus on our distinct business and operations
- Address unique operating needs and pursue targeted opportunities to enhance long- term growth and profitability
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Tailored Capital
Structures and Capital
Allocation Strategies
- Modest leverage and ample liquidity combined with strong cash flows
- Flexibility to deploy capital toward specific growth opportunities that align with our strategy
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Shareholder
Value
Creation
- Company value proposition easier for investors to understand and more appropriately compare to peer group
- Allow investors to more effectively evaluate our investment theses, performance and future growth prospects
4
Value-added Metals Processing Company
Net Sales by End-Market2,3
9%
1955
Founded
Columbus, OH
Headquarters
32
Locations1
~5,000
Employees1
~$1.8B4
Market Capitalization
TTM Financial Metrics2
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Volume Delivered (tons) |
4.0M |
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Direct / Toll (tons) |
2.2M / 1.8M |
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Net Sales |
$3.4B |
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Adjusted EBITDA / Margin |
$248M |
/ 7.4% |
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Free Cash Flow |
$167.2M |
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Capex / % of sales |
$107.6M |
/ 3.2% |
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Dividend (Annualized Rate) |
$0.64 |
3%
3%
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3% |
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5% |
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5% |
51% |
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8% |
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13% |
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Automotive |
Construction |
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Machinery & Equipment |
Agriculture |
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Heavy Truck |
Sustainable Energy |
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Containers |
Service Centers |
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Other |
OUR VISION
As a leader in the markets we serve, we boldly drive the metals industry toward a sustainable future as the most trusted, most innovative and most value-added metals processing partner in North America and beyond.
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1 Includes JV people & locations; 2 TTM ended August 31, 2024; 3 Excludes pro-rata share of unconsolidated JVs; 4 As of August 31, 2024. |
5 |
We Occupy a Unique Position in the Steel Supply Chain
Mills
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WHERE WE OPERATE |
Service Centers |
Melt
Hot Roll Coil (HRC)
Hot Roll
Conversion
Pickling / scale removal
Hot dip galvanizing
Specialty
Processing
Specialty cold rolling,
temper pass, annealing,
heavy gauge and
configured blanking
Electrical steel lamination
manufacturing
Tailor welded solutions
Dimensional Processing
Slitting to Width Cutting to Length
Warehouse & Distribute
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WHY |
What Differentiates Worthington |
✓ |
The Breadth of Value-Added Processing Capabilities |
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Steel from Competitors Across |
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WE WIN |
✓ End-to-End Supply Chain Management |
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the Steel Supply Chain |
✓ Price Risk Management Solutions |
6
Building on Market Leadership Position
#1
Independent Producer
of Hot Dipped
Galvanized Steel in
North America
#1
Producer of Tailor
Welded Blanks in
North America
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#1 |
#1 |
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Trader of Steel Futures |
Network of Independent |
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by Volume Among |
Picklers in |
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North American |
North America |
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Service Centers |
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#2
Independent Flat
Rolled Service
Center in Mexico
#3
Global Manufacturer of
Electrical Steel
Laminations and Cores
Blue-Chip Customer Recognition and Accolades
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Supplier of the Year |
2021, 2022 & 2023 Partner |
2021 Schaeffler Supplier |
2020 Raw Material |
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Supplier of the Year |
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Excellence Award |
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2020, 2021 & 2023 |
Level Supplier and inducted |
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into 10-year Hall of Fame |
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Zero PPM Award for |
Tata AutoComp Systems |
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2022 Global Supplier Award in |
Manufacturing Excellence 2023 |
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2024 Supplier Award for |
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"Lead Electric Propulsion" |
Supplier of the Year 2022 |
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Synergy |
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Note: Rankings based on management estimates. |
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Network and Services to Deliver Added Value to Customers
32 Manufacturing Facilities Primarily
Located in North America1
Key Operations Strategically Located
Proximate to Suppliers and Customers
Expertise in Optimizing Supply
Chains and Minimizing Total Landed Cost
90% of Sales in North America;
10% of Sales in Asia and Europe
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Wholly Owned |
Joint Ventures |
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1 Includes Worthington Steel's consolidated and unconsolidated joint ventures. |
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Joint Ventures Expand Our Processing Capabilities and Reach
Spartan Steel Coating
(52%)
- Partner: Cleveland-Cliffs
- A cold-rolled,hot-dipped coating line producing galvanized, galvannealed and aluminized products
- Single facility in Michigan
- Growth Initiative - Added Type 1 aluminized capability
TWB
(55%)
- Partner: BAOSteel
- Tailor welded products for the automotive industry
- Operates 11 facilities in US, Canada, Mexico
- Growth Initiative - Adding ablation equipment to pursue new market
WSCP1
(63%)
- Partner: Samuel, Son & Co.
- Pickling and slitting for the automotive, fabrication and appliance markets
- Operates 2 pickling facilities in Ohio
Serviacero Worthington
(50%)
- Partner: Serviacero
- Pickling, heavy gauge blanking, and slitting
- Operates 3 steel processing facilities in Mexico
- Growth Initiative - New slitter available late 2024 to process recent program wins
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450k Toll Tons |
300k Direct Tons |
625k Toll Tons |
450k Direct Tons |
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125k Toll Tons |
125k Toll Tons |
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Note: Volumes shown are total tons shipped from the fiscal year ended May 31, 2024, presented on a 100% basis. |
9 |
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1 |
Worthington Samuel Coil Processing. |
| Attention: This is an excerpt of the original content. To continue reading it, access the original document here. |
Disclaimer
Worthington Steel Inc. published this content on September 30, 2024 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on September 30, 2024 at 23:16:20 UTC.
