8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): December 11, 2012

SUNCOKE ENERGY, INC.

(Exact name of registrant as specified in its charter)

Delaware	001-35243	90-s0640593
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)
1011 Warrenville Road, Suite 600 Lisle, Illinois		60532
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code: (630) 824-1000

N/A

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 7.01 Regulation FD Disclosure.

On December 11, 2012, SunCoke Energy, Inc. (the “Company”) issued a press release, attached hereto as Exhibit 99.1 and incorporated herein by reference.

Members of the Company’s senior management team will host the company’s first Investor Day on Tuesday, December 11, 2012, at 2:00 p.m. EST at the New York Stock Exchange. Interested parties can access a live audio webcast of the presentation at www.suncoke.com in the Investor Relations section of the website. Such webcast will be archived for replay for a limited time. Attached as Exhibit 99.2 and incorporated herein by reference are the slides that will be used at the presentation.

The information in this Current Report on Form 8-K being furnished pursuant to Items 7.01 and 9.01 shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section, and is not incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such filing.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

Exhibit No.	Exhibit
99.1	Press release dated December 11, 2012.
99.2	December 11, 2012 – Investor Day Slides.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

SUNCOKE ENERGY, INC.
By:	/s/ Denise R. Cade
Denise R. Cade
Senior Vice President, General Counsel, Corporate
Secretary and Chief Compliance Officer

Date: December 11, 2012

EXHIBIT INDEX

Exhibit No.	Exhibit
99.1	Press release dated December 11, 2012.
99.2	December 11, 2012 – Investor Day Slides.

EX-99.1

Exhibit 99.1

SUNCOKE ENERGY, INC. PROVIDES 2013 OUTLOOK

AND HOSTS ITS FIRST INVESTOR DAY

• Adjusted EBITDA for the full year 2013 is projected to be between $205 million and $230 million

• 2013 Domestic coke production is expected to be in excess of 4.3 million tons reflecting another year of full capacity utilization

• 2013 coal sales are expected to increase slightly to 1.7 million tons driven by increased volumes from our Revelation surface mining venture and purchased coal

• Diluted Earnings Per Share (EPS) for 2013 is anticipated to be between $0.60 and $0.85

Lisle, IL (December 11, 2012) – SunCoke Energy, Inc. (NYSE: SXC) today will host its first Investor Day and provide its 2013 business outlook.

“2012 was a year of executing on our commitments and building the base for the future,” said Frederick “Fritz” Henderson, Chairman and Chief Executive Officer of SunCoke Energy. “Our entire U.S. cokemaking fleet performed well, with our new Middletown operations making a substantial contribution. We made tangible progress in our growth strategy with the recently announced plan to form a cokemaking joint venture with VISA Steel in India, the filing of a permit application to potentially build another U.S. cokemaking facility and pursuit of a planned initial public offering of a Master Limited Partnership. We also generated significant free cash flow in 2012 and expect to close the year with nearly $240 million of cash.”

Henderson continued, “Looking ahead to 2013, we expect to continue to drive operations excellence throughout our business. While we expect to maintain positive momentum in our cokemaking business, we nevertheless expect lower results in 2013, primarily due to a more than $40 per ton decrease in average sale prices in our coal mining segment. As a result, we estimate full year Adjusted EBITDA for 2013 will be between $205 million and $230 million, down roughly $40-$50 million from 2012.”

To mitigate the impact of significantly lower coal sale prices in its coal operations, the Company is accelerating the execution of an aggressive coal action plan intended to improve efficiencies and lower costs at its Jewell underground mining operations. In addition, the Company plans to increase volumes sourced from its Revelation surface mining venture and purchases of lower-priced third-party coal in 2013. Total 2013 coal sales are projected to be 1.7 million tons versus an estimated 1.5 million in 2012.

On the coke side, the Company expects sustained strong operations across its domestic fleet, with meaningful improvement at its Indiana Harbor facility and the benefit of 12 months of full production at its Middletown facility. Partially offsetting these improvements, lower purchased coal costs per ton are expected to decrease the value of coal-to-coke yield benefits the coke operations realized in 2012. The Company also expects to exceed 100% capacity utilization again in 2013, with projected coke production in excess of 4.3 million tons. SunCoke expects its domestic coke business will continue to achieve Adjusted EBITDA of $55 to $60 per ton in 2013.

Capital expenditures and investments are expected to increase from $70 million in 2012 to approximately $200 million in 2013. This projected increase is driven by approximately $75 million for the refurbishment of the Indiana Harbor facility and environmental remediation projects at the Haverhill and Granite City facilities as well as an estimated $67 million investment in the VISA SunCoke joint venture. Primarily as a result of the VISA SunCoke joint venture investment, the Company anticipates a free cash flow deficit of approximately $65 million for 2013. In addition, SunCoke expects both its 2013 effective tax rate and cash tax rate to be between 17% and 22%.

SunCoke Energy, Inc.

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UPCOMING COMMUNICATIONS

Members of SunCoke’s senior management team will host the company’s first Investor Day conference on December 11, 2012, at 2 pm EST. Presenters include: Frederick “Fritz” Henderson, Chairman & Chief Executive Officer; Mike Thomson, President & Chief Operating Officer; Dr. John Quanci, Vice President, Technology; Mike Hardesty, Senior Vice President, Sales and Commercial Operations; and Mark Newman, Senior Vice President & Chief Financial Officer.

Presentations will be webcast live and archived for replay for a limited time in the Investor Relations section of the Company’s website at www.suncoke.com.

DEFINITIONS

• Adjusted EBITDA represents earnings before interest, taxes, depreciation, depletion and amortization (“EBITDA”) adjusted for sales discounts, the deduction of income attributable to noncontrolling interests in our Indiana Harbor cokemaking operations, and the interest, taxes, depreciation, depletion and amortization attributable to equity earnings in our unconsolidated affiliates. EBITDA reflects sales discounts included as a reduction in sales and other operating revenue. The sales discounts represent the sharing with customers of a portion of nonconventional fuel tax credits, which reduce our income tax expense. However, we believe our Adjusted EBITDA would be inappropriately penalized if these discounts were treated as a reduction of EBITDA since they represent sharing of a tax benefit that is not included in EBITDA. Accordingly, in computing Adjusted EBITDA, we have added back these sales discounts. Our Adjusted EBITDA also reflects the deduction of income attributable to noncontrolling interests in our Indiana Harbor cokemaking operations. Our Adjusted EBITDA also includes EBITDA attributable to our unconsolidated affiliates. EBITDA and Adjusted EBITDA do not represent and should not be considered alternatives to net income or operating income under GAAP and may not be comparable to other similarly titled measures in other businesses. Adjusted EBITDA does not represent and should not be considered as an alternative to net income as determined by GAAP, and calculations thereof may not be comparable to those reported by other companies. We believe Adjusted EBITDA is an important measure of operating performance and provides useful information to investors because it highlights trends in our business that may not otherwise be apparent when relying solely on GAAP measures and because it eliminates items that have less bearing on our operating performance. Adjusted EBITDA is a measure of operating performance that is not defined by GAAP and should not be considered a substitute for net (loss) income as determined in accordance with GAAP.

• Adjusted EBITDA per Ton represents Adjusted EBITDA divided by tons sold.

• Free Cash Flow equals cash from operations less cash used in investing activities less cash distributions to noncontrolling interests. Management believes Free Cash Flow information enhances an investor’s understanding of a business’ ability to generate cash. Free Cash Flow does not represent and should not be considered an alternative to net income or cash flows from operating activities as determined under GAAP and may not be comparable to other similarly titled measures of other businesses.

SUNCOKE ENERGY, INC.

SunCoke Energy, Inc. is the largest independent producer of metallurgical coke in the Americas, with 50 years of experience supplying coke to the integrated steel industry. Our advanced, heat recovery cokemaking process produces high-quality coke for use in steelmaking, captures waste heat for derivative energy resale and meets or exceeds environmental standards. Our cokemaking facilities are located in Virginia, Indiana, Ohio, Illinois and Vitoria, Brazil, and our coal mining operations, which have more than 114 million tons of proven and probable reserves, are located in Virginia and West Virginia. To learn more about SunCoke Energy, Inc., visit our website at www.suncoke.com.

2

SunCoke Energy, Inc.

Page | 3

FORWARD LOOKING STATEMENTS

Some of the statements included in this press release constitute “forward looking statements” (as defined in Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended). Such forward-looking statements are based on management’s beliefs and assumptions and on information currently available. You should not put undue reliance on any forward-looking statements. Forward-looking statements include all statements that are not historical facts and may be identified by the use of forward looking terminology such as the words “believe,” “expect,” “plan,” “project,” “intend,” “anticipate,” “estimate,” “predict,” “potential,” “continue,” “may,” “will,” “should” or the negative of these terms or similar expressions. Forward-looking statements involve risks, uncertainties and assumptions.

Risks and uncertainties that could cause actual results to differ materially from those expressed in forward-looking statements include economic, business, competitive and/or regulatory factors affecting the Company’s business, as well as uncertainties related to the outcomes of pending or future litigation, legislation, or regulatory actions. Among such risks are: changes in levels of production, production capacity, pricing and/or margins for metallurgical coal and coke; variation in availability, quality and supply of metallurgical coal used in the cokemaking process, including as a result of non-performance by our suppliers; changes in the marketplace that may affect supply and demand for our metallurgical coal and/or coke products, including increased exports of coke from China related to reduced export duties and export quotas and increasing competition from alternative steelmaking and cokemaking technologies that have the potential to reduce or eliminate the use of metallurgical coke; our dependence on, and relationships with, and other conditions affecting, our customers; severe financial hardship or bankruptcy of one of more of our major customers, or the occurrence of a customer default and other events affecting our ability to collect payments from our customers; volatility and cyclical downturns in the carbon steel industry and other industries in which our customers operate; our ability to enter into new, or renew existing, long-term agreements upon favorable terms for the supply of metallurgical coke to domestic and/or foreign steel producers; our ability to develop, design, permit, construct, start up or operate new cokemaking facilities in the U.S.; our ability to successfully implement our international growth strategy, including our investment in the Indian joint venture; the possibility that our investment in the Indian joint venture does not close for any reason; our ability to consummate investments under favorable terms, including with respect to existing cokemaking facilities, which may utilize by-product technology, in the U.S. and Canada, and integrate them into our existing businesses and have them perform at anticipated levels; the timing and structure of the planned MLP may change; unanticipated developments may delay or negatively impact the planned MLP; receipt of regulatory approvals and compliance with contractual obligations required in connection with the planned MLP; the impact of the planned MLP on our relationships with our employees, customers and vendors and our credit rating and cost of funds; changes in market conditions; future opportunities that our Board of Directors may determine present greater potential value to stockholders than the planned MLP; age of, and changes in the reliability, efficiency and capacity of the various equipment and operating facilities used in our coal mining and/or cokemaking operations, and in the operations of our major customers, business partners and/or suppliers; changes in the expected operating levels of our assets; our ability to meet minimum volume requirements, coal-to-coke yield standards and coke quality requirements in our coke sales agreements; changes in the level of capital expenditures or operating expenses, including any changes in the level of environmental capital, operating or remediation expenditures; our ability to service our outstanding indebtedness; our ability to comply with the restrictions imposed by our financing arrangements; nonperformance or force majeure by, or disputes with or changes in contract terms with, major customers, suppliers, dealers, distributors or other business partners; availability of skilled employees for our coal mining and/or cokemaking operations, and other workplace factors; effects of railroad, barge, truck and other transportation performance and costs, including any transportation disruptions; effects of adverse events relating to the operation of our facilities and to the transportation and storage of hazardous

3

SunCoke Energy, Inc.

Page | 4

materials (including equipment malfunction, explosions, fires, spills, and the effects of severe weather conditions); our ability to enter into joint ventures and other similar arrangements under favorable terms; changes in the availability and cost of equity and debt financing; impact on our liquidity and ability to raise capital as a result of changes in the credit ratings assigned to our indebtedness; changes in credit terms required by our suppliers; risks related to labor relations and workplace safety; changes in, or new, statutes, regulations, governmental policies and taxes, or their interpretations, including those relating to the environment and global warming; the existence of hazardous substances or other environmental contamination on property owned or used by us; the availability of future permits authorizing the disposition of certain mining waste; claims of our noncompliance with any statutory and regulatory requirements; changes in the status of, or initiation of new litigation, arbitration, or other proceedings to which we are a party or liability resulting from such litigation, arbitration, or other proceedings; historical combined and consolidated financial data may not be reliable indicator of future results; effects resulting from our separation from Sunoco, Inc.; incremental costs as a stand-alone public company; our substantial indebtedness; certain covenants in our debt documents; our ability to secure new coal supply agreements or to renew existing coal supply agreements; our ability to acquire or develop coal reserves in an economically feasible manner; defects in title or the loss of one or more mineral leasehold interests; disruptions in the quantities of coal produced by our contract mine operators; our ability to obtain and renew mining permits, and the availability and cost of surety bonds needed in our coal mining operations; changes in product specifications for either the coal or coke that we produce; changes in insurance markets impacting costs and the level and types of coverage available, and the financial ability of our insurers to meet their obligations; changes in accounting rules and/or tax laws or their interpretations, including the method of accounting for inventories, leases and/or pensions; changes in financial markets impacting pension expense and funding requirements; our ability to protect our intellectual property rights; compromises or failure of our information technology systems; the accuracy of our estimates of reclamation and other mine closure obligations; and effects of geologic conditions, weather, natural disasters and other inherent risks beyond our control. Unpredictable or unknown factors not disclosed in this release also could have material adverse effects on forward-looking statements.

In accordance with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, SunCoke Energy has included in its filings with the Securities and Exchange Commission cautionary language identifying important factors (but not necessarily all the important factors) that could cause actual results to differ materially from those expressed in any forward-looking statement made by SunCoke Energy. For more information concerning these factors, see SunCoke Energy’s Securities and Exchange Commission filings. All forward-looking statements included in this press release are expressly qualified in their entirety by such cautionary statements. SunCoke Energy does not have any intention or obligation to update any forward-looking statement (or its associated cautionary language) whether as a result of new information or future events, after the date of this press release except as required by applicable law.

###

4

SunCoke Energy, Inc.

Page | 5

SunCoke Energy, Inc.

Reconciliations

Reconciliation of Estimated 2012 Adjusted EBITDA to Net Income

(Dollars in millions)	Low (Estimated)			High (Estimated)
Estimated 2012 Net Income	$	94		$	104
Depreciation, depletion and amortization		80			78
Total financing costs, net		48			47
Income tax expense		25			34
Estimated 2012 EBITDA	$	247		$	263
Sales discounts		11			12
Noncontrolling interests		(3	)		(5	)
Estimated 2012 Adjusted EBITDA	$	255		$	270

Reconciliation of 2012 Estimated Free Cash Flow

(Dollars in millions)		2012 (Estimated)
Estimated Cash Provided by Operations	In excess of	$	179
Estimated cash used in investing activities	Approx.		(75	)
Estimated distribution to noncontrolling interests	Approx.		(4	)
Estimated Free Cash Flow	In excess of	$	100

Reconciliation of Estimated 2013 Adjusted EBITDA to Net Income

(Dollars in millions)	Low (Estimated)			High (Estimated)
Estimated 2013 Net Income	$	46		$	63
Depreciation, depletion and amortization		99			94
Total financing costs, net		48			47
Income tax expense		10			18
Estimated 2013 EBITDA	$	202		$	222
Sales discounts		6			7
Noncontrolling interests		(3	)		(4	)
Adjustments to unconsolidated affiliate earnings		0			5
Estimated 2013 Adjusted EBITDA	$	205		$	230

Reconciliation of Estimated 2013 Free Cash Flow

(Dollars in millions)		2013 (Estimated)
Estimated Cash Provided by Operations	In excess of	$	140
Estimated cash used in investing activities	Approx.		(200	)
Estimated distribution to noncontrolling interests	Approx.		(5	)
Estimated Free Cash Flow	In excess of	$	(65	)

5

EX-99.2

Exhibit 99.2

Welcome

Ryan Osterholm

Director, Finance & Investor Relations

TM

TM

Some

of

the

information

included

in

this

presentation

contains

“forward-looking

statements”

(as

defined

in

Section

27A

of

the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended). Such

forward-looking statements are based on management’s beliefs and assumptions and on information currently available.

Forward-looking statements include the information concerning SunCoke’s possible or assumed future results of operations,

the planned Master Limited Partnership, business strategies, financing plans, competitive position, potential growth

opportunities,

potential

operating

performance

improvements,

the

effects

of

competition

and

the

effects

of

future

legislation

or regulations. Forward-looking statements include all statements that are not historical facts and may be identified by the

use

of

forward-looking

terminology

such

as

the

words

“believe,”

“expect,”

“plan,”

“intend,”

“anticipate,”

“estimate,”

“predict,”

“potential,”

“continue,”

“may,”

“will,”

“should”

or the negative of these terms or similar expressions. Forward-looking

statements involve risks, uncertainties and assumptions. Actual results may differ materially from those expressed in these

forward-looking statements. You should not put undue reliance on any forward-looking statements.

In accordance with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, SunCoke has included

in its filings with the Securities and Exchange Commission cautionary language identifying important factors (but not

necessarily all the important factors) that could cause actual results to differ materially from those expressed in any forward-

looking statement made by SunCoke. For more information concerning these factors, see SunCoke's Securities and

Exchange Commission filings.

All forward-looking statements included in this presentation are expressly qualified in their

entirety by such cautionary statements. SunCoke does not have any intention or obligation to update publicly any forward-

looking statement (or its associated cautionary language) whether as a result of new information or future events or after

the date of this presentation, except as required by applicable law.

This presentation includes certain non-GAAP financial measures intended to supplement, not substitute for, comparable

GAAP measures. Reconciliations of non-GAAP financial measures to GAAP financial measures are provided in the

Appendix at the end of the presentation. Investors are urged to consider carefully the comparable GAAP measures and the

reconciliations to those measures provided in the Appendix, or on our website at www.suncoke.com.

Safe Harbor Statement

Safe Harbor Statement

3

SunCoke Energy 2012 Investor Day

Fritz Henderson

Chairman & Chief Executive Officer

Establishing the Foundation

Establishing the Foundation

5

SunCoke Energy 2012 Investor Day

•

Executed successful Middletown startup

•

Improved Indiana Harbor performance

•

Achieved solid operations across entire coke fleet

•

Established independent board and governance process

•

Built corporate headquarter functions from scratch

•

Executed standalone financial reporting

•

Achieving financial targets in 2012

•

Increased liquidity and generated free cash flow

•

Pursuit of a planned MLP IPO to enhance valuation

and future growth in progress

•

Continued focus on reducing costs and improving productivity

in our coal mining business

TM

TM

Since our July 2011 IPO, we delivered solid progress in many areas,

laying a foundation for future growth

Proved our

cokemaking

expertise

Established our

standalone

structure

Built financial

strength and

flexibility for

growth

Focused on

optimizing

our coal

business

TM

TM

Status of Planned MLP IPO

Status of Planned MLP IPO

•

Made significant progress with the SEC

registration process

•

Equity markets –

particularly MLP IPO equity

markets –

have been choppy in recent weeks

•

Continue to believe the planned MLP will

enhance SXC shareholder value

•

Plan to initiate MLP IPO as soon as market

conditions improve

6

SunCoke Energy 2012 Investor Day

Seizing our Growth Opportunities

Seizing our Growth Opportunities

7

SunCoke Energy 2012 Investor Day

•

Domestic:

•

Aging existing coke

facilities

•

Higher-priced imports

•

Opportunities for

acquiring existing coke

facilities

•

India:

•

Growing steel and

coke demand

•

Active merchant

market

•

Clear Priorities

and Objectives:

•

Operational excellence

•

Increasing U.S./Canada

market share

•

India entry

•

Strong Organizational

Capability:

•

Experienced

management

•

Operating and technical

expertise

•

Depth of talent

•

Financial Liquidity:

•

Strong cash position

•

Undrawn revolver

•

Potential to pre-fund

obligations for

planned MLP

•

Planned MLP

Capital Structure:

•

Low-cost equity

currency

•

Leverage capacity

TM

TM

Industry Fundamentals

Execution Capability

& Focus

Financial Strength

& Flexibility

Uniquely positioned to capture a greater share of the global

cokemaking market and achieve profitable, sustainable growth

TM

TM

Coke Industry Fundamentals

Coke Industry Fundamentals

8

SunCoke Energy 2012 Investor Day

U.S. & Canada Coke Supply

U.S. & Canada Coke Asset Age Profile in 2011

Total 2011 Coke Demand: 19.5 million tons

Opportunities exist to potentially replace aging coke batteries

and acquire existing facilities

Source:  CRU, Metallurgical Coke Market Outlook 2012; Company analysis

Maintained Facilities

with Potential for

Acquisition

Challenged Facilities

with Potential for

Replacement

Other Merchant

Other Merchant

& Foundry

& Foundry

6%

6%

Integrated

Integrated

Steel

Steel

Producers

Producers

63%

63%

SunCoke

SunCoke

18%

18%

DTE

DTE

5%

5%

Imports

Imports

8%

8%

Average Age

% of U.S. & Canada

coke production

9

37

27%

24%

SunCoke

U.S. &

Canada

(excl SXC)

30-40

years

40+ years

TM

TM

Coke Industry Fundamentals

Coke Industry Fundamentals

9

SunCoke Energy 2012 Investor Day

Source:  CRU, Metallurgical Coke Market Outlook 2012; Company analysis

Evaluation of all existing batteries in US & Canada

Customer quality

Blast furnace competitiveness

Battery condition

SXC Market Analysis

6 batteries

4.1 million tons

19 batteries

4.0 million tons

Facilities with Potential

for Replacement

Facilities with Potential

for Acquisition

We

estimate

nearly

4

million

tons

of

capacity

will

be

retired/replaced

in

coming

years

&

another

4

million

tons

is

potentially

acquisition

worthy

TM

TM

Coke Industry Fundamentals

Coke Industry Fundamentals

10

SunCoke Energy 2012 Investor Day

U.S. & Canada Coke Imports

U.S. & Canada Coke Imports

Source:  Steel Business Briefing;  Company estimates

Our

coke

is

a

preferred

solution

compared

to

imported

coke

which

is

disadvantaged on quality, reliability and shipping/handling costs

Chinese Coke Prices vs.

Chinese Coke Prices vs.

Representative SunCoke Price

Representative SunCoke Price

4.5 

4.9 

3.3 

5.1 

0.8 

2.0 

1.9 

2.0 

1.8 

2005

2006

2007

2008

2009

2010

2011

2012E2013E

Imports

SunCoke sales volumes

$0

$250

$500

$750

(FOB China port -

adds $45-$60/ton)

Chinese Metallurgical Coke

Long-term SunCoke Coke Sales Price

(Tons in millions)

TM

TM

Coke Industry Fundamentals

Coke Industry Fundamentals

SunCoke’s coke is competitively priced relative to imported coke

Representative

Delivered

Coke

Prices

-

$/ton

Based on September 2012 prices

SunCoke Energy 2012 Investor Day

11

SunCoke Price -

Contracted Coal Price Differential

Chinese Coke Price

Ukrainian

Coke (1)

Ukrainian Coke Price

Other Domestic Coke

Chinese

Coke (2)

Chinese 40% Export Tax Premium (Tariff)

SunCoke

Coke Price @ Spot Coal Price

1

Includes approx. $65/ton freight and approx. $30/ton handling loss for shipping to Great Lakes region

2

Includes approx. $70/ton freight and approx. $35/ton handling loss for shipping to Great Lakes region

TM

TM

India Entry: VISA SunCoke

India Entry: VISA SunCoke

•

VISA Steel is a mid-sized,

publicly-traded special steel, ferro

chrome and coke company

–

Well-run organization with professional

management and quality assets

•

VISA SunCoke

–

SXC to hold 49% interest with equal

board representation

–

Will supply VISA Steel’s coke needs

(approx. 1/3rd of production) and sell

balance into open market

–

All steam production sold to VISA Steel

–

VISA SunCoke to be debt-free at closing

–

Closing expected in Q1 2013, subject to

customary conditions

12

SunCoke Energy 2012 Investor Day

VISA SunCoke provides a meaningful entry to India

and serves as a platform for future growth

Chinese Heat Recovery

Chinese Heat Recovery

Coke:

Coke:

400K tpy

400K tpy

Steam:

Steam:

20 Mwhe

20 Mwhe

Built:

Built:

2007

2007

Odisha, India

Odisha, India

Photo courtesy of VISA Steel

The India Growth Opportunity

The India Growth Opportunity

13

SunCoke Energy 2012 Investor Day

Sources:  CRU, Metallurgical Coke Outlook 2012, World Steel Association, Company estimates

India

India

Brazil

Brazil

China

China

2011

57

123

460

India Metallurgical Coke Demand

India Metallurgical Coke Demand

Per Capital Steel Demand (kg/yr)

Per Capital Steel Demand (kg/yr)

India offers attractive coke market fundamentals

driven by growing steel demand

28

28

62

62

Electric Power

Deficit

Growing Steel

Market

Active Merchant

Market

Coke Supply

Deficit

India

India

Steel/Coke

Steel/Coke

Market

Market

TM

TM

The India Growth Opportunity

The India Growth Opportunity

14

SunCoke Energy 2012 Investor Day

India is a merchant coke market that is

power short

Estimated EBITDA per ton is typically the

same or better in the U.S.

Construction capital cost per ton

estimated to be one-half less than in U.S.

Expect

VISA

SunCoke

will

achieve

strong

returns and serve as platform for growth

TM

TM

Our India Strategy

Our India Strategy

15

SunCoke Energy 2012 Investor Day

•

Form VISA

SunCoke joint

venture

•

Evaluate &

improve

existing asset

operations

•

Establish

market

presence

•

Grow VISA

SunCoke via

follow-on

opportunities

•

Reinvest free

cash flow

•

Utilize debt

capacity of

VISA SunCoke

•

Develop

emerging

market plant

design

•

Continue to

leverage JV

and in-country

presence

•

Pursue “Build-

Own-Operate”

model with

leading

integrated

steelmakers

Near-Term

Growth

Initial Entry

Long-Term

Vision

TM

TM

Coal Mining Strategy

Coal Mining Strategy

16

SunCoke Energy 2012 Investor Day

Rationalizing underground mining plan

Implementing improved underground

mining practices

Installing new cyclone and fine circuit in

existing prep plant

Targeting at least 10% reduction in

Jewell underground cash costs in 2013

Increasing utilization of lower cost

Revelation and purchased coal in

supply

Enhancing strategic value and flexibility

of business

Evaluating option of replacing/

relocating existing prep plant and

load out

Potential to significantly decrease

logistics and operating costs

Will enable more coal sourcing

flexibility for Jewell Coke

Will allocate capital to drive efficiencies,

ensure safety and prepare for delinking

coal and coke operations

Current Actions in Progress

to Position for 2013

Strategic Focus

Beyond 2013

Taking action intended to reduce costs and

enhance our long-term strategic flexibility

TM

TM

2013 Priorities

2013 Priorities

SunCoke Energy 2012 Investor Day

17

Sustain momentum at

coke facilities

Execute Indiana Harbor

Execute refurbishment

Resolve NOV

Renew coke contract

with return on

refurbishment capital

Implement Consent

Decree project

Execute coal mining

action plan to decrease

cash cost

Maintain top quartile

safety performance

Domestic

Obtain permit for next

potential U.S. facility

Identify and pursue

strategic acquisition

opportunities for the

planned MLP in the U.S.

and Canada

Evaluate adjacent

business

lines

to

extend

growth opportunities

International

Close VISA SunCoke

joint venture

Identify potential follow-

on opportunities in India

Coke MLP

Smooth launch,

governance and

operation of planned

MLP entity

Coal

Reposition mining

operations for near-term

weakness and long-term 

strategic flexibility

Efficient Capital

Allocation

Put SXC & planned MLP

balance sheets to work

Operational

Operational

Excellence

Excellence

Grow The Coke

Grow The Coke

Business

Business

Strategically

Strategically

Optimize Assets

Optimize Assets

Mike Thomson

President & Chief Operating Officer

TM

TM

SunCoke’s Organization Capability

SunCoke’s Organization Capability

19

SunCoke Energy 2012 Investor Day

SunCoke has the organizational expertise and

capability to execute on its 2013 cokemaking strategic priorities

Operations

Excellence

(SunCoke

Way)

Coal Science

& Coke

Technology

Solid

Customer

Relationships

Lean

Engineering

Organization

Competencies

By-Product

Preparedness

Contract

Structuring &

Execution

TM

TM

2013 Coke Strategic Priorities

2013 Coke Strategic Priorities

20

SunCoke Energy 2012 Investor Day

Execute Indiana Harbor

Launch gas sharing project

Permit potential new U.S. facility

Identify and pursue acquisition opportunities

Close VISA SunCoke and optimize plant

TM

TM

2013 Coal Strategic Priorities

2013 Coal Strategic Priorities

21

SunCoke Energy 2012 Investor Day

2013 focus is on optimizing our coal business

to enhance long-term strategic flexibility and value

Rationalize

Mining

Plans

Enhance

Productivity

Improve

Prep Plant 

Increase

Revelation &

Purchased

Coal

TM

TM

Execute Indiana Harbor

Execute Indiana Harbor

•

World’s first heat-recovery

cokemaking facility, started

up in 1998

•

Supplies ArcelorMittal’s #7

Blast Furnace -

largest in

Western Hemisphere

•

Original capital investment

of approx. $200 million

•

Heat recovery assets owned

and operated by Cokenergy

22

SunCoke Energy 2012 Investor Day

With capacity of 1.22 million tons, Indiana Harbor is our largest North

American facility and has significant impact on domestic coke performance

TM

TM

Execute Indiana Harbor

Execute Indiana Harbor

Contract renewal in progress

•

Currently negotiating long-term

contract extension

•

Lowest cost source of coke

for critical customer asset

•

Estimate $50 million of

refurbishment capital with

potential for additional spend

depending on negotiations

•

Expect to earn return on

incremental capital and

maintain current economics

23

SunCoke Energy 2012 Investor Day

TM

TM

Execute Indiana Harbor

Execute Indiana Harbor

Refurbishment underway

•

Project scoped to enhance reliability,

address environmental issues and

facilitate long-term contract renewal

•

Pioneered new plant designs and

replacement/repair techniques

–

Repair of tunnels and sole flues

–

Installing new oven door & lintels

–

Encouraging

early

results

-

increased

charge

size ~10% on initial ovens

•

Potential for additional machinery

replacements

–

Enhanced reliability / lower maintenance expense

–

Additional capital dependent on outcome

of renewal negotiations

24

SunCoke Energy 2012 Investor Day

Before

After

TM

TM

Launch Gas Sharing Project

•

Expect to finalize Consent Decree

with U.S. EPA for Haverhill/Granite

City NOVs soon

•

Core of solution is implementation

of Gas Sharing at both facilities

–

Involves retrofitting each facility with

redundant HRSG, ductwork and

advanced controls to substantially

reduce HRSG venting

•

Estimated cost of approximately

$100 million for both plants

•

Procurement and final engineering

underway with implementation

planned for 2013 to 2016

25

SunCoke Energy 2012 Investor Day

We have identified, engineered and are ready to implement

a  Gas Sharing project at Haverhill and Granite City

TM

TM

Launch Gas Sharing Project

•

Gas Sharing encompasses enhanced

equipment and design, plus more

advanced control systems and

operating practices

–

Leveraged internal expertise and

process engineering capability

to develop

•

Concept forms the basis for next

generation coke plants in the U.S.

•

Will meet or exceed new

EPA regulations

•

Sets new Best Available

Control Technology

Gas Sharing technology will establish a new environmental

benchmark for cokemaking, keeping SunCoke at the forefront

26

SunCoke Energy 2012 Investor Day

TM

TM

Permit Potential New U.S. Facility

•

Design, engineering and

permitting underway

–

Permit submitted December 2012

12-18 months process from

submission

–

Will seek customer commitments

once permit in hand

•

Lean engineering focus for

new plant design

–

Must meet tougher new U.S.

EPA requirements

–

Be capital efficient

–

Enhance operating efficiencies

and flexibility

–

Logistics –

both inbound coal and

outbound coke are considerations

27

SunCoke Energy 2012 Investor Day

Potential Kentucky Site

TM

TM

*Inflation adjusted to 2011 dollars and, for Haverhill II and Granite

City, adjusted to include estimated cost for power generation facility

Permit Potential New U.S. Facility

•

Major value improvements

–

30% smaller footprint

–

Fewer but larger HRSGs

–

Significant boiler feed water

and steam piping savings

–

Modular design allows for

modular future expansion

•

Design enhancements

–

Higher energy production

–

Reduced power consumption

–

Improved yield from better

coke/coal handling and oven

design & control

28

SunCoke Energy 2012 Investor Day

442

505

564

725

Haverhill 1

Haverhill 2

Granite City

Middletown

Next US Plant

Normalized* Construction Cost

per Ton of Capacity

500E –

600E

Lean engineering efforts expected to reduce cost of potential new

U.S. facility despite increasing environmental controls

TM

TM

Advantages of HR

Advantages of BP

Negative Pressure Ovens

Positive Pressure Ovens

Cogeneration potential

•

Potential high value for by-products

•

Makes coke oven gas for steelmaking

No wall pressure limitations on coal blend

No volatile matter limitations on coal blend

New designs a potential fit for by-product

oven and chemical plant

Smaller oven footprint for new and replacement

ovens

Higher CSR coke quality

High comfort level with >100 years of

operating experience

Lower capital cost and simpler operation

Natural gas pricing hedge

Identify and Pursue Acquisitions

29

SunCoke Energy 2012 Investor Day

•

No air leaks into oven

•

Higher yield

•

Minimal fugitive emissions

•

Leading environmental technology

•

Steam or electricity as desired

•

More fungible by-product (power)

While heat recovery technology offers many advantages, by-product

technology can also provide certain benefits in cokemaking

TM

TM

Identify and Pursue Acquisitions

Identify and Pursue Acquisitions

30

SunCoke Energy 2012 Investor Day

Low Cost

of Capital

•

Potential for planned MLP to provide lower cost capital

for acquisitions

•

Frees up capital on customer balance sheets for

strategic investments

Operating

Know-How

& Reliable

Supply

•

Strong cokemaking expertise

•

Capability to operate by-product facilities

Solid Customer

Relationships

•

Proven track record

with customers

We can provide a compelling value proposition to customers

in pursuing acquisition opportunities in the U.S. and Canada

TM

TM

Close VISA SunCoke and Optimize Plant

Close VISA SunCoke and Optimize Plant

Quality Assets

•

Built in 2007; SPCDI-China design

•

8 Batteries; 88 Ovens;

Charge per oven –

54mt;

Coking time –

68 hours

•

Stamp charging technology

•

Well maintained plant

•

Staff are knowledgeable and

credible cokemakers

Plan to Support & Optimize

•

Will appoint JV’s CFO and deputy

operations manager

•

Will actively support with U.S.-

based operating and technical staff

•

Partnering to enhance operations

and position for growth

•

Launchpad for future India and

emerging market opportunities

31

SunCoke Energy 2012 Investor Day

Photo courtesy of VISA Steel

TM

TM

Summary

Summary

32

SunCoke Energy 2012 Investor Day

Organizational Capability

Clear 2013 Priorities

Operations

Excellence

(SunCoke

Way)

Coal Science

& Coke

Technology

Solid

Customer

Relationships

Organization

Competencies

Lean

Engineering

By-Product

Preparedness

Contract

Structuring &

Execution

Execute Indiana

Harbor

Launch gas sharing

project

Permit potential new

U.S. facility

Identify and pursue

acquisition

opportunities

Close VISA SunCoke

and optimize plant

Mike Hardesty

Senior Vice President, Sales & Commercial Operations

TM

TM

State of the U.S. Coal Market

State of the U.S. Coal Market

•

Slowing China growth impacting marginal demand, while European

and South American demand remains tepid

•

Domestic steel output slightly above 70% of capacity, further depressing

coking coal prices

•

Weak natural gas prices keeping lid on domestic thermal coal activity 

•

Improved

output

from

Australia

pressured

global

prices

as

demand

fell

•

Global inventory glut is the result

•

Significant U.S. cuts announced in response to weak market conditions;

Australia appears to be making initial cuts now

•

Strict U.S. regulatory environment limits cost improvement measures

•

International benchmark pricing down by $55/ton year-over-year to $170/ton for fiscal Q3

•

U.S. met coal prices have decoupled and held up better than global prices

•

Current FOB mine domestic prices near cash cost for many CAPP sources

of premium met coals

Demand

Supply

Price

34

SunCoke Energy 2012 Investor Day

TM

TM

Coal Mining Financial Summary

Coal Mining Financial Summary

•

Since 2010 cash costs and

reject rates have increased

•

Deterioration in

performance reflects:

–

Geological challenges

–

Impact of aging mining

equipment and prep plant

–

Labor training and

productivity challenges

•

Given environment,

our mining segment is

focused on cost reduction

35

SunCoke Energy 2012 Investor Day

Coal Mining Adjusted EBITDA

(1)

and Avg. Sales Price/Ton

(2)

($ in millions, except per ton amounts)

(1)

For

a

definition

and

a

reconciliation

of

Adjusted

EBITDA,

please

see

the

appendix.

(2)

Average Sales Price is the weighted average sales price for all coal sales volumes, including sales to affiliates and sales to Jewell Coke.

64%

65%

67%

$130

$157

$168

$19 

$24 

$24 

$106 

$132 

$143 

55%

65%

75%

85%

95%

105%

FY2010

FY2011

YTD Sept

2012

JCM Reject Rate

Average Sales Price

Coal Adj EBITDA / ton

Coal Cash Cost / ton

TM

TM

Coal Mining Action Plan

Coal Mining Action Plan

•

Targeting underground cash cost

reduction of at least 10%

–

Realize value of recent

equipment investments

–

Improved maintenance programs

–

Optimize mine plans

Footprint reduction (seals)

Target best areas (optimization)

Negotiate lower royalty rates

•

Expect improved yield from plant

–

New circuit upgrade

–

Higher % of surface production

•

Maintain and improve top-quartile

safety performance

36

SunCoke Energy 2012 Investor Day

2013 Coal Mining objectives focus on cost reduction

and mitigating impact of lower pricing

Rationalize

Mining

Plans

Enhance

Productivity

Increase

Revelation &

Purchased

Coal

Improve

Prep Plant

TM

TM

•

Anticipate at least a 2%

yield improvement from

new cyclone & fine circuit

upgrade

•

Additional spending to

maintain plant structure

•

Minor amount of capital for

permitting and planning for

long-term strategic options

•

Opportunistically buy

lower-cost coal to

supplement production

•

Increase percentage of

lower-cost surface

production via Revelation

•

Minimize thermal production

to extent possible

•

Face equipment upgrade

program completion

expected in Q1 13

•

Improved operating

practices 

•

Implement new asset

management software

•

New maintenance

program being deployed

•

Idling 2-3 company and

3 contract mines

•

Consolidating people

and equipment

•

Implementing deep

cut plans as approved

Rationalize

Mining

Plans

Enhance

Productivity

Improve

Prep Plant 

Increase

Revelation

&

Purchased

Coal

Coal Mining Action Plan

Coal Mining Action Plan

37

SunCoke Energy 2012 Investor Day

TM

TM

2013 Estimates

2013 Estimates

MV

MV

Thermal

Thermal

Total

Total

Sales Tons

Tons in thousands

1,600

100

1,700

% Committed

~94%

0%

~88%

Estimated Price of

Committed Tons

(1)

$127

N/A

$127

Estimated Price Range of Uncommitted Tons

High

$140

$80

Low

$120

$60

Estimated Production Costs

Jewell Underground Cash Cost/ton

(~950k tons)

~$145

Combined Cash Cost/ton (~1.7m tons)

~$130

(1)

Estimated

as

price

to

Jewell

Coke

not

yet

finalized

.

2013 Coal Business Metrics

2013 Coal Business Metrics

38

SunCoke Energy 2012 Investor Day

Weak demand and excess global inventory

are driving lower expected prices in 2013

SunCoke Mid-Vol Coal Contract Prices

$130

$165

$120 -

$130

2010

2011

2012E

2013E

~$170

TM

TM

Coal Business Wrap-Up

Coal Business Wrap-Up

•

Expect difficult environment to

continue through most of 2013

–

Potential for price turnaround in

late 2013 into 2014

•

Experienced coal team has

navigated through previous

volatile markets successfully

•

Allocate minimum sustaining

capital to drive down cost and

ensure safety/compliance

39

SunCoke Energy 2012 Investor Day

$200

$250

$300

$350

2007

2008

2009

2010

2011

2012

Met Coal Pricing (Mid-Vol)

FOB Vessel ($/Metric Ton)

FOB Jewell ($/Net Ton)

$-

$50

$100

$150

2013 focus is on optimizing our coal business

to enhance long-term strategic flexibility and value

Dr. John Quanci

Vice President, Technology

TM

TM

Industry Pioneer

Industry Pioneer

History at the industry forefront

•

Half a century of innovation & industry-leading design

•

Founder of Heat Recovery (HR) oven technology

•

Developed the first HR Plant (1998)

–

Lower environmental footprint

–

Higher quality coke (size, strength, reactivity)

–

Generates energy (customers & local power grids)

•

SunCoke is the only coke producer…

–

in North America to leverage Heat Recovery technology

–

to construct greenfield plants in the U.S. in the last 25 years

–

to develop, implement  AND

operate HR ovens

41

SunCoke Energy 2012 Investor Day

SunCoke’s Technology Group

SunCoke’s Technology Group

•

Multi-disciplinary team with deep expertise

•

13 engineers & scientists on staff (6 PhDs)

•

4 Computational Modeling Experts, 3 Process Engineers and

5 Technology Specialists

•

Expansive test bed –

1,000+ SunCoke ovens

42

SunCoke Energy 2012 Investor Day

•

Computational Fluid

Dynamics (CFD)

•

Finite Element

Analysis (FEA)

•

Integrated plant model

•

Modeling tools

•

Plant optimization

•

New process

and technology

development

•

Pilot plant program

•

Troubleshooting

•

Yield improvement

•

Coke/coal chemistry

modeling

•

Oven design

and ceramics

•

New coke plant design

•

Coal blend

optimization

•

Kinetic modeling

TM

TM

Computational

Modeling

Process

Technology

Technology

Specialists

Team composition speeds problem solving & innovation

TM

TM

SunCoke’s Technology Group

SunCoke’s Technology Group

Unique Approach to R&D

•

Process engineering driven vs. traditional R&D

•

Parallel approach: long-term & here-and-now

–

Get to solutions faster (product & processes)

–

Run plants better through troubleshooting existing assets

–

Explore new frontiers and next generation innovations

•

Extend know-how beyond SunCoke’s fleet

–

Directly transferable to by-product ovens and any HR design

•

R&D drives operating results

–

Yield improvements bolster our margins

–

Operations & maintenance efficiencies

–

Cut costs out of future designs

43

SunCoke Energy 2012 Investor Day

TM

TM

Recent Advancements

Recent Advancements

Indiana Harbor –

Oven Rehabilitation

•

Problem:

•

Solution:

•

Results:

44

SunCoke Energy 2012 Investor Day

–

Ease of pushing and minimization of leaks

–

Repairs show on average a 10% increase

in tons per day

–

11 ovens rehabbed –

upgrades ongoing

–

Transfer of methods across fleet, creating

new engineering standards

–

Leaks & maintenance issues limit productivity

–

Tighter seal via door improvements, lintel design

changes and new maintenance methods

TM

TM

Recent Advancements

Recent Advancements

Gas Sharing

•

Problem:

–

If a HRSG goes off-line, untreated

hot flue gas must be vented.

•

Proposed Solution:

–

Leveraged our CFD, FEA and process

expertise combined with plant tests to

identify and verify various solutions.

•

Results:

–

Control and manage gas flow

–

A reliable, lower cost, retrofitable

solution

–

Less heat loss and venting

–

Next generation extension to

near-zero venting

45

SunCoke Energy 2012 Investor Day

Heat Recovery Steam Generator

(HRSG) Model

Spray Dryer Absorber

(SDA) Model

TM

TM

Recent Advancements

Recent Advancements

Coal Blend Optimization

•

Problem:

–

Selecting least expensive blends from

available coals that meet operational and

quality constraints

•

Solution:

–

Coal blend/coke prediction model for

worldwide applications

•

Results:

–

Minimize coal blend cost

–

Quantitatively evaluate individual coals

–

Predict and improve coke quality, stability,

yield and power

46

SunCoke Energy 2012 Investor Day

TM

TM

Coal Blend Modeling

Coal Blend Modeling

47

SunCoke Energy 2012 Investor Day

Planned test Space

Coal 3

Coal 2

Coal 1

reflectance

optimal

coking range

Exploring the Coal Blend Space

TM

TM

Recent Advancements

Recent Advancements

•

Box Testing

–

New coal testing and plant optimization

–

Allows safe, low cost testing of sophisticated models

–

Ability to test blue-sky concepts not feasible full-scale

–

Extends model range --

not limited to normal coke plant operations

–

SunCoke’s boxes are recyclable and reusable

48

SunCoke Energy 2012 Investor Day

Outside-of-the-box thinking inside the box

Box loaded with coal

In position

Recovered after coking

TM

TM

Potential Improvements at Existing Plants

Potential Improvements at Existing Plants

49

SunCoke Energy 2012 Investor Day

Believe our technology and know-how can be applied to

existing heat recovery and by-product plants

Process

Improvement

•

Lower burn loss

•

Yield improvement

•

Higher power

production

•

Expanded coal VM

operating regime

-

Lower coke cost

•

Improved coke quality

Asset

Support

•

Lower cost coal/coke

by blend optimization

•

Increased production

•

Higher turndown

•

Improved monitoring

and prediction tools

-

yield/energy

•

Best practices

development for

asset care and

life extension

Environmental

Performance

•

Improved FGD

environmental efficiency

•

Improved FGD reliability

•

Lower operating costs

•

Improved monitoring

and prediction tools

TM

TM

Wrap-Up

Wrap-Up

Fueling Innovation

•

Unique Approach to R&D

–

Direct link to existing facilities

–

Get to solutions faster

–

Use capital more efficiently

•

Technology Group’s charter extends beyond

solely cokemaking

–

Seek to understand customers, suppliers, community

and competing technologies

•

14 patent applications submitted or in process of being

submitted in 2012 alone

•

Continuing to bring science to the art of cokemaking

50

SunCoke Energy 2012 Investor Day

Mark Newman

Senior Vice President & Chief Financial Officer

TM

TM

YTD Earnings Overview

YTD Earnings Overview

•

Results driven by strong coke

business performance

–

Middletown startup has been

a success

–

Entire U.S. cokemaking fleet delivering

strong results

•

Coal remains a challenge

–

Higher than expected cash costs

–

Continued difficult demand/price

environment

–

Implementing aggressive coal

action plan

•

Strong liquidity position

–

Cash balance of nearly $160 million

and virtually undrawn revolver

of $150 million as of Q3 2012

52

SunCoke Energy 2012 Investor Day

Earnings Per Share (diluted)

Adjusted

EBITDA

(1)

(in

millions)

$0.17

$0.24

$0.32

$0.32

$0.26

$0.45

2011

2012

Q1

Q2

Q3

$26.6

$55.8

$37.7

$65.5

$44.8

$72.4

2011

2012

Q1

Q2

Q3

TM

TM

Expected 2012 Adjusted EBITDA

Expected 2012 Adjusted EBITDA

(1)

(1)

53

SunCoke Energy 2012 Investor Day

Expect

to

achieve

2012

Adjusted

EBITDA

(1)

of

$255

-

$270

million

and end year with cash balance of approximately $240 million

($ in millions)

$140.5

$109.1 

$193.7 

$42.3 

$37.0 

$10.9

($5.6)

$61-

$76

$255-

$270

FY 2011

Adjusted

EBITDA

YTD Q3

2011

Adjusted

EBITDA

Middletown

Coke

Business

(Excl.

Middletown)

Coal

Business

Corporate

Costs

YTD Q3

2012

Adjusted

EBITDA

Q4 2012E

Adjusted

EBITDA

FY 2012E

Adjusted

EBITDA

(1)

For a definition and reconciliation of Adjusted EBITDA, please see the appendix.

TM

TM

Expected 2012 Earning Per Share

Expected 2012 Earning Per Share

54

SunCoke Energy 2012 Investor Day

(1)

For

a

definition

and

reconciliation

of

Adjusted

EBITDA,

please

see

the

appendix.

EPS has benefited from strong coke business performance

offset by financing costs for standalone capital structure

FY 2011 EPS

YTD Q3 2011

EPS

YTD Q3 2012

Adjusted

EBITDA(1)

YTD Q3 2012

Depreciation,

Depletion &

Amortization

YTD Q3 2012

Financing

Costs

YTD Q3 2012

Taxes

YTD Q3 2012

EPS

Q4 2012E

EPS

FY 2012E

EPS

$0.87

$0.75 

$1.01 

$1.25-

$1.35 

$1.20 

$0.24-

$0.34 

($0.21)

($0.59)

($0.14)

TM

TM

2013 Domestic Coke Business Outlook

2013 Domestic Coke Business Outlook

•

Ongoing focus on operations

excellence expected to

continue to drive performance

•

Overall capacity utilization

anticipated to exceed 100% in

2013

•

Indiana Harbor expected to

return to 1.22 million ton per

year run-rate in 2013 as a

result of our refurbishment

effort

55

SunCoke Energy 2012 Investor Day

Tons in thousands

Intend to sustain solid cokemaking performance with expected

domestic coke production in excess of 4.3 million tons in 2013

Domestic

Domestic

Coke

Coke

Production

Production

1,179 

1,179 

1,141 

1,141 

715 

715 

707 

707 

1,124

1,124

1,103

1,103

635

635

684

684

68

68

FY2010

FY2011

FY2012E

FY2013E

Jewell

Indiana Harbor

Haverhill

Granite City

Middletown

3,762 

3,594 

4.3m+

4.3m+

TM

TM

2013 Domestic Coke Business Outlook

2013 Domestic Coke Business Outlook

Outlook reflects

•

•

•

56

SunCoke Energy 2012 Investor Day

(1)

For a definition of Adjusted EBITDA and Adjusted EBITDA/Ton and

reconciliations,  see  appendix.

(2)

Includes Indiana Harbor contract billing adjustment of $6.0 million, net of

noncontrolling interest (NCI), and inventory adjustment of $6.2 million, net

of NCI, of which $3.1 million is attributable to Q3 2011.

($ in millions, except per ton amounts)

Expect Domestic Coke Business to continue to generate

Adjusted EBITDA per ton of between $55 and $60 in 2013

Domestic Coke Adjusted

Domestic Coke Adjusted

EBITDA

EBITDA

(1)

(1)

Per Ton

Per Ton

/ton

(2)

/ton

/ton

/ton

$55 -

$60

~$55

$ 36

$ 56

$202

$136

~$240

$240 -

$255

$79

$79

$124

$124

$46

$46

$89

$89

Jewell Coke Segment

Other Domestic Coke Segement

Adjusted EBITDA/ton

Higher operating cost

recovery at Middletown

Continued improvement at

Indiana Harbor

Lower benefit of improved

yields due to pass-through of

lower coal prices

FY2010

FY2011

FY2012E

FY2013E

2013 Coal Mining Adjusted EBITDA

2013 Coal Mining Adjusted EBITDA

(1)

(1)

Outlook

Outlook

57

($ in millions)

SunCoke Energy 2012 Investor Day

Expected production increase at Revelation and improved operating

efficiencies

will

help

mitigate

very

difficult

price

environment

in

2013

(1)

For a definition and reconciliation of Adjusted EBITDA, please see the appendix.

TM

TM

Expected 2013 Adjusted EBITDA

Expected 2013 Adjusted EBITDA

(1)

(1)

58

SunCoke Energy 2012 Investor Day

(1)

For a definition and reconciliation of Adjusted EBITDA, please

see the appendix.

Primarily reflects

expected benefit of

VISA SunCoke

Expect 2013 results to be impacted by weak coal business, partly

offset by continued solid coke operations and VISA SunCoke

Expected 2013 Earnings Per Share

Expected 2013 Earnings Per Share

59

SunCoke Energy 2012 Investor Day

(1)

Coal business weakness plus accelerated depreciation at Indiana Harbor

due to refurbishment expected to negatively impact 2013 EPS

For a definition and reconciliation of Adjusted EBITDA, please see the appendix.

TM

TM

Capital Expenditures & Investments

Capital Expenditures & Investments

60

SunCoke Energy 2012 Investor Day

Middletown:

$171 million

HKCC Acquisition:

$41 million

Indiana Harbor

Refurbishment &

Gas Sharing:

~$75 million

$ in millions

VISA SunCoke:

~$67 million

33

24

2011

2012E

2013E

Coke

Coal

Investments

$280

$70

$200

41

206

24

46

67

109

Majority of 2013 capital expenditures and investments targeted toward

international coke growth and Indiana Harbor refurbishment

TM

TM

Capital Allocation Priorities

Capital Allocation Priorities

61

SunCoke Energy 2012 Investor Day

•

Indiana Harbor refurbishment for contract renewal

•

Potential acquisitions of existing cokemaking capacity

•

Potential new U.S. plant

Domestic

Coke Growth

•

Fund future India growth via VISA SunCoke

•

Debt-free at closing

•

Expect to generate free cash flow

International

•

Target investment in coal business to lower cost and optimize

long-term strategic flexibility

Optimize

Coal

•

Dividend/Share

repurchase

policy

is

purview

of

board

–

no

plan

to initiate a dividend at this time

•

Board will evaluate based on outlook for growth opportunities

and expected returns

Cash Return

to

Shareholders

TM

TM

Summary 2013 Guidance

Summary 2013 Guidance

62

Metric

Expected 2012 Outlook

Expected 2013 Outlook

Adjusted EBITDA

(1)

$255 –

$270 million

$205 –

$230 million

EPS (assuming a 22% tax rate)

$1.25 –

$1.35

$0.60 –

$0.85

Capital Expenditures

& Investments

~ $70 million

~ $200 million

Free Cash Flow

(2)

$100+ million

~ ($65) million

Cash Tax Rate

10% –

15%

17% –

22%

Effective Tax Rate

20% –

24%

17% –

22%

Coke Production

4.3+ million tons

4.3+ million tons

Coal Production

~ 1.4 million tons

~ 1.4 million tons

(1) For a definition and reconciliation of Adjusted EBITDA, please see the appendix.

(2) For a definition of Free Cash Flow and reconciliation, please see the appendix.

SunCoke Energy 2012 Investor Day

TM

TM

APPENDIX

APPENDIX

63

TM

TM

Definitions

Definitions

64

SunCoke Energy 2012 Investor Day

•

Adjusted EBITDA

represents earnings before interest, taxes, depreciation, depletion and amortization (“EBITDA”) adjusted for

sales discounts, the deduction of income attributable to noncontrolling interests in our Indiana Harbor cokemaking operations, and

the interest, taxes, depreciation, depletion and amortization attributable to equity earnings in our unconsolidated affiliates. EBITDA

reflects

sales

discounts

included

as

a

reduction

in

sales

and

other

operating

revenue.

The

sales

discounts

represent

the

sharing

with

customers

of

a

portion

of

nonconventional

fuel

tax

credits,

which

reduce

our

income

tax

expense.

However,

we

believe

our

Adjusted

EBITDA would be inappropriately penalized if these discounts were treated as a reduction of EBITDA since they represent sharing of

a

tax

benefit

that

is

not

included

in

EBITDA.

Accordingly,

in

computing

Adjusted

EBITDA,

we

have

added

back

these

sales

discounts.

Our Adjusted EBITDA also reflects the deduction of income attributable to noncontrolling interests in our Indiana Harbor

cokemaking operations. Our Adjusted EBITDA also includes EBITDA attributable to our unconsolidated affiliates.  EBITDA and

Adjusted EBITDA do not represent and should not be considered alternatives to net income or operating income under GAAP and

may not be comparable to other similarly titled measures in other businesses. Adjusted EBITDA does not represent and should not

be considered as an alternative to net income as determined by GAAP, and calculations thereof may not be comparable to those

reported by other companies. We believe Adjusted EBITDA is an important measure of operating performance and provides useful

information to investors because it highlights trends in our business that may not otherwise be apparent when relying solely on GAAP

measures and because it eliminates items that have less bearing on our operating performance. Adjusted EBITDA is a measure of

operating performance that is not defined by GAAP and should not be considered a substitute for net (loss) income as determined in

accordance with GAAP.

•

Adjusted EBITDA/Ton

represents Adjusted EBITDA divided by tons sold.

•

Free Cash Flow

equals cash from operations less cash used in investing activities less cash distributions to non-controlling interests. 

Management believes Free Cash Flow information enhances an investor’s understanding of a business’ ability to generate cash.

Free Cash Flow does not represent and should not be considered an alternative to net income or cash flows from operating activities

as determined under GAAP and may not be comparable to other similarly titled measures of other businesses.

TM

TM

Reconciliations

Reconciliations

65

SunCoke Energy 2012 Investor Day

$ in millions

YTD Sept

2012

Q3  2012

Q2  2012

Q1  2012

FY  2011

Q4  2011

Q3  2011

Q2  2011

Q1  2011

Adjusted Operating Income

138.5

54.8

46.6

37.1

80.4

14.9

33.5

24.6

7.4

Net Income (Loss) attributable to Noncontrolling Interest

2.3

1.3

1.3

(0.3)

(1.7)

(0.5)

3.4

1.6

(6.2)

Subtract: Depreciation Expense

(57.5)

(18.9)

(20.2)

(18.4)

(58.4)

(16.0)

(14.7)

(14.7)

(13.0)

Adjusted EBITDA

193.7

72.4

65.5

55.8

140.5

31.4

44.8

37.7

26.6

Subtract: Depreciation, depletion and amortization

(57.5)

(18.9)

(20.2)

(18.4)

(58.4)

(16.0)

(14.7)

(14.7)

(13.0)

Subtract: Financing expense, net

(36.0)

(12.2)

(11.8)

(12.0)

(1.4)

(7.1)

(3.3)

4.5

4.5

Subtract: Income Tax

(19.9)

(7.6)

(7.0)

(5.3)

(7.2)

2.9

(5.1)

(1.9)

(3.1)

Subtract: Sales Discount

(9.1)

(2.1)

(3.8)

(3.2)

(12.9)

(3.2)

(3.5)

(3.1)

(3.1)

Add: Net Income attributable to NCI

2.3

1.3

1.3

(0.3)

(1.7)

(0.5)

3.4

1.6

(6.2)

Net Income

73.5

32.9

24.0

16.6

58.9

7.5

21.6

24.1

5.7

Reconciliations

from

Adjusted

Operating

Income

and

Adjusted

EBITDA

to

Net

Income

TM

TM

Reconciliations

Reconciliations

66

SunCoke Energy 2012 Investor Day

$ in millions, except per ton data

Jewell

Coke

Other

Domestic

Coke

International

Coke

Jewell

Coal

Corporate

Combined

Domestic

Coke

YTD Sept 2012

Adjusted EBITDA

41.1

143.6

1.7

27.4

(20.1)

193.7

184.7

Subtract: Depreciation, depletion and amortization

(4.0)

(39.0)

(0.2)

(12.6)

(1.7)

(57.5)

(43.0)

to noncontrolling interests

-

2.3

-

-

-

2.3

2.3

Adjusted Pre-Tax Operating Income

37.1

106.9

1.5

14.8

(21.8)

138.5

144.0

Adjusted EBITDA

41.1

143.6

1.7

27.4

(20.1)

193.7

184.7

Sales Volume (thousands of tons)

539

2,729

970

1,130

-

-

3,268

Adjusted EBITDA per Ton

76.3

52.6

1.8

24.2

56.5

FY 2011

Adjusted EBITDA

46.1

89.4

13.7

35.5

(44.2)

140.5

135.5

Subtract: Depreciation, depletion and amortization

(4.9)

(38.7)

(0.2)

(12.9)

(1.7)

(58.4)

(43.6)

to noncontrolling interests

(1.7)

(1.7)

(1.7)

Adjusted Pre-Tax Operating Income

41.2

49.0

13.5

22.6

(45.9)

80.4

90.2

Adjusted EBITDA

46.1

89.4

13.7

35.5

(44.2)

140.5

135.5

Sales Volume (thousands of tons)

702

3,068

1,442

1,454

3,770

Adjusted EBITDA per Ton

65.7

29.1

9.5

24.4

35.9

FY 2010

Adjusted EBITDA

123.9

78.5

15.0

24.0

(14.1)

227.3

202.4

ArcelorMittal settlement

(69.0)

18.0

(51.0)

(51.0)

related to ArcelorMittal Settlement and

3.6

12.7

16.3

16.3

Proforma Adjusted EBITDA

58.5

109.2

15.0

24.0

(14.1)

192.6

167.7

Subtract: Depreciation, depletion and amortization

(4.4)

(35.0)

(0.1)

(7.7)

(1.0)

(48.2)

(39.4)

to noncontrolling interests

7.1

7.1

7.1

Adjusted Pro Forma Operating Income

54.1

81.3

14.9

16.3

(15.1)

151.5

135.4

Adjusted EBITDA

58.5

109.2

15.0

24.0

(14.1)

192.6

167.7

Sales Volume (thousands of tons)

721

2,917

-

1,277

3,638

Adjusted EBITDA per Ton

81.1

37.4

18.8

46.1

Reconciliations from Adjusted EBITDA to Adjusted Pre-Tax Operating Income

TM

TM

(in millions)

       2012E

       Low 

       2012E

       High 

For nine

months

ended

9/30/2012

Net Income

$94

$104

$74

Depreciation, Depletion and Amortization

80

78

58

Total financing costs, net

48

47

36

Income tax expense

25

34

20

EBITDA

$247

$263

$187

Sales discounts

11

12

9

Noncontrolling interests

(3)

(5)

2

Adjustment to unconsolidated affiliate earnings

–

–

–

Adjusted EBITDA

$255

$270

$194

2012E Net Income to Adjusted EBITDA Reconciliation

Expected 2012E EBITDA Reconciliation

Expected 2012E EBITDA Reconciliation

67

SunCoke Energy 2012 Investor Day

TM

TM

Expected 2012E Free Cash Flow Reconciliation

Expected 2012E Free Cash Flow Reconciliation

68

SunCoke Energy 2012 Investor Day

(in millions)

Estimated

2012

For nine

months

ended

9/30/2012

(Actual)

Cash from operations

In excess of

$   173

$    78

Less cash used for investing activities

Approx.

(70)

(41)

Less payments to minority interest

Approx.

(3)

(0)

Free Cash Flow

In excess of

$     100

$   37

2012E Estimated Free Cash Flow Reconciliation

TM

TM

(in millions)

       2013E

       Low 

       2013E

       High 

Net Income

$46

$63

Depreciation, Depletion and Amortization

99

94

Total financing costs, net

48

47

Income tax expense

10

18

EBITDA

$202

$222

Sales discounts

6

7

Noncontrolling interests

(3)

(4)

Adjustment to unconsolidated affiliate earnings

–

5

Adjusted EBITDA

$205

$230

2013E Net Income to Adjusted EBITDA Reconciliation

Expected 2013E EBITDA Reconciliation

Expected 2013E EBITDA Reconciliation

69

SunCoke Energy 2012 Investor Day

TM

TM

Expected 2013E Free Cash Flow Reconciliation

Expected 2013E Free Cash Flow Reconciliation

70

SunCoke Energy 2012 Investor Day

(in millions)

Estimated

2013

Cash from operations

Approx.

140

Less cash used for investing activities

Approx.

(200)

Less payments to minority interest

Approx.

(5)

Free Cash Flow

Approx.

$     (65)

2013E Estimated Free Cash Flow Reconciliation

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Investor Relations: 630-824-1907