EX-99.1 2 dex991.htm SLIDE PRESENTATION Slide Presentation
SunCoke Energy
Haverhill Analyst Presentation
June 17, 2008
Exhibit 99.1

2
Safe Harbor Statement
Statements
in
this
presentation
that
are
not
historical
facts
are
forward-looking
statements
intended
to
be
covered
by
the
safe
harbor
provisions
of
Section
27A
of
the
Securities
Act
of
1933
and
Section
21E
of
the
Securities
Exchange
Act
of
1934.
These
forward-looking
statements
are
based
upon
assumptions
by
Sunoco
concerning
future
conditions,
any
or
all
of
which
ultimately
may
prove
to
be
inaccurate,
and
upon
the
current
knowledge,
beliefs
and
expectations
of
Sunoco
management.
These
forward-looking
statements
are
not
guarantees
of
future
performance.
Forward-looking
statements
are
inherently
uncertain
and
involve
significant
risks
and
uncertainties
that
could
cause
actual
results
to
differ
materially
from
those
described
during
this
presentation.
Such
risks
and
uncertainties
include
economic,
business,
competitive
and/or
regulatory
factors
affecting
Sunoco's
business,
as
well
as
uncertainties
related
to
the
outcomes
of
pending
or
future
litigation.
In
accordance
with
the
safe
harbor
provisions
of
the
Private
Securities
Litigation
Reform
Act
of
1995,
Sunoco
has
included
in
its
Annual
Report
on
Form
10-K
for
the
year
ended
December
31,
2007,
and
in
its
subsequent
Form
10-Q
and
Form
8-K
filings,
cautionary
language
identifying
important
factors
(though
not
necessarily
all
such
factors)
that
could
cause
future
outcomes
to
differ
materially
from
those
set
forth
in
the
forward-looking
statements.
For
more
information
concerning
these
factors,
see
Sunoco's
Securities
and
Exchange
Commission
filings,
available
on
Sunoco's
website
at
www.SunocoInc.com.
Sunoco
expressly
disclaims
any
obligation
to
update
or
alter
its
forward-looking
statements,
whether
as
a
result
of
new
information,
future
events
or
otherwise.
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.SunocoInc.com.

Opening Comments
Jack Drosdick

4
Agenda
Opening Comments
Jack Drosdick
Chairman & Chief Executive Officer, Sunoco, Inc.
SunCoke Energy Overview
Mike Thomson
President, SunCoke Energy, Inc.
Senior Vice President, Sunoco, Inc.
Strategy for Sunoco
Tom Hofmann
Chief Financial Officer & Senior Vice President, Sunoco, Inc.

5
Coke
Business distinct from oil industry
Metallurgical grade coke for steel industry
Long-term contracts
15% IRR targets
Coal costs contractually passed on to customers
Growing demand for new plants
Reliable supply of quality coke using environmentally
superior technology
2008 net income expected to exceed $90MM
(EBITDA of $140MM*)
End-of-2008 net income run rate of approximately
$145MM (EBITDA of $220MM*)
End-of-2010 net income run rate including two
additional plants (Granite City, IL and Middletown, OH)
of approximately $210MM (EBITDA of $350MM*)
* For reconciliation to Income, see Slide A11.

SunCoke Energy Overview
Mike Thomson

7
Executive Summary
SunCoke Energy (SCE) is a recognized independent
producer of high-quality metallurgical coke with over
40 years of production experience
Proven, patented, environmentally friendly, heat-
recovery technology sets the industry standard for
new coke production
Strong global market for steel, coke and power
demand support continued business growth
Steady, ratable cash and income contributions to
Sunoco --
with attractive growth prospects and
portfolio options
Secure, long-term contracts with leading steel
companies tied to competitive assets and good
market locations

8
SunCoke Energy Overview
History and Overview
Steel Industry
Coke Industry
Competitive Advantage
Project Structure and Financial Outlook

9
SunCoke Energy History
1960s
1960: Three test
ovens successfully
built at Vansant, VA
1970s
1972: 16 large
Jewell
Thompson
ovens built
1979: Jewell
facility
purchased by
Sun Company,
Inc.
Improved
combustion
control
Introduction of 48-
hour coking cycle
Patented
technology
1980s
1990s
1990: SunCoke
designated as the
Maximum Achievable
Control Technology
(MACT) in the U.S.
Clean Air Act
Establish joint
ventures with
minority partners
2000-
2008
Continued technology
improvements
Strengthening steel
industry increases
interest
New development at
Haverhill, Ohio and
construction of first
international plant
Jewell Coal
Jewell Coke
IHCC
Vitória
Granite City
Middletown
The
Foundation
Development of
the Modern Oven
Breakthrough of
Heat Recovery
Perfecting the
Process
The Growth
Phase
Haverhill 1
Haverhill 2
Announced projects
not yet in production

10
SunCoke Energy Heat Recovery Coke Oven

11
SunCoke Energy Products
Coke
Energy
Blast
Furnace
Coke
Electric
Power
Steam
Breeze
•
Reductant and
burden in Blast
Furnace iron-
making process
•
Small-sized coke
fines screened
from the Blast
Furnace-sized
coke production
Typical Margin Contribution ~ 70-80%
Typical Margin Contribution ~ 20-30%
and/or
and
•
Heat Recovery
Steam Generators
(HRSG’s) capture
waste heat from the
coking process to
make low-pressure,
saturated steam
•
HRSG’s produce
high-pressure,
superheated
steam for power
generation

12
Jewel Coke
Indiana
Harbor
Existing facilities
Headquarters
Haverhill
Knoxville
Granite City
SunCoke Energy Operations
Middletown
Announced facilities
Jewell Coal
Vitória
Brazil
Coke
Capacity
Mtons
Jewell
  700
Indiana Harbor
1,250
Haverhill I
  550
Vitória, Brazil
1,700
   Existing Assets
4,200
Haverhill II
  550
Granite City
  650
Middletown
  550
   Announced Growth
1,750

13
SunCoke Energy Business Overview
Aging Coke
Infrastructure
Solid Fundamentals
for Coke-Based
Iron & Steel making
Increasing Energy
and Power Prices
Tightening
Environmental
Regulations
Strong Worldwide
Demand Growth and
Pricing for Coke
Market/
Industry Trends
Proven Design,
Construction and
Operations
Established
Customer
Relationships
High-Quality
Coke and Coal
Flexibility
Industry-leading
Heat Recovery
Technology
Build, Own, Operate
Model with
Long-Term
Supply Contracts
Superior
Environmental
Performance
SunCoke Capabilities /
Business Model
+
SunCoke Energy
is uniquely
positioned for
continued
investment and
earnings growth
Improved Prosperity
of
Steel Industry

Steel Industry

15
Strong Worldwide Demand Growth
Source: CRU, The Annual Outlook for Metallurgical Coke 2007
World Crude Steel Production
-
500
1,000
1,500
2,000
2,500
China
Asia (excl China)
Europe
N. America
CIS/ex-USSR
Rest of World
Significant worldwide infrastructure investment in developing and emerging
markets is propelling steel demand growth . . . with North American steel
production growing at a more moderate pace.
4.5% CAGR
CRU is a leading independent business analysis and consultancy
group focused on the mining, metals, power, cables, fertilizer and
chemical sectors.  http://crugroup.com
Source: Morgan Stanley Research, World Bank, Global Insight
* Morgan Stanley Research estimates
US$21.7 trillion in EM Infrastructure
Spend 2008-17*
EM Infrastructure Spending, Including Property
0
500
1,000
1,500
2,000
2,500
3,000
3,500
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
Africa
Middle East
Latin America
Eastern Europe
Asia

16
Record Benchmark Steel and Coke Prices
Source: Steel -Platt’s Steel Market Daily; Coke -
Coke Market Report
Chinese and other developing nation growth combined with a
falling dollar have pushed steel and coke prices to previously
unseen levels…
Steel & Chinese Coke Prices
$0
$200
$400
$600
$800
$1,000
$1,200
Chinese Metallurgical Coke
Hot Rolled Coil

17
Improved Profitability of Steel Companies
…creating a robust market for steel companies across the globe
as well as in the United States.
Source:
World
Steel
Dynamics,
Steel
Strategist
September
2007
US Average EBITDA per Ton of Steel
-
20
40
60
80
100
120
140
160
180
2002
2003
2004
2005
2006
2007F
Source:
World
Steel
Dynamics,
Steel
Strategist
#33
,
September
2007
Global Average EBITDA per Ton of
Steel
-
20
40
60
80
100
120
140
160
180
2002
2003
2004
2005
2006
2007F
#33,

18
Steel Industry Consolidation
LTV –
BK ‘00
Bethlehem –
BK ‘01
ACME –
Closed ‘00
Weirton –
BK ‘03
WCI –
BK ‘03
AK Steel
Wheeling Pitt –
BK ‘00
National –
BK ‘02
Rouge –
BK ‘03
U.S. Steel
* Highly fragmented
* Overcapacity
* Saddled with legacy costs
* Over 50 companies file for bankruptcy
Inland
Bankruptcy/
Mergers/
Acquisitions
1990’s
U.S. Steel Industry
Today’s
U.S. Steel Industry
AK Steel
U.S. Steel
ArcelorMittal
Severstal NA
* Fewer, stronger players with
ability to weather downturns
* Financial discipline
* Pricing power
* Cleaner balance
sheet/legacy costs
Global industry consolidation, particularly in the U.S. and Canada,
has created a favorable long-term market for sustaining improved
levels of industry profitability.

19
Methods of Iron and Steelmaking
Steel Scrap
Blast Furnace
Steel Scrap
Substitute
(DRI/HBI)
Hot Metal
Substitute
(HMS)
Electric
Arc
Furnace
Basic
Oxygen
Furnace
Electricity
Coke
Iron Ore
Natural Gas/
Coal
Steel
Integrated
Steelmaking
55% Share
EAF
Steelmaking
(Mini Mills)
41% Share
Raw Material/
Energy Inputs
Ironmaking/
Iron Source
Steelmaking
Other
4% Share
•
Processes use large volumes
of natural gas to partially
reduce iron ore
•
Used in limited proportions to
offset scrap or pig iron
requirements
•
Smelting processes that use
natural gas and/or coal to
produce pig iron without a Blast
Furnace and Coke
•
Developing technologies that
are currently unproven at
commercial scale
•
Increasingly short supply of high quality scrap vs.
growing world demand
•
Obsolete scrap reservoir increasingly “poisoned”
with residuals from EAF production
Iron Ore
Alternative technologies exist that can reduce or completely
eliminate coke from the steel making supply chain…

20
Coke/Blast Furnace Ironmaking
Outlook
…however, as the only proven, scalable method of producing
virgin iron, coke/blast furnace iron production is and is projected
to remain the dominant mode
Estimated
Source: World Steel Dynamics, Steel Strategist #33, September 2007
2006 Global Iron Sources
2017 Global Iron Sources

Coke Industry

22
World Coke Market
Current market size:
Approximately 500 million
metric ton annual demand
Growing to over 600 million
metric tons during next 5
years
Growth outlook primarily
driven by developing and
emerging markets demand
Source: CRU, The Annual Outlook for Metallurgical Coke 2007
World Coke Production
-
100
200
300
400
500
600
700
800
China
Asia (excl China)
Europe
N. America
CIS/ex-USSR
Rest of World
4.3% CAGR

23
North America Net Coke Supply (including Imports)
After completing currently announced projects, SunCoke Energy
projected to supply 15% of the North American market and 39% of the
non-integrated market in North America
17MMT
17MMT
17MMT
4MMT
5MMT
4MMT
3MMT
4MMT
3MMT
2MMT
2MMT
4MMT
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
SunCoke
7%
9%
15%
Merchant Coke
12%
13%
11%
Imported Coke
14%
17%
12%
Integrated Steel
67%
61%
62%
2002
Current
2010*
* Includes HH2, Granite City and Middletown Additions
Source: CRU 2007
26MMT
28MMT
28MMT

24
Aging Coke Batteries
Nearly 60% of North American coke capacity
is beyond end of life (30+ years) and faces
significant life-extension investments and/or
environmental challenges
40% of existing coke capacity in the
world (excluding China and Russia) is
over 30 years old
Global: Age Profile In 2007
0%
5%
10%
15%
20%
25%
30%
35%
<10
10-20
21-25
26-30
31-40
>40
% of Capacity
Source:
CRU
2007,
excludes
China
&
CIS
Average Age =  23
North America: Age Profile In 2007
0%
5%
10%
15%
20%
25%
30%
35%
40%
<10
10-20
21-25
26-30
31-40
>40
% of Capacity
Source:
CRU
2007
Average Age=31

25
Steel Customer Relationships
TONS CONTRACTED
(MM metric tons)
3.5
4
4.5
5
5.5
6
6.5
'07
'08
'09
'10
'11
'12
ArcelorMittal (4 sites)
Severstal NA (incl WCI)
Granite City
Middletown
SCE has developed and
implemented projects for
recognized steel and blast
furnace industry leaders
SCE currently supplies 34% of
ArcelorMittal’s
annual U.S. coke
requirements, and 100% of the
new CST furnace requirement in
Brazil
New projects bring customer
diversity
Haverhill 2:  Severstal
(incl
WCI)
Granite City: US Steel
Middletown:  AK Steel

Competitive
Advantage
Technology
Environmental
Performance
Product
Quality
Coal
Expertise

27
SunCoke Energy Growth Opportunities
New blast furnace construction
Significant development opportunities in Brazil
and Asia to support BRIC growth . . . SCE
interest in Brazil and Asia
Project financing and development depends on
secure coke supply
Aging by-product capacity represents near-term
replacement opportunity with tougher
environmental regulations (> 30 years old)
Displacement of North American imports
Brazil    ~3MM
Other
Asia      ~7MM
(S. Korea, Taiwan
and others not
including China,
India or Russia)
Global ~68MM
(excluding
China/Russia/India)
N. Am ~12MM
Imports
~3MM
SunCoke’s market opportunity over the next ten years is in excess of
90 million tons globally with nearly 15 million tons in North America
Source: CRU, The Annual Outlook for Metallurgical Coke 2007
10-Year Outlook
Coke Tons

28
Cokemaking Technologies
Chemical By-Product
Predominant Cokemaking Method
Chemical by-products produced:
-
Coal Tar
-
Light Oil
-
Ammonium Sulfate
-
Sulfur
Chinese Heat
Recovery
Indian Heat
Recovery
Domestic Indian
Market Only
German Heat
Recovery
Only paper
design with NO
operating heat
recovery plants
SunCoke Energy Heat Recovery
Growing, increasingly attractive
and accepted alternative to
chemical by-product process
Four commercial-scale plants in
operation

29
Advantages versus Chemical By-Product
Higher market value for energy
production than for chemical by-
products
Lower capital and operating cost
requirements
Superior environmental performance
Greater flexibility in coal selections
Oven design and process contributes to
enhanced coke quality
Safer process allows employees to work
without protective breathing equipment

30
Advantages versus Chinese Heat Recovery
Better productivity
(5,500 vs. 4,500 tons per oven per year)
Better heat-recovery efficiency
(0.5 vs. 0.2 MW per oven)
Better process control for
draft and temperature
Higher quality construction
materials and longer
oven/plant life

31
Superior Environmental Performance
Air Emissions
Designated the Maximum
Achievable Control Technology
(MACT) in the U.S. Clean Air Act
All green field coke batteries
must meet SunCoke Energy’s
performance
Lowest overall emissions in the
industry -
worldwide
Waste Streams
NO wastewater discharges
NO hazardous solid wastes or
sludges
The only solid waste is non toxic
calcium sulfate from the flue gas
desulfurization system (land fill,
fertilizer or mine reclamation)
Permitting
SunCoke Energy has
established track record working
successfully with various
regulatory agencies
SunCoke
Energy’s
environmental
advantage
is
clear
--
we
are
the only company to permit and build a new coke facility in the
U.S. in the last 25 years

32
Coal Sourcing Advantage
SunCoke Energy provides coal expertise in
sourcing and logistics for our customers
Coal to coke quality modeling
Significant coal buying power
Domestic coal producer since 1950’s
with extensive knowledge of U.S. coals
Utilized over 50 different coals at SCE
plants and numerous blends
SunCoke Energy mines in Vansant, Virginia
partially meet coal requirements
Throughout many market cycles and
events, SunCoke Energy has never
experienced a coal supply disruption

33
SCE Product Quality Advantages
Oven design contributes to enhanced coke quality
Horizontal design and proprietary charge method
Coal bed depth and higher operating temperatures
SCE’s
coke can improve hot iron production efficiency,
lowering steel producers’
costs
Increased coke strength
Improves
blast
furnace
operation
for
more
hot
iron
production
Provides
burden
support
for
maximum
PCI
lower
raw
material
cost
Larger average size and unique shapes
Maximizes
bed
permeability
for
more
hot
iron
production
Improved coke porosity
Maximizes
furnace
wind
for
more
hot
iron
production
Horizontal design enables use of a variety of coals, including
expanding and lower cost blends

Project Structure and Financial Outlook

35
Typical Project Structure
SCE
Customer
Plant Production
and Environmental
Compliance
Permits and
Approvals
Engineering,
Procurement &
Construction
O&M Expenses
and Taxes Other
Than Income
Coal Supply Costs
Future
Environmental
Compliance Costs
Capital Funding
and Ownership
Coke and
Energy
Fee
Cost
Pass Thru
(Risk
Mitigation)
Fixed $/Ton risk-
adjusted return on
and of capital over
plant life
(Ratable Income)
Long-Term
Take-or-Pay
Agreement
•
If no customer
off-take of
Energy, then
fixed $/ton credit
to Coke Fee
based on agreed
$/MWh and
generation
assumptions
SCE
Production &
Quality
Guarantees
(Customer
Value)

36
Coke Outlook –
Net Income
* For detail, see Slide A11.
0
0
29
210
210
185
92
195
0
50
100
150
200
250
2007
2008
2009
2010
2011
2012
Existing
Haverhill 2
Granite City
AK Middletown

37
Coke Outlook –
EBITDA* 
* For reconciliation to Income, see Slide A11.
34
350
315
235
140
350
0
50
100
150
200
250
300
350
400
2007
2008
2009
2010
2011
2012
Existing
Haverhill 2
Granite City
AK Middletown

38
Potential Growth Areas
X
X
Asia
X
X
S. America
X
X
Europe
X
X
X
US/Canada
Central Plant
Integrated Plant
Central Plant
Integrated Plant
Replacement/Displacement
New Blast Furnace
Region
Domestic and international opportunities to build
both integrated and centralized cokemaking
facilities
Strategy for Development:
Stay with Build/Own/Operate model
Focus on strategic customers and locations
Leverage power as an increasingly valuable product
Minimize commodity risk through contract structure

39
Typical Project Economics
* For reconciliation to Income, see Slide A11.
Assumptions:
Capital varies significantly depending  on project specific factors and changing market conditions
Depreciation assumes 30 year life for assets for book purposes
Unlevered economics
…excludes any financing costs
100 ovens
200 ovens
Capital cost
(MM)
$340 - $400
$600 - $700
Coke production (Mtons/yr)
550
1,100
Power production (net mw/yr)
45
90
EBITDA
(MM/yr)
$70 - $80
$125 - $145
NIAT
(MM/yr)
$38 - $43
$68 - $78
*

40
Summary
The world has changed…
steel, coke, and energy
industry fundamentals are stronger and more
sustainable than ever, creating an unprecedented
opportunity for growth
SunCoke Energy is uniquely positioned
to capitalize
on this opportunity by leveraging our proven,
industry-leading technology, extensive expertise, and
long term Build, Own and Operate business model
Anticipated continued investment with attractive risk-
adjusted returns and significant growth
in high-
quality, visible and sustainable earnings

Strategy for Sunoco
Tom Hofmann

42
The Value to Sunoco
Ratable and growing income/cash flow
Independent of Sunoco’s other businesses
Highlight value within Sunoco
Evaluate potential alternative structures
Goal is to maximize the long-term
value to the Sunoco shareholder

43
Other Businesses EBITDA/Net Income, $MM
EBITDA*
Net Income
SunCoke Energy (2010)
      315
              185
Retail Marketing (2007)
      221
                69
Chemicals (2007)
      115
                26
      651
              280
Logistics (2007)
        63
                45
              325
**
*
For reconciliation to Income, see slide A12.
**
LP/GP Distributions

APPENDIX

SunCoke Energy Management Team
A1
Mike Thomson
President:
26 years in
manufacturing
and
international
energy
development
Ken Schuett
SVP of
Operations:
39 years of
blast furnace and
steel operations
including
11 years of coke
plant operations
Steve Morey
VP of
Construction:
32 years of
major international
construction
project
management
Richard Westbrook
VP of
Engineering:
25 years of
coke plant design
and technology
development
Charlie Ellis
SVP of
Business
Development:
37 years of coke
and
coal mining
operations
experience
Jeff Wozek
Director of Coal
Purchasing
& Logistics:
26 years in coal
mining, coke
making, coal and
coke research
and materials
purchasing
Delauna
Pack
Director of HES:
12 years of
experience
in the steel and
coke industries
and have
successfully
permitted 2 new
SCE coke plants
Cleo Boyd
VP of  HR:
22 years experience
in heavy
manufacturing,
including
10 years in mining,
extraction and
materials processing
Marilyn Choi
VP of
Finance
& Planning:
13 years of
corporate
finance in
manufacturing
and energy industry
Mark McCormick
SVP &
General Counsel:
24 years of
transaction and
legal experience
in complex
domestic &
international
transactions

A2
Jewell Coal & Coke
Jewell Coal & Coke Company
Location:
Vansant, Virginia
Began operation:
1952 (coal), 1962 (coke)
Customer(s):
Coke:
ArcelorMittal
Coal:
Internal supply &
Coal Arbed
Int’l Trade
Products:
Coke:
700,000 tons/yr.
(142 ovens)
Coal:
1,200,000 tons/yr.
Heat Recovery:
10% used for coal drying
Vansant
VIRGINIA

A3
Indiana Harbor
Indiana Harbor Coke Company*
Location:
East Chicago, Indiana
Began operation:
March 1998
Investment:
$195 MM
Customer(s):
Coke:
ArcelorMittal
Steam:
Primary Energy
Products:
Coke:
1,250,000 tons/yr.
(268 ovens)
Heat Recovery:
1,000,000 lbs/hr of
superheated steam
power
East Chicago
INDIANA
* DTE and GECC are minority interest partners

A4
Haverhill 1
Haverhill North Coke Company
Location:
Haverhill (Franklin
Furnace), Ohio
Began operation:
March 2005
Investment:
$150 MM
Customer(s):
Coke:
ArcelorMittal
Steam:
Sunoco Chemicals
Products:
Coke:
550,000 tons/yr.
(100 ovens)
Heat Recovery:
450,000 lbs/hr of
saturated process
steam
OHIO
Haverhill

A5
Vitória
(Brazil)
Sol Coqueria
Tubarão*
Location:
Vitória, Brazil
Began operation:
March 2007
Investment:
$41 MM minority
equity ownership
interest
Customer(s):
Coke:
ArcelorMittal
Steam:
ArcelorMittal
Products:
Coke:
1,700,000 tons/yr.
(320 ovens)
Heat Recovery:
150 MW/yr of
electricity
BRAZIL
Vitória
*ArcelorMittal
majority
owner

A6
Haverhill 2
Haverhill North Coke Company
Location:
Haverhill (Franklin
Furnace), Ohio
Planned operation:
2H08
Estimated investment:  $250 MM
Customer(s):
Coke:
Severstal
& WCI
Power:
Public power grid
Products:
Coke:
550,000 tons/yr.
(100 ovens)
Heat Recovery:
46 net MW/yr of
electricity
OHIO
Haverhill

A7
Granite City
Gateway Energy & Coke Company
Location:
Granite City, Illinois
Planned operation:
4Q 2009
Estimated Investment:  $300 MM
Customer(s):
Coke:
U.S. Steel
Steam:
U.S. Steel
Products:
Coke:
650,000 tons/yr
(120 ovens)
Heat Recovery:
450,000 lbs/hr of
superheated steam power
generation
Granite City
ILLINOIS

A8
Middletown
Middletown Coke Company
Location:
Middletown, Ohio
Planned operation:
2010
Estimated investment:  $350 MM
Customer(s):
Coke:
AK Steel
Power:
AK Steel
Products:
Coke:
550,000 tons/yr
(100 Ovens)
Heat Recovery:
46 net MW/yr of
electricity
Middletown
OHIO

A9
Integrated Steel Production Process
SunCoke
Energy
Operations
(Scrap)
Coke is a key iron-making feedstock for the integrated steel
production
process and typically constitutes between 25% and
35% of overall finished steel costs.

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Heat Recovery Technology Process

A11
Coke EBITDA Reconciliation to Net Income, $MM
Total SunCoke Energy
2007
2008
2009*
2010*
2011*
2012*
   EBITDA
34
140
235
315
350
350
   Less: Depreciation
20
25
37
49
50
51
   Less: Income Tax
3
40
68
95
105
100
   Plus: Tax Credits
18
17
65
14
15
11
   NIAT
29
92
195
185
210
210
End of 2008
Run Rate
End of 2010
Run Rate
EBITDA
220
             
350
               
Less:
Depreciation
30
                
50
                 
Less: Income Tax
67
                
105
               
Plus: Tax Credits
22
                
15
                 
Net Income
145
             
210
               
100 Ovens
200 Ovens
EBITDA
70 - 80
125 - 145
Less:
Depreciation
12 - 13
22 - 25
Less: Income Tax
20 - 24
35 - 42
Plus: Tax Credits
--
--
Net Income
38 - 43
68 - 78
Prospective Projects
*  Assumes average contract coal price $125/T…each +/-
$25/T price change ~approximately $20MM net income
** Includes (one time) Section 48B credit of approximately $40MM
**
(excludes
any
net
financing
costs)

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2010
EBITDA
315
             
Less
Depreciation
49
                
Less:  Income Tax
95
                
Plus:
Tax Credits
14
                
Net Income
185
             
Retail
Marketing
Chemicals
EBITDA
221
             
115
            
Less: Depreciation
108
             
75
             
Less: Income Tax
44
               
14
             
Net Income
69
               
26
             
2007
EBITDA Reconciliation to Net Income, $MM
SunCoke
Energy

A13
SunCoke Energy has established long-term relationships
with top performing and credit worthy companies of the
steel industry.
Customer
Global   
Steel    
Ranking
Steel
Production
2006       
(MM Tons)
Market Cap   
@          
06/13/08 (B)
2007 Revenues
(B)
Credit   
Rating
SCE Coke
Production   
(MM tons)
ArcelorMittal
1
117
$135
$105
Baa2/BBB+
4.20
                
U.S. Steel
6
21
$21
$17
Baa3/BB+
0.65
                
Severstal NA
11
18
$25
$15
Ba2/BB
0.55
                
AK Steel
52
6
$8
$7
Ba3/BB-
0.55
                
5.95
                
Established Customer Relationships

For More Information
Media releases and SEC filings are available
on our website at www.SunocoInc.com
Contact for more information:
Tom Harr
Investor Relations
1-215-977-6764
tmharr@sunocoinc.com
A14