United States Steel Corporation

Fourth Quarter 2013 Earnings Conference Call and Webcast

January 28, 2014

© 2011 United States Steel Corporation

Forward-looking Statements

This presentation contains forward-looking statements with respect to market conditions, operating costs, shipments and prices. Factors that could affect market conditions, costs, shipments and prices for both North American and European operations include: (a) foreign currency fluctuations and related activities; (b) global product demand, prices and mix; (c) global and company steel production levels; (d) plant operating performance; (e) natural gas, electricity, raw materials and transportation prices, usage and availability; (f) international trade developments, including court decisions, legislation and agency decisions on petitions and sunset reviews; (g) the impact of fixed prices in energy and raw materials contracts (many of which have terms of one year or longer) as compared to short-term contract and spot prices of steel products; (h) changes in environmental, tax, pension and other laws; (i) the terms of collective bargaining agreements; (j) employee strikes or other labor issues; and (k) U.S. and global economic performance and political developments. Domestic steel shipments and prices could be affected by import levels and actions taken by the U.S. Government and its agencies, including those related to CO2 emissions, climate change and shale gas development. Economic conditions and political factors in Europe and Canada that may affect U. S. Steel Europe’s and U. S. Steel Canada’s results include, but are not limited to: (l) taxation; (m) nationalization; (n) inflation; (o) fiscal instability; (p) political issues; (q) regulatory actions; and (r) quotas, tariffs, and other protectionist measures. We present adjusted net income and adjusted net income per diluted share, which are non-GAAP measures, as an additional measurement to enhance the understanding of our operating performance and facilitate a comparison with that of our competitors. In accordance with “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, cautionary statements identifying important factors, but not necessarily all factors, that could cause actual results to differ materially from those set forth in the forward-looking statements have been included in U. S. Steel’s Annual Report on Form 10-K for the year ended December 31, 2012, and in subsequent filings for U. S. Steel.
United States Steel Corporation 2

Adjusted Fourth Quarter 2013 Results

$150

$146 $113

$1.00 $0.75 $0.50

$100

$59
$0.25 $0.00

$38
$0

$ per share

$ Millions

$50

$0.27

Positive reportable segment and other businesses income from operations for eight consecutive quarters

($0.14)
($50)

($20)
($0.25)

($0.41)

($59)
($0.50)

Operating income per ton increased $6 from third quarter, and $19 from fourth quarter 2012

($100) 4Q 2012 3Q 2013 4Q 2013

($0.75)

Reportable segment and other businesses income from operations Adjusted net income Adjusted diluted EPS

Note: For reconciliation of non-GAAP amounts see Appendix

United States Steel Corporation

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Fourth Quarter 2013 Flat-rolled Segment

Income from operations
$100

Average realized prices
$750

$752 $721

$75

$700

$50

Average realized prices ($ per net ton)

Income from operations ($ millions)

Improving spot price momentum maintained throughout the fourth quarter Lead times for value-added products extended during the fourth quarter Outages completed efficiently and repairs and maintenance spending discipline maintained

$82
$25

$87

$600

$0

$11

$500

($25) 4Q 2012 3Q 2013 4Q 2013

$400

Shipments
(net tons in thousands)

4Q 2012 3,924

3Q 2013 3,428

4Q 2013 3,470

United States Steel Corporation

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Fourth Quarter 2013 Tubular Segment

Income from operations
$75
Income from operations ($ millions)

Average realized prices
$1,800

$1,543

$1,509
$1,500

$50

Average realized prices ($ per net ton)

$1,624

Highest quarterly level of shipments of semipremium connections Rig efficiency and well completion rates continue to improve

$1,200 $25

$49 $32 $32
$900

$0 4Q 2012 3Q 2013 4Q 2013

$600

Shipments
(net tons in thousands)

4Q 2012 407

3Q 2013 459

4Q 2013 414
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Fourth Quarter 2013 U. S. Steel Europe Segment

Income from operations
$50
Income from operations ($ millions)

Average realized prices
$800

$714 $692
$700

$25

Average realized prices ($ per net ton)

$718

Operating income per ton increased $49 from the third quarter Production and shipments returned to normal levels after scheduled blast furnace outage was completed in the third quarter

$0

$7

$12
$600

($32)
($25) $500

($50)
4Q 2012 3Q 2013 4Q 2013

$400

Shipments
(net tons in thousands)

4Q 2012 905

3Q 2013 861

4Q 2013 1,029
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Strategic Approach
Priorities and objectives

Macro business strategy Carnegie Way value creation
Cost and margin improvements (including $75 million announced last quarter) $175 million annual run rate / $150 million to be realized in 2014

Business measurements to motivate a greater sense of urgency Investor communications Reducing complexity and streamlining business processes

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Pension and OPEB
Total pension and OPEB expense by year

$600 $159 $500 $100 $400 $55 $191 $300 $443 $136 $149 $100 $129 $78 $0 2007 2008 2009 2010 2011 2012 2013 2014E $271 $276 $152

$15

$200

$412

$396 $330

Unfunded status of pension and OPEB plans at 12/31/13 is $2.5 billion, as compared to $4.9 billion at 12/31/12

$ Millions

Pension Expense

OPEB Expense

Major Assumptions: Discount rate: 5.75% for 2007 & 2008, 6.00% for 2009, 5.50% for 2010, 5.00% for 2011, 4.50% for 2012, 3.75% for 2013, and 4.50% for 2014E Expected rate of return on assets: 8.00% in U.S. & 7.50% in Canada for 2007 through 2011 Expected rate of return on assets: 7.75% in U.S. & 7.25% in Canada for 2012 through 2014E
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Cash Flow
Cash flow from operations excluding working capital changes

($ in millions)

2011

2012

2013

Total
$1,000

Cash from operations Working capital changes Cash from operations excluding working capital changes

168 (552) 720

1,135 326 809

414 (148) 562

1,717 (374)

$800

$600

2,091

$ Millions

$400

$720

$809 $562

Capital expenditures

848

723

477

2,048

$200

$0

Total estimated liquidity

1,800

2,360

2,278

2011

2012

2013

Note: Cash from operations includes voluntary pension contributions of $140 million in each year

.

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Market Updates
Major industry summary and market fundamentals Flat-rolled
Automotive production in 2013 best since 2002, expected to increase in 2014 Service center shipments improved in second half of 2013, inventories down from end of 2012 Non-residential construction expected to improve per consensus forecasts

U. S. Steel Europe
Automotive production in 2014 expected to be comparable to 2013, sales expected to increase in 2014 Appliance, tin plate and construction expected to increase from 2013 levels Service center inventories expected to remain in-line with sales activity. Sales expected to improve from 2013 levels

Tubular
Rig counts are stable and footage drilled per rig expected to continue to increase Imports remain challenging Oil prices remain supportive of current drilling levels Natural gas prices are expected to increase per Wood Mackenzie Natural gas storage levels at end of withdrawal season expected to be at lowest level in six years

United States Steel Corporation

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First Quarter 2014 Outlook
Segment outlook

Flat-rolled
Operating results expected to improve as compared to fourth quarter

U. S. Steel Europe
Operating results expected to be comparable to fourth quarter

Tubular
Operating results expected to decrease as compared to fourth quarter Average realized prices expected to decrease as compared to fourth quarter Shipments expected to be higher than fourth quarter Operating costs expected to be lower as compared to fourth quarter Substrate costs expected to increase

Higher realized prices for contracts and spot market

Higher average realized prices primarily due to change in product mix

Shipments expected to be higher than fourth quarter

Shipments expected to be comparable to fourth quarter

Lower repairs and maintenance costs Higher raw materials and operating costs Higher scrap and energy costs

United States Steel Corporation

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Strategic update
Actions and initiatives

Process and cost efficiencies
Granite City Works caster project Minntac mine extension

Product development and capabilities
PRO-TEC continuous anneal line Tubular semi-premium and premium connections

Potential Footprint changes
Fairfield EAF permit filings

United States Steel Corporation

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United States Steel Corporation
Fourth Quarter 2013 Earnings Conference Call and Webcast

Q&A
January 28, 2014
© 2011 United States Steel Corporation

United States Steel Corporation

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Appendix

© 2011 United States Steel Corporation

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North American Flat-rolled Segment
Major industry summary Automotive Industrial Equipment Tin Plate Appliance Pipe and Tube Construction Service Center

Sources: Wards / Customer Financial Reports / AISI / CMI / Economic Planning Assoc / AHAM / US Census Bureau / AIA / AEM / MSCI

2013 vehicles sales hit expectations at 15.53 million; up 7.5% year over year and best since 2007 Production exceeded 16 million in ’13; best since 2002. Expected to grow again in 2014 1st quarter ’14 build projected to exceed 4th quarter; best unit build since 2nd quarter Vehicle inventory increases during the year by 6 days to 64 Tractor and Combine retail sales up 9% in 2013; 2014 outlook is mixed Railcar deliveries projected down 14% versus 2012; 2013 Order intake up 17% and in line with projected 2014 delivery forecasts Full year metal can shipments increased a modest 1% in 2013 Metal food can shipments increased year over year for the first time since 2008 Imports averaged up 18% versus 2012 Major home appliance shipments up 10% through November versus 2012, and no major forward changes up or down projected. Structural tubing demand is consistent and appears to be meeting customer expectations Line pipe market is extremely slow with minimal award activity in 2nd half ’13 and early ‘14

Construction recovery slow in 2013, as Non-Residential spending was flat in 2013, but expected to improve by 5.8% based on consensus forecasts. ABI falls in Nov and Dec (seasonally typical); Billings index averaged 52 in 2013; up from 50 in 2012 MSCI carbon flat-rolled improved as year progressed; 2nd Half USA shipments +8.9% versus 2H 2012 USA inventory down 4% from prior year end; Canada sheds almost 36% Combined USA and Canada flat rolled inventory was reduced by 600,000 tons during 2013
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Tubular Segment
Market Fundamentals Oil Directed Rig Count Gas Directed Rig Count Natural Gas Storage Level Oil Price

Sources: Baker Hughes, Energy Information Administration, Preston Publishing, Spears & Associates, Wood Mackenzie, Internal

Currently 1,416 rigs, up 8% year over year. The oil directed rig count increased modestly during the fourth quarter and increased 4% during 2013.

Currently 356 rigs, down 18% year over year. The natural gas directed rig count decreased 13% during 2013. Currently 2.42 tcf, 19.8% below last year, and 13.2% below the five year average. Inventories are expected to end the withdrawal season (End of March) between 1.4 and 1.6 Tcf which could be the lowest end of season inventory level in six years. The West Texas Intermediate oil price averaged $97.50 per barrel during the fourth quarter, down $8.50 or 8% from the third quarter. Wood Mackenzie forecasts an average first quarter price of $94.50 per barrel. Wood Mackenzie forecasts an average first quarter natural gas price of $4.12/MMBtu, representing increases of $0.27 (7%) and $0.63 (18%) respectively from the previous quarter and first quarter of 2013. During the fourth quarter of 2013, import share of apparent market demand averaged roughly 50% for OCTG and 49% for line pipe.

Natural Gas Price Imports OCTG Inventory

November 2013 OCTG inventory is estimated to be about 3.1 million tons, approximately 5.9 months of supply.
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U. S. Steel Europe Segment
Sources: Eurofer, USSK Marketing, EASSC, LMC, Euroconstruct, ESTA, ACEA

Major industry summary
• 1Q14 EU production is estimated to grow by 7% versus 4Q13. Total EU 2014 car production is forecasted to stay flat at roughly 15.6 mill. units. • For 1Q14, production growth in V4 will be 3 % q-o-q, quarterly growth impacted mostly by Mercedes Hungary, GM Poland, PSA Slovakia. • EU sales in 1Q14 are expected to increase by 10% q-o-q , while 2014 expectations show 3% growth y-o-y. • In 1Q14, EU appliance production is projected to decrease by 5.4% q-o-q and to increase 2.5% y-o-y. • Prospects for the EU electric domestic appliances market in 2014 are for the continuation of the mildly rising trend in demand and production (3% y-o-y). • Positive demand trends are expected in Germany, the UK and the Nordic region resulting from the rebound in residential construction. Growth in Central Europe will continue to outperform average EU growth. • Tin consumption in 2013 based on October numbers is anticipated to increase by 3.3 % y-o-y. • In 1Q14, Tin consumption is projected to increase by 7.7 % q-o-q, as usual after the weakest quarter during a year. • Demand in Q1 is expected to be at the same level as the previous year ( 900 kMT). • Inventory of empty cans still above average. • The outlook for 2014 is for a slow and cautious recovery of the EU construction market. • The pick-up in construction output will largely be driven by the residential sector and renovation and modernization work. • In 1Q14, activity in the sector is expected to increase by 2.3% y-o-y. • EU construction output is forecasted to rise almost 1.5% in 2014. • The forecast for 1Q14 shows that inventory in the distribution chain will remain well-balanced with downstream sales activity; ex-stocks sales are forecasted to improve in most countries. • 2Q14 flat product inventory is forecasted to be normal and in-line with the expected activity of ex-stocks sales. Sales activity is forecasted to maintain at least the improved levels reached in Q1 or register some further improvement.
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Automotive

Appliance

Tin Plate

Construction

Service Centers

U. S. Steel Commercial – Contract vs. Spot
Contract vs spot mix by segment – twelve months ended December 31, 2013

Flat-rolled

Tubular

U. S. Steel Kosice
Market Based Monthly 10%

Market Based Market Based Semi-annual * Quarterly * <1% 20% Cost Based 13% Firm 22% Market Based Monthly * 16%

Program 55%

Market Based Quarterly 1%

Firm 38% Spot 50% Spot 45%

Spot 29%

Cost Based 1%

Contract: 71% Spot: 29%

Program: 55% Spot: 45%

Contract: 50% Spot: 50%
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* - Annual contract volume commitments with price adjustments in stated time frame

Other Items

Capital Spending
Fourth quarter actual $149 million, full year 2013 actual $477 million, 2014 estimate $650 million

Depreciation, Depletion and Amortization
Fourth quarter actual $170 million, full year 2013 actual $684 million, 2014 estimate $670 million

Pension and Other Benefits Costs
Fourth quarter actual $119 million, full year 2013 actual $451 million, 2014 estimate $345 million

Pension and Other Benefits Cash Payments (excluding any voluntary pension contributions)
Fourth quarter actual $3 million, full year 2013 actual $338 million, 2014 estimate $540 million

United States Steel Corporation

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Safety Performance
Global Safety Performance - 2005 to 2013
Days Away From Work Cases ≥ 31 Days
(Frequency Rates per 200,000 Hours Worked)
1.00

0.80

0.787

0.620 0.60 0.500 0.377

0.40

0.346

0.342

0.366 0.320 0.282 0.325 0.285 0.309

0.351 0.317

0.306

0.308

0.216 0.20 0.187 0.073 0.037 0.00 2005 2006 2007 2008 2009 2010 2011 2012 U. S. Steel 2013 0.037

0.041

0.026

0.015

0.013

BLS Iron and Steel

BLS Manufacturing

Source: Bureau of Labor Statistics (BLS) and U. S. Steel. BLS data not available for 2013

United States Steel Corporation

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Safety Performance
Global Safety Performance
Days Away From Work Injury Rate
(Frequency Rates per 200,000 Hours Worked)
1.20

1.00

0.80

0.60 1.00 0.40

0.20

0.35 0.26 0.15 0.13 2008 0.14 2009 0.17 2010 0.12 2011 0.11 2012 0.11 2013

0.00 2004 2005 2006 2007

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Fourth Quarter 2013 Results
Reconciliation of reported and adjusted net income and EPS
4Q 2012 ($ millions) Reported net income (loss) Restructuring charges Impairment of goodwill Supplier contract dispute settlement Charge related to an unconsolidated equity method investment Tax related items Environmental remediation charge Adjusted net income ($ per share) Reported EPS (LPS) Restructuring charges Impairment of goodwill Supplier contract dispute settlement Charge related to an unconsolidated equity method investment Tax related items Environmental remediation charge Adjusted diluted EPS ($0.35) ─ ─ (0.06) ─ ─ ─ ($0.41) ($12.38) ─ 12.24 (0.10) 0.10 ─ ─ ($0.14) ($0.84) 1.68 0.16 ─ 0.10 (0.98) 0.15 $0.27 ($50) ─ ─ (9) ─ ─ ─ ($59) ($1,791) ─ 1,771 (15) 15 ─ ─ ($20) ($122) 244 23 ─ 14 (142) 21 $38 3Q 2013 4Q 2013

United States Steel Corporation

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