2. Forward-Looking Statements
This presentation contains forward-looking statements with respect to market conditions,
operating costs, shipments, prices and profit-based compensation payments. Some factors,
among others, that could affect 2008 market conditions, costs, shipments and prices for both
domestic operations and USSE include global product demand, prices and mix; global and
company steel production levels; raw materials' availability and prices; plant operating
performance; the timing and completion of facility projects; natural gas prices and usage and
availability; changes in environmental, tax and other laws; the resumption of operation of steel
facilities sold under the bankruptcy laws; employee strikes; power outages; and 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. Political
factors in Europe that may affect USSE’s results include, but are not limited to, taxation,
nationalization, inflation, currency fluctuations, increased regulation, export quotas, tariffs, and
other protectionist measures. The level of income from operations is the primary factor affecting
payments under the USWA profit-based plans. 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 the Form 10-K of U. S. Steel for
the year ended December 31, 2007, and in subsequent filings for U. S. Steel.
2
3. United States Steel Corporation
To grow responsibly while generating a competitive return on capital and meeting
our financial and stakeholder obligations
• 5th largest global steel producer – 31.7 mnt*
• 2nd Largest North American flat-rolled steel producer – 24 mnt*
• 2nd largest Central European flat-rolled steel producer – 7.4 mnt
• Largest North American tubular producer – 2.8 mnt
• North American raw materials balance
• ROCE:**
2007 - 21%
2006 - 29%
* Pro-Forma for Stelco acquisition
3
**ROCE = IFO/average(PPE + AR + Inventory – AP)
4. Flat-rolled segment
Leading producer of high quality product
• LTM 2Q’08 trade shipments – 18.3 million tons*
7 melt locations
• Approximately 50% contract, 40% spot & 10% indexed (CRU)
• Contract industries include: auto, appliance, tin and electrical
• Demands sophisticated metallurgical applications with
specialized customer service and technical support
• Typical contract term - 1 year
• Contract business lessens impact of spot price fluctuations
4
* Pro-Forma for Stelco
5. U. S. Steel Canada
Acquisition closed 10/31/07
Created 5th largest global steel company
Complementary assets & attributes:
Capability to ship approximately 900,000 tons of slabs
to U. S. Steel facilities
Improve U. S. Steel’s finishing facility utilization
Annual synergies estimated to be in excess of $100 million:
Sourcing semi-finished product
Procurement, best practices and SG&A
5
6. U. S. Steel Canada Overview
Raw Steel British
Capability Columbia
Alberta
4.9 Million Net
Labrador
Manitoba
Tons:
Seignelay
Hamilton 2.3 Ontario
Saskatchewan Quebec
Lake Erie 2.6
Wabush
Hibbing
Raw Materials Minntac/
Tilden
Keetac
Ownership
Hamilton
Iron Ore
Lake Erie
Great Lakes
Minority shares of:
Gary
Hibbing Taconite Mon Valley
Tilden Mining
Granite City
Wabush Mining USSC Integrated Steel Mill
Seignelay Reserve USSC Iron Ore Mining
U. S. Steel Flat Rolled & Tubular
U. S. Steel Iron Ore Mining Fairfield
East Texas
66
7. European segment
Plants in both Slovakia (5.0 mmt) and Serbia (2.4 mmt)
• LTM 2Q’08 shipments – 6.2 million tons
• Approximately 70% spot versus 30% contracts
• Key industries: construction, service center, packaging and
conversion
• Dedicated new 386,000 tons automotive/appliance galvanize
line in September, 2007
• Strong growth rates and heavy infrastructure investment
7
8. Tubular segment
Oil country and Standard & Line pipe
• LTM 2Q’08 – 1.8 million tons:
Seamless 930,000 tons
Welded 905,000 tons
• Primarily spot sales
• Oil Country 63%, Standard & Line 32%, Specialty Tube 5%
• Size ranges (outside diameter):
Seamless –1.9” to 26”
Welded – 1” to 20”
• Shipments:
NAFTA 95%
International 5%
8
9. Total U.S. Tubular Market
Source: Preston Pipe
Tons in Millions
20
OCTG
USS Tubular Seamless
Seamless
Line
15
Imports
Imports
Standard
10
Welded
Welded
Mechanical
Domestic
Domestic
5
Structural
Pressure
Stainless
0
9
10. Improving Industry – Why invest in Steel?
• Steel is a good product, provides excellent value
• Major regions with increasing consumption rates
• Governments mostly out of industry (ex China)
• Metallics are tight, flatter cost curve
• Low Valuation:
2008 P/E*
40.0x
35.8x
32.0x
24.0x
18.4x 17.3x
14.7x
16.0x
8.5x
8.0x
0.0x
s
as
l
r
ol
te
Ca
ae
od
e
Se
Pp
t ti
* Source: Bloomberg
Uili
ar
10
R il
11. Bullish on North America
Outlook for North American integrated producers
• Melt capacity relatively constrained
• High metallic costs (iron ore & scrap)
• High carbon costs (coal & coke)
• High import transportation costs
11
12. Growing International Demand
Emerging markets continues to support strong global production
World crude steel production* (million metric tonnes) Share of global steel demand
1600
1200
800
400
0
2 0 0 8 **
2 0 0 9 **
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
World China Developing Developed
** IISI Estimate
Source: IISI Source: Macquarie 12
13. Strong business climate
Selected Price Trends – Through August 2008
$650
$1,175
Shredded scrap composite $/Gross ton Hot rolled $/Net Ton
$600
$1,075
$550
$975
$500
$875
$450
$400 $775
$350
$675
$300
$575
$250
$475
$200
$375
$150
$275
$100
$50 $175
O ct
M ar
J an
F eb
J une
Sept
M ay
J u ly
N ov
D ec
A p r il
Aug
J a n -0 2
J u l- 0 2
J a n -0 3
J u l- 0 3
J a n -0 4
J u l- 0 4
J a n -0 5
J u l- 0 5
J a n -0 6
J u l- 0 6
J a n -0 7
J u l- 0 7
J a n -0 8
J u l- 0 8
2002 2003 2004 2005
USA HR German HR East Asian HR
2006 2007 2008 Source: CRU and SBB. 13
Source: D.J. Joseph Company
14. U. S. Steel – North America Raw Materials Integration
Control over key raw materials – as of 9/1/08
Estimated annual NA requirements:
Percent controlled – Production – Contract (volume & price) • Coking Coal – 10mnt
• Coke – 8.8mnt
100 • Iron Ore – 28.9mnt
• Second largest NA iron ore producer
80
produced 21 mmnt in 2007
reserves 849 mmnt
60
• Iron ore/coal mines and coke
production located close to steel
40
operations or supported by cost
competitive transportation facilities
20
• Produced 5.6 mmnt of coke in 2007
0
• International coke and coal prices are
08 09
8 9 08 09
l '0 l '0 e' e'
e' e'
oa oa Or Or high and volatile
k k
Co Co
C C n n
Iro Iro
• Exploring additional raw material
integration opportunities
Contract Own make
14
15. MSCI Flat Rolled Inventory
January 2004 – June 2008
11,000
CRU price 1,400
$575
$655
10,000
Sheet Inventory ‘000 tons
$510
Sheet Imports ‘000 tons
1,150
$740 $630 $565
9,000
$425
$402 900
$1,065
8,000
$580 $520
$550
650
7,000
6,000 400
Jan-04
Jul-04
Jan-05
Jul-05
Jan-06
Jul-06
Jan-07
Jul-07
Jan-08
Apr-04
ct-04
Apr-05
ct-05
Apr-06
ct-06
Apr-07
ct-07
April-08
O
O
O
O
Sheet Inventory Sheet Imports
Source: MSCI, U.S. Dept of Customs and CRU 15
16. Raw Material Cost - Impact on hot rolled band costs
Raw material cost inflation has leveled the playing field – HRB cash cost $/ton
$700 $608
$592
$600 7% $510
9%
15% 13%
$500 17%
11%
$400
$270
$300 $190 $204
41%
19%
$200 24%
15%
24% 8%
$100
66% 78% 52% 78% 51% 72%
$0
'02
'08
'08
'02
'08
'02
1Q
2Q
2Q
2Q
1Q
1Q
China & other low-labor cost steel US flat-rolled mini-mill steel NA integrated steel producers
Producing countries producers
Raw Materials Energy Labor
Source: J.P. Morgan and company estimate 16
17. Capital Allocation – Building Value
To grow responsibly while generating a competitive return on capital and
meeting our financial and stakeholder obligations
• Maintain strong capital structure
• Focused capital spending plan
• Responsible capital allocation
• Remain shareholder focused
Designed to improve shareholder value
17
18. Maintain strong capital structure – Building Value
Balanced approach to capital allocation
Since LTM
1/1/04 2Q’08
As of ($ in millions)
Cash Provided by Operations $6,512 $1,418
Capital Spending $2,964 $782
Voluntary Pension & OPEB Funding $905 $140
Dividends Paid $331 $107
Increased 500% since 1/05*
$901 $143
Stock Repurchases**
14.9 1.2
Millions of shares repurchased
As of 6/30/08, 5.8 million shares remaining under current repurchase authorization
* Dividend increase to $0.30/quarter to be effective with 9/10/08 payment
** Repurchase program initially authorized 7/05 18
19. Maintain strong capital structure – Building Value
Key considerations Manageable legacy obligations – 2008
Pension:
Pension OPEB Total
As of 12/31/07 ($ in millions)
• Defined benefit
plan closed in 2003
$10,638 $4,089 $14,727
Benefit obligation
OPEB: $10,861 $1,166 $12,027
Plan assets
• Co-pays
($2,923) ($2,700)
$223
Funded status
• Inflation cap
Pension OPEB Total
2008 Forecast ($ in millions)
• Voluntary pension
& VEBA $60 $140 $200
Net Periodic Expense
contributions
$142 $426 $568
Cash Flow*
totaling $905 million
since 1/1/04
Pension OPEB
Key assumptions - 2008
7.94% 8.0%
Expected return on assets
5.67% 5.69%
Discount rate
* Excludes any voluntary contributions
19
20. Capital Spending – Building Value
U.S. Steel has spent less
2005 – 2007 Average CapEx per ton shipped
than global peers in
recent years
$130
$119
Will likely incur higher $120
capex during next few
$110
years concentrated on
$100
Capex per ton
infrastructure, but will
likely remain below the $90
global average.
$80
$70 $59
$60
$50
$40 $32
$30
$18
$20
$10
$0
Ternium
Nippon
Valin
Tenarus
MMK
Nucor
NLMK
Arcelor
Thysse
Wuhan
Gerdau
Average
Evraz
CSN
AKS
USS
SSAB
Tata-
Laiwu
Essar
JFE
Severst
Posco
Bao
Source: Accenture 20
21. Making Steel - World Competitive - Building Value
Investment considerations
• Strong business climate
• Improving industry and relatively low valuation
• Favorable North American environment
• Building value:
Maintain strong capital structure
Evaluate growth opportunities
Improving infrastructure and product mix
Responsible capital allocation
Remain shareholder focused
21
