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© 2025 Cleveland-Cliffs Inc. All Rights Reserved. CLEVELAND-CLIFFS INC. Second-Quarter 2025 Earnings Presentation July 21, 2025
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© 2025 Cleveland-Cliffs Inc. All Rights Reserved. 2 This presentation contains statements that constitute "forward-looking statements" within the meaning of the federal securities laws. All statements other than historical facts, including, without limitation, statements regarding our current expectations, estimates and projections about our industry or our businesses, are forward-looking statements. We caution investors that any forward-looking statements are subject to risks and uncertainties that may cause actual results and future trends to differ materially from those matters expressed in or implied by such forward-looking statements. Investors are cautioned not to place undue reliance on forward-looking statements. Among the risks and uncertainties that could cause actual results to differ from those described in forward-looking statements are the following: continued volatility of steel, scrap metal and iron ore market prices, which directly and indirectly impact the prices of the products that we sell to our customers; uncertainties associated with the highly competitive and cyclical steel industry and our reliance on the demand for steel from the automotive industry; potential weaknesses and uncertainties in global economic conditions, excess global steelmaking capacity and production, prevalence of steel imports, reduced market demand and oversupply of iron ore; severe financial hardship, bankruptcy, temporary or permanent shutdowns or operational challenges of one or more of our major customers, key suppliers or contractors, which, among other adverse effects, could disrupt our operations or lead to reduced demand for our products, increased difficulty collecting receivables, and customers and/or suppliers asserting force majeure or other reasons for not performing their contractual obligations to us; risks related to U.S. government actions and other countries' reactions with respect to Section 232 of the Trade Expansion Act of 1962 (as amended by the Trade Act of 1974), the United States-Mexico-Canada Agreement and/or other trade agreements, tariffs, treaties or policies, as well as the uncertainty of obtaining and maintaining effective antidumping and countervailing duty orders to counteract the harmful effects of unfairly traded imports; impacts of existing and changing governmental regulation, including actual and potential environmental regulations relating to climate change and carbon emissions, and related costs and liabilities, including failure to receive or maintain required operating and environmental permits, approvals, modifications or other authorizations of, or from, any governmental or regulatory authority and costs related to implementing improvements to ensure compliance with regulatory changes, including potential financial assurance requirements, and reclamation and remediation obligations; potential impacts to the environment or exposure to hazardous substances resulting from our operations; our ability to maintain adequate liquidity, our level of indebtedness and the availability of capital could limit our financial flexibility and cash flow necessary to fund working capital, planned capital expenditures, acquisitions, and other general corporate purposes or ongoing needs of our business, or to repurchase our common shares; our ability to reduce our indebtedness or return capital to shareholders within the currently expected timeframes or at all; adverse changes in credit ratings, interest rates, foreign currency rates and tax laws; challenges to successfully implementing our business strategy to achieve operating results in line with our guidance; the outcome of, and costs incurred in connection with, lawsuits, claims, arbitrations or governmental proceedings relating to commercial and business disputes, antitrust claims, environmental matters, government investigations, occupational or personal injury claims, property-related matters, labor and employment matters, or suits involving legacy operations and other matters; supply chain disruptions or changes in the cost, quality or availability of energy sources, including electricity, natural gas and diesel fuel, critical raw materials and supplies, including iron ore, industrial gases, graphite electrodes, scrap metal, chrome, zinc, other alloys, coke and metallurgical coal, and critical manufacturing equipment and spare parts; problems or disruptions associated with transporting products to our customers, moving manufacturing inputs or products internally among our facilities, or suppliers transporting raw materials to us; the risk that the cost or time to implement a strategic or sustaining capital project may prove to be greater than originally anticipated; our ability to consummate any public or private acquisition or divestiture transactions and to realize any or all of the anticipated benefits or estimated future synergies, as well as to successfully integrate any acquired businesses into our existing businesses; uncertainties associated with natural or human-caused disasters, adverse weather conditions, unanticipated geological conditions, critical equipment failures, infectious disease outbreaks, tailings dam failures and other unexpected events; cybersecurity incidents relating to, disruptions in, or failures of, information technology systems that are managed by us or third parties that host or have access to our data or systems, including the loss, theft or corruption of our or third parties' sensitive or essential business or personal information and the inability to access or control systems; liabilities and costs arising in connection with any business decisions to temporarily or indefinitely idle or permanently close an operating facility or mine, which could adversely impact the carrying value of associated assets, trigger contractual liabilities or termination costs, and give rise to impairment charges or closure and reclamation obligations, as well as uncertainties associated with restarting any previously idled operating facility or mine; our ability to realize the anticipated synergies or other expected benefits of the acquisition of Stelco, as well as the impact of additional liabilities and obligations incurred in connection with the Stelco acquisition; our level of self-insurance and our ability to obtain sufficient third-party insurance to adequately cover potential adverse events and business risks; uncertainties associated with our ability to meet customers' and suppliers' decarbonization goals and reduce our greenhouse gas emissions in alignment with our own announced targets; challenges to maintaining our social license to operate with our stakeholders, including the impacts of our operations on local communities, reputational impacts of operating in a carbon-intensive industry that produces greenhouse gas emissions, and our ability to foster a consistent operational and safety track record; our actual economic mineral reserves or reductions in current mineral reserve estimates, and any title defect or loss of any lease, license, option, easement or other possessory interest for any mining property; our ability to maintain satisfactory labor relations with unions and employees; unanticipated or higher costs associated with pension and other post-employment benefit obligations resulting from changes in the value of plan assets or contribution increases required for unfunded obligations; uncertain availability or cost of skilled workers to fill critical operational positions and potential labor shortages caused by experienced employee attrition or otherwise, as well as our ability to attract, hire, develop and retain key personnel; and potential significant deficiencies or material weaknesses in our internal control over financial reporting. For additional factors affecting the business of Cliffs, refer to Part I, Item 1A. Risk Factors of our Annual Report on Form 10-K for the year ended December 31, 2024, and other filings with the U.S. Securities and Exchange Commission. FORWARD-LOOKING STATEMENTS
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© 2025 Cleveland-Cliffs Inc. All Rights Reserved. 3 Revenues $4.9 Billion Record Steel Shipments 4.3 Million (net tons) SECOND-QUARTER 2025 1Reconciliation for Adjusted EBITDA can be found on last page of presentation and earnings release published July 21, 2025 © 2025 Cleveland-Cliffs Inc. All Rights Reserved.3 Adj. EBITDA1 $97 Million Liquidity $2.7 Billion Expect to see continued improvement in Adj. EBITDA from Q2 to Q3 Record quarterly steel shipments Q2 ASP benefited from higher pricing that began in late Q1 Released over $200 million in inventory working capital Q2 costs better than expected Lower SG&A and capital expenditure outlook
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© 2025 Cleveland-Cliffs Inc. All Rights Reserved. 4 Note: Based on Q2 2025 Steelmaking Results – Product Mix includes steel products shipments Highlights 27% Coated 15% Cold-Rolled 3% Stainless & Electrical 5% Plate 10% Slab, Rail, Other Product Mix (Shipments) End Market Mix (Revenue) 26% Direct Automotive 30% Distributors & Converters 31% Infrastructure & Manufacturing 13% Steel Producers © 2025 Cleveland-Cliffs Inc. All Rights Reserved. 4 40% Hot-Rolled Q2 2025 END MARKET AND PRODUCT OVERVIEW (primarily galvanized) ▪ Steel shipments increased by 150,000 tons from the prior quarter ▪ Regaining automotive market share ▪ Optimized footprint with no expected impact to flat-rolled volume ▪ Selling price increased by $35/t due to higher index pricing, partially offset by lower slab pricing
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© 2025 Cleveland-Cliffs Inc. All Rights Reserved. 5 RECORD QUARTERLY STEEL SHIPMENTS 4.1 4.2 4.2 3.4 3.6 3.6 3.6 3.8 4.1 4.2 4.1 4.0 3.9 4.0 3.8 3.8 4.1 4.3 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 In million net tons
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© 2025 Cleveland-Cliffs Inc. All Rights Reserved. 6 SUMMARY OF ASSET OPTIMIZATION Flat-Rolled Optimization Riverdale: Full idle of compact strip mill facility primarily due to uncompetitive cost structure Conshohocken: Full idle of plate finishing facility primarily as a result of continued underperformance Steelton: Full idle of rail facility primarily as a result of excess rail imports and continued underperformance ~$165 million in expected annual savings ~$145 million in expected annual savings ▪ Announced that Dearborn blast furnace, BOF steel shop and caster would be idled ▪ Announced full idle of Minorca mine and partial idle of Hibbing mine ▪ Will continue to work down pellet inventory built in 2024 ▪ No impact expected to flat-rolled steel output Repositioning Away from Non-Core Assets ~$90 million Expected Annual Savings ~$45 million ~$30 million Operational Changes
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© 2025 Cleveland-Cliffs Inc. All Rights Reserved. 7 TRADE AND TARIFFS Canada 6,557 Exempt 25% Tariff 50% Tariff Brazil 4,498 Quota 25% Tariff 50% Tariff Mexico 3,517 Exempt 25% Tariff 50% Tariff South Korea 2,809 Quota 25% Tariff 50% Tariff Vietnam 1,363 25% Tariff 25% Tariff 50% Tariff Japan 1,180 Quota 25% Tariff 50% Tariff Germany 1,074 Quota 25% Tariff 50% Tariff Taiwan 1,011 25% Tariff 25% Tariff 50% Tariff Netherlands 614 Quota 25% Tariff 50% Tariff China 508 25% Tariff 25% Tariff 50% Tariff Trump Administration’s Continued Focus on Strengthening Domestic Steel Jan. 20, 2025 Status Top 10 Importing Countries 2024 Imports (Thousand Net Tons) Current Mar. 12, 2025 Status Source: AISI
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© 2025 Cleveland-Cliffs Inc. All Rights Reserved. 8 819 671 857865865 717 750755 711724 619 712 770 564 620 437 554 EFFECTIVENESS OF TARIFFS FOR STEEL Total Flat-Rolled Imports (HRC, CRC, Coated) Thousand Net Tons Source: USITC, AISI 2024 Avg. 755K Section 232 tariffs reinstated Imports as a Percent of Finished Steel Market Share 25% 24% 21% 20% 20% Jan-25 Feb-25 Mar-25 Apr-25 May-25
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© 2025 Cleveland-Cliffs Inc. All Rights Reserved. 9 EFFECTIVENESS OF TARIFFS FOR AUTO Source: USITC Total U.S. Light Vehicle Imports by Month 2024 Avg. 699K ▪ Imports of light vehicles from Japan and South Korea down >30% YTD ▪ U.S. light vehicle production estimates recently revised upward ▪ Average age of a vehicle remains at all-time high Thousand Light Vehicles 734 729 718 741 713 679 684 666 680 723 691 627 645 590 769 477 572 Jan-24 Feb-24 Mar-24 Apr-24 May-24 Jun-24 Jul-24 Aug-24 Sep-24 Oct-24 Nov-24 Dec-24 Jan-25 Feb-25 Mar-25 Apr-25 May-25 Post Auto Tariffs
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© 2025 Cleveland-Cliffs Inc. All Rights Reserved. 10 EFFECTIVENESS OF TARIFFS FOR AUTO Source: USITC. Wards Auto U.S. Light Vehicle Sales Originating Outside of USMCA Region (Daily Sales Rate) 14.6 13.2 12.4 11.5 Mar-25 Apr-25 May-25 Jun-25 25% Auto tariffs announced Thousand Units Total U.S. Light Vehicle Imports ~3.6 ~3.0 May 2024 YTD May 2025 YTD Down ~16% YTD Million Light Vehicles
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© 2025 Cleveland-Cliffs Inc. All Rights Reserved. 11 THE U.S. NEEDS MORE AUTO PRODUCTION 183 134 80 66 49 49 46 33 32 31 31 Slovakia Czech Republic South Korea Japan Spain Germany Hungary Canada Mexico Portugal United States Light Vehicle Production Per Capita (Per 1,000 People) A healthy automotive industry is vital to national security Expect demand for domestically produced vehicles to increase as a result of 25% tariffs on automobiles Domestic automotive industry has underutilized capacity Source: International Organization of Motor Vehicles Manufacturers
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© 2025 Cleveland-Cliffs Inc. All Rights Reserved. 12 STEEL TARIFFS SUPPORT U.S. HRC PRICE Importance of Steel Tariffs ▪ The United States steel industry has long been undermined by excessive imports ▪ Tariffs play a crucial role in protecting the U.S. economy, national security and industrial base from violators of free trade ▪ Steel tariffs support demand for domestically produced steel ▪ Foreign steel producers often take advantage of government subsidies, currency manipulation and weak environmental regulations ▪ Higher HRC price provides significant opportunity to generate free cash flow and reinvest in facilities ▪ Ensures ability to have thriving steel industry that supports domestic jobs Marginal Import Ton Sets the Price of Steel in U.S. $500 $250 $150 $900 Export HRC Cost Section 232 50% Tariff Shipping, Port Fees, Insurance, Etc. Total Landed Cost in U.S. Source: CLF Estimates Per Net Ton
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© 2025 Cleveland-Cliffs Inc. All Rights Reserved. 13 United States, 39% Rest of the World, 21% China, 8% South Korea, 8% Turkey, 6% Brazil, 5% Taiwan, 3% United Arab Emirates, 3% Germany, 3% Argentina, 2% Japan, 2% ~13.2 ~15.3 ~2.1 Production Volume Apparent Consumption Net Imports CANADA NEEDS TRADE RESTRICTIONS AS WELL 2024 Canadian Steel Industry Source: International Trade Administration Million Net Tons 2024 Canadian Steel Imports by Country Percent of Imports by Country
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© 2025 Cleveland-Cliffs Inc. All Rights Reserved. 14 ~5.2 million tons of total imports CLIFFS’ RAW MATERIAL ADVANTAGE Unlike other flat-rolled producers, Cliffs does not rely on imported pig iron In Net Tons ~72% of total Brazil ~3.2 million tons 2024 U.S. Pig Iron Imports Rest of the World ~1 million tons Ukraine ~1 million tons ▪ U.S. announced it will implement 50% tariffs on Brazilian products sent into the U.S., effective August 1st ▪ Competitors have become more reliant on Brazil for pig iron after ongoing conflict with Russia and Ukraine ▪ Domestic EAF flat-rolled producers who rely on imported pig iron could see higher raw material costs ▪ Trade wars do not have material impact on our cost structure Highlights Source: USITC
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© 2025 Cleveland-Cliffs Inc. All Rights Reserved. 15 DOMESTIC STEEL DEMAND EXPECTED TO INCREASE Source: BloombergNEF Domestic Steel Consumption Domestic Steel Import Share 28% 22% 17% 17% 18% 18% 2024 2025E 2026E 2027E 2028E 2029E 103 105 107 110 112 116 2024 2025E 2026E 2027E 2028E 2029E Imports as a percent of domestic consumption expected to decline Million Net Tons Domestic consumption expected to grow Imports as a percent of consumption
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© 2025 Cleveland-Cliffs Inc. All Rights Reserved. 16 $400 $500 $600 $700 $800 $900 $1,000 ONEROUS THIRD-PARTY STEEL SLAB CONTRACT Onerous Slab Contract Set To Expire In Less Than Five Months ▪ Contract expires December 9, 2025 ▪ Represents ~1.5 million net tons annually ▪ Directly linked to Brazilian slab export price, which has been negatively impacted by tariffs ▪ Brazilian slab price has fallen while U.S. HRC has risen – typically these are correlated ▪ Significant opportunity to shift sales to products with higher profit margins once contract expires HRC vs. Slab (price per net ton) HRC ~$910 Slab ~$430 Source: Fastmarkets as of 7/9/25
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© 2025 Cleveland-Cliffs Inc. All Rights Reserved. 17 COSHOCTON WORKS NEW BRIGHT ANNEAL LINE New $150 Million State-of-the-Art Vertical Stainless Bright Anneal Line • Project groundbreaking occurred July 2021 and commissioning began May 2025 • Produces stainless steel for high-end automotive and critical appliance applications • Uses 100% hydrogen atmosphere, replacing conventional acid-based processing • Improves efficiency and production capabilities • Replaces two older vertical annealing lines
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© 2025 Cleveland-Cliffs Inc. All Rights Reserved. 18 $2.1 billion WELL-POSITIONED BALANCE SHEET Leverage Target (Net debt / TTM Adj. EBITDA) 2.5x Secured Note Capacity Commitment to utilize 100% of cash flow towards debt repayment Secured Note Capacity $3.2 billion Liquidity $2.7 billion Four-Year Note Maturities $685 2025 2026 2027 2028 Dollars in Millions Total Secured Note Capacity $3.2 billion 15% of Consolidated Net Tangible Assets Secured Ratio Basket $1.1 billion
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© 2025 Cleveland-Cliffs Inc. All Rights Reserved. 19 SUCCESSFUL WORKING CAPITAL MANAGEMENT Released ~$100 million in working capital HighlightsQ1 to Q2 Quarter-Over-Quarter Change Working Capital Management Raw Materials (Pellets, Coke, etc.) ▪ Successfully releasing working capital through inventory management ▪ Working through excess pellet inventory built at end of 2024 after recent idles ▪ Expect to further release working capital in second half of 2025 ▪ Use of Stelco coke within legacy footprint ▪ Future inventory benefit from coke contracts that expired in June 2025 Released ~$100 million in working capital Finished Steel
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© 2025 Cleveland-Cliffs Inc. All Rights Reserved. 20 Substantial Drop in Total Capital Expenditures LOWER 2025 CAPEX BUDGET $893 $1,093 $791 $800 $600 2021 Pro Forma 2022 Pro Forma 2023 Pro Forma 2024 Pro Forma 2025 Guidance $ in millions Note: All years inclusive of Stelco
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© 2025 Cleveland-Cliffs Inc. All Rights Reserved. 21 SIGNIFICANT COST REDUCTIONS Steel Unit Costs Expected To Be Down ~$160 Per Ton In Three Years ~$30/t Decrease ~$80/t Decrease Expected 2025 Unit Cost Per Ton of Steel Highlights Cost Savings 2024 Unit Cost Per Ton of Steel 2023 Unit Cost Per Ton of Steel ~$50/t Decrease Optimization of integrated footprint and reduction of fixed costs Reduced overhead and improved efficiencies Idling of high-cost, loss-making assets Expect to further benefit from Stelco’s low-cost structure and asset optimization
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© 2025 Cleveland-Cliffs Inc. All Rights Reserved. 22 UPDATED 2025 OUTLOOK 2025 Capital Outlay and Expenses February 2025 Guide Capital Expenditures Depreciation, Depletion and Amortization Selling, General and Administrative Expenses Cash Pension and OPEB Payments and Contributions ~$700 million ~$625 million ~$1.1 billion ~$150 million May 2025 Guide ~$625 million ~$600 million ~$1.1 billion ~$150 million July 2025 Guide ~$600 million ~$575 million ~$1.2 billion ~$150 million 2025 Unit Cost Per Ton of Steel ~$40 per net ton decrease ~$50 per net ton decrease ~$50 per net ton decrease
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© 2025 Cleveland-Cliffs Inc. All Rights Reserved. 23 CLEVELAND-CLIFFS’ ADJUSTED EBITDA RECONCILIATION Three Months Ended ($ in millions) June 30, 2025 March 31, 2025 December 31, 2024 September 30, 2024 June 30, 2024 Net income (loss) ($470) ($483) ($434) ($230) $9 Less: Interest expense, net (149) (140) (135) (102) (69) Income tax benefit 148 147 136 76 15 Depreciation, depletion and amortization (393) (282) (258) (235) (228) Total EBITDA ($76) ($208) ($177) $31 $291 Less: EBITDA from noncontrolling interests $20 $18 $20 $20 $15 Idled facilities charges (204) (44) 2 (2) (40) Arbitration decision - - - (71) - Changes in fair value of derivatives, net (15) (9) (34) (7) - Currency exchange 48 (2) (20) - - Loss on extinguishment of debt - - - - (6) Severance (19) (1) (4) (10) (1) Other, net (3) 4 (60) (23) - Total Adjusted EBITDA $97 ($174) ($81) $124 $323
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© 2025 Cleveland-Cliffs Inc. All Rights Reserved.