FINANCIAL STRENGTH Strong cash flow generation through the cycle Investment grade credit rating (only North American steel producer with this competitive advantage) Conservative Financial Practices No Material Legacy…
FINANCIAL STRENGTH Cash From Operations 2000-2014 Cyclical Trough To Cyclical Trough More than 2X 2,400 2014 = 1,800 1.3 Billion Average 09-13 1.1 Billion 1,200 Average 01-03 495 Million 600 0 2000 2001 2002 2003…
LOW COST STRUCTURE = Industry Leading Returns Average ROIC 2004-2014 16 14.9% 14 12.7% 12 10 ArcelorMittal 8 U.S. Steel 6 5.5% Steel Dynamics 4.4% Nucor 4 2 0 ArcelorMittal U.S. Steel Steel Dynamics Nucor 9
FLEXIBLE CAPACITY & HIGHLY VARIABLE COST STRUCTURE Electric arc furnaces Pay For Performance High productivity No lay-off practice BEST-IN-CLASS MARKET RESPONSIVENESS 10
MARKET LEADERSHIP BY SIZE IN NORTH AMERICA Structural Steel Bar Steel 1 North American Rebar Steel Hot Rolled Sheet Steel Cold Finished Bar Steel Market Leader Steel Joist Steel Deck Rebar Fabrication, Distribution, &…
NUCORS STRATEGY 13
NUCORS GROWTH STRATEGY Optimize Existing Operations Raw Strategic NUCORS Materials Acquisitions FIVE Strategy PRONGED GROWTH STRATEGY International Greenfield Growth via Growth Joint Ventures (Technology & Market…
NUCORS STRATEGIC EXECUTION 15
GROWING NUCORS EARNINGS POWER Capital Invested Versus Depreciation During Current Steel Industy Downturn of 2009-2014 7,000 6,000 5.9 Billion Capital Spending = 4.0 Billion Acquisitions = 1.9 Billion 5,000 4,000 3.3 Billion…
GROWING NUCORS EARNINGS POWER: Gallatin Steel Acquisition Q4-2014 Cash purchase price of 780 million / 660 million net of anticipated tax benefits 1.8 million tons of annual capacity Broadens footprint in strategic Midwest market…
NUCORS BALANCED APPROACH TO CAPITAL ALLOCATION Cash From Operations, Capital Invested, & Capital Returned 2005-2014 TEN YEAR HISTORY 18,000 16,000 15.5 Billion 14,000 12.5 Billion 12,000 10,000 8,000 6.7 Billion 6,000…