Materials & Contracting David C. Barney President & CEO Knife River Corporation Building A Strong America 1
Construction Materials Industry Leader Top 10 U.S. aggregate producer Increasingly valuable aggregate reserves totaling 1.1B tons 1.7B 1.9B in annual revenue projected for 2015 Safety leader: States of operation Recordable…
Operational Capabilities Building a Strong America Materials Construction Aggregate General contractor Asphalt Subcontractor Readymix concrete Aggregate placement Liquid asphalt Asphalt paving Cement sales Concrete…
Building a Strong America Products Aggregates 4 4
Building a Strong America Asphalt Products 5 5
Products Building a Strong America Ready-Mix Concrete 6 6
Building a Strong America Products Liquid Asphalt 7 7
Building a Strong America Cement Products 8 8
Building a Strong America Products Precast Concrete 9 9
Products Building a Strong America Building Materials 10 10
Services Building a Strong America General Contractor 11 11
Services Building a Strong America Site Development 12 12
Building a Strong America Services Asphalt Paving 13 13
Services Building a Strong America Aggregate Delivery 14 14
Services Building a Strong America Concrete Construction 15 15
Services Building a Strong America Bridge Construction 16 16
Services Building a Strong America Marine Construction 17 17
Our Advantages Building a Strong America Knife River Strengths Safety, Quality, Environmental leader Vertical integration Share resources between regions Geographic diversity Good reputation 18
Earnings Growth 70.0 2014 Returns 60.0 17% earnings growth 50.0 on 3% revenue In Millions growth 40.0 Three consecutive 30.0 59.9 years of strong 50.9 growth 20.0 26.4 32.4 Highest returns since 10.0 2007 0.0 2011…
Volume & Backlog Year Over Year Peak 2013 2014 % Change Year Aggregate (tons) 24.7MM 25.8MM 4.5% 47.2MM 2005 Asphalt (tons) 6.2MM 6.1MM (1.6%) 9.1MM 2005 Readymix (CY) 3.2MM 3.5MM 9.4% 4.6MM 2006 Construction 924.0MM 926.0MM 0.2%…
2014 Highlights 17% earnings growth on 3% revenue growth Record second half earnings of 72.9M Volume and margin improvements over 2013 Largest project in KRC history on time and on budget N.D. Gov. Dalrymple cutting the ribbon…
Economic Indicators Yearoveryear data Dec. 2013 Dec. 2014 Housing Starts 5.9% 5.3% Building Permits 9.0% 3.5% Total Construction Spending 5.3% 2.2% Pvt. Construction Spending 8.0% 0.4% Pub. Construction Spending (0.7%) 6.7%…
South Region TXDOT letting budget for 2015 and 2016 is 7B Prop 1 in Texas provides additional 1.7B to State Highway Fund in 2015 Gov. Abbott and Legislature seeking 5B more in sustainable funding for highway transportation…
North Central Region ND MN SD ND approves 1.1B surge bill to fund infrastructure improvements IA NE Iowa passed 10cent gas tax increase Landed 26MM worth of work in Iowa last week Picked up 10MM paving job in Minnesota…
Pacific Region AK CA Increasing cement storage/efficiencies in Alaska 5.3B light rail system under construction through 2018 in Hawaii Hawaiian readymix market looking up as residential HI construction grows Northern California…
Intermountain Region MT 36MM project at Mountain Home AFB in Idaho ID 28MM I84 Interchange in Boise WY 12MM project at FE Warren AFB in Wyoming Montana housing recovery just landed 3 subdivision jobs in Billings Performing work…
Northwest Region WA Railroad work growing precast, construction, aggregates Producing bridge girders for Union Pacific OR Private market improving Subdivisions and tech industry in Central Oregon 5B LNG project in Coos Bay is…
Summary/Outlook Markets continue to strengthen revenue guidance of 1.7B to 1.9B Optimistic that well see continued housing recovery and growth Continued margin and volume increases on materials Ready to grow Knife River Organic…
Materials & Contracting Building A Strong America 29