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1 2014 Global Metals, Mining & Steel Conference MAY 13, 2014

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  • 1

    2014 Global Metals, Mining & Steel Conference

    MAY 13, 2014

  • Forward-Looking Statements

    Certain statements made in this presentation are forward-looking statements that involve risks and uncertainties. The words believe, expect, project, will, should, could and similar expressions are intended to identify those forward-looking statements. These forward-looking statements reflect the Companys best judgment based on current information, and although we base these statements on circumstances that we believe to be reasonable when made, there can be no assurance that future events will not affect the accuracy of such forward-looking information. As such, the forward-looking statements are not guarantees of future performance, and actual results may vary materially from the projected results and expectations discussed in this report. Factors that might cause the Companys actual results to differ materially from those anticipated in forward-looking statements include, but are not limited to: (1) the sensitivity of the results of our operations to prevailing steel prices and changes in the supply and cost of raw materials, including pig iron, iron ore and scrap steel; (2) availability and cost of electricity and natural gas which could negatively affect our cost of steel production or could result in a delay or cancellation of existing or future drilling within our natural gas working interest drilling programs; (3) critical equipment failures and business interruptions; (4) market demand for steel products, which, in the case of many of our products, is driven by the level of nonresidential construction activity in the U.S.; (5) competitive pressure on sales and pricing, including pressure from imports and substitute materials; (6) impairment in the recorded value of inventory, equity investments, fixed assets, goodwill or other long-lived assets; (7) uncertainties surrounding the global economy, including the severe economic downturn in construction markets and excess world capacity for steel production; (8) fluctuations in currency conversion rates; (9) U.S. and foreign trade policy affecting steel imports or exports; (10) significant changes in laws or government regulations affecting environmental compliance, including legislation and regulations that result in greater regulation of greenhouse gas emissions that could increase our energy costs and our capital expenditures and operating costs or cause one or more of our permits to be revoked or make it more difficult to obtain permit modifications; (11) the cyclical nature of the steel industry; (12) capital investments and their impact on our performance; and (13) our safety performance.

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  • -$300

    $200

    $700

    $1,200

    $1,700

    2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

    NET INCOME (Millions of dollars)

    3

  • NUCORS GROWTH DRIVEN BY

    OUR POSITION OF STRENGTH

    4

    FINANCIAL STRENGTH

    LOW COST STRUCTURE

    FLEXIBLE & RELIABLE PRODUCTION

    PRODUCT BREADTH

    MARKET LEADERSHIP

    OUR CULTURE

  • 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 Liabilities

    5

    FINANCIAL STRENGTH

  • $0

    $600

    $1,200

    $1,800

    $2,400

    2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

    Financial Strength Cash From Operations 2000-2013 (millions of dollars)

    Cyclical Trough To Cyclical Trough

    More than 2X

    Average 01-03 $495 million

    Average 09-13 $1.1 Billion

    6

  • LOW COST STRUCTURE =

    INDUSTRY LEADING RETURNS

    5.9%7.1%

    13.6%

    15.5%

    0

    2

    4

    6

    8

    10

    12

    14

    16

    18

    ArcelorMittal U.S. Steel Steel Dynamics Nucor

    Average ROIC 2004-2013

    ArcelorMittal

    U.S. Steel

    Steel Dynamics

    Nucor

    7

  • FLEXIBLE CAPACITY

    Electric arc furnaces

    High productivity

    No lay-off practice

    8

    BEST-IN-CLASS

    MARKET RESPONSIVENESS!!!

  • Nucor Steel Decatur

    Making Steel for 29 Days without Power.

    Now thats Reliability.

    At Nucor, we respect that our customers rely on us.

    So when a tornado knocked out power to our Decatur mill for 29 days, we refused to let a

    natural disaster affect our customers. Immediately, we informed every customer

    about what happened, and assured them that our sister mills would fill their orders.

    While they produced the steel, the rest of our teammates got the mill running

    and donated time to rebuilding the community.

    Then 29 days later, the power came back on and illuminated what we accomplished.

    Our customers received their steel to spec and on time.

    Exactly what our customers expect, tornado or no tornado.

    9

  • 2013 Sales Tons

    Sheet - 32%

    Bars - 22%

    Structural - 11%

    Plate - 10%

    Products - 11%

    Scrap - 14%

    DIVERSIFIED PRODUCT MIX

    10

  • MARKET LEADERSHIP BY SIZE IN NORTH AMERICA

    Structural Steel Bar Steel

    Rebar Steel

    Cold Finished Bar Steel

    Steel Joist

    Steel Deck

    Rebar Fabrication, Distribution, & Placement

    Steel Piling Distribution

    Metal Buildings

    Sheet Steel Plate Steel

    #1 North American

    Market Leader

    #2 North American

    Market Leader

    #3 North American

    Market Leader

    11

  • NUCORS PEOPLE OUR BIGGEST COMPETITIVE ADVANTAGE

    12

  • BUILDING EARNINGS POWER

    FOR THE NEXT UP-CYCLE

    13

  • GROWING NUCORS EARNINGS POWER

    LOUISIANA DRI FACILITY

    14

  • GROWING NUCORS EARNINGS POWER

    LOUISIANA DRI FACILITY

    15

  • GROWING NUCORS EARNINGS POWER

    WIDE-LIGHT PROJECT

    16

  • GROWING NUCORS EARNINGS POWER

    HEAT TREAT & NORMALIZED PLATE

    17

  • GROWING NUCORS EARNINGS POWER

    SHEET PILING PRODUCT EXPANSION

    18

  • 19

    Click to edit Master text styles

    Second level

    Third level

    Fourth level

    Fifth level

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    GREAT CHALLENGES PRESENT

    GREAT OPPORTUNITIES TO THE

    RIGHT PEOPLE THE NUCOR TEAM

    NUCORS BEST YEARS ARE STILL AHEAD OF US