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

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Presentation on theme: "1 2014 Global Metals, Mining & Steel Conference MAY 13, 2014 MAY 13, 2014."— Presentation transcript:

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

2 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 Company’s 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 Company’s 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. 2

3 NET INCOME (Millions of dollars) NET INCOME (Millions of dollars) 3

4 NUCOR’S GROWTH DRIVEN BY OUR POSITION OF STRENGTH OUR POSITION OF STRENGTH 4 FINANCIAL STRENGTH LOW COST STRUCTURE LOW COST STRUCTURE FLEXIBLE & RELIABLE PRODUCTION FLEXIBLE & RELIABLE PRODUCTION PRODUCT BREADTH PRODUCT BREADTH MARKET LEADERSHIP MARKET LEADERSHIP OUR CULTURE OUR CULTURE

5  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 FINANCIAL STRENGTH

6 Financial Strength Cash From Operations 2000-2013 (millions of dollars) Financial Strength Cash From Operations 2000-2013 (millions of dollars) Cyclical Trough To Cyclical Trough More than 2X Average ’01-’03 $495 million $495 million Average ’09-’13 Average ’09-’13 $1.1 Billion $1.1 Billion 6

7 LOW COST STRUCTURE = INDUSTRY LEADING RETURNS 7

8 FLEXIBLE CAPACITY FLEXIBLE CAPACITY  Electric arc furnaces  High productivity  No lay-off practice 8 BEST-IN-CLASS MARKET RESPONSIVENESS!!!

9 Nucor Steel Decatur Making Steel for 29 Days without Power. Now that’s 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

10 DIVERSIFIED PRODUCT MIX DIVERSIFIED PRODUCT MIX 10

11 MARKET LEADERSHIP BY SIZE IN NORTH AMERICA 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 11

12 NUCOR’S PEOPLE – OUR BIGGEST COMPETITIVE ADVANTAGE 12

13 BUILDING EARNINGS POWER FOR THE NEXT UP-CYCLE BUILDING EARNINGS POWER FOR THE NEXT UP-CYCLE 13

14 GROWING NUCOR’S EARNINGS POWER LOUISIANA DRI FACILITY 14

15 GROWING NUCOR’S EARNINGS POWER LOUISIANA DRI FACILITY 15

16 GROWING NUCOR’S EARNINGS POWER WIDE-LIGHT PROJECT 16

17 GROWING NUCOR’S EARNINGS POWER HEAT TREAT & NORMALIZED PLATE 17

18 GROWING NUCOR’S EARNINGS POWER SHEET PILING PRODUCT EXPANSION 18

19 19 Click to edit Master text styles –Second level Third level –Fourth level »Fifth level 19 GREAT CHALLENGES PRESENTGREAT CHALLENGES PRESENT GREAT OPPORTUNITIES TO THEGREAT OPPORTUNITIES TO THE RIGHT PEOPLE – THE NUCOR TEAMRIGHT PEOPLE – THE NUCOR TEAM NUCOR’S BEST YEARS ARE STILL AHEAD OF US


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