MARCH 2014 NUCOR TODAY NORTH AMERICA’S MOST DIVERSIFIED STEEL & STEEL PRODUCTS COMPANY FACILITIES 2013 NET SALES Over 200 locations $19.1 Billion 2013 NET EARNINGS $488.0 Million FORTUNE 500 RANK 146 EMPLOYEES 2013 SALES PER EMPLOYEE 22,300 $859,000 164 CONSECUTIVE QUARTERS OF CASH DIVIDENDS (THRU MAY 2014) 2 STEEL MILL PRODUCTION CAPACITY ANNUAL TONS 3 STEEL MILL SHIPMENTS 2003-2013 (millions of tons) 28 24 20.65 20 16 12 8 4 0 2003 4 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 STEEL PRODUCTS PRODUCTION CAPACITY ANNUAL TONS 5 STEEL PRODUCTS SALES TONS 2003-2013 (millions of tons) 5 4 3 2.62 2 1 0 2003 6 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 RAW MATERIALS (IRON UNITS) PRODUCTION CAPACITY ANNUAL TONS 7 Direct Reduced Iron (DRI) 4.5 Million Ferrous Scrap Processing 5.2 Million NUCOR’S GROWTH DRIVEN BY OUR POSITION OF STRENGTH 8 COMPETITIVE ADVANTAGES 9 Financial Strength Low / Variable Cost Structure Flexible Capacity Product Diversification Market Leadership Nucor’s People and Our Culture FINANCIAL STRENGTH Strong cash flow generation through the cycle Only North American steel producer with extremely important competitive advantage of investment grade credit rating Conservative Financial Practices 10 No Material Legacy Liabilities Financial Strength Cash From Operations 2000-2013 (millions of dollars) Cyclical Trough To Cyclical Trough More than 2X $2,400 Average ’09-’13 $1.1 Billion $1,800 Average ’01-’03 $495 million $1,200 $600 $0 2000 11 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 LOW COST STRUCTURE = INDUSTRY LEADING RETURNS Average ROIC 2004-2013 18 15.5% 16 13.6% 14 12 10 ArcelorMittal 8 6 U.S. Steel 7.1% Steel Dynamics 5.9% Nucor 4 2 0 ArcelorMittal 12 U.S. Steel Steel Dynamics Nucor NUCOR’S ROIC PERFORMANCE 2004-2013 AVG = 15.5% ROIC = EBIT X (1-.35) / (NET PP&E + WORKING CAPITAL) 37.0% 32.0% UP-CYCLE 27.0% 22.0% 17.0% “GREAT RECESSION” 12.0% 7.0% 2.0% -3.0% 13 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 FLEXIBLE CAPACITY Electric arc furnaces High productivity No lay-off practice 14 BEST-IN-CLASS MARKET RESPONSIVENESS!!! DIVERSIFIED PRODUCT MIX 2013 Sales Tons Sheet - 32% Bars - 22% Structural - 11% Plate - 10% Products - 11% Scrap - 14% 15 NUCOR = MOST DIVERSIFIED STEEL AND STEEL PRODUCTS PRODUCER IN NORTH AMERICA Highway Products Building Systems Joist & Decking Fasteners Grating Wire Products Rebar Fabrication Cold Finished Bar Plate Sheet Structural/Piling SBQ Bar NUCOR 16 Arcelor Mittal Steel Dynamics Gerdau Commercial Republic Metals Company Timken US Steel Severstal Thyssen Krupp MARKET LEADERSHIP BY SIZE IN NORTH AMERICA Structural Steel #1 North American Market Leader Bar Steel Rebar Steel Cold Finished Bar Steel Steel Joist Steel Deck Rebar Fabrication, Distribution, & Placement Steel Piling Distribution Metal Buildings #2 North American Market Leader 17 Plate Steel #3 North American Market Leader Sheet Steel NUCOR’S PEOPLE – OUR BIGGEST COMPETITIVE ADVANTAGE 18 NUCOR’S CULTURE Commitment to Employees SAFETY Is Our First Priority Teamwork Pay For Performance Continual Improvement Decentralized Structure = Nucor Employees Are Empowered To Take Care Of Our Customers 19 GREAT CHALLENGES PRESENT GREAT OPPORTUNITIES TO THE RIGHT PEOPLE – THE NUCOR TEAM • Click to edit Master text styles – Second level • Third level – Fourth level » Fifth level 20 20 20 GROWING EARNINGS POWER: MULTI-PRONGED GROWTH STRATEGY 21 NUCOR’S FOCUS: PROFITABLE GROWTH!!! NUCOR’S 5 PRONGED GROWTH STRATEGY Nucor’s Position of STRENGTH 1. OPTIMIZE EXISTING OPERATIONS 2. RAW MATERIALS STRATEGY 3. GREENFIELD GROWTH (technology & market niches) 4. INTERNATIONAL GROWTH via joint ventures 5. STRATEGIC ACQUISITIONS 22 2008-2013 CAPITAL INVESTED $8 BILLION OF CAPITAL INVESTED Capital Spending of $4.4 billion & Acquisitions of $3.6 billion CAPITAL SPENDING = 55% ACQUISITIONS = 45% 23 2008-2013 CAPITAL INVESTED ($ MILLIONS) STEEL MILLS BARS MEMPHIS SBQ MILL (2008-13) $350 DARLINGTON ROD MILL (2012-13) $99 CONNECTICUT REHEAT FURNACE (2012-13) $23 NEBRASKA SBQ ROLLING MILL UPGRADE (2012-13) $16 AMOUNTS NOT NECESSARILY PROJECT TOTALS – ONLY INCLUDES $s INVESTED OVER 2008-2013 PERIOD 24 2008-2013 CAPITAL INVESTED ($ MILLIONS) STEEL MILLS BEAMS & PILING SKYLINE ACQUISITION (2012) $675 NUCOR-YAMATO SHEET PILING PRODUCT RANGE EXPANSION (2012-13) $92 AMOUNTS NOT NECESSARILY PROJECT TOTALS – ONLY INCLUDES $s INVESTED OVER 2008-2013 PERIOD 25 2008-2013 CAPITAL INVESTED ($ MILLIONS) STEEL MILLS PLATE HERTFORD COUNTY HEAT TREAT FACILITY (2009-10) $70 HERTFORD COUNTY NORMALIZING LINE (2012-13) $38 HERTFORD COUNTY DRI HANDLING (2012-13) $21 HERTFORD COUNTY VACUUM TANK DEGASSER $17 (2011-12) TUSCALOOSA 2nd LMF (2011-12) AMOUNTS NOT NECESSARILY PROJECT TOTALS – ONLY INCLUDES $s INVESTED OVER 2008-2013 PERIOD 26 $12 2008-2013 CAPITAL INVESTED ($ MILLIONS) STEEL MILLS SHEET NUMIT SHEET STEEL PROCESSING J.V. ACQ. (2010) $221 DECATUR GALVANIZING FACILITY (2008-09) $126 BERKELEY COUNTY WIDE-LIGHT (2012-13) $86 HICKMAN VACUUM TANK DEGASSER (2012-13) $33 CRAWFORDSVILLE DRI HANDLING (2012-13) $22 BERKELEY COUNTY DRI HANDLING (2012-13) $18 AMOUNTS NOT NECESSARILY PROJECT TOTALS – ONLY INCLUDES $s INVESTED OVER 2008-2013 PERIOD 27 2008-2013 CAPITAL INVESTED ($ MILLIONS) STEEL MILLS INTERNATIONAL DUFERDOFIN J.V. IN ITALY (BEAMS & BARS) (2008) 28 $671 2008-2013 CAPITAL INVESTED ($ MILLIONS) DOWNSTREAM PRODUCTS HARRIS STEEL REBAR FABRICATION BOLT-ON ACQUISITIONS (2008-12) 29 $211 2008-2013 CAPITAL INVESTED ($ MILLIONS) RAW MATERIALS & ENERGY DAVID J. JOSEPH ACQUISITION (2008) $1,440 LOUISIANA DRI FACILITY (2009-13) $739 NATURAL GAS DRILLING & MIDSTREAM ASSETS $616 (2009-13) DAVID J. JOSEPH BOLT-ON ACQUISITIONS (2008-12) $300 TRINIDAD DRI FACILITY EXPANSION (2011) $15 AMOUNTS NOT NECESSARILY PROJECT TOTALS – ONLY INCLUDES $s INVESTED OVER 2008-2013 PERIOD 30 RAW MATERIALS STRATEGY DRI Plant - Louisiana Game changer for Nucor’s cost of high quality iron units required to produce higher value-added sheet, SBQ, & plate Production of DRI began on December 24, 2013 Output quality matching the best-in-class levels routinely achieved at our DRI plant in Trinidad. Together with Trinidad plant, Nucor has total annual DRI capacity of 4.5 million metric tons. DRI = Direct Reduced Iron 31 Natural Gas Working Interest Investment Long-term & low cost supply of energy source required to produce DRI Provides hedge against any future increases in natural gas prices – critical risk factor in DRI production Approximately 20 year supply of natural gas to cover usage of 2 DRI plants + current steel mill consumption Cost structure of drilled wells such that they delivered modest positive return in 2013’s low natural gas pricing environment DRI VERSUS PIG IRON COST COMPARISON (using estimated long-term prices) 32 $/ton Blast Furnace DRI Iron Ore (62% FE, FOB Brazil) Pellet Premium Iron Premium (BF = 65% Fe & DRI = 68% Fe) X $2.20 Freight Iron Ore Consumption (BF = 1.6 ton & DRI = 1.5 ton) $125 $40 $7 $25 $315 $125 $40 $13 $15 $290 Cash Conversion Costs BF Reductant (100% coke) DRI Reductant (11 mmbtus @ $4) $70 $107 $35 Iron Unit Cost BF with sinter plant cost savings BF Cost Savings By Substituting 40% of coke usage with PCI & natural gas BF Higher “Value-In-Use” Benefit “Adjusted” BF Iron Unit Cost $492 $30 $44 $11 $15 $436 Coke cost assumes 0.5 ton of coke using 1.5 tons of metallurgical coal costing $125/ton $369 NUCOR’S FOCUS = GENERATE ATTRACTIVE RETURNS 33 BUILDING EARNINGS POWER FOR THE NEXT CYCLICAL PEAK & BEYOND (Millions of dollars) $2,200 2008 RECORD EPS $5.98 $1,700 $1,200 $700 $200 2000 -$300 34 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 CASH DIVIDENDS PAID 2004 – 2013 Base & Supplemental Dividends (dollars per share) 41 CONSECUTIVE YEARS OF INCREASED CASH DIVIDENDS UP-CYCLE $2.50 $2.00 Approx. $5/share in total supplemental dividends from 2005 to 2008 “GREAT RECESSION” $1.50 $1.00 $0.50 $0.00 2004 2005 2006 2007 Base 35 2008 2009 2010 Supplemental 2011 2012 2013