Nucor Corporation · NYSE:NUE
Nucor — Investor Day (November 2022)
75 slides from Nucor's investor day presentation, Nov 8, 2022
Slide 1: 2022 Investor Day
2022 INVESTOR DAY NOVEMBER 8, 2022
Slide 2: 2022 Investor Day Agenda
2022 INVESTOR DAY AGENDA TOPIC PRESENTER OPENING Leon Topalian, Chair, President and CEO FINANCIAL PERFORMANCE Steve Laxton, CFO, Treasurer and EVP STRENGTHENING OUR PORTFOLIO Doug Jellison, EVP, Raw Materials EVOLVING INDUSTRY LANDSCAPE Al Behr, EVP, Plate and Structural Products INVESTING IN OUR C
Slide 3: A Diversified, Efficient, Industrial Manufacturer
A DIVERSIFIED, EFFICIENT, INDUSTRIAL MANUFACTURER LEON TOPALIAN CHAIR, PRESIDENT AND CEO 3
Slide 4: Our Mission and Challenge
OUR MISSION AND CHALLENGE OUR MISSION GROW THE CORE EXPAND BEYOND LIVE OUR CULTURE OUR CHALLENGE IS TO BECOME THE WORLD'S SAFEST STEEL COMPANY. WE LIVE EACH DAY WITH GRATITUDE FOR THE FAMILIES, CUSTOMERS AND PARTNERS THAT MAKE OUR WORK POSSIBLE. NUCcCOoOR 4 Nucor
Slide 5: The Green Economy
THE GREEN ECONOMY THE GREEN ECONOMY IS BEING BUILT ON STEEL 5 NUCOoOR
Slide 6: West Virginia
WEST VIRGINIA 6 Nucor
Slide 7: Our Team/Talent
OUR TEAM/TALENT 7 NUCOoOR
Slide 8: Experienced Leadership
EXPERIENCED LEADERSHIP AVERAGE TENURE AT NUCOR – NEARLY 25 YEARS NUCOR EXECUTIVE TEAM – YEARS AT NUCOR 0 5 10 15 20 25 30 LEON TOPALIAN Chair, President & CEO l 26 DAVE SUMOSKI d 27 COO STEVE LAXTON s 20 CFO, Treasurer & EVP AL BEHR EVP, Plate & Structural JOHN HOLLATZ a EVP, Bar, Eng. Bar & Rebar F
Slide 9: Financial Performance
FINANCIAL PERFORMANCE STEVE LAXTON CFO, TREASURER AND EVP
Slide 10: Outstanding Performance Across the Board
OUTSTANDING PERFORMANCE ACROSS THE BOARD STEEL STEEL PRODUCTS RAW MATERIALS $M $M $M $10,000 40% $3,500 30% 5% $750 $9,000 35% $3,000 25% $650 4% $8,000 30% $7,000 $2,500 $550 20% 3% 25% $6,000 EBT $450 $2,000 EBT Margin EBT $5,000 Margin 20% 15% Margin 2% $350 $1,500 $4,000 15% 10% $250 1% $3,000 $
Slide 11: Cash from Operations
CASH FROM OPERATIONS RESILIENT & INCREASINGLY EFFICIENT OPERATING CASH FLOW VS. NET INCOME CASH FROM OPERATIONS AS A PORTION OF REVENUE $8 $ Billions 25% Operating Cash Flow $7 Net Income 20% $6 $5 15% $4 10% $3 $2 5% $1 $0 0% 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2012 2013 2014 2015 201
Slide 12: Consistent Capital Allocation Priorities
CONSISTENT CAPITAL ALLOCATION PRIORITIES Invest in Maintain Strong Return Capital Profitable Growth Balance Sheet to Shareholders Opportunities • Strongest credit rating in • Continue to pay and grow the • Applying our core steel sector: Baa1/A- dividend competencies to create value • Current liquid
Slide 13: Maintaining a Strong Balance Sheet
CORE PRINCIPLE MAINTAINING A STRONG BALANCE SHEET CLEAR FOCUS DEBT MATURITY PROFILE CONSERVATIVE DEBT/CAPITAL RATIO $B $5 • Commitment to strong Bonds IRB investment grade credit $4 profile continues • Enables ready access $3 to flexible debt capital throughout the economic 31% $2 cycle 26% • Nucor’
Slide 14: A Dividend Aristocrat
A DIVIDEND ARISTOCRAT BASE QUARTERLY DIVIDEND PER SHARE $0.60 $0.50 • 49 consecutive years of increasing regular quarterly dividends $0.40 • One of only 64 companies in the S&P 500 with a similar track record $0.30 $0.20 $0.10 $0.00 14
Slide 15: Meaningful Share Repurchases
MEANINGFUL SHARE REPURCHASES SHARES OUTSTANDING (MILLIONS) 360 340 20% Reduction 320 300 Since End 2017 280 • $6.8 billion • 71 million shares 260 240 220 200 2017 2018 2019 2020 2021 Q1 '22 Q2 '22 Q3 '22 15
Slide 16: Meaningful Growth Initiatives – Core
MEANINGFUL GROWTH INITIATIVES – CORE BAR PLATE SHEET SUMMARY • 2 greenfield Rebar • Brandenburg • 2 Galv Lines, 1 Cold Mill • 10 projects Micromills greenfield • Gallatin Expansion & Modernization & 2 acquisitions 2022 & BEFORE • Modernizations at • CSI Acquisition & Arkansas paint line Marion & Kan
Slide 17: Investing in High Return Growth – Expand
INVESTING IN HIGH RETURN GROWTH – EXPAND WAREHOUSE APPROXIMATE TOWERS & INSULATED OVERHEAD ($ MILLIONS) RACKING TOTAL STRUCTURES METAL PANELS DOORS SYSTEMS HISTORICAL EBITDA < $10 $100 $65 $230 $400 PROJECTED EBITDA $50 $150 $100 $400 $700 KEY VALUE DRIVERS Revenue Operational Supply Chain Geographi
Slide 18: Several Factors Affecting Longer-Term Prospects
SEVERAL FACTORS AFFECTING LONGER-TERM PROSPECTS DEMAND DRIVERS • Infrastructure needs • Re-shoring of manufacturing • Energy demand & changes • Latent demand for automotive 2017-2019 LONG-TERM RUN RATE BUSINESS EBITDA MARGIN EBITDA MARGIN INDUSTRY TRENDS Steel Products 9% 15% • Continued trend of EA
Slide 19: Future Normalized EBITDA of Approximately $6.7B
FUTURE NORMALIZED EBITDA OF APPROXIMATELY $6.7B $ MILLIONS ~$850 ~$6,700 ~$180 ~$240 ~$700 Improved ~$1,500 Improved margins in Improved margins margins in in steel products flat Expand Beyond long products investments products ~$3,200 Steel Mills investments BASELINE RUN-RATE (2017-19 AVG.) 19
Slide 20: Delivering Strong Financial Performance Through the Cycle
I N S U M M ARY DELIVERING STRONG FINANCIAL PERFORMANCE THROUGH THE CYCLE Strong performance a function of both market conditions AND execution Market conditions will continue to fluctuate but Nucor is better positioned than ever to thrive: • Higher margin • More sustainable • Improved cash flow eff
Slide 21: Strengthening Our Portfolio
STRENGTHENING OUR PORTFOLIO DOUG JELLISON EVP, RAW MATERIALS
Slide 22: Building Sustainable Businesses Through High-Performing Teams
BUILDING SUSTAINABLE BUSINESSES THROUGH HIGH-PERFORMING TEAMS REDUCTION IN INJURY & ILLNESS RATES (Annual OSHA Recordables per 200,000 hours/year) 1.94 1.80 1.63 1.66 1.55 1.48 1.30 1.10 1.04 1.02 2013 2022 22
Slide 23: Actively Managing Our Portfolio of Businesses
ACTIVELY MANAGING OUR PORTFOLIO OF BUSINESSES DIVESTITURES RESTRUCTURINGS ACQUISITIONS CASTRIP Bar Mill Repositioning Tubular Products Group Duferdofin Nucor Metal Gratings C.H.I. Overhead Doors U-Pull-&-Pay Metal Buildings Warehouse Systems 23
Slide 24: Refocusing and Repositioning – Metal Buildings
REFOCUSING AND REPOSITIONING – METAL BUILDINGS EBITDA Margin – Metal Buildings OPERATIONS SUPPORTING MARKET SEGMENTATION 16% • Narrowed our commercial focus on 12% segments that pay for value • Optimized production and engineering 8% operations • 11 Leadership teams to 6 4% • 5 Product designs to 1
Slide 25: Leveraging Our Business Model in a New Business
LEVERAGING OUR BUSINESS MODEL IN A NEW BUSINESS TUBULAR PRODUCTS OPERATIONS-CHANNEL TO MARKET-SUPPLY CHAIN • $1 billion in acquisition and capital investment since 2016 • Three best-in-market companies acquired over a 90-day EBITDA Margin – Tubular period 30.0% • Improved operations through Nucor cu
Slide 26: Leveraging Our Raw Materials Advantage
LEVERAGING OUR RAW MATERIALS ADVANTAGE RANGE OF CAPABILITIES RAW MATERIAL FLEXIBILITY PERCENT OF TOTAL GROSS TONS CONSUMED WEEKLY 70.0% Russia invades • Brokerage Services Ukraine 2/24/22 60.0% • Grass roots network 50.0% • Nucor Industrial Group • 800k tons closed-loop 40.0% source of prime scrap 3
Slide 27: Evolving Industry Landscape
EVOLVING INDUSTRY LANDSCAPE AL BEHR EVP, PLATE AND STRUCTURAL PRODUCTS
Slide 28: Unmatched Scale – Product Range and Capabilities
UNMATCHED SCALE – PRODUCT RANGE AND CAPABILITIES 28
Slide 29: Essential to Building a Stronger North America
ESSENTIAL TO BUILDING A STRONGER NORTH AMERICA 55% Construction 14% 8% 8% 7% 5% 3% Consumer Machinery & Industrial Equipment Other Transport & Logistics Automotive Energy Durable 29
Slide 30: Steel Intensive Domestic Priorities Receiving Substantial Support
STEEL INTENSIVE DOMESTIC PRIORITIES RECEIVING SUBSTANTIAL SUPPORT INFRASTRUCTURE RESHORING / ONSHORING POWER GRID MODERNIZATION • Infrastructure Investment • CHIPS & Science Act • Inflation Reduction Act Jobs Act ‒ Potential to drive $3.5 trillion • Increased focus on supply in capital investment in
Slide 31: Steel Essential to Electricity Grid Modernization
STEEL ESSENTIAL TO ELECTRICITY GRID MODERNIZATION TONS OF STEEL USED PER TONS OF STEEL MW OF NEW GENERATING CAPACITY USED PER MILE ~250 tons ~65 tons ~100 tons 40-70 tons ~15 tons Natural Gas Solar Array Onshore Wind Offshore Wind Energy Transmission 31
Slide 32: Forecasts for Growth in Near-Term Infrastructure Investment
REFLECTED IN FORECASTS FOR GROWTH IN NEAR-TERM INFRASTRUCTURE INVESTMENT DODGE FORECAST – U.S. NONBUILDING STARTS (Current USD Billions) 10% $333B CAGR $205B 2021 2022 2023 2024 2025 2026 32
Slide 33: Private Non-Residential Construction Spend Shifting But Remains Strong
PRIVATE NON-RESIDENTIAL CONSTRUCTION SPEND SHIFTING BUT REMAINS STRONG DODGE FORECAST – U.S. BUILDING STARTS (Current USD Billions) 8% • Warehouse investment a large CAGR $432B sub-sector with expected annual average investment of $42B vs. pre-pandemic Institutional average of $26B $298B • Manufactu
Slide 34: U.S. Advanced Manufacturing Renaissance Is Steel Intensive
U.S. ADVANCED MANUFACTURING RENAISSANCE IS STEEL INTENSIVE PHARMACEUTICAL PLANTS EV/BATTERY SEMICONDUCTORS 34
Slide 35: Warehouses and Data Centers Also Steel Intensive
WAREHOUSES AND DATA CENTERS ALSO STEEL INTENSIVE NUCOR MARKET LEADER HVAC Standard Doors Conduit Conduit Sheet Metal Stairs Plate Plate Columns Columns Mezzanine Beams Beams Joists Joists Decking Decking IMP IMP* Sprinkler Pipe Sprinkler Pipe Rebar for Rebar for Foundation Metal Roof Foundation Rack
Slide 36: Focused on Driving Demand for Full Suite of Nucor Solutions
FOCUSED ON DRIVING DEMAND FOR FULL SUITE OF NUCOR SOLUTIONS Insulated Metal Tube Panels Decking Overhead Grating Doors Racking Steel Foundations Construction Solutions Bar Fasteners Pre-engineered Steel Joists Metal Buildings & Girders Beam Plate 36
Slide 37: What About Supply?
WHAT ABOUT SUPPLY? REGION CONTINUES TO BE A NET IMPORTER Net Net Imports Imports United EAF States BOF EAF USMCA BOF ~102 million tons ~140 million tons Source: First River Consulting, Figures are for 2021 raw steel supply 37
Slide 38: U.S. Finished Steel Import Share Has Trended Lower
U.S. FINISHED STEEL IMPORT SHARE HAS TRENDED LOWER IN RECENT YEARS FINISHED STEEL IMPORTS AND IMPORT MARKET SHARE (%) Millions of Tons 50 29% 40 % of Apparent Supply 24% 22% 22% 30 18% 20 10 Finished Imports 0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 YTD '22 38
Slide 39: Recent Spike in Sheet Imports Due to Elevated U.S. Prices
RECENT SPIKE IN SHEET IMPORTS DUE TO RELATIVELY ELEVATED U.S. PRICES HRC U.S. HRC U.S. Price Delta vs. Black Sea U.S. Sheet Imports Sheet Imports Price Delta (Millions Tons) $1,200 1.4 $1,000 1.2 Premium of U.S. Price vs. Black Sea $800 Price – Drives Higher Imports 1.0 $600 0.8 $400 0.6 $200 $134 0
Slide 40: U.S. Industry Accelerating Its Shift to EAF
U.S. INDUSTRY ACCELERATING ITS SHIFT TO EAF U.S. STEEL TOTAL MARKET SHARE NOW 72% EAF 72% EAF 55% 45% Blast Furnace 28% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 40
Slide 41: U.S. Sheet Supply - Consolidating & Transitioning to EAF
U.S. SHEET SUPPLY - CONSOLIDATING & TRANSITIONING TO EAF TOTAL U.S. SHEET CAPACITY: 2000 TOTAL U.S. SHEET CAPACITY: TODAY ~75 million tons ~73 million tons NUCOR NUCOR ~10% ~21% 43% Top 4 Producers 83% Top 4 Producers 20% EAF-based 43% EAF-based Source: First River Consulting 41
Slide 42: Closure of Legacy BOF Assets Expected to Continue
CLOSURE OF LEGACY BOF ASSETS EXPECTED TO CONTINUE USMCA HOT STRIP MILLS CAPACITY (2019-2028E) Tons in Millions 103 105 6 -7 12 2 13 Anticipated Projected Closures Closures Start-Up Start-Up Start-Up • AK Dearborn • Big River • Delta • USS MM 2 Total • Castrip (2) • SDI TX • Nucor WV • ArcMittal Mex
Slide 43: Well Positioned to Execute Against Robust Market Backdrop
I N S U M M ARY WELL POSITIONED TO EXECUTE AGAINST ROBUST MARKET BACKDROP Favorable demand outlook with several multi- year drivers Supply landscape evolution consistent with longer term trends that favor EAF based production Nucor well positioned to meet growing market needs • Broad product offerin
Slide 44: Investing in Our Core
INVESTING IN OUR CORE REX QUERY EVP, SHEET AND TUBULAR PRODUCTS
Slide 45: Recently Completed Investments Performing Well
RECENTLY COMPLETED INVESTMENTS PERFORMING WELL 2021-22 2020 2019 • Acquisition of Grossman Iron & Steel and Garden Street AR paint line Iron & Metal • 400K tons galv capacity • Acquisition of Precoat • 350K tons capacity Metals Arkansas • 50/50 JV with • $250M investment • Capacity of 250K tons • Ac
Slide 46: Targeted Expansions to Grow Share and Margin Continue
TARGETED EXPANSIONS TO GROW SHARE AND MARGIN CONTINUE POSITIONING NUCOR’S PORTFOLIO FOR SUSTAINABLE LONG-TERM OUTPERFORMANCE EXPECTED BUDGETED OPPORTUNITY PRODUCT PROJECT COMPLETION CAPEX ($M) Hickman Gen 3 Galvanizing Line 2022 $325 • Capitalizing on deep regional markets Gallatin Expansion/Moderni
Slide 47: Future Normalized EBITDA of Approximately $6.7B
FUTURE NORMALIZED EBITDA OF APPROXIMATELY $6.7B $ MILLIONS ~$850 ~$6,700 ~$180 ~$240 ~$700 Improved ~$1,500 Improved margins in Improved margins margins in in Steel Products flat Expand Beyond long products investments products ~$3,200 Steel Mills investments BASELINE RUN-RATE (2017-19 AVG.) 47
Slide 48: Steel Metal Margin Has Expanded Over Time
STEEL METAL MARGIN HAS EXPANDED OVER TIME NUCOR STEEL MILL METAL MARGIN $1,000 $900 $800 $700 $600 $500 $400 $300 Metal Margin / Ton Linear Trend $200 $100 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 48
Slide 49: Long Products Margins Higher and More Stable vs. Flat Products
LONG PRODUCTS MARGINS HIGHER AND MORE STABLE VS. FLAT PRODUCTS EXPECT FLAT PRODUCTS MARGIN TO EVOLVE TO RESEMBLE HIGHER MARGIN, MORE STABLE LONG PRODUCTS 40% 30% Long Products Volatility of Flat Products 20% 20% Avg. Long EBITDA Margins 10% 14% Avg. Flat ~2x that of Long Products Flat Products 0% -1
Slide 50: Nucor Sheet Strategic Goals
NUCOR SHEET STRATEGIC GOALS PRODUCTS GEOGRAPHY END-MARKETS Shift mix to higher margin value- Strategic growth Sustainability trends driving added products opportunity to expand capability & grow share Galvanized Midwest & Northeast Automotive AHSS & Other Advanced Grades West Coast Construction Alum
Slide 51: Building Out a Broad Array of Targeted Capabilities in Sheet
BUILDING OUT A BROAD ARRAY OF TARGETED CAPABILITIES IN SHEET… EXPANDED CAPABILITIES Nucor Steel Indiana • 55” HR Width for Const. Grades • Adding galv line and prepaint line Nucor Steel West Virginia • Thicker slab – 84” HR, 2 Galv Lines • Fully operational 2025 Nucor Steel Gallatin (KY) • 72” Hot B
Slide 52: Will Drive Increased Capacity and Product Mix
… WILL DRIVE INCREASED CAPACITY AND PRODUCT MIX SHIFT TO HIGHER VALUE-ADDED PRODUCTS (Million tons per year) ANNOUNCED CAPACITY EXPANSIONS 17.0 17.0 14.0 11.9 12.2 10.5 10.5 6.4 5.5 4.7 3.7 4.0 2.5 3.0 2020 Capacity Hickman Expansion Gallatin Expansion Crawfordsville Galv/Paint CSI West Virginia She
Slide 53: Expanding Beyond
EXPANDING BEYOND CHAD UTERMARK EVP, NEW MARKETS AND INNOVATION
Slide 54: Diversified, Efficient Industrial Manufacturer
DIVERSIFIED, EFFICIENT INDUSTRIAL MANUFACTURER THE OPPORTUNITY BUILD ON LEVERAGE ACCELERATE CORE SUPPLY CHAIN GROWTH THROUGH COMPETENCIES EFFICIENCIES COMMERCIAL CHANNELS 54
Slide 55: Warehouses and Data Centers
WAREHOUSES AND DATA CENTERS 55
Slide 56: Targeting Significant, Growing Markets
TARGETING SIGNIFICANT, GROWING MARKETS Towers & Insulated Metal Warehouse Overhead Structures Panels Racking Solutions Doors Total Annual Market1 ~$7.0B ~$1.0B ~$2.0B ~$5.0B ($ USD) Market Growth Outlook 6% 8% 10% 5% (projected annual %) • Acquisition • Organic – geographic • Organic – geographic •
Slide 57: Seizing Long-Term Growth Opportunities
SEIZING LONG-TERM GROWTH OPPORTUNITIES TOWERS & INSULATED WAREHOUSE OVERHEAD STRUCTURES METAL PANELS RACKING SOLUTIONS DOORS BUILD ON CORE LEVERAGE ACCELERATE BUILD ON CORE COMPETENCIES SUPPLY CHAIN GROWTH THROUGH COMPETENCIES EFFICIENCIES COMMERCIAL CHANNELS LEVERAGE SUPPLY CHAIN EFFICIENCIES LEVER
Slide 58: Driving C.H.I.'s Next Phase of Growth
DRIVING C.H.I.’S NEXT PHASE OF GROWTH Growth Initiatives Operational Efficiencies • Acquisition – Bolt-on Strengthen Channel to • Commercial doors – • Implementing accelerate growth Market U-shaped production through Nucor Integrate cells to drive commercial channels • Residential doors - efficienci
Slide 59: Steel Products Going Forward
STEEL PRODUCTS GOING FORWARD BROADER PORTFOLIO OF HIGH GROWTH PRODUCTS RECENT HISTORY EXPECTED (PAST FIVE YEARS) (NEXT FIVE YEARS) Growth Growth 25% 25% Joist & Deck Towers & 20% 20% Structures Buildings 15% 15% Warehouse Rebar Systems C.H.I. Fab Insulated 10% Tubular 10% Metal Panels Piling 5% 5% C
Slide 60: Leveraging Our Strengths
IN SUMMARY LEVERAGING OUR STRENGTHS Bring Nucor core competencies to ensure manufacturing prowess in Expand Beyond businesses Mine the opportunities in the supply chain to bring benefits to Expand Beyond businesses and Nucor mills Accelerate growth by connecting these new businesses to Nucor commerc
Slide 61: Our Sustainability Advantage
OUR SUSTAINABILITY ADVANTAGE GREG MURPHY EVP, BUSINESS SERVICES AND GENERAL COUNSEL
Slide 62: Sustainability Is Ubiquitous and Strategic
SUSTAINABILITY IS UBIQUITOUS AND STRATEGIC CUSTOMERS SHAREHOLDERS Increasingly concerned with the GHG Actively consider which companies intensity of the steel they use are best positioned TEAMMATES AND POLICY MAKERS AND CANDIDATES COMMUNITY Want to be part of an organization that Look to industry to
Slide 63: Nucor's Operating Model Is a Differentiator
NUCOR’S OPERATING MODEL IS A DIFFERENTIATOR SCOPE 1 & 2 GHG INTENSITIES VS. SCOPE 1, 2 & 3 INTENSITY (METRIC TONS OF CO2E PER METRIC TON PARIS AGREEMENT TARGETS OF STEEL PRODUCED) 2.5 Integrated (BF-BOF) average: 2.21 1.89 2.0 Global steelmaking average: 1.76 1.5 1.0 0.79 0.5 Nucor Steelmaking: 0.43
Slide 64: From an Advantaged Starting-Point We Set Ambitious Goals
FROM AN ADVANTAGED STARTING-POINT WE SET AMBITIOUS GOALS 1 35% Reduction by 2030 Nucor committed to an additional 35% combined reduction in our Scope 1 and Scope 2 GHG Intensity by 2030 (2015 baseline). Transparency 2 Nucor values transparency and will continue to publicly disclose and reduce our Sc
Slide 65: Our Raw Materials Model Creates Flexibility and Efficiency
OUR RAW MATERIALS MODEL CREATES FLEXIBILITY AND EFFICIENCY NUCOR’S VERTICAL INTEGRATION & PRODUCT LIFECYCLE Scrap Metal Recycling 70 recycling locations 75.4% 25 Nucor Steel Mills 200 RECYCLED CONTENT Nucor Steel Products facilities ~23 million tons recycled in 2021 Industrial Recycling Na Manufactu
Slide 66: Nucor's Unparalleled Product Breadth
NUCOR’S UNPARALLELED PRODUCT BREADTH 66
Slide 67: ECONIQ Is Driving Growth Opportunities
ECONIQ™ IS DRIVING GROWTH OPPORTUNITIES WORLD’S FIRST NET-ZERO STEEL AT SCALE • Lowest GHG emissions family of steel and steel products available on the market • Available in all product offerings • Driving sustainability throughout the supply chain 67
Slide 68: Innovation Not Reinvention
INNOVATION NOT REINVENTION BioCarbon Green Pig Iron Carbon Capture & Emissions Free Zero Emission Storage (“CCS”) Power Iron • Biocarbon can be • Green pig iron can be • Working on a CCS • Supporting greening of • Evaluating two novel produced from sawmill produced from opportunity at an power grid
Slide 69: Sustainability Is Driving Growth
IN SUMMARY SUSTAINABILITY IS DRIVING GROWTH SUSTAINABILITY WILL CONTINUE TO DRIVE THE PURCHASING DECISIONS OF LEADING COMPANIES AROUND THE WORLD • Nucor starts from an advantaged position across its broad product portfolio • Recycling based business model • Lowest GHG intensity of any diversified st
Slide 70: NuUcCOoOrF
NuUcCOoOrF
Slide 71: Thank You for Joining Our Event
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Slide 72: Appendix
APPENDIX NuUcCOoOrF
Slide 73: EBITDA Reconciliation
EBITDA RECONCILIATION $ MILLIONS 2016 2017 2018 2019 2020 2021 NET EARNINGS 900 1,381 2,481 1,371 836 7,122 NET INTEREST EXPENSE 169 174 136 121 153 159 PROVISION FOR INCOME 398 369 748 412 -- 2,078 TAXES DEPRECIATION EXPENSE 613 636 631 649 702 735 AMORTIZATION EXPENSE 74 91 89 86 83 136 IMPAIRMENT
Slide 74: EBITDA Reconciliation
EBITDA RECONCILIATION LAST TWELVE MONTHS $ MILLIONS 2021 - 2021 9 MOS + 2022 9 MOS = LTM NET EARNINGS 7,122 4,782 6,753 9,094 NET INTEREST EXPENSE 159 119 143 183 PROVISION FOR INCOME 2,078 1,411 1,958 2,626 TAXES DEPRECIATION EXPENSE 735 547 610 799 AMORTIZATION EXPENSE 129 77 164 217 IMPAIRMENTS A
Slide 75: Deeper Dive into Nucor's Steel Products Segment
DEEPER DIVE INTO NUCOR’S STEEL PRODUCTS SEGMENT PRIMARY END AVERAGE QTRLY PRODUCT PRIMARY STEEL TYPICAL LEAD PRIMARY CHANNEL MARKET(S) / VOLUME LINE SUBSTRATE TIMES TO MARKET DEMAND DRIVERS (000S TONS) C.H.I. – Overhead Residential Repair / Sheet (in small ~ 20 <1 month Dealer Network Doors Remodel