Nucor Corporation · NYSE:NUE
Nucor — Wolfe Research Metals & Mining Webcast 2023
9 slides from Nucor's conference presentation, Aug 8, 2023
Slide 1: Nucor Raw Materials Discussion
WOLFE RESEARCH METALS & MINING WEBCAST NUCOR RAW MATERIALS DISCUSSION TUESDAY, AUGUST 8, 2023 Noah Hanners, EVP, Raw Materials - Nucor Timna Tanners, Senior Metals & Mining Analyst – Wolfe Research Tony Taccone, Partner – First River LLC
Slide 2: Nucor Raw Materials – Asset Overview
NUCOR RAW MATERIALS – ASSET OVERVIEW SCRAP RECYCLING & • Nucor is the largest recycler of any material in North America FERROUS BROKERAGE • Nucor steel produced from nearly 80% recycled content, with 70 full-service scrap recycling some products containing close to 100% recycled content facilities s
Slide 3: Types of Raw Materials
TYPES OF RAW MATERIALS DRI HBI OBSOLETE SCRAP PRIME SCRAP DIRECT-REDUCED IRON PIG IRON HOT-BRIQUETTED IRON • Source: post • High purity scrap • A high-quality scrap • Highest quality iron • Similar to DRI, but consumer use durable steel sourced through substitute unit available relatively lower valu
Slide 4: Nucor's Raw Materials Strategy
NUCOR’S RAW MATERIALS STRATEGY Nucor leverages its market intelligence and flexible supply chain to provide lower-cost, more sustainable inputs that create a competitive advantage ▪ Largest scrap broker in the United States, with extensive international trade networks ▪ Advantaged access to market i
Slide 5: Flexible Raw Materials Mix, Aligned with Scope Emission Reduction Strategy
FLEXIBLE RAW MATERIALS MIX, ALIGNED WITH SCOPE 3 EMISSION REDUCTION STRATEGY Nearly 80% of Nucor’s Raw Material Mix Comprised of Recycled Content 100% 0.45 6% 5% 3% 10% 11% 11% 9% 10% 90% 14% 0.43 15% 16% 12% 15% 13% metric tons of CO2e per metric ton of steel produced 80% 13% 15% 0.41 70% 22% 0.39
Slide 6: Metal Margins Have Historically Trended Higher in Rising Scrap Price Environments
METAL MARGINS HAVE HISTORICALLY TRENDED HIGHER IN RISING SCRAP PRICE ENVIRONMENTS Nucor metal margins are highly Period Avg. Scrap Cost(a) Avg. Metal Margin correlated (~80%) with scrap & 2018-2022 $385 $566 substitute costs 2013-2022 $349 $476 2003-2022 $328 $413 $2,000 $1,800 $1,600 $1,400 Avg. St
Slide 7: Louisiana DRI Carbon Capture & Storage (CCS) Project
LOUISIANA DRI CARBON CAPTURE & STORAGE (CCS) PROJECT • Nucor’s Louisiana facility currently produces DRI with ~50% the carbon footprint compared to iron produced in blast furnaces at integrated steel mills • In June 2023, Nucor Louisiana announced a CCS agreement with ExxonMobil • Transformative pro
Slide 8: Advanced Separation Technologies Yielding Higher Grade Obsolete Scrap
ADVANCED SEPARATION TECHNOLOGIES YIELDING HIGHER GRADE OBSOLETE SCRAP • Quickly advancing technology in order to increase utilization of obsolete scrap • Capable of significant reductions in copper content (~30%) • Able to produce higher quality metallics for our EAF mills, especially sheet mills •
Slide 9: Our Raw Materials Strategy Supports Our Corporate Sustainability Strategy
OUR RAW MATERIALS STRATEGY SUPPORTS OUR CORPORATE SUSTAINABILITY STRATEGY Carbon Capture BioCarbon Green Pig Emissions Zero & Storage Iron (“CCS”) Free Power Emission Iron Biocarbon can be Green pig iron can Announced CCS Renewable energy Evaluating novel produced from be produced from project with