Slide 1: Second Quarter 2023 Earnings Call
SECOND QUARTER 2023 EARNINGS CALL LEON TOPALIAN Chair, President and CEO STEVE LAXTON Executive Vice President and CFO July 25, 2023
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS Certain statements made in this presentation may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve risks and uncertainties. The words “anticipate,” “believe,” “expect,” “intend,” “may,
Slide 3: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES The Company uses certain non-GAAP (Generally Accepted Accounting Principles) financial measures in this news release, including EBITDA. Generally, a non-GAAP financial measure is a numerical measure of a company’s performance or financial position that either excludes or
Slide 4: Q2 Highlights
Q2 HIGHLIGHTS FINANCIAL HIGHLIGHTS OPERATIONAL HIGHLIGHTS • $2.2 billion EBITDA1 • Safest 1H in company history • $1.5 billion Net Earnings • Steel Mills segment shipped ~6 million • $5.81 Earnings Per Share tons for second consecutive quarter • Returned $580 million to shareholders, • 84% mill oper
Slide 5: Growing the Core: Q2 Steel Mill Projects Update
GROWING THE CORE Q2 STEEL MILL PROJECTS UPDATE Nucor Steel Gallatin (Sheet & Tube) Nucor Steel Brandenburg (Plate) • Produced ~440K tons in Q2 • Largest caster in western hemisphere • Reached full run-rate production (2.8 Mtons/yr) • Continue to ramp-up production levels with in June broader casting
Slide 6: Steel Products: Significant 1H Earnings Contribution
STEEL PRODUCTS SIGNIFICANT 1H EARNINGS CONTRIBUTION… 1H 2023 SEGMENT 1H STEEL PRODUCTS EARNINGS(a) MIX EARNINGS(a) & MARGIN GROWTH $1,982 $2,000 $1,815 $1,800 STEEL PRODUCTS $1,600 45% $1,400 $1,200 $ EBT in millions $1,000 $800 $600 $471 $315 $400 STEEL MILLS RAW $242 51% MATERIALS $194 $200 4% $0
Slide 7: Steel Products: Poised for Sustained Success
STEEL PRODUCTS …AND POISED FOR SUSTAINED SUCCESS NUCOR Conduit Conduit HVAC Nucor Leadership & Diversity Sheet Metal Stairs MARKET Plate Plate • Produce ~90% of steel intensity LEADER Columns Columns for a typical large warehouse or Beams Mezzanine Beams Joists Joists manufacturing facility Decking
Slide 8: Expand Beyond: Growth Strategy Aligned with Steel-Intensive Mega Trends
EXPAND BEYOND GROWTH STRATEGY ALIGNED WITH STEEL-INTENSIVE MEGA TRENDS ➢ Growing into complementary businesses that leverage our core capabilities and are aligned with steel-intensive mega trends ➢ Driving incremental value and enhancing our portfolio with sustainable solutions for customers ➢ Pursi
Slide 9: Advancing Our Sustainability Strategy
ADVANCING OUR SUSTAINABILITY STRATEGY THROUGH INNOVATION, INVESTMENT & PARTNERSHIPS Carbon Capture BioCarbon Green Pig Emissions Zero & Storage Iron (“CCS”) Free Power Emission Iron Biocarbon can be Green pig iron can Announced CCS Supporting Evaluating novel produced from be produced from project w
Slide 10: Q2 2023 Segment Results
Q2 2023 SEGMENT RESULTS STEEL MILLS SEGMENT Q2 2023 VS. Q1 2023 % Change Versus Q2 ‘23 Q1 ‘23 Q2 ‘22 Prior Qtr Prior Year Shipments (tons in 000s) 5,979 6,035 6,448 -1% -7% • Stable shipment levels • Higher realized pricing EBT1($M) $1,404 $838 $2,816 68% -50% • Lower conversion costs on energy and
Slide 11: Strength Through the Cycle
STRENGTH THROUGH THE CYCLE RESILIENT CASH FLOW GENERATION Q2 ‘23 BALANCE SHEET SUMMARY $12,000 US $ in millions xLTM Operating Cash Flow $10,000 as of July 1, 2023 Amount EBITDA1 % cap Net Income $1.75Bn Revolving Credit Facility $0 $8,000 2010 - 2020 Average Short-Term Debt $33 $6,000 Long-Term Deb
Slide 12: Q3 2023 Earnings Outlook
Q3 2023 EARNINGS OUTLOOK OUTLOOK VARIANCE SEGMENT EXPECTATIONS FOR Q3 2023 TO Q2 2023 • Decreased profitability on lower average Steel Mills selling prices and stable shipments • Profitability to moderate from historically high Steel Products levels on lower pricing • Expect lower earnings on lower
Slide 13: Appendix
APPENDIX NwUcoRF
Slide 14: Supportive Policies Driving Increased Manufacturing Investment
SUPPORTIVE POLICIES DRIVING INCREASED MANUFACTURING INVESTMENT Annualized Manufacturing Construction Spending by Type Billions of US Dollars 200 $179B 150 COMPUTER, ELECTRICAL & ELECTRONIC 100 $61B TRANSPORTATION CHEMICAL 50 FOOD, BEVERAGE & TOBACCO OTHER 0 2005-2022 AVG JAN-MAY 2023 AVG Source: US
Slide 15: 2022 Sustainability Report Highlights
2022 SUSTAINABILITY REPORT HIGHLIGHTS • 4th consecutive record safety year, with 0.95 injury & illness rate SAFETY & • 20 Nucor divisions had zero recordable injuries in 2022 TEAMMATES • 92% retention rate, a significant competitive advantage in a tight labor market • 93% of teammates are proud to t
Slide 16: Expanding Beyond: Creating Value Through Multiple Synergy Strategies
EXPANDING BEYOND CREATING VALUE THROUGH MULTIPLE SYNERGY STRATEGIES SYNERGY MANUFACTURING SUPPLY CHAIN CHANNELS TO THROUGH CYCLE POTENTIAL PROCESS EFFICIENCIES MARKET EBITDA TARGET $400 $150 $100 $50 EXPAND BEYOND PORTFOLIO $700 LTM Q2 2023 EBITDA: $455 MILLION 16 Synergy potential: HIGH MODERATE
Slide 17: Nucor's Winning Business Model
NUCOR’S WINNING BUSINESS MODEL GENERATING GROWTH & SHAREHOLDER RETURNS 2020-2022 CUMULATIVE • Largest and most diversified steel products company in the US • Returned $7.6B to shareholders; 50% of net • Leader in 10 out of 14 product lines earnings • Highly variable cost structure • 50 years dividen
Slide 18: Federal Initiatives
FEDERAL INITIATIVES FEDERAL FUNDING EST. INCREMENTAL TIMING KEY INITIATIVES PROGRAMS ANNUAL STEEL* CONSIDERATIONS IIJA includes new • First wave of new bridge funding of $550B for projects underway INFRASTRUCTURE transportation & core 3-5 Mtpa • IIJA allocates transportation infrastructure projects
Slide 19: Segment Results: Steel Mills and Steel Products
SEGMENT RESULTS: STEEL MILLS AND STEEL PRODUCTS STEEL MILLS % Change Versus Shipments (tons in thousands) Q2 ‘23 Q1 ‘23 Q2 ‘22 Prior Qtr. Prior Year Sheet 2,786 2,819 2,934 -1% -5% • Stable shipment levels Bars 2,122 2,169 2,273 -2% -7% • Higher realized pricing Structural 505 536 624 -6% -19% • Low
Slide 20: Segment Results: Raw Materials
SEGMENT RESULTS: RAW MATERIALS RAW MATERIALS % Change Versus Production (tons in thousands) Q2 ‘23 Q1 ‘23 Q2 ‘22 Prior Qtr. Prior Year DRI 1,028 1,019 1,016 1% 1% • Stable shipments, excellent output from Scrap Processing 1,075 1,052 1,133 2% -5% Louisiana DRI offsetting Trinidad curtailment Total S
Slide 21: Quarterly Sales and Earnings Data
QUARTERLY SALES AND EARNINGS DATA SALES TONS (THOUSANDS) TO OUTSIDE CUSTOMERS EARNINGS (LOSS) BEFORE STEEL STEEL PRODUCTS INCOME COMP. TAXES SALES OTHER TOTAL PRICE TOTAL STEEL STEEL COLD REBAR TUBULAR STEEL STEEL RAW TOTAL NET SALES PER PER YEAR SHEET BARS STRUCTURAL PLATE STEEL JOISTS DECK FINISH
Slide 22: Quarterly Sales Prices & Scrap Cost
QUARTERLY SALES PRICES & SCRAP COST STEEL MILLS AVERAGE SCRAP AND SCRAP AVG TOTAL SUBSTITUTE COST EXTERNAL STEEL SALES PRICE TOTAL SHEET BARS STRUCTURAL PLATE PRODUCTS PER GROSS PER NET PER NET TON STEEL TON USED TON USED 2023 2023 1st Quarter 876 1,031 1,452 1,490 1,035 2,872 1st Quarter 414 370 2n
Slide 23: Reconciliation of GAAP to Non-GAAP Measure
RECONCILIATION OF GAAP TO NON-GAAP MEASURE $ in millions 1H 1H 2019 2020 2021 2022 LTM 2022 2023 Net earnings1 1,271 721 6,827 7,607 4,657 2,598 5,548 Net Interest expense 121 153 159 170 101 15 84 Provision for income taxes 412 -- 2,078 2,165 1,434 828 1,559 Depreciation expense 649 702 735 827 397
Slide 24: Reconciliation of GAAP to Non-GAAP Measure
RECONCILIATION OF GAAP TO NON-GAAP MEASURE $ in millions 2019 2020 2021 2022 1H’23 CASH PROVIDED BY OPERATING ACTIVITIES 2,809 2,697 6,231 10,072 3,128 CAPITAL EXPENDITURES (1,477) (1,543) (1,622) (1,948) (1,057) FREE CASH FLOW 1,332 1,154 4,609 8,124 2,071 24