Vulcan Materials Company (Holding Company) · NYSE:VMC
Vulcan Materials Company (Holding Company) — Q4 2022 Earnings Presentation
15 slides from Vulcan Materials Company (Holding Company)'s earnings presentation, Feb 16, 2023
Slide 1: 4Q 2022 Supplemental Information
4Q 2022 SUPPLEMENTAL INFORMATION FEBRUARY 16, 2023 1
Slide 2: Safe Harbor and Non-GAAP Financial Measures
Safe Harbor and Non-GAAP Financial Measures This presentation contains forward-looking statements. Statements that are not historical fact, including statements about Vulcan's beliefs and expectations, are forward-looking statements. Generally, these statements relate to future financial performance
Slide 3: 2022 Highlights
2022 Highlights Pricing momentum and solid operational execution drove strong results Strong top-line Operating Vulcan Way of Aggregates is Financial growth driven by disciplines and Selling and a price/cost strength and organic growth pricing actions Operating winner flexibility to and strategic ov
Slide 4: 2022 Highlights
2022 Highlights Effective cost control and flexible production plans resulted in strong cash conversion despite continued pandemic-related disruptions, inflationary pressures and labor constraints $1,148 $613 93% $576 Conversion of $535 Net Earnings Net Earnings Operating Capex * Free Cash Flow Cash
Slide 5: 4Q 2022 Key Performance Indicators – Aggregates
4Q 2022 Key Performance Indicators – Aggregates Double-digit price growth and strong operational performance more than offset cost inflation Volume 54.2M tons, -6% Freight-Adjusted Price $16.96/ton, +14% Cash Gross Profit* $8.19/ton, +11% Total Cash Cost of Sales* $8.77/ton, +17% *Non-GAAP measure.
Slide 6: Pricing Momentum in Aggregates
Pricing Momentum in Aggregates Pricing continues to strengthen with growth widespread across our markets Year-over-Year Change in Mix-Adjusted Price 15.1% 12.4% 9.6% 6.9% 4.2% 3.5% 2.6% 1.3% Q1 '21 Q2 '21 Q3 '21 Q4 '21 Q1 '22 Q2 '22 Q3 '22 Q4 '22 6
Slide 7: 4Q 2022 Key Performance Indicators – Asphalt
4Q 2022 Key Performance Indicators – Asphalt Continued pricing momentum more than offset a 24% increase in unit cost for liquid asphalt Volume: 2.8M tons, -2% Avg. Sales Price: $75.06/ton Cash Gross Profit* +$14.56, +24% $9.42/ton, +114% Cash Cost of Sales: $65.64/ton* +$9.54, +17% *Non-GAAP measure
Slide 8: 4Q 2022 Key Performance Indicators – Concrete
4Q 2022 Key Performance Indicators – Concrete Earnings impacted by divestiture, lower volumes and higher costs for diesel fuel Volume: 2.3M cyds, -15% Avg. Sales Price: $157.58/cyd Cash Gross Profit* +$19.70, +14% $10.60/cyd, -39% Cash Cost of Sales: $146.98/cyd* +$26.58, +22% *Non-GAAP measure. See
Slide 9: End Market Outlook Commentary
End Market Outlook Commentary • Slowing single-family construction Residential • Underlying fundamentals support return to growth beyond 2023 • Private nonresidential activity remains healthy, led by manufacturing and other heavy industrial projects Nonresidential • Certain leading indicators have b
Slide 10: 2023 Outlook
2023 Outlook Double-digit price growth and strong operational performance will more than offset cost inflation Demand growth in public offset by softness in private Carry good pricing momentum into 2023 11% Growth in Adjusted EBITDA* Unit margin improvement despite stubbornly high cost inflation *No
Slide 11: Serving the Right U.S. Markets
Serving the Right U.S. Markets Well positioned to capture U.S. market opportunities 90% 60% Revenues tied to Population living markets where Vulcan within 60 miles of a has a #1 or #2 position Vulcan operation 20 of top 25 $20B Fastest growing Aggregates opportunity markets served by in Vulcan-serve
Slide 12: Proven Track Record of Our Aggregates-led Business
Proven Track Record of Our Aggregates-led Business Best-in-class execution leads to resiliency and durability regardless of macro challenges Aggregates Cash Gross Profit / Ton* $7.83 $7.43 $7.11 $6.74 $6.32 2018 2019 2020 2021 2022 *Non-GAAP measure. See appendix for reconciliation. 12
Slide 13: Competing and Winning, Locally
Competing and Winning, Locally Strengthening existing capabilities to drive the next horizon of growth and profitability VWS VWO The Vulcan Way of Selling The Vulcan Way of Operating Commercial Logistics Operational Strategic Excellence Innovation Excellence Sourcing 13
Slide 14: Well Positioned for Continued Growth and Value Creation
Well Positioned for Continued Growth and Value Creation Durable Business Industry Leader with Strong Cash Flow Model to Extend the Clear Competitive Generation and Cycle and Sustain Advantages Investment-Grade Growth Balance Sheet 14
Slide 15: Non-GAAP Reconciliations
Non-GAAP Reconciliations EBITDA Aggregates Segment Cash Gross Profit and Cash Cost of Sales Aggregates segment cash gross profit adds back noncash charges for depreciation, depletion, accretion and amortization (DDA&A) to Aggregates segment EBITDA is an acronym for "Earnings Before Interest, Taxes,
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