Commercial Metals Company · NYSE:CMC
Commercial Metals — Corporate Update (October 2020)
8 slides from Commercial Metals's corporate update, Oct 1, 2020
Slide 1: Resegmentation Summary October 2020
RESEGMENTATION SUMMARY OCTOBER 2020
Slide 2: Topics
TOPICS Summary of Reporting Changes Rationale for Changes Operational Statistics Disclosure Drivers of Operational Statistics Resegmentation Summary | October 2020 2
Slide 3: Summary of Reporting Changes
SUMMARY OF REPORTING CHANGES Realigned reporting structure from four operating segments to two Two operating segments: North America and Europe • Corporate and Eliminations will continue to be reported separately from operating segments Previous Americas operating segments are now one North Am
Slide 4: Rationale for Changes
RATIONALE FOR CHANGES The decision was made to realign CMC's operating segment structure in order to reflect: i. Its vertically integrated operating model in North America, supported by a National Sales, Inventory and Operations Planning function created in fiscal 2020 ii. Changes to its North Ame
Slide 5: Conceptual Framework – Moving to External Price and Volume Basis
CONCEPTUAL FRAMEWORK – MOVING TO EXTERNAL PRICE AND VOLUME BASIS Total Recycling Americas Recycling Segment External Sales Internal Sales Total Americas Mills Americas Mills Segment External Sales Internal Sales Total Fabrication PREVIOUS REPORTING PREVIOUS Americas Fabrication Segment External Sale
Slide 6: Operational Statistics Disclosure
OPERATIONAL STATISTICS DISCLOSURE General Reporting Approach • Volumes and average price statistics will be based on external transactions only − Under previous reporting, metrics included transactions between former operating segments • Disclosures are made by product type along our vertical valu
Slide 7: Drivers of Operational Statistics
DRIVERS OF OPERATIONAL STATISTICS Correlation to 3rd Party Benchmark Comments Raw Material Shipment Volumes N/A • Influenced by scrap collection volumes, third party mill operating rates, and general domestic industry capacity utilization Raw Material Average Selling Strong correlation to 95% shred
Slide 8: Thank You
THANK YOU CORPORATE OFFICE 6565 N. MacArthur Blvd Suite 800 Irving, TX 75039 Phone: (214) 689.4300 INVESTOR RELATIONS Phone: (972) 308.5349 Fax: (214) 689.4326 IR@cmc.com Resegmentation Summary | October 2020 8