Slide 1: September 2022 – Nucor Steel Brandenburg
SEPTEMBER 2022 Nucor Steel Brandenburg
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS Certain statements made in this presentation are forward-looking statements that involve risks and uncertainties. The words “anticipate,” “believe,” “expect,” “intend,” “may,” “project,” “will,” “should,” “could” and similar expressions are intended to identify those forwa
Slide 3: Nucor Overview
NUCOR OVERVIEW For more than 50 years, Nucor has been built on a world class SUSTAINABLE BUSINESS MODEL STEEL MILLS • North America’s largest & most diversified steel & steel products company • 25 scrap-based steel mills with annual production capacity of 28 million tons STEEL PRODUCTS • North Ameri
Slide 4: Our Footprint
OUR FOOTPRINT 25 STEEL MILLS 300+ TOTAL FACILITIES 30,000 TEAMMATES 3,000+ RECURRING CUSTOMERS 4
Slide 5: Record Results in 2021
RECORD RESULTS IN 2021 • $4.6 billion in free cash flow ($15.71/share)2 • $3.8 billion cash returned to shareholders (55% of 2021 net income) • Completed growth projects exceeded expectations & generated strong returns $Millions EBITDA1 EPS ROIC3 12,000 $25 45% 40% 10,000 $20 35% Five-year 8,000 Pri
Slide 6: Continuing Strong Performance in '22
CONTINUING STRONG PERFORMANCE IN ‘22 • Strong earnings growth despite volatile sheet market and raw materials supply chain disruptions – Record first half earnings of $4.7 billion, or $17.30/ share • Strong earnings translated into record first half cash from operations of $4.7 billion • Growing the
Slide 7: Our Strengths
OUR STRENGTHS • Nucor’s entrepreneurial culture – teammates empowered and think like owners • Market leading product portfolio offers diverse range of solutions • Efficient manufacturer with a resilient business model • Low, highly variable cost base • Strong cash generation through-the-cycle • Cons
Slide 8: Principles of Nucor's Culture
PRINCIPLES OF NUCOR’S CULTURE Safety First Trust Open Communication Community Teamwork Results Stewardship 8
Slide 9: North American Market Leadership
NORTH AMERICAN MARKET LEADERSHIP Cold Finish Bar Steel Metal Buildings Steel Joist & Deck Structural Steel #1 Steel Piling Distribution Steel Electrical Pipe Conduit Merchant Bar Steel Insulated Metal Panels (IMP) Sheet Steel (Hot + Cold + Galvanized) Plate Steel #2 SBQ Bar Steel Hollow Structural S
Slide 10: Diversified Product Mix
DIVERSIFIED PRODUCT MIX 2021 Volumes Sold to Growing Steel Outside Customers Products Portfolio Raw Materials Steel 10.5% Sheet Products 33.8% 17.6% 7.6% Plate 7.8% 22.8% Beam Bar 2021 Total Sales Volume 28.2 million tons 10
Slide 11: Low, Highly-Variable Cost Structure
LOW, HIGHLY-VARIABLE COST STRUCTURE Sustainable Profitability $1,600 2012-2021 average = $431/ton $1,400 $1,200 U.S. Dollars per ton $1,000 $941 $895 $800 $726 $600 $456 $434 $400 $385 $407 $381 $397 $381 $375 $373 $200 $0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Q1 '22 Q2 '22 Avg. Sales Pr
Slide 12: Robust Through-Cycle Cash Generation & Balance Sheet Strength
ROBUST THROUGH-CYCLE CASH GENERATION & BALANCE SHEET STRENGTH Strong Cash Generation Through-the-Cycle $ Billions $7.0 Strongest Credit Ratings in the $6.0 Steel Sector Baa1/A- $5.0 $4.0 Current liquidity $3.0 of $2.5* billion in cash and an $2.0 undrawn $1.75 billion credit $1.0 facility maturing i
Slide 13: ESG Leader
ESG LEADER Environmental • Recycling based business model – recycled content is 75% Steel Sector Emissions NUCOR • Lowest GHG intensity among large diversified steelmakers Intensity Trajectory1 Scopes 1 & 2 TODAY • Multi-pronged approach to further reducing GHG intensity metric ton of CO2 per metric
Slide 14: Net-Zero Carbon Steel
NET-ZERO CARBON STEEL • In 2021, Nucor introduced the world’s first net-zero carbon steel at scale • Lowest GHG emissions steel product available on the market, helps steel purchasers meet their sustainability goals • We are taking active role that is directly resulting in the greening of our electr
Slide 15: Our Mission
OUR MISSION 4 0 U J Cc a § 3 FA g Es 3 = 8 4 2 ra o 2 z 2 Fs 2 : Fa 3 &
Slide 16: Safety – Our #1 Value
SAFETY – OUR #1 VALUE 2.5 NUCOR INJURY & ILLNESS RATES (2012-2021) Annual OSHA Recordables per 200,000 hours/year 2021 1.94 2 Nucor’s Safest 1.82 1.80 Year in Company 1.63 1.66 1.55 1.48 History 1.5 1.30 1.10 1.04 1 Our Focus: Become the 0.5 World’s Safest Steel Company 0 2012 2013 2014 2015 2016 20
Slide 17: Capital Allocation Priorities
CAPITAL ALLOCATION PRIORITIES Base Dividend + 23% in ‘22 1. Investing In 2. Base Dividend 3. Share Profitable Growth Repurchases or Growth Commensurate Supplemental Opportunities With Earnings Dividends We expect to return a minimum of 40% of our earnings to shareholders, while maintaining our stron
Slide 18: $9.4 Billion Returned
$9.4 BILLION RETURNED – 10 YEAR PERIOD ENDED 2021 $ Millions 120% $3,500 Dividends provide a consistently growing cash return. 100% $3,000 Repurchases enable upside participation. $2,500 80% $2,000 60% $1,500 40% $1,000 20% $500 $0 0% 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 YTD '22 Dividen
Slide 19: Growing the Core
GROWING THE CORE Budgeted Expected Start-up/Acquisition Project ($ millions) Capex EBITDA/yr Date Arkansas Specialty Cold Rolling Mill 245 May 2019 2021 Ohio Rebar Rolling Mill Modernization 85 August 2019 actual Kentucky Hot Band Galvanizing Line 200 September 2019 EBITDA Missouri & Florida Rebar M
Slide 20: Growth Projects Capex Schedule
GROWTH PROJECTS CAPEX SCHEDULE 2,500 2,000 ($ in millions) 1,500 1,000 500 0 2022P 2023P 2024P Brandenburg West Virginia Lexington Indiana Expansion Other Note: Based on Board approved capital budgets as of September 2022. 20
Slide 21: Expanding Beyond
EXPANDING BEYOND Investing to create more through-cycle FCF and accelerate Nucor’s growth Anticipated Incremental Annual EBITDA: ~$500 million ESTABLISHED CAPABILITIES RECENT ADDITIONS Joist Deck Buildings Tubular • Established leadership • Solutions oriented around market trends: • Higher growth po
Slide 22: Appendix
APPENDIX NUocorF-
Slide 23: Market Channels & End Markets
MARKET CHANNELS & END MARKETS Nucor Channels to Market End-use Markets Served 2021 Shipments ENERGY OTHER 5% 8% Direct / Known End TRANSPORT & Use 50% LOGISTICS 8% CONSTRUCTION MACHINERY & 55% INDUSTRIAL Service EQUIPMENT Centers 29% 14% CONSUMER Nucor Downstream, DURABLE 21% 3% AUTOMOTIVE 7% 23
Slide 24: Changing Sheet Steel Supply Landscape
CHANGING SHEET STEEL SUPPLY LANDSCAPE USMCA HOT STRIP MILLS CAPACITY (2019-2028E) Top 4 producers now 2019 TOTAL CAPACITY 103 account for ~70% of 2020 -12 Closures: AK Dearborn, Castrip (2), JSW Mingo, USS Great Lakes the domestic supply Start-Up: Big River 2021 +2 Start-Up: Delta, SDI TX, 2022E +13
Slide 25: Brandenburg, KY Plate Mill
BRANDENBURG, KY PLATE MILL • State of the art mill situated on the Ohio River in the middle of the largest plate consuming region in the U.S. (Midwest Region) • Positions Nucor for market leadership in plate products with an ability to produce 97% of those consumed domestically 195” Not Commercially
Slide 26: Growing in Value-Added Sheet
GROWING IN VALUE-ADDED SHEET Portfolio of Targeted Capabilities Nucor Steel Indiana • 55” HR Width for Construction Grades • Adding galv line and prepaint line Nucor Steel West Virginia • Thicker slab – 84” HR Width • 76” Tandem Cold Mill • 2 Galvanizing Lines • Fully Operational 2025 Nucor Steel Ga
Slide 27: Gallatin, Kentucky Projects
GALLATIN, KENTUCKY PROJECTS Brownfield Investments Aimed at Enhanced Competitiveness in the Heart of the Flat Rolled Market • Hot band galvanizing line o Widest in the region o Capability to serve growing automotive applications • Cost effective modernization and doubling of capacity o Increases max
Slide 28: Hickman, Arkansas Projects
HICKMAN, ARKANSAS PROJECTS AHSS for lighter, safer, lower-emission vehicles Cold Mill Expansion • Added a specialty cold rolling complex, utilizing existing melt capacity • Adds 500,000 tons of value-added CR capability • Expands Nucor’s capability to produce Motor Lamination (ML), High Strength Low
Slide 29: California Steel Acquisition
CALIFORNIA STEEL ACQUISITION Value Added Acquisition Expands Western Footprint • February 3, 2022 – Nucor completed acquisition of a 51% ownership stake in California Steel Industries for a cash price of approx. $400 million • Flat-rolled converter located in Fontana, California • Production capacit
Slide 30: Crawfordsville, Indiana Project
CRAWFORDSVILLE, INDIANA PROJECT Value Added Expansion Aimed at Regional Construction Market $290 million investment announced Feb. 1, 2022 • Construction grade continuous galvanizing line with 300,000 tons annual capacity • Prepaint line with 250,000 tons of annual capacity • Will supply constructio
Slide 31: West Virginia Sheet Mill
WEST VIRGINIA SHEET MILL New State-of-the-Art Sheet Mill in Mason County, WV • 3M-ton Greenfield 84” Sheet Mill with 76” tandem cold mill and two galvanizing lines • Capex budget appox. $2.7 billion NS-WV Planned Product Mix (000’s tons/yr.) • Broad capabilities exceeding current asset Cold Roll bas
Slide 32: Strategic Investments – Bar Mills
STRATEGIC INVESTMENTS – BAR MILLS Nucor Steel Kankakee, Inc. (IL) Nucor Steel Marion, Inc. (OH) Full range 500k-ton MBQ mill added to existing capacity $85M rolling mill modernization Logistical advantages & abundant low-cost scrap supply in region Reduced operating costs at 400k ton bar mill $251 m
Slide 33: C.H.I. Overhead Doors Overview
C.H.I. OVERHEAD DOORS OVERVIEW • Strong Fit - Perfect example of a Nucor EXPAND BEYOND PRODUCTS business – positioned squarely at the Residential ~65% Sales Commercial ~35% Sales confluence of our core manufacturing efficiency Overlay Carriage House Counter Shutters capabilities and an attractive gr
Slide 34: EBITDA Reconciliation
EBITDA RECONCILIATION ($ millions) 2021 - 2021 H1 + 2022 H1 = LTM NET EARNINGS 7,122 2,559 4,954 9,517 NET INTEREST 159 75 101 185 EXPENSE PROVISION FOR 2,078 765 1,434 2,747 INCOME TAXES DEPRECIATION 735 362 397 770 EXPENSE AMORTIZATION 136 42 87 181 EXPENSE IMPAIRMENTS 11 AND LOSSES ON 62 51 0 ASS
Slide 35: EBITDA Reconciliation
EBITDA RECONCILIATION ($ millions) 2021 2020 2019 2018 2017 2016 NET EARNINGS 7,122 836 1,371 2,481 1,381 900 NET INTEREST 159 153 121 136 174 169 EXPENSE PROVISION FOR 2,078 -- 412 748 369 398 INCOME TAXES DEPRECIATION 735 702 649 631 636 613 EXPENSE AMORTIZATION 136 83 86 89 91 74 EXPENSE IMPAIRME
Slide 36: MAY 2022
MAY 2022 36