Nucor Corporation · NYSE:NUE
Nucor — Investor Presentation (April 2022)
30 slides from Nucor's investor presentation, April 2022
Slide 1: April 2022
—— APRIL 2022
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 “believe,” “expect,” “project,” “will,” “should,” “could” and similar expressions are intended to identify those forward-looking statements. These fo
Slide 3: Nucor Overview
NUCOR OVERVIEW For more than 50 years, Nucor has been built on a SUSTAINABLE MODEL OF RECYCLING STEEL 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 America
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 • Completed growth projects’ performance – exceeding expectations & generating strong returns • $4.6 billion in free cash flow ($15.71/share)2 • $3.8 billion cash returned to shareholders (55% of 2021 net income) $Millions EBITDA1 EPS ROIC3 12,000 $25 45% 40% 10,000 $20 35% Fi
Slide 6: Our Strengths
OUR STRENGTHS • Nucor's culture • Market leadership positions across diversified product portfolio • Resilient business model • Low, highly variable cost base • Strong cash generation through-the-cycle • Commitment to a strong balance sheet 6
Slide 7: Principles of Nucor's Culture
PRINCIPLES OF NUCOR’S CULTURE Safety First Trust Open Communication Community Teamwork Results Stewardship 7
Slide 8: 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) Plate Steel #2 SBQ Bar Steel Hollow Structural Section (HSS) Steel Tubing Rebar Steel
Slide 9: 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 9
Slide 10: Low, Highly-Variable Cost Structure
LOW, HIGHLY-VARIABLE COST STRUCTURE Sustainable Profitability $1,200 2012-2021 average = $431/ton $1,000 $800 U.S. Dollars per ton $726 $600 $456 $434 $400 $385 $407 $397 $375 $381 $373 $381 $200 $0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Avg. Sales Price Steel Mills Segment per ton Avg. S
Slide 11: 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 12: Executing Our Strategy
EXECUTING OUR STRATEGY Growing the Core Expanding Beyond Living Our Culture Midwest Sheet Mill Industry leading insulated Safety Expanded product capabilities in metal panels (IMP) business Setting new annual record for lowest under-represented region Acquired market leader and Injury & Illness rate
Slide 13: 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 14: GHG Reduction Program
GHG REDUCTION PROGRAM Scope 1&2 Intensity 9% lower for 2021 Nucor’s GHG intensity today is already Scope 1 nearly 50% below the most aggressive 0.20 Paris Climate Agreement GHG reduction 1 targets for our sector and more than 75% Scope 3 2021 Nucor below the GHG intensity of most integrated 0.36 Ste
Slide 15: 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 16: 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 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% $3,500 100% $3,000 $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 Dividends Repurchases Payout Ratio 18
Slide 19: Maintaining Financial Flexibility
MAINTAINING FINANCIAL FLEXIBILITY Strong Cash Generation Through-the-Cycle $ Billions $7.0 Strongest Credit Ratings in the Steel Sector $6.0 Baa1/A- $5.0 $4.0 $3.0 Current liquidity of $2.8* billion in cash and an $2.0 undrawn $1.75 billion credit facility maturing $1.0 in 2026 $0.0 2012 2013 2014 2
Slide 20: Appendix
APPENDIX NUuoCcoF-
Slide 21: 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 IMPAIRMENTS
Slide 22: Changed Sheet Steel Supply Landscape
CHANGED SHEET STEEL SUPPLY LANDSCAPE SHEET MILLS CAPACITY Top 4 producers now U.S. & Canada Raw Steel Capacity 80 account for approximately Cold-Idled ('13-'20) -11 70% of the Hot-Idled ('19-'20) -23.1 domestic supply Re-Started ('20 - '21) 19.5 2021 Current Capacity 65.4 SDI (Sinton - 2021) 3 NUE (
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: 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 25: 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 26: 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 27: 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 28: 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 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: April 2022
APRIL 2022 30