Slide 1: Fourth Quarter and Year-End 2023 Earnings Call
FOURTH QUARTER AND YEAR-END 2023 EARNINGS CALL LEON TOPALIAN Chair, President and CEO STEVE LAXTON Executive Vice President and CFO January 30, 2024
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: Q4 & FY 2023 Financial Highlights
Q4 & FY 2023 FINANCIAL HIGHLIGHTS Q4 2023 FY 2023 MVA, please insert “teamwork” photo from page 4 of Q4 2022 earnings call deck • $1.4 billion EBITDA1 • $7.4 billion EBITDA1 • $785 million Net Earnings • $4.5 billion Net Earnings • $3.16 diluted EPS • $18.00 diluted EPS • $718 million Capital Expend
Slide 5: Spotlight on Safety
SPOTLIGHT ON SAFETY ▪ I&I rate has improved each year since 2017 NUCOR INJURY & ILLNESS RATE Annual OSHA Recordables per 200,000 hours/year ▪ 17% improvement over 2022 ▪ Our success is not defined by metrics; it’s about all Nucor teammates returning 1.80 home safely after every shift 1.63 1.66 ▪ Our
Slide 6: Leading the American Steel Industry
LEADING THE AMERICAN STEEL INDUSTRY FINANCIAL OPERATIONAL ENVIRONMENTAL MVA, please insert “made for good” photo from slide 5 of Q3’23 earnings call deck and improve formatting below ▪ RETURN ON EQUITY: ▪ SCOPE and SCALE: ▪ LOW GHG INTENSITY: 33% avg annual ROE (2020-2023) Largest and most diversifi
Slide 7: Strategies & Investments That Drive Growth
STRATEGIES & INVESTMENTS THAT DRIVE GROWTH STRATEGY INITIATIVES & INVESTMENTS ▪ Leverage our market intelligence and ▪ Advanced separation technology flexible supply chain to provide lower- ▪ Carbon Capture & Storage (DRI) RAW MATERIALS cost, more sustainable inputs ▪ Investing in emerging technolog
Slide 8: Increases in Manufacturing & Infrastructure Spending
INCREASES IN MANUFACTURING & INFRASTRUCTURE SPENDING Manufacturing Construction Spending Infrastructure Construction Spending $ billions $ billions $250 $500 $200 Utilities $230 $244 $216 $400 $211 $215 $150 $176 $300 $248 $246 $242 $237 $232 $141 Public Works $100 $200 $181 $282 $282 $272 $271 $243
Slide 9: Nucor's Circular Business Model
NUCOR’S CIRCULAR BUSINESS MODEL 2020-2023 Returns to Shareholders SCOPE, SCALE and SUSTAINABILITY • Returned ~$9.7B to shareholders • Largest and most diversified representing ~50% of net earnings steel products company in the US • Repurchased 65 million shares Highly Efficient • Market leader in mo
Slide 10: Q4 2023 Segment Results
Q4 2023 SEGMENT RESULTS STEEL MILLS SEGMENT Q4 2023 vs. Q3 2023 % Change vs. • Modest decrease in shipments Q4 ‘23 Q3 ‘23 Q4 ‘22 Prior Qtr Prior Year Shipments (tons in 000s) 5,513 5,746 5,110 -4% 8% • Lower realized pricing, reduced metal margin EBT1($M) 588 883 517 -33% 14% • Lower consumables and
Slide 11: Strength of a Diversified Portfolio
STRENGTH OF A DIVERSIFIED PORTFOLIO 2018-2023 EARNINGS MIX(a) STEEL PRODUCTS RESILIENCY(a) 100% $ EBT/TON $816 4% 4% 4% $800 $768 90% 15% $600 % Contribution to Earnings Before Income Taxes & NCI 80% 35% 46% 70% $400 60% $259 $200 $151 50% 40% 81% $0 2018 2019 2020 2021 2022 2023 30% 61% STEEL PRODU
Slide 12: Balanced Capital Allocation Continues
BALANCED CAPITAL ALLOCATION CONTINUES CAPITAL ALLOCATION (2018-2023) Q4 ‘23 BALANCE SHEET SUMMARY 10,000 $USD in millions xLTM as of December 31, 2023 Amount EBITDA1 % cap 8,000 thousands of $USD Total Debt $6,842 0.9x 24% 6,000 Cash and Cash Equivalents $7,134 4,000 Net Debt ($292) 2,000 Total Equi
Slide 13: 2024 Projected Capex: ~$3.5 Billion
2024 PROJECTED CAPEX: ~$3.5 BILLION $2.4 BILLION WEST VIRGINIA SHEET MILL $1,200 IMPROVED PRODUCT COST SAVING 9% CAPABILITIES & EXPANSION 66% INDIANA COATING COMPLEX $250 TOWERS & STRUCTURES MAINTENANCE GREENFIELDS $250 15% LEXINGTON REBAR MILL $230 Millions of USD AIR SEPARATION UNITS $230 BERKELEY
Slide 14: Q1 2024 Earnings Outlook
Q1 2024 EARNINGS OUTLOOK OUTLOOK VARIANCE SEGMENT EXPECTATIONS FOR Q1 2024 TO Q4 2023 • Increased profitability on higher Steel Mills average selling prices and shipments • Profitability to decrease with lower Steel Products average selling prices • Expect increased earnings due to Raw Materials inc
Slide 15: 2024 Domestic End Use Market Outlook
2024 DOMESTIC END USE MARKET OUTLOOK END USE MARKET OUTLOOK COMMENTARY Generally constructive outlook, with inflation easing and likelihood for lower interest rate environment by 2H of year • Manufacturing, retail, healthcare, data centers and education Non-residential expected to show strength Cons
Slide 16: Appendix
APPENDIX NwUcoRF
Slide 17: Broad Product Capabilities Aimed at Large Steel Consuming End Markets
BROAD PRODUCT CAPABILITIES AIMED AT LARGE STEEL CONSUMING END MARKETS Other Downstream Rebar Fabrication 6% 5% Sheet Tubular Products 41% 4% Joist & Deck 4% Non-Residential Construction & Infrastructure 53% Plate 7% Structural 7% Other Energy 5% 13% Transport & Logistics Automotive Bar 7% 7% 25% Mac
Slide 18: Nucor's Flexible Raw Materials Mix
NUCOR’S FLEXIBLE RAW MATERIALS MIX 100% 9% 6% 6% 11% 11% 9% 90% 15% 15% 13% 15% 14% 15% 80% 70% 23% 23% 26% 23% 24% 24% 60% At least 75% of Nucor’s 50% Raw Material mix is 40% comprised of recycled 30% 53% 52% 54% 56% 53% materials 51% 20% 10% 0% 2018 2019 2020 2021 2022 2023 OBSOLETE SCRAP PRIME SC
Slide 19: Metal Margins Trend Higher in Rising Scrap Price Environments
METAL MARGINS HAVE HISTORICALLY TRENDED HIGHER IN RISING SCRAP PRICE ENVIRONMENTS Nucor metal margins are highly Period Avg. Scrap Cost(a) Avg. Metal Margin correlated (~80%) with scrap & 2018-2023 $391 $582 substitute costs 2013-2023 $355 $493 2003-2023 $333 $425 $1,400 $1,200 $1,000 METAL $800 MAR
Slide 20: Corp Expenses and Intercompany Eliminations Reconcile Segment to Consolidated Earnings
CORP EXPENSES AND INTERCOMPANY ELIMINATIONS RECONCILE SEGMENT TO CONSOLIDATED EARNINGS Quarterly Segment Earnings Corp/Eliminations include: & Corporate/Eliminations(a) 3,000 $ in millions Teammate incentive 2,500 $138 compensation programs 2,000 $1,011 $58 Interest expense on $71 corporate debt $77
Slide 21: 5-Year Safety Track Record
5-YEAR SAFETY TRACK RECORD Nucor Recordable Injury & Illness Rate(1) Nucor Lost Time Injury Rate(2) 1.4 0.5 1.2 1.33 0.4 0.45 1 1.11 0.38 1.04 0.37 0.8 0.95 0.3 0.79 0.27 0.6 0.2 0.24 0.4 0.1 0.2 0 0 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 5 Nucor vs Industry (3) Recordable Injury & Illnes
Slide 22: Segment Results: Steel Mills and Steel Products
SEGMENT RESULTS: STEEL MILLS AND STEEL PRODUCTS STEEL MILLS % Change Versus Shipments (tons in thousands) Q4 ‘23 Q3 ‘23 Q4 ‘22 Prior Qtr. Prior Year Q4 2023 vs. Q3 2023 Sheet 2,675 2,723 2,314 -2% 16% • Modest decrease in shipments Bars 1,901 2,001 1,907 -5% 0% • Lower realized pricing, reduced meta
Slide 23: Segment Results: Raw Materials
SEGMENT RESULTS: RAW MATERIALS RAW MATERIALS % Change Versus Production (tons in thousands) Q4 ‘23 Q3 ‘23 Q4 ‘22 Prior Qtr. Prior Year Q4 2023 vs. Q3 2023 DRI 728 1,005 606 -28% 20% • Lower shipments, outages in DRI Scrap Processing 972 993 880 -2% 10% Total Shipments1 -15% 7% • Realized prices stab
Slide 24: 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 25: 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
Slide 26: Reconciliation of GAAP to Non-GAAP Measure
RECONCILIATION OF GAAP TO NON-GAAP MEASURE $ in millions 2019 2020 2021 2022 2023 Net earnings before non-controlling interests $1,371 $836 $7,122 $8,080 $4,913 Net Interest expense $121 $153 $159 $170 ($30) Income taxes $412 -- $2,078 $2,165 $1,360 Depreciation expense $649 $702 $735 $827 $930 Amor
Slide 27: Reconciliation of GAAP to Non-GAAP Measure
RECONCILIATION OF GAAP TO NON-GAAP MEASURE $ in millions 2019 2020 2021 2022 2023 CASH PROVIDED BY $2,809 $2,697 $6,231 $10,072 $7,112 OPERATING ACTIVITIES CAPITAL EXPENDITURES ($1,477) ($1,543) ($1,622) ($1,948) ($2,214) FREE CASH FLOW $1,332 $1,154 $4,609 $8,124 $4,898 27