Nucor Corporation · NYSE:NUE
Nucor — Investor Presentation (2020)
26 slides from Nucor's investor presentation, 2020
Slide 1: Nucor: Powerful Partnerships. Powerful Results.
Nucor” POWERFUL PARTNERSHIPS. POWERFUL RESULTS.
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 • North America’s largest & most diversified steel & steel products Results 2018 2019 company Net Sales $25B $23B • 25 scrap-based steel mills with annual production capacity of 27 million tons Steel Shipped 27.9M Tons 26.5M Tons • North America’s largest recycler EPS $7.42 $4.14 • 47
Slide 4: Nucor's Strengths
Nucor's Strengths • Nucor's Culture • Market Leadership Positions • Diversified Product Portfolio • Low & Highly Variable Cost Structure • Strong Cash Generation Through The Cycle • Strong Balance Sheet 4
Slide 5: Principles of Nucor's Culture
Principles of Nucor’s Culture SAFETY FIRST Trust Open Communications Teamwork Community Stewardship Results 5
Slide 6: Safety – Our First Priority
2 6 8 10 12 0 4 1996 10.00 1997 9.30 1998 9.00 1999 7.52 2000 7.24 2001 6.12 2002 5.11 2003 4.08 2004 3.83 2005 3.40 2006 2.54 2007 2.15 2008 2.04 2009 2.73 Safety – Our First Priority 2010 2.29 2011 2.02 Nucor Injury & Illness Rates 1996 - 2019 2012 1.82 2013 1.94 2014 1.80 we have more work to do
Slide 7: Market Leadership
Market Leadership Steel Joist & Deck #1 Structural Steel Merchant Bar Steel Steel Piling Distribution North American Metal Buildings Market Cold Finish Bar Steel Steel Electrical Conduit Pipe #2 Rebar Steel & Fab Plate Steel Hollow Structural Section (HSS) Steel Tubing North American Market SBQ Bar
Slide 8: Diversified Product Portfolio
Diversified Product Portfolio 2019 Volumes Sold to Outside Customers Bar Structural 22% 7% Plate 7% Steel & Steel Products Sales by End Market Automotive Consumer Machinery & Steel Energy Durables Sheet 7% Industrial Products 9% 2% 34% Equip. 18% 9% Transport & Raw Logistics materials 5% 12% Constru
Slide 9: Low, Highly-Variable Cost Structure
Low, Highly-Variable Cost Structure $900 Sustainable Profitability / Highly Variable Cost Structure / Stable Margin Spread Metal Spread $800 $700 $600 U.S. Dollars per ton $500 $456 $434 $400 $393 $375 $388 $387 $356 $359 $353 $369 $338 $300 $200 $100 $0 2010 2011 2012 2013 2014 2015 2016 2017 2018
Slide 10: Strong Balance Sheet
Strong Balance Sheet Low Financial Leverage $5.0 Highest Credit Ratings in the 30% $4.5 Sector: Baa1/A1 26.4% 25% $4.0 $3.5 22.6% 21.7% 20% Billions of U.S. Dollars 20.0% $3.0 19.2% 19.4% 17.1% $2.5 16.5% 15% $2.0 10% $1.5 $1.0 5% $0.5 $0.0 0% 2013 2014 2015 2016 2017 2018 2019 Q1 2020 Debt Cash Net
Slide 11: Looking Ahead
NuUcCoOR NUCOR LOOKING AHEAD
Slide 12: Imports' Shrinking Market Share
Imports’ Shrinking Market Share Driven by trade case successes – Total Imports from Subject Countries Discrete Plate Rebar Hot Rolled Sheet 2,602,103 Net Tons of Imports Net Tons of Imports Net Tons of Imports 1,151,530 2017 AD & CVD Duties + 2018 2017 AD & 2016 AD & 1,913,971 Korean Quotas CVD Duti
Slide 13: Imports' Shrinking Market Share
Imports’ Shrinking Market Share Driven by trade case successes – Total Imports Discrete Plate Rebar Hot Rolled Sheet Net Tons of Imports Net Tons of Imports Net Tons of Imports 1,479,166 2017 AD & CVD Duties + 2018 2,005,778 2017 AD & 2016 AD & 3,849,603 Korean Quotas CVD Duties CVD Duties 1,103,421
Slide 14: Tax Reform
Tax Reform Converting more EBITDA to Net Income Results Summary Under Prior Tax Regime Impact of 2017 Tax Cuts & Jobs Act 4,500 60% 4,500 60% 4,000 55% 4,000 55% 3,500 50% 3,500 50% 3,000 45% 3,000 45% 2,500 40% 2,500 40% 2,000 35% 2,000 35% 1,500 30% 1,500 30% 1,000 25% 1,000 25% 500 20% 500 20% 0
Slide 15: Strategic Growth Program Continues
Strategic Growth Program Continues Value Added Steelmaking Adjacencies Processing Midwest Plate Mill 1.2 Million tons of New Industrial Gas Initiative Cost, quality leadership Galvanizing Capability Broad product line Consistently strong demand for coated product Gallatin Expansion Enhanced capabili
Slide 16: Capital Allocation Priorities
Capital Allocation Priorities 1. Investing In 2. Base Dividend 3. Share Profitable Growth Repurchases or Growth Commensurate Supplemental Opportunities With Earnings Dividends We remain committed to returning a minimum of 40% of our earnings to shareholders, while maintaining our strong investment g
Slide 17: $6.5 Billion Returned since 2009
$6.5 Billion Returned since 2009 $1,400 120% $1,200 NM 100% $1,000 80% Millions of U.S. Dollars $800 60% $600 40% $400 20% $200 $0 0% 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Dividends Repurchases Payout Ratio 17
Slide 18: Ample Financial Flexibility
Ample Financial Flexibility Operating Cash Flow Net Income $2.5 Current liquidity of $1.4* Strong Cash Generation Though the Cycle billion in cash and an $2.0 undrawn $1.5 billion credit facility maturing in 2023 Billions of U.S. Dollars $1.5 $1.0 No material debt maturities $0.5 until 2022 $0.0 200
Slide 19: Appendix
NuUcCoOR APPENDIX
Slide 20: EBITDA Reconciliation
EBITDA Reconciliation 2019 2018 2017 2016 2015 2014 Net earnings 1,371 2,481 1,381 900 193 779 Net Interest expense 121 136 174 169 174 169 Provision for income taxes 412 748 369 398 49 369 Depreciation expense 649 631 636 613 626 652 Amortization expense 86 89 91 74 74 72 Impairments and losses on
Slide 21: Nucor Sheet Products: Value Added Execution
Nucor Sheet Products: Value Added Execution Current Nucor (2018) • Nucor’s sheet mills are well Industry Mix positioned to serve key end 19% use markets 11 • Our new capabilities will 16% million 50% tons enhance existing facilities for 37% 58 9% better efficiency, returns and 43% 6% meeting custome
Slide 22: Brandenburg, Kentucky Plate Mill
Brandenburg, Kentucky 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. • Positions Nucor for market leadership in plate products with an ability to produce 97% of those consumed domestically Existing Nucor Plate Mills • Her
Slide 23: Why Market Leadership Matters
Why Market Leadership Matters Nucor’s Success in Structural Steel Noncontrolling Interest Expense Nucor Structural Steel Shipments $350,000 3,500 $300,000 3,000 2,500 Thousands of U.S. Dollars $250,000 NYS II Startup Tons (in thousands) $200,000 Berkeley Beam 2,000 Mill Startup $150,000 1,500 NYS St
Slide 24: Gallatin Investments
Gallatin Investments Brownfield Investments Aimed at Enhanced Competitiveness in the Heart of the Flat Rolled Market • Hot band galvanizing line o Widest in North America o Capability to serve growing automotive applications • Cost effective modernization and doubling of capacity o Increases maximum
Slide 25: Strategic Investments: Long Products
Strategic Investments Long Products Improving Scale, Diversification and Earnings Power Nucor Kankakee MBQ Nucor Marion Rolling Mill Modernization of rolling mill at Ohio steel bar mill Build a full range merchant bar mill at existing Updated technology will reduce operating costs Illinois ste
Slide 26: Powerful Partnerships. Powerful Results.
26 POWERFUL PARTNERSHIPS. POWERFUL RESULTS.