Goldman Sachs 2008 Global Steel CEO Forum December 4, 2008 - PowerPoint PPT Presentation

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Goldman Sachs 2008 Global Steel CEO Forum December 4, 2008

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Largest Rebar Fabrication, Distribution, & Placement Company. Largest Steel Deck Producer ... Steel rebar fabrication; metal buildings. 4. INTERNATIONAL ... – PowerPoint PPT presentation

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Title: Goldman Sachs 2008 Global Steel CEO Forum December 4, 2008


1
Goldman Sachs 2008 Global Steel CEO Forum
December 4, 2008
2
AISI Weekly U.S. Steel Mills Capacity Utilization
3
NUCORS POSITION OF STRENGTH!!!
  • FINANCIAL STRENGTH
  • Highly VARIABLE COST Structure
  • DIVERSIFIED PRODUCT Mix
  • MARKET LEADERSHIP Positions
  • OUR PEOPLE!!!

4
Financial Strength
  • Q3-2008 balance sheet Debt of 3.3 billion Debt
    28 Of Total Capital Weighted average coupon
    rate on debt lt 6 3.1 billion of our debt
    matures in 2012 beyond (approx. 2.2 billion
    after 2017) No commercial paper borrowings Cash
    short-term investments of 1.7 billion
  • Debt Rated A By SP And A1 By Moodys
    Highest North American Metals/Mining Debt
    Ratings.
  • Simple Capital Structure and no off-balance
    sheet financing arrangements
  • Superior Financial Flexibility very successful
    work raising 4.3 billion of long-term capital in
    late 2007 and first half 2008. In November 2007,
    issued 1.3 billion of long-term debt (weighted
    average coupon rate of 5.78). In May-June 2008,
    issued equity of 2 billion (74/share) and
    long-term debt of 1.0 billion (weighted average
    coupon rate of 5.78).

5
Financial Strength Cash from Operations
2000-2007 (millions of dollars)
6
Variable Cost Structure
7
Diversified Product Mix
First Nine Months 2008 Sales Tons
PRODUCT DIVERSIFICATION REDUCES EARNINGS
VOLATILITY!!!
8
Market Leadership in North America
9
It Starts With Our Culture
10
NUCORS FOCUS PROFITABLE GROWTH
  • NUCORS 4 PRONGED GROWTH STRATEGY
  • 1. OPTIMIZE EXISTING OPERATIONS
  • 2. GREENFIELD GROWTH
  • New Technologies
  • Marketplace Niches
  • 3. INTERNATIONAL GROWTH through JOINT VENTURES
  • 4. PURSUE STRATEGIC ACQUISITIONS

Nucor Executes from a Position of Strength
11
Capacity Growth Growing Long-Term Earnings Power
Raw Materials Capacity Growth (tons in millions)
Steel Mill Capacity Growth (tons in millions)
Steel Products Capacity Growth (tons in millions)
12
Net Income 2000-2007 (millions of dollars)
25 CAGR
13
Total Cash Dividends Paid 2000-2008 (millions of
dollars)
14
Quarterly Base Dividends Paid 2000-2008 (cents
per share)
15
NUCORS FOCUS PROFITABLE GROWTH
  • MULTIPLE GROWTH PLATFORMS
  • 1. CORE BUSINESS
  • 2. UPSTREAM David J. Joseph scrap business
    Nucor Steel Louisiana pig iron project
  • 3. DOWNSTREAM Harris Steel rebar fabrication
    metal buildings
  • 4. INTERNATIONAL Nucor Europe Nucor Mexico
  • 5. TECHNOLOGY Castrip

Nucors Multi-Pronged Growth Strategy
16
Growth Platform Core Business
  • Memphis SBQ Mill
  • Decatur Galvanizing Facility
  • Sheet Mill Groups Growing Value-Added Product
    Portfolio (interstitial-free steels, dual-phase
    steels, complex-phase steels)
  • North Carolina Plate Mill Heat Treating Facility
  • Arizona Rolling Mill For Straight-Length Rebar,
    Coiled Rebar, Coiled Wire Rod

17
Growth Platform Scrap
  • 61 Scrap
  • Processing Facilities

18
Growth Platform Rebar Fabrication
19
Growth Platform International Duferdofin-Nucor
beams long products joint venture
20
Growth Platform Castrip Castrip Energy
Emissions Comparison (ladle through hot band)
21
Nucors Best Years Are Ahead Of Us
  • Nucors facilities
  • Nucors capabilities
  • Nucors financial strength
  • Nucors strategies
  • And, the single most important asset behind
    Nucors success Nucors EMPLOYEES THE RIGHT
    PEOPLE!!!
  • NUCORS BEST YEARS ARE STILL AHEAD OF US!!!

22
Forward-Looking Statements
  • Certain statements made in this
    presentation are forward-looking statements that
    involve risks and uncertainties. These
    forward-looking statements reflect the Companys
    best judgment based on current information, and
    although we base these statements on
    circumstances that we believed to be reasonable
    when made, there can be no assurance that future
    events will not affect the accuracy of such
    forward-looking information. As such, the
    forward-looking statements are not guarantees of
    future performance, and actual results may vary
    materially from the results and expectations
    discussed herein. Factors that might cause the
    Companys actual results to differ materially
    from those anticipated in forward-looking
    statements include, but are not limited to (1)
    the sensitivity of the results of our operations
    to prevailing steel prices and the changes in the
    supply and cost of raw materials, including scrap
    steel (2) availability and cost of electricity
    and natural gas (3) market demand for steel
    products (4) competitive pressure on sales and
    pricing, including pressure from imports and
    substitute materials (5) uncertainties
    surrounding the global economy, including excess
    world capacity for steel production (6) U.S. and
    foreign trade policy affecting steel imports or
    exports (7) significant changes in government
    regulations affecting environmental compliance
    (8) the cyclical nature of the domestic steel
    industry (9) capital investments and their
    impact on our performance and (10) our safety
    performance.
  • The following discussion should be read in
    conjunction with the audited consolidated
    financial statements and Managements Discussion
    and Analysis of Financial Condition and Results
    of Operations contained in Nucors Annual Report
    on Form 10-K for the year ended December 31,
    2007.
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