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NORTHEAST ASSOCIATION OF RAIL SHIPPERS MEETING
Philadelphia, PAOctober 15, 2015Rob Roberson
Corporate Logistics Manager
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NUCOR’S BEGINNINGS
Nucor’s beginnings are rooted in auto manufacturing dating back to the turn of the 20th century
Facilities 3Annual Sales $21 millionFortune rank UnrankedEmployees About 700Sales per employee $30,000
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NUCOR TODAY
Today, Nucor is North America’s largest steel producer and the largest recycler in the United States
Facilities Over 200Annual Sales $21 billionFortune rank 150Employees 24,000Sales per employee $921,000
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NUCOR TODAY
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NUCOR STEEL MILLS
Sheet Mills Castrip® Mills Plate MillsBar Mills Beam Mills Nucor Corporate Office
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Sheet 13.1 Million
Bar 9.1 MillionStructural 3.7 Million
Plate 2.9 MillionTOTAL STEEL 28.8 Million and Growing
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Annual Tons
Source: 2014 Nucor Annual Report, 2014 Fortune 500 List
PRODUCTION CAPACITY:STEEL MILLS
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Steel Joists 715,000
Steel Deck 530,000Cold Finish Bar 860,000
Buildings Group 465,000Rebar Fabrication 1,745,000Steel Mesh 128,000Grating 102,500
Fasteners 75,000TOTAL STEEL PRODUCTS 4.6 Million and Growing
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Annual Tons
Source: 2014 Nucor Annual Report, 2014 Fortune 500 List
PRODUCTION CAPACITY:STEEL PRODUCTS
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Direct Reduced Iron (DRI) 4.5 Million
Ferrous Scrap Processing 5.2 MillionTOTAL RAW MATERIALS 9.7 Million and Growing
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Annual Tons
Source: 2014 Nucor Annual Report, 2014 Fortune 500 List
PRODUCTION CAPACITY :RAW MATERIALS (IRON UNITS)
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DIVERSIFIED PRODUCT MIX
Total Tons Sold to Outside Customers in 2014
Source: 2014 Nucor Annual Report
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DIVERSIFIED PRODUCT MARKET
Shipments to Market Segments
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2008‐2013 CAPITAL INVESTED BY PRODUCT SEGMENTCapital Spending of $4.4 billion and acquisitions of $3.6 billion
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MARKET LEADERSHIP BY SIZE IN NORTH AMERICA
#2#2North AmericanMarket Leader
#3#3North AmericanMarket Leader
Structural SteelBar SteelRebar SteelHot Rolled Sheet SteelCold Finished Bar SteelRebar Fabrication, Distribution, & Placement
Sheet Steel (Hot, Cold, Galvanized)
Plate Steel
#1#1North AmericanMarket Leader
Steel JoistSteel DeckSteel Piling Distribution Metal Buildings
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NUCOR’S FOCUS:PROFITABLE EARNINGS GROWTH!!!NUCOR’S 5 PRONGED GROWTH STRATEGY
Optimize Existing Operations
Greenfield Growth
Pursue Strategic Acquisitions
Grow Internationally
Raw Material
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LEAN MANAGEMENT
Only 5 degrees of separation from CEO to front‐line teammate
Front‐line worker
Supervisor/Professional
Department Manager
General Manager
Executive Vice President/COO
President/CEO
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NUCOR’S PEOPLEOUR BIGGEST COMPETITIVE ADVANTAGE
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Steel IndustryOutlook
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DISCLAIMER STATEMENT
The following opinions are those of Rob Roberson and should not be universally accepted as the views of NucorViewer Discretion is advised
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GROSS DOMESTIC PRODUCT
Sources: International Monetary Fund (IMF), Global Insight, World Steel Association (WSA)
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GLOBAL GDP FORECASTS
India brightest spot in global outlook for 2016
GLOBAL FORECASTSGDP GROWTH 2015 2016
World 2.9% 3.4%
United States 2.5% 2.8%
Eurozone 1.5% 1.8%
China 6.8% 6.3%
Japan 0.9% 1.4%
United Kingdom 2.5% 2.5%
Brazil ‐1.6% 0.4%
Russia ‐3.3% 0.4%
Canada 1.2% 2.2%
India 7.5% 7.7%
South Korea 2.5% 3.1%
Mexico 2.4% 2.0%
Source: Kiplinger Newsletter October 2015
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Source: BEA (Bureau of Economic Analysis) for history growth rates, Global Insight for ForecastsNote: GDP % change based on chained 2000 dollar
U.S. GDP FORECASTANNUALIZED GROWTH RATE
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History Forecast
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U.S. IMPORTS FROM WORLDALL CARBON & ALLOY STEEL MILL PRODUCTS
Graph last modified as of October 6, 2015; Commerce license data used for September 2015 appears in a different color.Source: Steel Import Monitoring and Analysis (SIMA), US Department of Commerce
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YEARS TO WORK OFF EXCESS CAPACITYGlobal Steel Capacity & Demand 2014 2015 2016 2017 2018 2019
Steelmaking capacity 2,119 2,119 2,119 2,119 2,119 2,119
Effective steelmaking capacity (90% max utilization) 1,907 1,907 1,907 1,907 1,907 1,907
Apparent consumption (trend growth, 3.6%) 1,616 1,674 1,735 1,797 1,862 1,929
Excess capacity (trend demand growth) 291 233 172 110 45 -22
Apparent consumption (high growth, 5.3%) 1,643 1,730 1,822 1,918 2,020 2,127
Excess capacity (high demand growth) 264 177 86 -11
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MARKET CONDITIONS
Challenging conditions will persist for the balance of 2015 as economy continues its slow recovery led by the auto, housing and soon the non‐ residential construction sectorsDomestic competition will be relentlessImports remain a threatOvercapacity is long term problem
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MARKET SEGMENT FORECASTEND USE MARKETS 2015 VS 2014 MARKET
TREND2016 VS 2015 MARKET
TREND FORECASTTank CarsFreight Cars
On‐Highway Truck (Class 5‐7)On‐Highway Truck (Class 8)
On‐Highway TrailerAutomotive
Earthmoving MachineryTractors & Combines
Material Handling MachineryRoad Construction Equipment
Machinery, Industrial Equipment & ToolsGeneral Construction
HVACAppliance / Water Heater
Power Transmission Power GenerationEnergy Pipe & Tube
Oil & Gas Infrastructure
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PARTNERING WITH OUR RAIL CARRIERS
Conquering Network Cost Inefficiencies
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THE VALUE OF PARTNERING
Our Rail Carriers are an extension of usTeam Approach to eliminating waste and taking cost out of the systemOur goal is to help you, to help us, take care of our customersWe Do It Together!
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VALUE PROPOSITION OF RAIL
Volume shipments Ease of loading at the millsRailcars don’t verbally complain about the length of the line
Are they loading railcars in the bay?
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