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  • http://upload.wikimedia.org/wikipedia/commons/6/62/Rotating_earth_(slower).gif

  • 2

    Nucors Position Of Strength

    Financial Strength

    Low & Highly Variable Cost Structure

    Highly Flexible Production Capabilities

    Product Diversification and Market Leadership Positions

    Nucors People = THE RIGHT PEOPLE for our culture!!!

  • Strong Balance Sheet Conservative Financial Practices Healthy Cash Flow Generation Through The

    Cycle

    Highest Credit Rating Among North American Steel Producers, tied for highest Globally

    No Pension Obligations and immaterial Post-Retirement Medical Liabilities

    Superior Financial Flexibility

    25

    Nucors Financial Strength

  • Nucors Highly Flexible Production Capability

    Nucors highly flexible production capability allows us to almost instantaneously adjust output to match market demand: Electric arc furnace

    production process No lay-off practice Highly productive

    employees

    4

  • Nucors People Our Biggest Competitive Advantage

    5

  • Our Culture Drives Nucors Success

    A LONG-TERM FOCUS!!! SAFETY FIRST, ALWAYS!!!

    A DEEP COMMITMENT TO EMPLOYEES!!! TEAMWORK PAY FOR PERFORMANCE / INNOVATION / CONTINUAL

    IMPROVEMENT

    A DECENTRALIZED STRUCTURE WITH FEW LAYERS OF MANAGEMENT

    NUCORS EMPLOYEES TAKE OWNERSHIP OF TAKING CARE OF OUR CUSTOMERS, & OUR SHAREHOLDERS, AND EACH OTHER!!!

    6

  • 7

    NUCORS FOCUS: PROFITABLE GROWTH!!!

    NUCORS 5 PRONGED GROWTH STRATEGY

    Nucors Position

    of

    STRENGTH

    1. OPTIMIZE EXISTING OPERATIONS

    2. RAW MATERIALS STRATEGY

    3. GREENFIELD GROWTH (technology & market niches)

    4. INTERNATIONAL GROWTH via joint ventures

    5. STRATEGIC ACQUISITIONS

  • World-Class SteelmakersWell-positioned for the future

    On a weighted-average basis, the 10 companies with the highest rankings are:

    1. POSCO.

    2.Nucor3. Novolipetsk. 4. Severstal. 5. ArcelorMittal. 6. Nippon Steel.7. CSN. 8. SAIL9. JFE. 10. SDI

  • Nucor Steel Mills-23

  • Nucor Steel Mills Annual Production Capacity (tons)

    Hot Rolled Sheet

    (Cold Rolled Sheet 4.1 million)(Galvanized 2.0 million)

    10.8 million

    Bars 9.4 million

    Structural 3.7 million

    Plate 2.8 million

    Total Steel (and Growing) 26.7 million

  • Nucor Steel Products

  • Nucor Steel Products Annual Production Capacity (tons)

    Steel Joists 715,000

    Steel Deck 530,000

    Cold Finished Bars 860,000

    Steel Buildings 465,000

    Rebar Fabrication 1,658,000

    Mesh 233,000

    Metal Grating 102,500

    Fasteners 75,000

    Total Steel Products(and Growing) 4.6 million

  • Nucor Proposed MexicanProcessing Center

    NuMit Joint Venture

    Nucor Sheet Mill

    Steel Technologies-23UnitsOver 2.1 million tons /yr

  • Nucor Raw Materials DJJ/DRI

    14

    Trinidad Nu-Iron DRI Facility

  • Nucor Steel Louisiana Selected St. James Parrish, Louisiana for construction of $750 million iron making

    facility. 2.5 million tons annual capacity of direct reduced iron (DRI). First phase of a multi-phase plan that may include an additional DRI facility, coke plant, blast furnace, & steel mill.

    Next step implementing Nucors raw materials strategys goal of controlling 6 to 7 million tons-per-year supply of high quality scrap substitutes (builds on 2.0 million tons at Trinidad DRI plant, Nu-Iron).

    Leverages strong skill set established by our Nu-Iron Team in applying direct reduction technology achieved world class DRI quality levels in metallization rates, iron content, and productivity.

    Consistent with Nu-Irons highly successful business model, Nucor has secured for the Louisiana DRI facility a long-term supply of natural gas at an attractive cost by means of E&P drilling (on-shore) partnership with one of North Americas largest natural gas producers.

  • 16

    Nucors Market Leadership in North America

    Structural Steel

    Bar Steel

    Rebar Steel

    Cold Finished Bar Steel

    Steel Joist

    Steel Deck

    Rebar Fabrication, Distribution, & Placement Company

    Sheet SteelPlate Steel

    Metal Buildings

    #1North AmericanMarket Leader

    #2North American Market Leader

    #3North American Market Leader

  • Growth Platform International Duferdofin-Nucor beams & long products joint venture

    San Giovanni

    San Zeno

    Pallanzeno

    Italy

    SicilyGiammoro

  • International Sales Offices

    NUCOR TRADINGNUCOR INTERNATIONAL SALES

  • USAs biggest economic problem today that is NOT being dealt with:

    JOB CREATION

  • Job Losses in Recent U.S. Recessions(through U.S. BLS May 2011 Employment Report issued June 3, 2011)

    -8800

    -6800

    -4800

    -2800

    -800

    1200

    3200

    5200

    1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41C

    hang

    e in

    U.S

    . job

    s (in

    Tho

    usan

    ds)

    Months After Peak Job Month

    Current Recession 2001 Recession 1990 Recession 1981 Recession 1974 Recession

    2001 Recession

    Current Recession

    1990 Recession

    1981 Recession

    1974 Recession

    Jul 74

    Jul 81

    Jun 90

    Feb 01

    Dec 07

    U.S

    Bur

    eau

    of L

    abor

    Sta

    tistic

    s, T

    otal

    Non

    farm

    Jobs

    , Sea

    sona

    lly A

    djus

    ted.

  • Official vs. Real Unemployment(accounts for part-time workers who used to work full timeand people who have stopped looking for work)

    U.S. Bureau of Labor Statistics, Labor Force Statistics (Table A-12. Alternative measures of labor underutilization).

    0%

    2%

    4%

    6%

    8%

    10%

    12%

    14%

    16%

    18%

    Jul-07Aug-07Sep-07Oct-07Nov-07Dec-07Jan-08Feb-08Mar-08Apr -08May-08Jun-08Jul-08Aug-08Sep-08Oct- 08Nov-08Dec-08Jan-09Feb-09Mar-09Apr-09May-09Jun-09Jul-09Aug-09Sep-09Oct-09Nov-09Dec-09Jan-10Feb-10Mar-10Apr-10May-10Jun-10Jul-10Aug-10Sep-10Oct-10Nov-10Dec-10Jan-11Feb-11Mar-11Apr-11May-11

    Unem

    ploym

    entL

    evel

    Official Unemployment (U-3) Real Unemployment (U-6)

  • U-6 Unemployment Rate

    U-6 Unemployment Rate (as reported by U.S. Bureau of Labor Statistics)

    May 2010

    April2011

    May 2011

    (000s)

    Unemployed 14,884 13,747 13,914

    Involuntary Part-Time Workers 8,776 8,600 8,548

    Marginally Attached Workers 2,223 2,466 2,206

    Real / U-6 Unemployed" 25,883 24,813 24,668

    "Real Unemployment Rate" 16.5% 15.9% 15.8%

  • Unemployed for 27 Weeks or More!

    0

    1000

    2000

    3000

    4000

    5000

    6000

    7000

    8000

    1948

    1950

    1952

    1954

    1956

    1958

    1960

    1962

    1964

    1966

    1968

    1970

    1972

    1974

    1976

    1978

    1980

    1982

    1984

    1986

    1988

    1990

    1992

    1994

    1996

    1998

    2000

    2002

    2004

    2006

    2008

    2010U

    nem

    ploy

    ed P

    erso

    ns in

    Tho

    usan

    ds

    Source: U.S. Bureau of Labor Statistics, Unemployed Persons by Duration of Employment (in thousands) 27 weeks and over; Not Seasonally Adjusted.

    Shaded Areas Indicate U.S. Recessions

  • 2011 Q2

    Quarterly % Change Increase

    2011 Q1

    Increase No Change Decrease Increase No ChangeDecreas

    e

    How do you expect your companys sales to change in the next six months?

    87% 12% 2% -5% 92% 8% 0%

    How do you expect your companys U.S. capital spending to change in the next six months?

    61% 32% 7% -1% 62% 32% 6%

    How do you expect your companys U.S. employment to change in the next six months?

    51% 38% 11% -1% 52% 37% 11%

    BRT Survey ResultsThe surveys key findings from this quarter and the first quarter of 2011 include:

  • SOLUTIONS

  • MAKES

    BUILDSSERVICES

    INNOVATESREAL

    WEALTH CREATION

    CYCLE

  • Number One Focus 2011-2020

  • Rules Based/Enforced Free Trade

    Free and open markets where governments enforce the rules of trade

    Healthy exchange of imports and exports among nations

    Joint ventures among companies from a multitude of countries

    Innovation and exchange of ideas Balanced trade volumes and economic

    growth

    Increasing global employment with rising standards of living

  • BARRIERS TO SOLUTIONS

    INTERNALMULTIPLE, SELF-INFLICTED

    EXTERNALTRADE MERCANTILISM, SOEs

  • WORLD STEEL ASSOCIATION ANNUAL MEETING-PANELTHE 3 GREATEST CHALLENGES FACING THE GLOBAL

    STEEL INDUSTRY OVER THE NEXT 10 YEARS

    SOEs

    RAW MATERIAL/COMMODITY PRICES

    ENVIRONMENTAL ISSUES---CARBON, etc.

  • Protectionist Trade

    Government intervention to manipulate currency for cost advantages

    Government barriers and subsidies to depress imports and inflate exports

    Government-created monopolies to keep foreign companies out

    Rampant intellectual property theft Dumping of goods into world markets at

    prices less than the cost to manufacture Dangerous global trade imbalances and

    one-sided growth

  • Who is the Real Protectionist?

  • Illegal and Abusive Subsidies

    State Ownership and ControlHundreds of large companies are operated as state-owned enterprises in China, including more than a dozen of the worlds top 500 companies.