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Rex QueryRex QueryVice President and General Manager,
N St l S th C liNucor Steel – South CarolinaApril 20, 2011
UCOA
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NUCOR Mission Statement
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NUCOR • STEEL MILLS Scrap-based steel mills in 23 facilities (13 bar, 2
l 4 hi l b h 2 C i ® h & 2 l ) i h l lstructural, 4 thin-slab sheet, 2 Castrip® sheet & 2 plate) with total annual capacity approaching 27 million tons.
• STEEL PRODUCTS Downstream businesses with total annual capacity of 4.7 million tons – producing joists, deck, cold finished bars, pre-engineered metal buildings, fabricated rebar, mesh, grating, and fasteners.
• RAW MATERIALS David J. Joseph Company’s scrap processingann al capacit of appro imatel 5 million tons pl s strategicall al ableannual capacity of approximately 5 million tons plus strategically valuable businesses of raw materials brokerage, rail & logistics services, and mill / industrial services. Nu-Iron direct reduced iron (DRI) plant in Trinidad with annual capacity of 1.8 million metric tons.
• INTERNATIONAL Initial growth platform established in July 2008 with the acquisition of 50% ownership of Duferdofin-Nucor S.r.l. An Italian beam and bar producer with finished steel annual capacity of approximately 1.5 million metric tons.pp y
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St l Mill (21)St l Mill (21)Steel Mills (21):Steel Mills (21):••13 Bar Mills13 Bar Mills••4 Sheet Mills4 Sheet Mills••2 Plate Mills2 Plate Mills
2011 Nucor U.S. Divisions (non subsidiaries)2011 Nucor U.S. Divisions (non subsidiaries)Map does not include Harris, DJJ or other International divisionsMap does not include Harris, DJJ or other International divisions
••2 Beam Mills2 Beam Mills
Product Divisions:Product Divisions:••88 VulcraftVulcraft/Deck/Deck••8 8 VulcraftVulcraft/Deck/Deck••11 Bldg Sys11 Bldg Sys••6 Cold Finish6 Cold Finish••1 Metal Stud1 Metal Stud••1 Fastener1 Fastener•1 Wire
In 2010, our family of approximately 200 operating facilities, including our In 2010, our family of approximately 200 operating facilities, including our
http://www.nucor.com
wholly owned subsidiaries of Harris Steel and The David J. Joseph wholly owned subsidiaries of Harris Steel and The David J. Joseph Company produced more than 18.2 million tons of steel that went into Company produced more than 18.2 million tons of steel that went into thousands of applications thousands of applications -- making us one of the largest manufacturer of making us one of the largest manufacturer of steel products in North Americasteel products in North Americasteel products in North America. steel products in North America.
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Who is NUCOR Today?
The World's Largest Steel Recycler ANDNorth America's Largest Recycler of any, kind~ o m
Nucor Steel Mills
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~ BAR MILLS 0 SHEET MILLS 0 CASTRIPS MILLS ~ STRUCTURAL MILLS ~ PLATE MILLS
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Nucor’s Diversified Product Mix
2010 Steel Mill Shipments
Sheet - 42%Bars - 34%Plate -12%Plate 12%Beams - 12%
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Nucor Steel Products
70 COLD FINISH
~ FASTENER
~ REBAR FABRICATION
0 VULCRAFT/VERCO
REBAR DISTRIBUTION ~ WIRE PRODUCTS ~ GRATING BUILDINGS GROUP ~ STEEL FRAMING 0 HIGHWAY IVLICQR
Nucor’s Diversified Product Mix
2010 Sales TonsSheet-Steel - 34%Bars-Steel - 18%Structural-Steel - 10%Structural-Steel - 10%Plate-Steel - 10%Steel Joists - 1%Steel Deck - 1%Cold Finished Steel - 2%Rebar Fabrication 5%Rebar Fabrication - 5%Other (Primarily Scrap) - 19%
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Nucor Raw Materials
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Offices in Hen
* CORPORATENQ ~ PROCESSING m SELF-SERVICE ~ OISTRICT
SITES ~ AUTO PARTS OFFICESm SCRAP~ SERVICES
~ RAIL~'QUIPMENT
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Nucor’s Market Leadership in North AmericaNorth America
Position
Largest Structural Producer
Largest Bar Producer
R b P dLargest Rebar ProducerLargest Cold Finished Bar ProducerLargest Steel Joist ProducerLargest Steel Joist ProducerLargest Steel Deck ProducerLargest Rebar Fabrication, Distribution, & Pl t C& Placement Company2nd Largest Plate Producer2nd Largest Metal Buildings Producerg g3rd Largest Sheet Producer
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NUCOR’S PERFORMANCE RECORD: FOCUS ON PROFITABLE GROWTHFOCUS ON PROFITABLE GROWTH
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HOW THE DIRT UNDER
OUR.'I NAILSHELPBD US BUILD A
FORTUNE 500 COMPANY
;ri+'hesecret of our successis hard ivork. Roll up
your sleeves andgetyour hands dirty, kind of ivork.And rhongh rhis may nor seem like a secrer ar all, ir'shelped us sray focused dunng thc unpredictablemarket trends that have taken over the businesstvorid.
As for being a Fortune 500 company, sure ive areproud ofthan But it doesn'r begin ro con&pare rosvhat our hard ~vork has done for our clients, ouremployees and our earth.
It'S OIIr NatIIre.'& g+ HlJCOR g
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Steel Shipments 2000-2010(millions of tons)
20
24
12
16
8
12
0
4
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 20102000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
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Net Sales 2000-2010
$25,000
(millions of dollars)
$20,000
$15,000
$5,000
$10,000
$02000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
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Net Income 2000-2010
$2,150
(millions of dollars)
$1,650
$1,150
$650
-$350
$150
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
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Nucor’s History: Using DOWNTURNS As Opportunities To GROW STRONGEROpportunities To GROW STRONGER
• Nucor’s Financial Strength
• Nucor’s Low & Highly Variable Cost StructureStructure
• Nucor’s Highly Flexible Production CapabilitiesCapabilities
• Nucor’s Product Diversification and Market Leadership Positions
• Nucor’s People = THE RIGHT PEOPLE• Nucor’s People = THE RIGHT PEOPLE for our culture!!!17 IVLICQR
Nucor’s Financial Strength
• Strong Balance Sheetg• Conservative Financial Practices• Immaterial Pension and Post
Retirement Medical Liabilities• Highest Credit Rating Among
North American Steel ProducersNorth American Steel Producers• Superior Financial Flexibility
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Nucor’s Highly Flexible Production Capability
• Nucor’s highly flexible d ti bilitproduction capability
allows us to almost instantaneously adjust
t t t t h k toutput to match market demand:– Electric arc furnace
production process – No lay-off practice
Highly productive– Highly productive employees
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Nucor’s People –Our Biggest Competitive AdvantageOur Biggest Competitive Advantage
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2010 ANNUAL REPORT
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Our Culture Drives Nucor’s 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 MANAGEMENTLAYERS OF MANAGEMENT• NUCOR’S EMPLOYEES TAKE OWNERSHIP OF
TAKING CARE OF OUR CUSTOMERS & OUR S S &SHAREHOLDERS!!!
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Employee Relations
Management is obligated to manage Nucor in such a way that employees will have thesuch a way that employees will have the opportunity to earn according to their productivity.p yEmployees should feel confident that if they do their jobs properly, they will have a job j p p y, y jtomorrow.Employees have the right to be treated fairlyEmployees have the right to be treated fairly and must believe that they will be.Employees must have an avenue of appealEmployees must have an avenue of appeal when they believe they are being treated unfairly. 22 VUCQR
Employee Benefits
CompensationPay for Performance Applies to ALL.Production – 2/3 of a production worker’s ppay is based on production bonus.Non-discretionary based on productionNon discretionary based on production goals.No bonus paid if equipment is notNo bonus paid if equipment is not operating.
Office and other support staff bonuses areOffice and other support staff bonuses are based on division ROA.
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Employee Benefits
Other BenefitsProfit Sharing10% of pretax profits is contributed each year.p p yExtraordinary bonuses.
401(k) and match401(k) and match.Scholarship Program for Children and Spouses - $3 000 per year per childSpouses $3,000 per year per child.Health Insurance,etc….
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Our Footprint in South Carolina
Location Products Teammates
Berkeley County Sheet and Beams 900
NSSC – Darlington Hot Roll and Cold 401gFinished Bar
Vulcraft - Florence Joists and Decking 263
Building Systems -Swansea
Metal Buildings 255
Total 1,819
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•• 11stst Nucor steel mill Nucor steel mill (1969). First EAF mill in (1969). First EAF mill in th U S b thth U S b ththe U.S., became the the U.S., became the prototype for the miniprototype for the mini--mill industrymill industrymill industrymill industry
•• 346 346 team matesteam mates
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South Carolina
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•• 22ndnd Nucor Cold Finish Nucor Cold Finish facility (1981)facility (1981)
•• 55 55 team matesteam mates
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Nucor Gold Finish SG
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Nucor SAFETYWelcome To
HLJCQRe DARLINHTON R.C
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Safety and Health Program
-CX 1faa
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42
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35
40
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NUMBER OF RECORDABLE INJURY CASES10 YEAR COMPARISON10 Year history
# f R d bl 1816 15
7 7 7 6 6 6
0
5
10
15
20
25# of RecordablesInjury & Illness Rate
02001 2002 2003 2004 2005 2006 2007 2008 2009 2010
9.3310
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10 YEAR INJURY & ILLNESS RATE COMPARISON
2011 & Beyond
4.12 3.80 3.734
6
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yGetting off of
the Plateau1.70 1.73 1.81 1.59 1.82 1.65
0
2
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
& ReachingZero?
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Environmental Today
P TO' 0 P~ SP~IOI I
Last year alonewe recycled700,000 cars $ j6f ''
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2007
nvironmental~ 2003TTD
Costs ~ APTS
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•• Quest for Zero DeviationsQuest for Zero Deviations
•• Reach Beyond ComplianceReach Beyond Compliance
•• Turn Environmental Requirements into Cost SavingsTurn Environmental Requirements into Cost Savings
•• Environmental Leader in our Company and IndustryEnvironmental Leader in our Company and Industry•• Environmental Leader in our Company and IndustryEnvironmental Leader in our Company and Industry
•• Continued High Recognition from the CommunityContinued High Recognition from the Community
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Environmental Future
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Habitat For Humanity
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