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1
NOVEMBER 13, 2012
NUCOR DELIVERS PROFITABLE GROWTH
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NUCOR’S EARNINGS GROWTH HISTORY
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Decade 1970-1980 1981-1990 1991-2000 2001-2011
Pretax Earnings % Change 3,528% 248% 499% 698%
Pretax Earnings CAGR 43% 11% 20% 21%
Market Value Change 2,568% 320% 160% 361%
INDUSTRY LEADING RETURNS
7.1%8.8%
15.4%17.5%
0
2
4
6
8
10
12
14
16
18
20
ArcelorMittal U.S. Steel Steel Dynamics Nucor
Return On Invested Capital: 2004-2011 Average Annual %
ArcelorMittalU.S. SteelSteel DynamicsNucor
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INDUSTRY LEADING RETURNS
0.7%
2.4%
7.0%
9.0%
0
1
2
3
4
5
6
7
8
9
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U.S. Steel ArcelorMittal Steel Dynamics Nucor
Return On Invested Capital Last 12 Months thru 9-30-12
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NUCOR: THE “DEFENSIVE” AND HIGH RETURN STEEL INVESTMENT
4.3%
173.9%
463.9%
0%
100%
200%
300%
400%
500%
S&P 500 S&P Steel Group Index Nucor
Total Return 9/2000 to 12/2011
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CASH DIVIDENDS PAID 2000–2011 Base & Supplemental Dividends (millions of dollars)
$0
$100
$200
$300
$400
$500
$600
$700
$800
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Base Supplemental7
Approx. $5 / share in total supplemental dividends from 2005 to 2008
NUCOR’S GROWTH DRIVEN BY OUR POSITION OF STRENGTH
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COMPETITIVE ADVANTAGES
Financial Strength Low / Variable Cost Structure Flexible Capacity Product Diversification
Market Leadership Nucor’s People and Our Culture
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$0
$600
$1,200
$1,800
$2,400
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Financial Strength Cash From Operations 2000-2011 (millions of dollars)
More than 2X
Average ’01-’03 $495 million
Average ’09-’11 $1.0 Billion
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FLEXIBLE CAPACITY
Electric arc furnaces
High productivity
No lay-off practice
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BEST-IN-CLASS MARKET RESPONSIVENESS!!!
2011 Sales Tons
Sheet-Steel - 33%
Bars-Steel - 20%
Structural-Steel - 10%
Plate-Steel - 10%
Steel Products-11%
Scrap & Trading-16%
DIVERSIFIED PRODUCT MIX
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MARKET LEADERSHIP IN NORTH AMERICA Structural Steel
Bar Steel Rebar Steel Cold Finished Bar Steel Steel Joist Steel Deck Rebar Fabrication, Distribution, & Placement Steel Piling Distribution
Sheet Steel Plate Steel Metal Buildings
#1 North American Market Leader
#2 North American Market Leader
#3 North American Market Leader
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NUCOR’S PEOPLE – OUR BIGGEST COMPETITIVE ADVANTAGE
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GROWING EARNINGS POWER: MULTI-PRONGED GROWTH STRATEGY
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NUCOR’S FOCUS: PROFITABLE GROWTH!!!
NUCOR’S 5 PRONGED GROWTH STRATEGY
Nucor’s 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
GROWING NUCOR’S EARNINGS POWER
$2.9 Billion
$6.8 Billion
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
$8,000
Depreciation & Amortization Capital Invested
Capital Invested Versus Depreciation & Amort. 2008-2012
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Capital Spending of $3.2 billion & Acquisitions of $3.6 billion
Steel Mills - 45%
Raw Materials - 45%
Steel Products - 10%
2008-2012 Capital Invested By Product Segment
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BUILDING EARNINGS POWER – STEELMAKING
SBQ • Capacity growth at TN, NE, and SC mills (2014)
BAR • AZ wire rod mill (2010)
BEAM • AR sheet piling expansion – wider & stronger
sections (2014)
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BUILDING EARNINGS POWER – STEELMAKING
SHEET • AL galvanizing line (2009) • AR vacuum degasser (2012) • SC “wide – light” sheet steel (2013)
PLATE • AL temper line (2008) • NC heat treat facility (2011) • NC vacuum degasser (2012) • NC normalizing line (2013)
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BUILDING EARNINGS POWER – STEELMAKING SKYLINE STEEL ACQUISITION Steel piling distributor: NAFTA MARKET LEADER
20+ yr strategic growth partnership with Nucor-Yamato, MARKET LEADER in steel piling production
Enhanced and accelerated growth opportunities in both distribution & steelmaking
H-Pile Sheet Pile Pipe Pile
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BUILDING EARNINGS POWER – DOWNSTREAM
NuMit / Steel Tech JV sheet steel processing
Harris rebar fabrication acquisitions
Joist, deck, and metal buildings market leadership positions expanding
BIM 3-D modeling technology
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BUILDING EARNINGS POWER – RAW MATERIALS STRATEGY Gain control of 6 to 7 million tons annual supply of
high quality scrap substitutes
Nucor’s world-class Trinidad direct reduced iron (DRI) facility = 2 million tons annual capacity
Louisiana DRI first module start-up in mid-2013 = 2.5 million tons annual capacity
Permitted for 2nd DRI module in LA (would increase total DRI annual capacity to 7 million tons)
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BUILDING EARNINGS POWER – RAW MATERIALS STRATEGY Two long-term agreements (2010 & 2012) with
Encana for natural gas drilling programs Industry leader Encana will be operator On-shore drilling in continental United States –
areas with proved reserves Production of wells drilled under 2010 agreement exceeding projections by more than 60% Nucor has right to suspend drilling if natural gas prices drop below predetermined threshold
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BUILDING EARNINGS POWER – RAW MATERIALS STRATEGY Expected to provide more than 20 years natural gas
supply equal to usage at Nucor steel steel mills plus 2 DRI plants COST-BASED & PAY-AS-YOU-GO supply of natural
gas Natural gas = reductant cost advantage vs. coking coal used by blast furnaces Significant environmental advantages DRI’s CO2 emissions 67% less than blast furnace’s output
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BUILDING EARNINGS POWER – RAW MATERIALS STRATEGY DRI production capability + Long-term/low-cost natural gas supply = GAME-CHANGER for cost structure of Nucor’s steelmaking operations
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DRI VERSUS PIG IRON COST COMPARISON
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$/ton Blast Furnace DRI Iron Ore (62% FE, FOB Brazil) Pellet Premium Iron Premium (BF = 65% Fe & DRI = 68% Fe) Freight Iron Ore Consumption (BF = 1.6 ton & DRI = 1.5 ton)
$100 $30 $9 $25 $262
$100 $30 $18 $15 $245
Cash Conversion Costs BF Reductant (100% coke) DRI Reductant (11 mmbtus @ $4)
$70 $144
$35 $44
Iron Unit Cost BF with sinter plant cost savings BF Cost Savings By Substituting 40% of coke usage with PCI & natural gas BF Higher “Value-In-Use” Benefit “Adjusted” BF Iron Unit Cost
$476 $30 $26 $15 $406
$324
Coke cost assumes 0.5 ton of coke using 1.5 tons of metallurgical coal costing $175/ton
OUR BEST YEARS ARE STILL AHEAD OF US!!
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