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MARCH 2014

MARCH 2014. NUCOR TODAY. NORTH AMERICA’S MOST DIVERSIFIED STEEL & STEEL PRODUCTS COMPANY. STEEL MILL PRODUCTION CAPACITY ANNUAL TONS. STEEL MILL SHIPMENTS 2003-2013 (millions of tons). 20.65 . STEEL PRODUCTS

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MARCH 2014

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  1. MARCH 2014

  2. NUCOR TODAY NORTH AMERICA’S MOST DIVERSIFIED STEEL & STEEL PRODUCTS COMPANY

  3. STEEL MILL PRODUCTION CAPACITY ANNUAL TONS

  4. STEEL MILL SHIPMENTS 2003-2013 (millions of tons) 20.65

  5. STEEL PRODUCTS PRODUCTION CAPACITY ANNUAL TONS

  6. STEEL PRODUCTS SALES TONS 2003-2013 (millions of tons) 2.62

  7. RAW MATERIALS (IRON UNITS) PRODUCTION CAPACITY ANNUAL TONS

  8. NUCOR’S GROWTH DRIVEN BY OUR POSITION OF STRENGTH

  9. COMPETITIVE ADVANTAGES • Financial Strength • Low / Variable Cost Structure • Flexible Capacity • Product Diversification • Market Leadership • Nucor’s People and Our Culture

  10. FINANCIAL STRENGTH • Strong cash flow generation through the cycle • Only North American steel producer with extremely important competitive advantage of investment grade credit rating • Conservative Financial Practices • No Material Legacy Liabilities

  11. Financial StrengthCash From Operations 2000-2013(millions of dollars) Cyclical Trough To Cyclical Trough More than 2X Average ’09-’13 $1.1 Billion Average ’01-’03 $495 million

  12. LOW COST STRUCTURE = INDUSTRY LEADING RETURNS

  13. NUCOR’S ROIC PERFORMANCE 2004-2013 AVG = 15.5% UP-CYCLE “GREAT RECESSION”

  14. FLEXIBLE CAPACITY • Electric arc furnaces • High productivity • No lay-off practice BEST-IN-CLASS MARKET RESPONSIVENESS!!!

  15. DIVERSIFIED PRODUCT MIX

  16. NUCOR = MOST DIVERSIFIEDSTEEL AND STEEL PRODUCTS PRODUCER IN NORTH AMERICA Highway Products Building Systems Joist & Decking Fasteners Grating Wire Products Rebar Fabrication Cold Finished Bar Plate Sheet Structural/Piling SBQ Bar Arcelor Mittal Steel Dynamics Gerdau Commercial Metals Company Republic Timken US Steel Severstal Thyssen Krupp NUCOR

  17. MARKET LEADERSHIP BY SIZE IN NORTH AMERICA Structural Steel Bar Steel Rebar Steel Cold Finished Bar Steel Steel Joist Steel Deck Rebar Fabrication, Distribution, & Placement Steel Piling Distribution Metal Buildings #1 North American Market Leader #3 North American Market Leader #2 North American Market Leader Sheet Steel Plate Steel

  18. NUCOR’S PEOPLE –OUR BIGGEST COMPETITIVE ADVANTAGE

  19. NUCOR’S CULTURE • Commitment to Employees • SAFETY Is Our First Priority • Teamwork • Pay For Performance • Continual Improvement • Decentralized Structure = Nucor Employees Are Empowered To Take Care Of Our Customers

  20. GREAT CHALLENGES PRESENT GREAT OPPORTUNITIES TO THE RIGHT PEOPLE – THE NUCOR TEAM 20

  21. GROWING EARNINGS POWER: MULTI-PRONGED GROWTH STRATEGY

  22. NUCOR’S 5 PRONGED GROWTH STRATEGY NUCOR’S FOCUS:PROFITABLE GROWTH!!! Nucor’s Position of STRENGTH OPTIMIZE EXISTING OPERATIONS RAW MATERIALS STRATEGY GREENFIELD GROWTH (technology & market niches) INTERNATIONAL GROWTH via joint ventures STRATEGIC ACQUISITIONS

  23. 2008-2013 CAPITAL INVESTED

  24. 2008-2013 CAPITAL INVESTED ($ MILLIONS) AMOUNTS NOT NECESSARILY PROJECT TOTALS – ONLY INCLUDES $s INVESTED OVER 2008-2013 PERIOD

  25. 2008-2013 CAPITAL INVESTED ($ MILLIONS) AMOUNTS NOT NECESSARILY PROJECT TOTALS – ONLY INCLUDES $s INVESTED OVER 2008-2013 PERIOD

  26. 2008-2013 CAPITAL INVESTED ($ MILLIONS) AMOUNTS NOT NECESSARILY PROJECT TOTALS – ONLY INCLUDES $s INVESTED OVER 2008-2013 PERIOD

  27. 2008-2013 CAPITAL INVESTED ($ MILLIONS) AMOUNTS NOT NECESSARILY PROJECT TOTALS – ONLY INCLUDES $s INVESTED OVER 2008-2013 PERIOD

  28. 2008-2013 CAPITAL INVESTED ($ MILLIONS)

  29. 2008-2013 CAPITAL INVESTED ($ MILLIONS)

  30. 2008-2013 CAPITAL INVESTED ($ MILLIONS) AMOUNTS NOT NECESSARILY PROJECT TOTALS – ONLY INCLUDES $s INVESTED OVER 2008-2013 PERIOD

  31. RAW MATERIALS STRATEGY DRI = Direct Reduced Iron

  32. DRI VERSUS PIG IRON COST COMPARISON(using estimated long-term prices) Coke cost assumes 0.5 ton of coke using 1.5 tons of metallurgical coal costing $125/ton

  33. NUCOR’S FOCUS = GENERATE ATTRACTIVE RETURNS

  34. BUILDING EARNINGS POWER FOR THE NEXT CYCLICAL PEAK & BEYOND (Millions of dollars) 2008 RECORD EPS $5.98

  35. CASH DIVIDENDS PAID 2004 – 2013 Base & Supplemental Dividends (dollars per share) 41 CONSECUTIVE YEARS OF INCREASED CASH DIVIDENDS UP-CYCLE Approx. $5/share in total supplemental dividends from 2005 to 2008 “GREAT RECESSION”

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