By: Alonzo Crawley, Brett Dunn, Cindy Huynh, Kevin Nguyen,

Nguyet Nguyen & Jason Swoap

Mission

STEEL: We Make It, We Move It

Introduction

Jason’s Slide

Internal Analysis

Management 5 layers of management:

President and CEO Vice President General Manager Department Manager Supervisory/Professional

Divisions operate independently

Internal Analysis

Compensation Incentive Bonus Strategy Categories:

Production Department Manager Non-Production and Non-Department Manager Senior Officer

Executive Salary No Perks

Additional Benefits Profit Sharing

Competitors Analysis

Nucor has many competitors some are: ArcelorMittal Corus Nippon Shanghai Baosteel US Steel Corp Riva

External AnalysisGeneral Environment

Demographic Retiring baby-boomer generation Increase in women workers vs. decrease in men

Economic Recent global recession

* Decrease in steel demand

External AnalysisGeneral Environment cont.

Political/Legal Taxation and Regulations Stimulus Package

Socio-cultural Plant safety procedures

Technological Use of electric arc furnace

External AnalysisIndustry Environment

External AnalysisIndustry Environment

Five Forces Model

Threat of New Entrants Barriers to entry

Bargaining Power of Suppliers Scrap steel supplies

External AnalysisIndustry Environment cont.

Bargaining Power of Buyers Buyers as neighbors

Threat of Substitute Products Wood and carbon fiber

Intensity of Rivalry Among Competitors New territories

Business Segments

Steel Mills The external customers are primarily

manufacturers, steel service centers and fabricators

Steel Products Used extensively as part of the roof and floor

support systems in manufacturing, commercial, and institutional buildings

Raw Materials A Nucor facility located in Trinidad that produces

direct reduced iron used by Nucor’s steel mills

SWOT Analysis

Most diversified steel producers in the world

Maintain a low-cost leadership position

Exploiting new technologies to improve production speed, quality, and cost

Strong employee relationship and management philosophy

SWOT Analysis

Prone to economic declines Sensitive to volatility of steel

prices Change in cost of raw

materials Integrate their acquisition

strategy Effectively cater to the

international markets as well as its competitors

SWOT Analysis

Capitalize on international market penetration

Optimization of existing operations through continuous innovation

Acquisitions of new strategic partners and potential for growth

Pursue contracts to secure natural gas supplies

SWOT Analysis

Current global recession and credit crisis

Environmental compliance and regulation

Overcapacity in the global steel industry

Increased costs of electricity and natural gas

Acquisition Plan

Aggressive acquisition strategy since 2006 : 6 companies acquired between 2006-2008 Acquired SHV North America Corporation in

February 2008 for $1.44B Focused on securing raw materials Scrap steel = used by current steel mills Iron ore = used by Trinidad & Louisiana

facilities

Acquisition Plan

What we are going to acquire : Trailer Bridge, Inc. Marine transportation and trucking company Currently ships from Jacksonville, FL to Puerto

Rico & Dominican Republic Total assets=$123M & Total liabilities=$125M $32.7M purchase price

Acquisition Plan

Why we are going to acquire it: Supply our Trinidad and Louisiana facilities

with iron ore from Brazil All 8 U.S. iron ore mines currently owned by

competitors or already have L-T contracts for their annual capacity

An opportunity to penetrate the Brazilian steel market with our products

Acquisition Plan

How we are going to acquire it: Cash is king $2.4B in cash and cash equivalents mainly due

to issuance of additional common stock Not expecting to see a material amount of

revenue generated by new shipping division but acquisition is aligned with future strategic goals

Financing Plan

Financing Plan

Financing Plan