Our Strategy Growth Profile Industry Fundamentals...

Investor Presentation | April 2011 1

Our Strategy

Growth Profile

Industry Fundamentals

Current Construction Cycle

Earnings Leverage Opportunity

Presentation Outline


Certain matters discussed in this presentation/document, including expectations regarding future performance, contain forward-looking statements that are subject to assumptions, risks and uncertainties that could cause actual results to differ materially from those projected. These assumptions, risks and uncertainties include, but are not limited to, those associated with general economic and business conditions; changes in interest rates; the timing and amount of federal, state and local funding for infrastructure; the lack of a multi-year federal highway funding bill with an automatic funding mechanism; the reluctance of state departments of transportation to undertake highway projects without a reliable method of federal funding for projects; changes in the level of spending for residential and private nonresidential construction; the highly competitive nature of the construction materials industry; the impact of future regulatory or legislative actions; the outcome of pending legal proceedings; pricing for our products; weather and other natural phenomena; energy costs; costs of hydrocarbon-based raw materials; healthcare costs; the amount of long- term debt and interest expense incurred by the Company; the negative outlook on our debt rating and our increased cost of capital in the event that our debt rating is lowered under investment grade; volatility in pension plan asset values which may require cash contributions to the pension plans; the impact of environmental clean-up costs and other liabilities relating to previously divested businesses; the Company’s ability to secure and permit aggregates reserves in strategically located areas; the Company’s ability to manage and successfully integrate acquisitions; the impact of the global economic recession on our business and financial condition and access to the capital markets; the potential impact of future legislation or regulations relating to climate change or green house gas emissions; and other assumptions, risks and uncertainties detailed from time to time in the Company’s SEC reports, including the report on Form 10-K for the year. Forward-looking statements speak only as of the date hereof, and Vulcan assumes no obligation to publicly update such statements.

Important Disclosure Notes to Presentation

Safe Harbor Safe Harbor


Aggregates FocusAttractive industry fundamentalsScale from being the largest playerQuality top-line growth converts to earnings

Leverage coast-to-coast footprintLarge, high-growth marketsStrategically located aggregates reservesDiversified regional exposure

Profitable growthTightly manage costsExecute strategic acquisitionsReinvest in high-return projects

Effective land management

Strategy

Strategic objectives lead to the ability to generate strong cashStrategic objectives lead to the ability to generate strong cash flows, even in a downturnflows, even in a downturn

2010 Net Sales by Product

67%

16%

15%

Cement

Asphalt

Concrete

Aggregates

Sales Tied to Aggregates

95%


2000 Shipments Additions 2010

Vulcan’s Proven and Probable Reserves Billions of Tons

Notes: 2009 reserves include limestone reserves for cement. Source: Reports on Form 10-K and 10-Q for VMC and Company estimates

10.0(2.2)

+6.9

14.7

Supply to serve highSupply to serve high--growth markets has increased significantly in 10 yearsgrowth markets has increased significantly in 10 years

Aggregates Reserves


Political Impact of Population Growth – 2000 to 2010

Population growth dramatically alters the composition of future Population growth dramatically alters the composition of future Congresses Congresses –– net gain of 6 in VMC statesnet gain of 6 in VMC states

+4+4

+2+2

+1+1+1+1

+1+1

+1+1+1+1

+1+1

(1)(1)(1)(1)

(2)(2)

(1)(1)(1)(1)

(1)(1)

(2)(2)

(1)(1)

(1)(1)

(1)(1)

Vulcan states shown in blue.

Net change in Congressional seats under reapportionment following the 2010 Census.


Vulcan States 76%

Population Households Employment

Sources: Moody’s Economy.com

34%

35%36%

38%42%

36%

CA,FL,TXOther VMC-Served StatesOther States

Share of Growth

Population Growth – 2010 to 2020

78% of projected population growth in Vulcan78% of projected population growth in Vulcan--served states served states –– 42% in California, Florida and Texas42% in California, Florida and Texas

Investor Presentation | April 2011 7Price = PPI for Aggregates as reported by Bureau of Labor Statistics. 1982 = 100

U.S. Aggregates

Aggregates pricing consistently rises in all periods. No declinAggregates pricing consistently rises in all periods. No decline in any year since 1970e in any year since 1970

0%

2%

4%

6%

8%

10%

12%

14%

16%19

7019

7119

7219

7319

7419

7519

7619

7719

7819

7919

8019

8119

8219

8319

8419

8519

8619

8719

8819

8919

9019

9119

9219

9319

9419

9519

9619

9719

9819

9920

0020

0120

0220

0320

0420

0520

0620

0720

0820

0920

10

0

50

100

150

200

250

300YoY% Chg (Left axis) Price Index (Right axis)

Investor Presentation | April 2011 8Red arrows denote peak-to-trough decline in demand. Green arrows denote trough-to-peak growth in demand. Source: USGS and Company estimates.

U.S. Aggregates

Demand characterized by short, steep declines followed by sustaiDemand characterized by short, steep declines followed by sustained doublened double--digit growth perioddigit growth period

-

0.5

1.0

1.5

2.0

2.5

3.0

3.5

1970 1974 1978 1982 1986 1990 1994 1998 2002 2006 2010

(18%)(30%)

(13%)

(2%)

(37%)

+27% +56%

+62%

+16%

(Billions of Tons)

Investor Presentation | April 2011 9December 2010. Source: McGraw-Hill and Company estimates.

U.S. Residential Construction

Residential construction activity appears to have stabilized aftResidential construction activity appears to have stabilized after a historic downturner a historic downturn

U.S. Housing StartsTrailing Twelve Months (000's of Single and Multi-Family Units)

-

500

1,000

1,500

2,000

2,500

2004 2005 2006 2007 2008 2009 2010

Peak-to-TroughDecline 73%


U.S. Nonresidential Construction

Private NR peaked approximately 18 months after residential. RaPrivate NR peaked approximately 18 months after residential. Rate of decline slowed in 2010te of decline slowed in 2010

U.S. NonresidentialTrailing Twelve Months (Millions of SF of Public and Private Contract Awards)

-

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2004 2005 2006 2007 2008 2009 2010

Peak-to-TroughDecline 75%in Private NR

PUBLIC

PRIVATE


U.S. Non-Highway Infrastructure Construction

Privately funded infrastructure more cyclical than publicly fundPrivately funded infrastructure more cyclical than publicly funded sewers, waterways and airportsed sewers, waterways and airports

Trailing Twelve Months of Contract Awards - Millions of $

-

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

50,000

2004

2005

2006

2007

2008

2009

2010

Power / Utilities Sewers Runways / Waterways

Investor Presentation | April 2011 12Public Only. December 2010. Source: McGraw-Hill and Company estimates.

U.S. Highway Construction

Continued growth in contract awards driven by ARRA fundsContinued growth in contract awards driven by ARRA funds

U.S. HighwaysTrailing Twelve Months Contract Awards (Millions of $)

-

10,000

20,000

30,000

40,000

50,000

60,000

70,000

2004 2005 2006 2007 2008 2009 2010

Local

State / Federal


Status of ARRA Funds Apportioned for Highways (Millions $)

$- $500 $1,000 $1,500 $2,000 $2,500 $3,000

CaliforniaTexas

FloridaNew York

PennsylvaniaIllinois

OhioGeorgia

MichiganNorth Carolina

VirginiaIndiana

New JerseyMissouri

TennesseeWashington

WisconsinMinnesota

ArizonaAlabama

OklahomaSouth Carolina

KentuckyMassachusetts

LouisianaMarylandColoradoArkansas

IowaMississippi

KansasOregon

ConnecticutNew Mexico

NebraskaUtah

West VirginiaMontanaNevada

South DakotaIdaho

AlaskaNorth Dakota

WyomingMaine

Rhode IslandNew Hampshire

VermontHawaii

District ofDelaware

Outlays Apportioned but not Spent

As of December 31, 2010Source: FHWA and ARTBA

$27.5 Billion Apportioned for Highways$27.5 Billion Apportioned for Highways•• Vulcan states apportioned 55% more than other statesVulcan states apportioned 55% more than other states•• 62% of funds have been spent (57% in Vulcan states)62% of funds have been spent (57% in Vulcan states)

Key Vulcan states will benefit the most from stimulusKey Vulcan states will benefit the most from stimulus--related highway projectsrelated highway projects

U.S. Highway Construction - American Recovery and Reinvestment Act (ARRA)


0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Trailing Twelve Months of U.S. Contract Awards (Millions $)

December 2010. Sources: McGraw-Hill and Company estimates.

September 1997ISTEA Expires

August 2005SAFETEA-LU becomes law$286bn for highways and transit

June 1998TEA-21 becomes law$218bn for highways and transit

September 2003TEA-21 Expires

Feb 2009 American Recovery and Reinvestment Act

September 2009SAFETEA-LU Expires

December 1991ISTEA becomes law

U.S. Highway Construction – Federal Highway Funding

End market will benefit from stimulusEnd market will benefit from stimulus--related projects and a new federal highway billrelated projects and a new federal highway bill


HighwaysHighways

$-

$100

$200

$300

$400

$500

$600

TEA-21 SAFETEA-LU Next Bill?

Highways Transit/Safety Rail NIB(Billions of $)

$551 BillionPresident’s FY’12 budget proposal Feb. 14, 2011 $218 Billion $286 Billion


PresidentPresident’’s reauthorization proposal calls for 93% increases reauthorization proposal calls for 93% increase

Note: Next Bill total for six-year period from FY 2012 to FY 2017


Note: Above figures exclude Transit and the benefit of a new six-year highway bill. Totals may not foot due to rounding.


Latest highway funding projections by Congressional Budget OfficLatest highway funding projections by Congressional Budget Office show surplus balance through FYe show surplus balance through FY’’1212

(Billions of $)Highway Trust Fund - Highway Account

2009A 2010A 2011P 2012P 2013P

Obligation Limitation - FHWA 40.7$ 41.1$ 41.1$ 41.6$ 42.2$

Cash FlowBeginning of Year Balance 10.0 8.9 20.7 15.4 4.2 Flexing - Transfer of Cash (0.9) (1.0) (1.0) (1.0) (1.0) Revenues & Interest 30.2 30.2 31.3 31.7 32.1 General Fund Transfer 7.0 14.7 - - - Outlays (37.4) (32.0) (35.6) (41.9) (44.2) End of Year Balance 8.9$ 20.7$ 15.4$ 4.2$ (8.8)$

ARRA Stimulus Spending for Highways 2.4$ 11.8$ 9.4$ 2.5$ 1.0$

Estimated Total Highway Spending 39.8$ 43.8$ 45.0$ 44.4$ 45.2$

Reflects provisions of H.R.2847, The HIRE Act, Public Law 111-147

Source: CBO Highway Trust Fund Projection, January 20, 2011

Fiscal Year Ending September 30

Investor Presentation | April 2011 17Nearly-Same Store = Sources of shipments in current period and prior year period are comparable

Aggregates Shipments - Last 5 Construction Cycles

The current cycle appears to be tracking historical recovery patThe current cycle appears to be tracking historical recovery patternsterns

Vulcan Nearly-Same Store Aggregates Shipments(Year-over-Year % Change in Trailing 4 Quarters)

-30%

-20%

-10%

0%

10%

20%

30%

-12 -11 -10 -9 -8 -7 -6 -5 -4 -3 -2 -1 0 1 2 3 4 5 6 7 8 9 10 11 12

'72-'78 '78-'84 '88-'94 '00-'06 '06-'10

Troughs

Quarters to Trough Quarters from Trough


$3.30

$4.03

$4.66 $4.74 $4.68

$4.15

147,600

259,500

2005 2006 2007 2008 2009 2010

Aggregates Cash Earnings / Ton(Red Line = Volume in Thousands, Blue Bars = Cash Earnings / Ton)

Cash Earnings = Aggregates Segment Gross Profit + DDAA as reported on Form 10-K

Management Actions in the Downturn

Cash earnings per ton has improved despite weak demand Cash earnings per ton has improved despite weak demand –– 26% higher than at peak of demand26% higher than at peak of demand


$69

$93

$130$140

$175

1982A 1983A 1984A 1985A 1986A

Source: Company filings for respective fiscal year ends. Florida Rock fiscal year ends September 30 and Vulcan fiscal year ends December 31.Note: Vulcan 1982-1986 and 1991-1995 data is Earnings from Continuing Operations before Interest Expense and Taxes for the Construction Materials segment as reported. Vulcan 2002-2006 data is for Operating Earnings for the company, as reported. Florida Rock data is Operating Profit for the company, as reported. Growth rate calculation is calculated using trend line.

$47

$95

$128

$190

$221

1991A 1992A 1993A 1994A 1995A

$482 $490$580

$727

$1,015

2002A 2003A 2004A 2005A 2006A

CAGRCAGR+25%+25%

CAGRCAGR+46%+46%

CAGRCAGR+21%+21%

Comparison of Earnings Growth During the Last Three Recoveries

Rapid growth in Operating IncomeRapid growth in Operating Income


Dec 2002 – Dec 2006

Note: Scales for charts are for different ranges. 1982, 1991 and 2002 represent trough years of industry volumes. Source: Bloomberg

Dec 1991 – Dec 1995Dec 1982 – Dec 1986

80%

100%

120%

140%

160%

180%

200%

220%

240%

1982 1983 1984 1985 1986

Inde

xed Pr

ice

130.6%

72.2%

Vulcan Materials S&P 500 Index

90%

100%

110%

120%

130%

140%

150%

160%

170%

1991 1992 1993 1994 1995

Inde

xed

Pric

e

60.1%

47.7%

70%

100%

130%

160%

190%

220%

250%

2002 2003 2004 2005 2006

Inde

xed

Price

139.7%

61.2%

Superior stock price performance coming out of past downturnsSuperior stock price performance coming out of past downturns

Comparison of Stock Performance During the Last Three Recoveries


U.S. Infrastructure Needs willU.S. Infrastructure Needs willDrive Core BusinessDrive Core Business

Geography is Aligned Geography is Aligned for Growth for Growth

AggregatesAggregates--FocusFocus

Strong Operating Leverage as Strong Operating Leverage as Demand Recovers Demand Recovers

Key drivers of value creationKey drivers of value creation

Summary

Our Strategy Growth Profile Industry Fundamentals...

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