Nucor

Nucor Corporation
Valuation Analysis of Thin-Slab Caster Mill
Change the Red Numbers Only:
Key Assumptions in valuation of mill:
Operating rate after 1992 85% Price trend per year after 198 -3%
Price per ton in 1989 $325 Experience effect on costs 0.9
Production Cost in 1989 250 b= 0.15
Weighted average cost of capita 10%
Salvage value of mill in 2000 $0

Valuation Analysis of Mill

1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000
Tons sold (Thousands 0 0 50 400 650 850 850 850 850 850 850 850 850 850
Cumulative Volume produced 50 450 1100 1950 2800 3650 4500 5350 6200 7050 7900 8750
Price per ton 0 0 325 317 309 301 294 286 279 272 265 259 252 246
Cash cost per ton 0 0 250 250 218 200 189 182 176 172 168 165 162 159

All numbers below are in $Millions

Revenues 0 0 16.3 126.8 200.8 256.0 249.6 243.4 237.3 231.4 225.6 220.0 214.5 209.1
Cash costs 0 0 12.5 100.0 141.9 170.0 160.9 154.6 149.7 145.9 142.6 139.9 137.5 135.3
Depreciation 0 0 22.5 22.5 22.5 22.5 22.5 22.5 22.5 22.5 22.5 22.5 22.5 22.5
Operating earnings 0 0 -18.8 4.3 36.5 63.5 66.2 66.3 65.1 63.0 60.5 57.6 54.5 51.2
Profit sharing 0 0 -1.9 0.4 3.6 6.4 6.6 6.6 6.5 6.3 6.0 5.8 5.4 5.1
Start-up costs 0 0 15 15 0 0 0 0 0 0 0 0 0 0
Pre-tax income 0 0 -31.9 -11.2 32.8 57.2 59.6 59.7 58.6 56.7 54.4 51.8 49.0 46.1
Tax 0 0 -10.8 -3.8 11.2 19.4 20.3 20.3 19.9 19.3 18.5 17.6 16.7 15.7
EBIAT 0 0 -21.0 -7.4 21.7 37.7 39.3 39.4 38.7 37.4 35.9 34.2 32.4 30.4
Depreciation 0 0 22.5 22.5 22.5 22.5 22.5 22.5 22.5 22.5 22.5 22.5 22.5 22.5
Cash flow ops 0 0 1.5 15.1 44.2 60.2 61.8 61.9 61.2 59.9 58.4 56.7 54.9 52.9

Cash flow ops 0 0 1.5 15.1 44.2 60.2 61.8 61.9 61.2 59.9 58.4 56.7 54.9 52.9
Invest NWC 0 0 -1.6 -11.1 -7.4 -5.5 0.6 0.6 0.6 0.6 0.6 0.6 0.5 21.4
CAPEX -10 -140 -130 0 0 0 0 0 0 0 0 0 0 0
Salvage Value 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Cash flow to Capital -10 -140 -130.2 4.1 36.8 54.7 62.5 62.5 61.8 60.5 59.0 57.3 55.4 74.4

Net Present Value: 19.21

Price Trend
Experience 19.21 -0.05 -0.025 0 0.025 0.05
1 $ (196.4) ### $ (28.4) $ 76.8 $ 199.3
0.95 $ (123.3) $(45.7) $ 44.7 $ 149.9 $ 272.4
0.9 $ (58.4) $ 19.2 $ 109.5 $ 214.7 $ 337.3
0.85 $ (1.2) $ 76.5 $ 166.8 $ 272.0 $ 394.6
0.8 $ 49.2 ### $ 217.2 $ 322.3 $ 444.9

Page 1