2. 2Investor Presentation, May 2013
Important Disclosure Notes
This presentation contains forward-looking statements. Statements that are not historical fact, including statements about Vulcan's beliefs and
expectations, are forward-looking statements. Generally, these statements relate to future financial performance, results of operations, business
plans or strategies, projected or anticipated revenues, expenses, earnings (including EBITDA and other measures), dividend policy, shipment
volumes, pricing, levels of capital expenditures, intended cost reductions and cost savings, anticipated profit improvements and/or planned
divestitures and asset sales. These forward-looking statements are sometimes identified by the use of terms and phrases such as "believe,"
"should," "would," "expect," "project," "estimate," "anticipate," "intend," "plan," "will," "can," "may" or similar expressions elsewhere in this document.
These statements are subject to numerous risks, uncertainties, and assumptions, including but not limited to general business conditions, competitive
factors, pricing, energy costs, and other risks and uncertainties discussed in the reports Vulcan periodically files with the SEC.
Forward-looking statements are not guarantees of future performance and actual results, developments, and business decisions may vary
significantly from those expressed in or implied by the forward-looking statements. The following risks related to Vulcan's business, among others,
could cause actual results to differ materially from those described in the forward-looking statements: risks that Vulcan's intentions, plans and results
with respect to cost reductions, profit enhancements and asset sales, as well as streamlining and other strategic actions adopted by Vulcan, will not
be able to be realized to the desired degree or within the desired time period and that the results thereof will differ from those anticipated or desired;
uncertainties as to the timing and valuations that may be realized or attainable with respect to planned asset sales; those associated with general
economic and business conditions; the timing and amount of federal, state and local funding for infrastructure; the effects of the sequestration on
demand for our products in markets that may be subject to decreases in federal spending; changes in Vulcan’s effective tax rate; the increasing
reliance on technology infrastructure for Vulcan’s ticketing, procurement, financial statements and other processes could adversely affect operations
in the event such infrastructure does not work as intended or experiences technical difficulties; the impact of the state of the global economy on
Vulcan’s businesses and financial condition and access to capital markets; changes in the level of spending for private 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 of Vulcan's 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 Vulcan; changes in interest rates; the impact of
Vulcan's below investment grade debt rating on Vulcan's cost of capital; 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; Vulcan's ability to
secure and permit aggregates reserves in strategically located areas; Vulcan's ability to manage and successfully integrate acquisitions; the potential
of goodwill or long-lived asset impairment; the potential impact of future legislation or regulations relating to climate change or greenhouse gas
emissions or the definition of minerals; and other assumptions, risks and uncertainties detailed from time to time in the reports filed by Vulcan with the
SEC. All forward-looking statements in this communication are qualified in their entirety by this cautionary statement. Vulcan disclaims and does not
undertake any obligation to update or revise any forward-looking statement in this document except as required by law. .
3. 3Investor Presentation, May 2013
Company Snapshot
Vulcan is the Leading Aggregates Producer in the U.S.
95%
2012 Net Sales: $2.4 Billion Aggregates Facilities: 341
Headquarters: Birmingham, AL Ticker: VMC
Company 2012 10-K Report
Vulcan-Served States
Our leading position in aggregates is
based on…
1. Favorable geographic footprint that
provides attractive long-term growth
prospects
2. Largest proven and probably reserve
base
3. Operational expertise and pricing
discipline which provides attractive
unit profitability
4. 4Investor Presentation, May 2013
Positioning the Business to Maximize Future Earnings Growth
Strategically
Positioned
Leading
Reserve
Position
Unit
Profitability
Continues to
Grow
75%
Share of U.S.
Population
Growth
27%
Higher than
peak-year in
volumes
15.0
Billion Tons of
Aggregates
Reserves
Source: Company 2012 10-K Report. As of December 31, 2012 . Unit Profitability = Cash Gross Profit / Ton. See Non-GAAP reconciliation at end of presentation.
5. 5Investor Presentation, May 2013
Aggregates-Led Value Creation
95%
Build and Hold Substantial Reserves
Used in virtually all types of public and private construction projects
Strategically located in high-growth markets that will require large
amounts of aggregates to meet construction demand
Aggregates operations require virtually no other raw material other
than aggregates reserves
Coast-to-coast Footprint
Diversified regional exposure
Complementary asphalt, concrete and cement businesses in select
markets
More opportunities to manage portfolio of locations to further enhance
long-term earnings growth
Profitable Growth
Tightly managed operational and overhead costs
Benefits of scale as the largest producer
Effective Land Management
Can lead to attractive real estate transactions
95Percent
Sales Tied to
Aggregates
6. 6Investor Presentation, May 2013
Source: Moody’s Analytics as of November 2012
Share of Total U.S. Growth – 2010 to 2020
Vulcan’s Aggregates Assets are Strategically Positioned in Attractive Markets
75% in VMC-served states
70% in VMC-served states
63% in VMC-served states
7. 7Investor Presentation, May 2013
2012 F(U)
Amounts in Millions, except EPS 2012 2011 vs. 2011
Net Sales 2,411$ 2,407$ 4$
Gross Profit 334$ 284$ 50$
% Margin 13.9% 11.8% 2.1 pts
SAG 259$ 290$ 31$
EBITDA 423$ 425$ (2)$
Adjusted EBITDA
1
411$ 352$ 59$
% Margin 17.1% 14.6% 2.5 pts
EPS from Cont. Ops, diluted (0.42)$ (0.58)$ 0.16$
Adjusted EPS1
from Cont. Ops, diluted (0.47)$ (0.93)$ 0.46$
Full Year
Most Recent Full Year Financial Results Demonstrate Operating Leverage
Margin Expansion and Earnings Improvement on Flat Revenues
Note: Please see Non-GAAP reconciliations at the end of this presentation. Margin calculated using Net Sales.
1 Adjusted to exclude gain on sale of real estate and businesses, recovery from a legal settlement, exchange offer and restructuring costs.
8. 8Investor Presentation, May 2013
$4.01
$4.21
2011 2012
17.7%
20.4%
2011 2012
11.8%
13.9%
2011 2012
14.6%
17.1%
2011 2012
Most Recent Full Year Financial Results Demonstrate Operating Leverage
Increase in Profitability Driven by Higher Pricing and Effective Cost Control
Note: Please see Non-GAAP reconciliations at the end of this presentation. Aggregates Gross Profit Margin calculated using Segment Total Revenues.
Adjusted EBITDA Margin
Aggregates Cash Gross Profit per Ton
Gross Profit Margin
Aggregates Gross Profit Margin
9. 9Investor Presentation, May 2013
Attractive Profitability
Unit Profitability That Was Maintained Throughout the Downturn, Now Beginning to Grow
2012 profitability is higher
than prior year and 27%
higher than peak-year in
volumes (2005)
Trailing Twelve Months Cash Gross Profit Per Ton of Aggregates
Note: Please see Non-GAAP reconciliations at the end of this presentation.
10. 10Investor Presentation, May 2013
Track Record for Price Growth
Vulcan Consistently Outperforms, Contributing to Higher Unit Profitability
Aggregates Price Growth
Index, 1992 = 100
Note: Historical performance is not a guarantee or assurance of future performance nor that previous results will be attained or surpassed.
*Industry = Producer Price Index for Aggregates reported by the U.S. Bureau of Labor Statistics. For comparison purposes, Vulcan price not freight adjusted.
6.4%
5.3%
CAGR ’92-’02 ’02-’12
Industry*
Vulcan 3.6%
2.8%
11. 11Investor Presentation, May 2013
SAG Expenses Have Been Reduced During the Downturn
Well Positioned to Leverage ERP Investment and Shared Services Platforms
Total SAG down $115
million from 2007
(31% decrease)
Millions of $ Source: Company filings Note: 2007 SAG includes Florida Rock on a pro forma basis ($84.5M).
12. 12Investor Presentation, May 2013
De-Risked Balance Sheet
Higher Cash Generated from Operations and Asset Sales
2012 Cash Flow Bridge Sources of Cash
Uses of Cash
Operating activities, less debt
service costs, generated
$121 million of cash in 2012
Progress on Planned Asset
Sales coincidently offset cash
used for debt maturities and
exchange offer defense costs
VPP = Volumetric Production Payment. Exchange Offer = Costs incurred as a result of an unsolicited exchange offer initiated by
Martin Marietta Materials on December 12, 2011 and subsequently withdrawn in 2012.
13. 13Investor Presentation, May 2013
De-Risked Balance Sheet
Significant Financial and Operational Flexibility With Limited Near-Term Maturities
(1) Line of credit is an Asset Based Lending facility: $500 million 5 year facility expiring March 2018. Total Capital = SHE + LTD + Current Maturities of LTD + Short-term Borrowings.
Favorable debt maturity profile with substantial liquidity:
— Minimal maturities of $290 million over the next three years
― $188 million cash on hand with no borrowing on $500 million line of credit (1)
Debt maturities to be funded from available cash and free cash flows
Limited financial covenants
Debt Maturity Profile (Millions $)Debt Summary
Amounts in Millions, except ratios 2013 2012 2011
Total Debt 2,666$ 2,814$ 2,733$
Cash and Cash Equivalents 188$ 191$ 63$
Net Debt 2,478$ 2,623$ 2,670$
Net Debt / TTM Adjusted EBITD 6.4 6.7 7.5
Net Debt / Total Capital 38.8% 40.0% 40.3%
As of March 31
14. 14Investor Presentation, May 2013
Aggregates Demand
Vulcan’s Key Markets Leveraged to Favorable Long Term Growth Prospects
1972 = 100. Source: Company estimates of aggregates demand using data from Woods & Poole CEDDS.
Aggregate demand
significantly below
population trend line.
Growth Trends for Vulcan-Served Markets
15. 15Investor Presentation, May 2013
Aggregates Demand
Privately funded construction accounts for most of the cyclicality
Source: Company estimates of aggregates demand.
16. 16Investor Presentation, May 2013
Private Construction – Residential
Growth Bodes Well for Continued Recovery in Our Markets…
• TTM U.S. housing starts up 27% versus the prior year
• Vulcan-served states now account for more than 60% of all starts
• TX, FL and CA starts more than next 10 states combined
Source: McGraw-Hill and Company Estimates. Trailing Twelve Months. Includes both Single-family and Multi-family
17. 17Investor Presentation, May 2013
Private Construction – Residential
…Evident by the Significant Growth in Housing Starts in These Key Vulcan-Served States
Source: McGraw-Hill and Company Estimates. Trailing Twelve Months. Includes both Single-family and Multi-family
18. 18Investor Presentation, May 2013
Private Construction – Nonresidential
Growth in Residential is Helping Drive Growth in Private Nonresidential Buildings
Source: McGraw-Hill and Company Estimates. Trailing Twelve Months.
19. 19Investor Presentation, May 2013
Private Construction - Nonresidential
Another leading indicator, The ABI, has been above 50 for 8 consecutive months
Note: The Architectural Billings Index (ABI) is a diffusion index derived from the monthly Work-on-the-Boards Survey conducted by the AIA Economics & Market Research
Group. A value greater than 50 indicates an increase in activity.
20. 20Investor Presentation, May 2013
Public Construction - Highways
MAP-21 beginning to provide stability and predictability in highways
Source: McGraw-Hill and Company Estimates
First increase
since January 2011
ARRA Signed into Law - Feb’09
SAFETEA-LU Expires September ’09. No Federal Hwy Bill MAP21 – July ’12
21. 21Investor Presentation, May 2013
Public Construction – Highways
Vulcan states should get a disproportionate number of TIFIA-funded projects
Potential TIFIA Projects in Vulcan-Served Counties
Each dollar put into TIFIA can provide
approximately $10 in loans and support up to $30
in infrastructure investment.
MAP-21 Funding Authorization:
$1.75 billion over two years (FY’13 & FY’14)
Letters of Interest (LOIs):
More than $40 billion have been submitted since
MAP-21 became law, of which, approximately 2/3
are located in Vulcan-served counties.
Enacted in 1998 to provide Federal credit assistance for eligible
transportation projects and stimulate private capital investment.
22. 22Investor Presentation, May 2013
Attractive unit profitability
Cost reduction initiatives
resetting mid-cycle
EBITDA to new, higher
level
Favorable trends in
private construction
activity
New multi-year Federal
Highway Bill
Vulcan’s Value Proposition
Well Positioned to Capitalize on Market Recovery
Superior Aggregates
Operations
Strong Operating
Leverage
De-Risked Balance
Sheet
Largest reported reserve
base
Favorable long term
growth prospects
Benefits of scale
Operational expertise and
pricing growth
Attractive real estate
opportunities
Substantial liquidity
Moderate debt maturity
profile
Commitment to
strengthening balance
sheet
Commitment to restore a
meaningful dividend
23. 23Investor Presentation, May 2013
Appendix - Reconciliation of Non-GAAP Financial Measures
Source: Company filings
Amounts in millions of dollars, except per share data
EBITDA
EBITDA is an acronym for Earnings Before Interest, Taxes, Depreciation and Amortization.
Cash gross profit
Cash gross profit adds back noncash charges for depreciation, depletion, accretion and amortization to gross profit.
Q4
2012
Q4
2011
YTD
12/31/12
YTD
12/31/11
YTD
12/31/10
EBITDA and Adjusted EBITDA
Net earnings (loss) 3.5 (27.8) (52.6) (70.8) (96.5)
Provision (benefit) for income taxes 0.6 (30.6) (66.5) (78.4) (89.7)
Interest expense, net 52.9 53.4 211.9 217.2 180.7
Discontinued operations, net of tax 1.0 1.9 (1.3) (4.5) (6.0)
EBIT 58.0 (3.1) 91.5 63.5 (11.5)
Plus: Depr., depl., accretion and amort. 78.6 88.0 332.0 361.7 382.1
EBITDA 136.6 84.9 423.5 425.2 370.6
Legal settlement - - - (46.4) 40.0
Restructuring charges 0.5 10.0 9.5 12.9 0.0
Exchange offer costs 0.0 2.2 43.4 2.2 0.0
Gain on sale of real estate and businesses (46.8) (2.5) (65.1) (42.1) (39.5)
Adjusted EBITDA 90.4 94.6 411.3 351.8 371.1
Q4
2012
Q4
2011
YTD
12/31/12
YTD
12/31/11
EPS and Adjusted EPS
As reported 0.03 (0.20) (0.42) (0.58)
Legal settlement - - - (0.22)
Restructuring charges 0.00 0.05 0.05 0.06
Exchange offer costs 0.00 0.01 0.20 0.01
Gain on sale of real estate and businesses (0.22) (0.01) (0.30) (0.20)
Adjusted EPS (0.19) (0.15) (0.47) (0.92)
Q4
2012
Q3
2012
Q2
2012
Q1
2012
Q4
2011
Q3
2011
Q2
2011
Q1
2011
Q4
2010
Q3
2010
Q2
2010
Q1
2010
Q4
2009
Q3
2009
Q2
2009
Q1
2009
Q4
2008
Q3
2008
Aggregates segment gross profit 352.1 350.0 338.5 329.5 306.2 284.6 296.4 315.5 320.1 332.2 340.2 345.0 393.3 451.2 503.2 594.3 657.6 722.3
Agg. Depr., depl., accretion and amort. 240.7 247.7 255.1 261.8 267.0 272.5 279.3 284.8 288.6 293.1 295.9 298.6 312.2 304.9 304.4 302.7 310.8 298.8
Aggregates segment cash gross profit 592.8 597.6 593.6 591.3 573.2 557.1 575.7 600.3 608.8 625.3 636.1 643.6 705.5 756.1 807.6 897.0 968.4 1,021.1
Aggregate tons 141.0 142.1 145.3 145.8 143.0 142.2 143.0 146.8 147.6 147.4 148.6 146.2 150.9 160.7 172.6 190.8 204.3 217.4
Aggregates segment cash gross profit per ton 4.21 4.20 4.08 4.06 4.01 3.92 4.03 4.09 4.12 4.24 4.28 4.40 4.68 4.70 4.68 4.70 4.74 4.70
Q2
2008
Q1
2008
Q4
2007
Q3
2007
Q2
2007
Q1
2007
Q4
2006
Q3
2006
Q2
2006
Q1
2006
Q4
2005
Q3
2005
Q2
2005
Q1
2005
Q4
2004
Q3
2004
Q2
2004
Q1
2004
Aggregates segment gross profit 775.2 808.2 828.7 846.3 849.7 826.9 819.0 772.8 732.4 690.4 650.0 591.9 565.5 524.1 517.0 519.1 513.7 510.8
Agg. Depr., depl., accretion and amort. 283.2 266.4 246.9 228.3 220.8 213.1 210.3 205.1 203.0 202.7 206.4 197.7 194.4 191.8 191.1 191.1 191.8 192.6
Aggregates segment cash gross profit 1,058.4 1,074.6 1,075.6 1,074.6 1,070.4 1,040.0 1,029.3 977.8 935.3 893.1 856.4 789.7 759.9 715.9 708.1 710.2 705.5 703.4
Aggregates tons 224.4 228.5 231.0 234.5 239.8 246.7 255.4 258.8 263.6 265.3 259.5 255.0 252.6 245.8 242.3 240.8 239.5 236.2
Aggregates segment cash gross profit per ton 4.72 4.70 4.66 4.58 4.46 4.22 4.03 3.78 3.55 3.37 3.30 3.10 3.01 2.91 2.92 2.95 2.95 2.98
Generally Accepted Accounting Principles (GAAP) does not define "Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA)" and "cash gross profit." Thus, they should not be
considered as an alternative to any earnings measure defined by GAAP. We present these metrics for the convenience of investment professionals who use such metrics in their analysis, and for
shareholders who need to understand the metrics we use to assess performance and to monitor our cash and liquidity positions. The investment community often uses these metrics as indicators of a
company's ability to incur and service debt. We use cash gross profit, EBITDA and other such measures to assess the operating performance of our various business units and the consolidated
company. Additionally, we adjust EBITDA for certain items to provide a more consistent comparison of performance from period to period and provide the earnings per share (EPS) impact of these
for the convenience of the investment community. We do not use these metrics as a measure to allocate resources. Reconciliations of these metrics to their nearest GAAP measures are presented
below:
Trailing 12 Months
Aggregates Segment Cash Gross Profit
24. 24Investor Presentation, May 2013
Appendix – Simplified Geology Map
Below Geological Fall Line, Little or No Hard Rock Aggregates Reserves Suitable for Mining
Simplified Geology Map
25. 25Investor Presentation, May 2013
Appendix - Comprehensive Distribution Network to Serve Attractive
Markets With Limited Aggregates Reserves
4-5 truckloads per rail car
$0.04-0.12 per ton mile
65 truckloads per barge
$0.02-0.03 per ton mile
2,500 truckloads per ship
Less than $0.01 per ton mile Note: Per ton mile costs exclude loading and unloading.
Geological Fall Line
20-25 tons per truck
$0.15-0.35 per ton mile