Strategies for Sustainable Growth and Resilience slide image

Strategies for Sustainable Growth and Resilience

Designed for Resilience Across Cycles Strategically diversified customer base and business mix to ensure resilience through down cycles REVENUE GROWTH, PEAK TO TROUGH (2007-2012)1 EBITDA MARGIN, PEAK TO TROUGH (2007-2012)1 Knife River Peer Group Median Knife River Peer Group Median (18%) (23%) (38%) (43%) Peer Range (480)bps (760)bps (840)bps Peer Range (1,460)bps Source: Company filings. Peers used for comparison: Granite Construction, Martin Marietta Materials, US Concrete, Vulcan Materials (Excludes peers that were not public over this time period) Note: EBITDA, Adj. EBITDA and Cash Flow are non-GAAP measures, see Appendix for reconciliation. If available used EBITDA or Adjusted EBITDA as reported by peers; and calculated for Knife River (Operating Income + DD&A), Granite Construction (Operating Income + DD&A + Restructuring charge), Vulcan Materials' 2007 revenue and Adjusted EBITDA are pro forma adjusted for acquisition of Florida Rock per company filings. 1 Figures represent the difference between peak and trough values for companies during the years 2007-2012. KNIFE RIVER 41
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