Commercial Metals Company Investor Presentation Deck
Resilience Is Built Into Our Business Model
CMC's vertical operating structure reduces volatility in both earnings and cash flows.
• Backlog is currently at historically high volume and
pricing levels, which should translate into strong
average realized shipping price for several more
quarters
●
Expected to help stabilize CMC North America
earnings if steel product margins decline
• Project backlog has historically not experienced
cancellations, even during extreme events such as
the Great Financial Crisis or COVID pandemic
North America Product Margins Over Scrap Cost per Ton
Q4 '22 Q4 '23 $800
$1,200
$1,000
$800
$600
$400
$200
$0
Q3 '19
Q4 '19
Downstream Products Margin Over Scrap (left-axis)
Steel Products Margin Over Scrap (right-axis)
Q1 '20
CMC
Q2 '20
Q3 '20
Strong Downstream Backlog
Q4 '20
'21
Q3 '21
¹22
Q4 '21
[1] Source: Company filings
'23
$600
$400
$200
$0
Earnings Support In Declining Steel Market Environment
(Downstream backlog provides a counter-balance to spot sales)
Earnings from mill
spot steel sales
NA Adjusted EBITDA per Ton of Finished Steel Shipped
$400
Q4 '23
Q4 '22
327
327
$350
$300
$250
$200
$150
$100
$50
$0
Q3 '19
Q4 '19
Q1 '20
Q2 '20
Q3 '20
Q4 '20
Q1 '21
Q2 '21
Q3 '21
Q4 '21
Earnings from fixed
price downstream
sales
Q1 '22
Q2 '22
Q3 '22
Q4 '22
Q1 '23
Q2 '23
Q3 '23
Q4 '23
Working Capital Release
• Working capital investment during the current pricing
upcycle has been significant
In the case of a downturn, or pricing downcycle, a
large amount of cash will be harvested
• Net impact is to stabilize CMC's cash flows during
economic volatility
Net Working Capital Investment Since Cycle Low¹ (Q4 2020)
1,200
1,000
800
600
400
200
0
●
$ - Millions
Q4-20
Q1-21
Q2-21
Q3-21
Q4-21
dou
Q1-22
Q2-22
Q3-22
Q4-22
Q1-23
Q2-23
CMC: Investor Overview
Q3-23
9
806
Highly
Flexible Operations Network
Ability to optimize production across facilities and
products in various demand scenarios
Q4-23View entire presentation