Vulcan Materials Investor Day Presentation Deck slide image

Vulcan Materials Investor Day Presentation Deck

Appendix -Non-GAAP Reconciliations EBITDA EBITDA is an acronym for "Earnings Before Interest, Taxes, Depreciation and Amortization and excludes discontinued operations. GAAP does not define EBITDA and it should not be considered as an alternative to earings measures defined by GAAP. We adjust EBITDA for certain items to provide a more consistent comparison of eamings performance from period to period. We use this metric to assess the operating performance of our business and as a basis for strategic planning and forecasting as we believe that it closely correlates to long-term shareholder value. EBITDA (dollars in millions) Net eamings (loss) attributable to Vulcan Income tax expense (benefit) Interest expense, net Loss (gain) on discontinued operations, net of tax Depreciation, depletion, accretion and amortization EBITDA Gain on sale of real estate and businesses, net Charges associated with divested operations Business development COVID-19 direct incremental costs One time employee bonuses Pension settlement charge Restructuring charges Recovery from legal settlement Exchange offer costs Adjusted EBITDA Return on Invested Capital (dollars in millions) Adjusted EBITDA Property, plant & equipment Goodwill Other intangible assets Fixed and intangible assets Current assets Less: Cash and cash equivalents Less: Current tax Adjusted current assets Current liabilities Less: Current maturities of long-term debt Less: Short-term debt Adjusted current liabilities Adjusted net working capital Average invested capital non invested capital TTM Q2 2022 $ 594.0 164.6 147.6 15.7 543.5 $ 1,465.3 $958.4 1.5 38.7 9.6 12.1 17.7 $1.545.1 YTD 2021 $1.451.3 $4,849.7 3,377.6 1.382.0 $9,609.3 $ 1,977.1 687.1 Return on Invested Capital We define "Retum on Invested Capital (ROIC) as Adjusted EBITDA for the trailing-twelve months divided by average invested capital (as illustrated below) during the trailing 5-quarters. Our calculation of ROIC is considered a non-GAAP financial measure because we calculate ROIC using the non-GAAP metric EBITDA. We believe that our ROIC metric is meaningful because it helps investors assess how effectively we are deploying our assets. Although ROIC is a standard financial metric, numerous methods exist for calculating a company's ROIC. As a result, the method we use to calculate our ROIC may differ from the methods used by other companies. 32.9 YTD 2017 1,257.1 771.8 112.8 659.0 $ 598.1 $10.2074 14.2% $601.2 (232.1) 291.1 (7.8) 306.0 (6.2) 18.1 3.1 6.7 1.9 $981.9 YTD 2017 $981.9 $3,541.7 3,104.2 866.4 $7,512.3 $1,481.4 506.5 974.9 503.1 114.5 TTM Q2 2012 388.6 $ 586.2 $8.098.5 12.1% S (78.2) (56.9) 210.1 0.7 348.2 $423.9 (60.5) 16.8 (20.9) 44.3 $403.7 Net Debt to Adjusted EBITDA Net Debt to Adjusted EBITDA is not a GAAP measure and should not be considered as an alterative to metrics defined by GAAP. We, the investment community and credit rating agencies use this metric to assess our leverage. Net debt subtracts cash and cash equivalents and restricted cash from total debt. Net Debt to Adjusted EBITDA (dollars in millions) Current maturities of long-term debt Short-term debt Long-term debt Total debt Less: Cash, cash equivalents, restricted cash Net debt Trailing-Twelve Months (TTM) Adjusted EBITDA Total debt to TTM Adjusted EBITDA Net debt to TTM Adjusted EBITDA Cash Gross Profit (in millions, except per ton data) Gross profit DDA&A Aggregates segment cash gross profit Units shipments-tons June 2022 0.5 176.0 3,873.7 $ 4,050.2 123.7 $ 3,926.5 $ 1,545.1 Aggregates segment gross profit per ton Aggregates segment cash gross profit per ton Aggregates freight-adjusted sales price per ton Aggregates freight-adjusted cash cost of sales per ton $ Aggregates Segment Cash Gross Profit and Cash Cost of Sales Aggregates segment cash gross profit adds back noncash charges for depreciation, depletion, accretion and amortization (DDA&A) to Aggregates segment gross profit. Aggregates segment cash gross profit per ton is computed by dividing Aggregates segment cash gross proft by tons shipped. Aggregates segment cash cost of sales per ton is computed by subtracting cash gross profit per ton from the freight-adjusted sales price for aggregates. We present these non-GAAP metrics as we believe they closely correlate to long-term shareholder value and we and the investment community use these metrics to assess the operating performance of our business. TTM Q2 2022 2.6 2.5 $ 1,343.4 406.2 $ 1,749.6 234.7 $ 5.72 $ 7.45 15.41 $ $ YTD 2017 S 854.5 245.2 $1,099.7 183.2 $ 4.66 $ 6.00 $ 13.06 $ 7.0 March 2022 $ 119.4 34.4 $ 153.8 21.4 $ 5.57 $ 7.18 $15.61 Vulcan Investor Day 2022 March 2021 $116.8 27.1 $143.9 19.4 $ 6.03 $ 7.43 $ 14.76 June 2022 $ 152.9 37.7 $190.6 22.3 $ 6.85 $ 8.54 $16.53 June 2021 S 136.3 28.1 $164.3 20.1 $ 6.76 $ 8.16 $15.05 6.89 90 Vulcan Mas Company
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