Strategies for Sustainable Growth and Resilience slide image

Strategies for Sustainable Growth and Resilience

Tailwinds and Expected EDGE Drivers by Region (Cont'd) 3.1% NORTH CENTRAL 2022 Revenue Mix¹1 11.9% O 43.9% Aggregates 19.6% Ready Mix Asphalt Contracting Services 21.5% Other Strong economic tailwinds: North Dakota is the fourth fastest growing state (2010- 2020) with population growth over 20% ■ Sioux Falls had a record year of building permit valuations in 2022 ■ The Bakken is getting busier and is a steady source of demand EDGE - Key Expected Drivers: New region president has brought renewed emphasis on bid strategies and to properly capitalize on our vertical integration capabilities 2018 acquisition of high-quality reserves in Sioux Falls market positions us for future growth ■ Increase exposure to aggregates and materials mix through targeted strategic partnerships to supply external contractors 46.8% ALL OTHER 2022 Revenue Mix¹ 13.4% O 14.9% 6.8% 18.1% Strong economic tailwinds: Aggregates Ready Mix Asphalt Contracting Services Other Population growth of ~16% in Texas over the past decade (2010-2020) has pressured infrastructure ■ Texas has one of the largest DOT budgets in the US Public work including those from State Highway departments insulates region from economic downturns EDGE - Key Expected Drivers: - Improve operating efficiencies and increase volumes from greenfield Honey Creek quarry which became operational in 2023 Utilize second unit train of aggregate cars for higher market share Leverage strong relationships, reputation for high quality and service to increase share in liquid asphalt All Other segment consists of Energy Services, Texas operations and corporate services Note: Pie chart numbers are rounded and may not sum to 100%. Other includes merchandise, transportation services and other products that individually are not considered to be a major line of business for the segment. 1 Reflects gross revenue breakdown by materials, contracting services and other. KNIFE RIVER 24
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