Commercial Metals Company Results Presentation Deck
Well-Positioned to Benefit From Near-Term and Structural Trends
Sources of Stability
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Strong Downstream Backlog
Average pricing in downstream backlog has been
stable at historically high levels over the last four
quarters, following an extended period of repricing
higher as newer work came in at improved price levels
Current volume and pricing at historical highs
Expected to help stabilize CMC North America
earnings if steel product margins decline
Downstream Backlog Value
Trailing 3-month basis indexed to May CY 2021
180
170
160
150
140
130
120
110
100
CMC
MAY-21
JUN-21
JUL-21
AUG-21
SEP-22
OCT-22
DEC-22
NOV-22
JAN-22
FEB-22
APR-22
MAR-22
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• Flexibility to convert to cash, stabilizing CMC cash
flow in a more challenging environment
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Working Capital Release
CMC has invested roughly $800 million in working
capital since end of FY 2020
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Highly Flexible Operations Network
Ability to optimize production across facilities
and products in various demand scenarios
Product mix and operational enhancement in
Poland
MAY-22
JUN-22
JUL-22
Backlog value continued to
increase on a year-over-year basis
AUG-22
SEP-23
OCT-23
NOV-23
DEC-23
JAN-23
FEB-23
MAR-23
APR-23
MAY-23
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Sources of Growth
Arizona 2 Micro Mill
Operational start-up underway
Expected to add 500,000 tons of low-cost production
with ability to flex between rebar and merchant bar
Improves ability to capitalize on growing domestic
demand for rebar
Provides opportunity to further optimize mill and
fabrication network through production mix, logistics
improvements, and resource sharing
Tensar Acquisition
Strong value proposition that reduces construction cost
and duration
Underpenetrated markets expected to provide significant
organic growth opportunity
Meaningfully extends CMC's growth runway; creates a
platform for further expansion in high-margin engineered
solutions
• Highly complementary products used in early phase of
construction
Key construction indicators continue to point toward strength over the near-term. Looking further ahead, several structural trends are underway that
could provide meaningful tailwinds to activity. CMC is positioned well to capitalize on upside or respond to softness.
Q3 FY23 Supplemental Slides June 22, 2023
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