1. Our strategy is based on our strength.
Aggregates
Essential Material | Valuable Asset
Investor Presentation, February 2014
2. I M P O R T A N T D I S C L O S U R E N O T E S
This presentation contains forward-looking statements. Statements that are not historical fact, including statements about Vulcan's beliefs and
expectations, are forward-looking statements. Generally, these statements relate to future financial performance, results of operations, business
plans or strategies, projected or anticipated revenues, expenses, earnings (including EBITDA and other measures), dividend policy, shipment
volumes, pricing, levels of capital expenditures, intended cost reductions and cost savings, anticipated profit improvements and/or planned
divestitures and asset sales. These forward-looking statements are sometimes identified by the use of terms and phrases such as "believe," "should,"
"would," "expect," "project," "estimate," "anticipate," "intend," "plan," "will," "can," "may" or similar expressions elsewhere in this document. These
statements are subject to numerous risks, uncertainties, and assumptions, including but not limited to general business conditions, competitive
factors, pricing, energy costs, and other risks and uncertainties discussed in the reports Vulcan periodically files with the SEC.
Forward-looking statements are not guarantees of future performance and actual results, developments, and business decisions may vary
significantly from those expressed in or implied by the forward-looking statements. The following risks related to Vulcan's business, among others,
could cause actual results to differ materially from those described in the forward-looking statements: risks that Vulcan's intentions, plans and
results with respect to cost reductions, profit enhancements and asset sales, as well as streamlining and other strategic actions adopted by Vulcan,
will not be able to be realized to the desired degree or within the desired time period and that the results thereof will differ from those anticipated or
desired; uncertainties as to the timing and valuations that may be realized or attainable with respect to planned asset sales; those associated with
general economic and business conditions; the timing and amount of federal, state and local funding for infrastructure; the effects of the
sequestration on demand for our products in markets that may be subject to decreases in federal spending; changes in Vulcan’s effective tax rate; the
increasing reliance on technology infrastructure for Vulcan’s ticketing, procurement, financial statements and other processes could adversely affect
operations in the event such infrastructure does not work as intended or experiences technical difficulties; the impact of the state of the global
economy on Vulcan’s businesses and financial condition and access to capital markets; changes in the level of spending for private residential and
private nonresidential construction; the highly competitive nature of the construction materials industry; the impact of future regulatory or
legislative actions; the outcome of pending legal proceedings; pricing of Vulcan's products; weather and other natural phenomena; energy costs;
costs of hydrocarbon-based raw materials; healthcare costs; the amount of long-term debt and interest expense incurred by Vulcan; changes in
interest rates; the impact of Vulcan's below investment grade debt rating on Vulcan's cost of capital; volatility in pension plan asset values which may
require cash contributions to the pension plans; the impact of environmental clean-up costs and other liabilities relating to previously divested
businesses; Vulcan's ability to secure and permit aggregates reserves in strategically located areas; Vulcan's ability to manage and successfully
integrate acquisitions; the potential of goodwill or long-lived asset impairment; the potential impact of future legislation or regulations relating to
climate change or greenhouse gas emissions or the definition of minerals; and other assumptions, risks and uncertainties detailed from time to time
in the reports filed by Vulcan with the SEC. All forward-looking statements in this communication are qualified in their entirety by this cautionary
statement. Vulcan disclaims and does not undertake any obligation to update or revise any forward-looking statement in this document except as
required by law.
Safe Harbor
2Investor Presentation, February 2014
I M P O R T A N T D I S C L O S U R E N O T E S
This presentation contains forward-looking statements. Statements that are not historical fact, including statements about Vulcan's beliefs and
expectations, are forward-looking statements. Generally, these statements relate to future financial performance, results of operations, business
plans or strategies, projected or anticipated revenues, expenses, earnings (including EBITDA and other measures), dividend policy, shipment
volumes, pricing, levels of capital expenditures, intended cost reductions and cost savings, anticipated profit improvements and/or planned
divestitures and asset sales. These forward-looking statements are sometimes identified by the use of terms and phrases such as "believe," "should,"
"would," "expect," "project," "estimate," "anticipate," "intend," "plan," "will," "can," "may" or similar expressions elsewhere in this document. These
statements are subject to numerous risks, uncertainties, and assumptions, including but not limited to general business conditions, competitive
factors, pricing, energy costs, and other risks and uncertainties discussed in the reports Vulcan periodically files with the SEC.
Forward-looking statements are not guarantees of future performance and actual results, developments, and business decisions may vary
significantly from those expressed in or implied by the forward-looking statements. The following risks related to Vulcan's business, among others,
could cause actual results to differ materially from those described in the forward-looking statements: risks that Vulcan's intentions, plans and
results with respect to cost reductions, profit enhancements and asset sales, as well as streamlining and other strategic actions adopted by Vulcan,
will not be able to be realized to the desired degree or within the desired time period and that the results thereof will differ from those anticipated or
desired; uncertainties as to the timing and valuations that may be realized or attainable with respect to planned asset sales; those associated with
general economic and business conditions; the timing and amount of federal, state and local funding for infrastructure; the effects of the
sequestration on demand for our products in markets that may be subject to decreases in federal spending; changes in Vulcan’s effective tax rate; the
increasing reliance on technology infrastructure for Vulcan’s ticketing, procurement, financial statements and other processes could adversely affect
operations in the event such infrastructure does not work as intended or experiences technical difficulties; the impact of the state of the global
economy on Vulcan’s businesses and financial condition and access to capital markets; changes in the level of spending for private residential and
private nonresidential construction; the highly competitive nature of the construction materials industry; the impact of future regulatory or
legislative actions; the outcome of pending legal proceedings; pricing of Vulcan's products; weather and other natural phenomena; energy costs;
costs of hydrocarbon-based raw materials; healthcare costs; the amount of long-term debt and interest expense incurred by Vulcan; changes in
interest rates; the impact of Vulcan's below investment grade debt rating on Vulcan's cost of capital; volatility in pension plan asset values which may
require cash contributions to the pension plans; the impact of environmental clean-up costs and other liabilities relating to previously divested
businesses; Vulcan's ability to secure and permit aggregates reserves in strategically located areas; Vulcan's ability to manage and successfully
integrate acquisitions; the potential of goodwill or long-lived asset impairment; the potential impact of future legislation or regulations relating to
climate change or greenhouse gas emissions or the definition of minerals; and other assumptions, risks and uncertainties detailed from time to time
in the reports filed by Vulcan with the SEC. All forward-looking statements in this communication are qualified in their entirety by this cautionary
statement. Vulcan disclaims and does not undertake any obligation to update or revise any forward-looking statement in this document except as
required by law.
Safe Harbor
2Investor Presentation, February 2014 2
3. Notes
C O M P A N Y S N A P S H O T
95%
2013 Net Sales: $2.6 Billion
Largest U.S. Aggregates Producer
Vulcan-Served States
1. Strong Execution and
Operating Leverage
2. Best Asset Base for
Long-term Growth
3. Demand Recovery
Just Beginning
Aggregates-Led Value Creation
3Investor Presentation, February 2014
4. Notes
Earnings Improvement
EPS increased $0.58 per diluted share
Cash earnings increased 40%
EBITDA increased 14%
Aggregates Gross Profit Margin up 140 basis points
Volume and price up 3%
Cash gross profit per ton of $4.37, up 4%
Significant increase in Gross Profit from Non-aggregates
Improved Credit Metrics
Net Debt / EBITDA 5.0x, down from 5.8x in 2012
F I N A N C I A L R E S U L T S – 2 0 1 3 V S . 2 0 1 2
Continued Improvement in Earnings and Profitability
4
Note: Please see Non-GAAP reconciliations at the end of this presentation. Margin calculated using Net Sales.
Investor Presentation, February 2014
5. Notes
Note: Please see Non-GAAP reconciliations at the end of this presentation. Aggregates Gross Profit Margin calculated using Segment Total Revenues.
Adjusted EBITDA Margin
Aggregates Cash Gross Profit per Ton
Gross Profit Margin
Aggregates Gross Profit Margin
R E C E N T T R E N D S I N F U L L Y E A R F I N A N C I A L R E S U L T S
Strong Execution and Improving Operating Leverage
5Investor Presentation, February 2014
6. Notes
Profit
Enhancement
Plan
> $100 million
incremental EBITDA
run rate by mid 2013
Planned Asset
Sales
> $500 million in cash
Capital Structure
and Dividend
Reiterating
commitment to long-
standing practice
+ +
ANNOUNCED February 2012
ACCOMPLISHED as of February 2014
Increased Adjusted
EBITDA $116 million and
Adjusted EBIT $173
million
Raised $1 billion* in
proceeds and invested
more than $240
million to add
aggregates operations
and reserves.
Paid down almost
$800 million of debt
and improved credit
profile.*
*Following closing of asset sale transaction and completion of tender offer - each announced January 23, 2014. See Non-GAAP reconciliations at the end of this presentation.
I N I T I A T I V E S U P D A T E
Increased Profitability, Divestiture of Non-Strategic
Assets and Stronger Balance Sheet
6Investor Presentation, February 2014
7. Notes
*Full year 2013 results assuming both the sale of the Company’s Florida cement and concrete operations and the tender offer to purchase up to $500 million of senior notes had been
completed on January 1, 2013. See Non-GAAP reconciliations at the end of this presentation and Table G included as part of 4Q 2013 earnings release for additional information.
Gross Profit Margin Net Debt
EPS Continuing Ops, diluted Net Debt / Adjusted EBITDA
D I V E S T I T U R E A N D T E N D E R O F F E R U P D A T E – P R O F O R M A
Profitability and Capital Structure Enhanced
7Investor Presentation, February 2014
8. Notes
Note: Please see Non-GAAP reconciliations at the end of this presentation.
C A S H G R O S S P R O F I T P E R T O N O F A G G R E G A T E S
Already Strong Unit Profitability, Continuing to Expand
8Investor Presentation, February 2014
30% higher
than prior peak
in volumes
Trailing Twelve Month
Sales Volume
Cash Gross Profit per
Ton at Prior Peak in
Volume
9. Notes
B U S I N E S S S T R A T E G Y C O M P O N E N T S
Attractive
Long-Term
Growth
Leading
Reserve
Position
Favorable
Product Mix
15.0
Billion Tons of
Aggregates
Reserves
100%
Sales Tied to
Aggregates*
75%
Share of U.S.
Population
Growth
Source: Company 10-K Report. Represents sales to external customers of aggregates and Company’s downstream products that use aggregates.
*After closing of cement and concrete asset sale announced January 23, 2014.
Best Asset Base for Long-Term Growth
9Investor Presentation, February 2014
10. Notes
CA, FL and TX accounted for more than 40% of total sales in 2012. Source: Moody’s Analytics as of November 2013
VMC-Served States
75%
Population Growth
70%
63%
Household Formation
Employment Growth
CA,FL,TX
38%
43%
34%
Strategically Positioned in Attractive Markets
S H A R E O F T O T A L U . S . G R O W T H ( 2 0 1 0 – 2 0 2 0 )
10Investor Presentation, February 2014
11. Notes
Note: Historical performance is not a guarantee or assurance of future performance nor that previous results will be attained or surpassed.
*Industry = Producer Price Index for Aggregates reported by the U.S. Bureau of Labor Statistics. For comparison purposes, Vulcan price not freight adjusted.
+5.9%/yr
+4.9%/yrIndustry*
Vulcan
Favorable Demographics Contributes to Above-
Average Price Growth and Operating Leverage
A G G R E G A T E S P R I C E G R O W T H ( I N D E X , 2 0 0 3 = 1 0 0 )
11Investor Presentation, February 2014
12. Notes
Source: Company estimates of aggregates demand. Population data from Woods & Poole CEDDS.
Aggregate demand
significantly below
population trend line.
A G G R E G A T E S D E M A N D I N V U L C A N M A R K E T S ( 1 9 7 2 = 1 0 0 )
Favorable Growth Prospects Combined With Good
Operating Leverage
12Investor Presentation, February 2014
13. Notes
Source: Company estimates of aggregates demand.
U . S . A G G R E G A T E S D E M A N D ( M I L L I O N S O F T O N S )
Demand Growing Again, Led by Private Construction
13Investor Presentation, February 2014
14. Notes
U . S . A G G R E G A T E S D E M A N D – E N D M A R K E T S
Vulcan-Served Markets Expected to Grow Faster
Than Other Markets
14
Broad-based construction activity
Levels of affordability are high and inventory
levels are low
Vulcan markets growing faster than other
markets
Typical for this point in the demand cycle,
growth more geographically concentrated
Key Vulcan-served states, including TX, CA and
FL, account for most of the growth in contract
awards
Occupancy rates and rents increasing
Private Non-Residential Buildings
State fiscal condition improving.
State-led funding initiatives enacted in key states
MAP21 stable funding through FY 2014 and
expanded Federal direct loan program (TIFIA)
$85 billion of potential TIFIA projects – more
than 60% in Vulcan-served markets
Highways
At this point in the cycle, large projects are a key
component of demand
Large energy, refinery and industrial projects
located in key Vulcan-served markets
State fiscal condition improving
Increased funding for port and waterway
projects
Other Infrastructure
Investor Presentation, February 2014
Residential
15. Notes
Largest Reserve Base
Favorable Long-term
Growth Prospects
100% of Sales Tied to
Aggregates
Attractive Real Estate
Opportunities Possible
Strong Operating
Leverage
Superior Aggregates
Operations
End Markets
Recovering
Attractive Unit
Profitability in Aggregates
Initiatives Resetting Mid-
cycle EBITDA to New,
Higher Level
Benefits of Scale
Moderate Debt Maturity
Profile
Favorable Trends in
Private Construction
Activity Leading the Way
Each Major End Market
Expected to Grow in 2014
Well Positioned to Serve
Large Projects
State-led Funding
Initiatives Enacted in Key
Vulcan-Served States
Well Positioned to Capitalize on Market Recovery
V U L C A N ’ S V A L U E P R O P O S I T I O N - S U M M A R Y
15Investor Presentation, February 2014
17. Notes
Source: Company filings
Reconciliation of Non-GAAP Financial Measures
(Amounts in Millions $, Except Per Ton and Per Share Data)
A P P E N D I X
16Investor Presentation, February 2014
EBITDA
EBITDA is an acronym for Earnings Before Interest, Taxes, Depreciation and Amortization.
Aggregates Segment Cash Gross Profit
Aggregates segment cash gross profit adds back noncash charges for depreciation, depletion, accretion and amortization to gross profit.
Cash Earnings
Cash earnings adjusts EBITDA for net interest expense and current taxes.
YTD YTD YTD
EBITDA and Adjusted EBITDA 2013 2012 2011
Net earnings (loss) 24.4 (52.6) (70.8)
Provision (benefit) for income taxes (24.5) (66.5) (78.4)
Interest expense, net 201.7 211.9 217.2
Discontinued operations, net of tax (3.6) (1.3) (4.5)
EBIT 198.0 91.5 63.5
Plus: Depr., depl., accretion and amort. 307.1 332 361.7
EBITDA 505.1 423.5 425.2
Revenue amortized from deferred revenue (2.0) 0.0 0.0
Legal settlement 0.0 0.0 (46.4)
Restructuring charges 1.5 9.5 12.9
Exchange offer costs 0.0 43.4 2.2
Gain on sale of real estate and businesses (36.8) (65.1) (42.1)
Adjusted EBITDA 467.8 411.3 351.8
Net sales 2,628.7 2,411.2 2,406.9
Adjusted EBITDA margin 17.8% 17.1% 14.6%
YTD YTD
Cash Earnings 2013 2012
EBITDA 505.1 423.5
Less: Interest expense, net (201.7) (211.9)
Current taxes (9.7) (2.0)
Cash Earnings 293.7 209.6
Trailing 12 Months Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3
Aggregates Segment Cash Gross Profit 2013 2013 2013 2013 2012 2012 2012 2012 2011 2011 2011 2011 2010 2010 2010 2010 2009 2009
Aggregates segment gross profit 413.3 383.0 358.1 342.8 352.1 350.0 338.5 329.5 306.2 284.6 296.4 315.5 320.1 332.2 340.2 345.0 393.3 451.2
Agg. Depr., depl., accretion and amort. 224.8 226.3 229.2 234.2 240.7 247.7 255.1 261.8 267.0 272.5 279.3 284.8 288.6 293.1 295.9 298.6 303.9 304.9
Aggregates segment cash gross profit 638.1 609.3 587.3 577.1 592.8 597.6 593.6 591.3 573.2 557.1 575.7 600.3 608.8 625.3 636.1 643.6 697.1 756.1
Aggregate tons 145.9 143.6 140.2 139.4 141.0 142.1 145.3 145.8 143.0 142.2 143.0 146.8 147.6 147.4 148.6 146.2 150.9 160.7
Aggregates segment cash gross profit per ton 4.37 4.24 4.19 4.14 4.21 4.20 4.08 4.06 4.01 3.92 4.03 4.09 4.12 4.24 4.28 4.40 4.62 4.70
Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1
2009 2009 2008 2008 2008 2008 2007 2007 2007 2007 2006 2006 2006 2006 2005 2005 2005 2005
Aggregates segment gross profit 503.2 594.3 657.6 722.3 775.2 808.2 828.7 846.3 849.7 826.9 819.0 772.8 732.4 690.4 650.0 591.9 565.5 524.1
Agg. Depr., depl., accretion and amort. 304.4 302.7 299.8 298.8 283.2 266.4 248.0 228.3 220.8 213.1 206.6 205.1 203.0 202.7 201.6 197.7 194.4 191.8
Aggregates segment cash gross profit 807.6 897.0 957.4 1,021.1 1,058.4 1,074.6 1,076.7 1,074.6 1,070.4 1,040.0 1,031.1 977.8 935.3 893.1 828.7 789.7 759.9 715.9
Aggregates tons 172.6 190.8 204.3 217.4 224.4 228.5 231.0 234.5 239.8 246.7 255.4 258.8 263.6 265.3 259.5 255.0 252.6 245.8
Aggregates segment cash gross profit per ton 4.68 4.70 4.68 4.70 4.72 4.70 4.67 4.58 4.46 4.22 4.05 3.78 3.55 3.37 3.20 3.10 3.01 2.91
Net Sales
Gross profit
Earnings from continuing operations
Diluted earnings per share from continuing operation $0.16 $0.47
Additionally, we have presented the impact of the Florida area cement and conrete divestiture as well as the debt purchase to our 2013 full year operating results as if these transactions had
occurred on January 1, 2013. This information is provided to enable the reader to isolate the impact of these transactions.
2013 Operating Results
Adjusted for Divestiture and Debt Purchase
2,455.7
448.70.0(21.8)
Generally Accepted Accounting Principles (GAAP) does not define "Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA)," "aggregates segment cash gross profit" and "cash
earnings." Thus, they should not be considered as an alternative to any earnings measure defined by GAAP. We present these metrics for the convenience of investment professionals who use such
metrics in their analysis, and for shareholders who need to understand the metrics we use to assess performance. The investment community often uses these metrics as indicators of a company's
ability to incur and service debt. We use cash gross profit, EBITDA, cash earnings and other such measures to assess the operating performance of our various business units and the consolidated
company. Additionally, we adjust EBITDA for certain items to provide a more consistent comparison of performance from period to period. We do not use these metrics as a measure to allocate
resources. Reconciliations of these metrics to their nearest GAAP measures are presented below:
Divestiture
Debt
Purchase
(21.2) 20.1 62.1
2,628.7
426.9
173.0 0.0
As Reported Adjusted
20.8
18. Notes
A P P E N D I X – S I M P L I F I E D G E O L O G Y M A P
Below the Geological Fall Line, Little or No Hard
Rock Aggregates Reserves Suitable for Mining
17Investor Presentation, February 2014
19. Notes
Geological Fall Line
4-5 truckloads per rail car
$0.04-0.12 per ton mile
65 truckloads per barge
$0.02-0.03 per ton mile
2,500 truckloads per ship
Less than $0.01 per ton mile
20-25 tons per truck
$0.15-0.35 per ton mile
Note: Per ton mile costs exclude loading and unloading.
A P P E N D I X
Comprehensive Distribution Network to Serve
Attractive Markets With Reserves
18Investor Presentation, February 2014
20. Notes
A P P E N D I X
South Region Map
19Investor Presentation, February 2014
21. Notes
A P P E N D I X
Central Region Map
20Investor Presentation, February 2014
22. Notes
A P P E N D I X
East Region Map
21Investor Presentation, February 2014
23. Notes
A P P E N D I X
West Region Map
22Investor Presentation, February 2014
24. Notes
1200 Urban Center Drive
Birmingham, AL 35242-2545
Telephone: (205) 298-3000
Fax: (205) 298-2963
Other Information
A P P E N D I X
Shareholder Services:
(866) 886-9902 (toll free inside the U.S. and Canada)
(201) 680-6578 (outside the U.S. and Canada, may call collect)
(800) 231-5469 (TDD, hearing impaired)
Internet: computershare.com/investor
Investor Relations:
Mark Warren
Telephone: (205) 298-3191
Email: ir@vmcmail.com
Independent Auditors:
Deloitte & Touche LLP
Birmingham, Alabama
Registrar and Transfer Listing:
Computershare Shareowner Services LLC
Media Relations:
David Donaldson
Telephone: (205) 298-3220
Email: media@vmcmail.com
23Investor Presentation, February 2014