VMC investor handout

Our strategy is based on our strength.
Aggregates

Essential Material | Valuable Asset

Investor Presentation, November 2013

Investor Presentation

IMPORTANT DISCLOSURE NOTES
IMPORTANT DISCLOSURE NOTES

Safe Harbor
Safe Harbor

This presentation contains forward-looking statements. Statements that are not historical fact, including statements about Vulcan's beliefs and
This presentation contains forward-looking statements. Statements that relate historical fact, including statements about Vulcan's beliefs and
expectations, are forward-looking statements. Generally, these statementsare not to future financial performance, results of operations, business
expectations, are forward-looking statements. Generally, these earnings (including EBITDA and other measures), dividend policy, shipment
plans or strategies, projected or anticipated revenues, expenses, statements relate to future financial performance, results of operations, business
plans or pricing, levels of capital expenditures, intended cost reductions (including EBITDA and other measures), dividend policy, shipment
volumes, strategies, projected or anticipated revenues, expenses, earningsand cost savings, anticipated profit improvements and/or planned
volumes, pricing, levels of capital forward-looking statements are sometimes identified by the use of terms improvements and/or planned
divestitures and asset sales. Theseexpenditures, intended cost reductions and cost savings, anticipated profitand phrases such as "believe," "should,"
divestitures and asset sales. These forward-looking "intend," "plan," "will," "can," "may" or similar expressions phrases such as document. These
"would," "expect," "project," "estimate," "anticipate,"statements are sometimes identified by the use of terms andelsewhere in this"believe," "should,"
"would," "expect," "project," "estimate," "anticipate," "intend," "plan," "will," "can," but not limited expressions elsewhere in this competitive
statements are subject to numerous risks, uncertainties, and assumptions, including"may" or similarto general business conditions,document. These
statements are energy to numerous risks, uncertainties, and assumptions, the reports Vulcan periodically files with the SEC.
factors, pricing, subject costs, and other risks and uncertainties discussed inincluding 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
Forward-looking those expressed in guarantees of future performance statements. The following risks related to Vulcan's business, vary
significantly from statements are not or implied by the forward-looking and actual results, developments, and business decisions mayamong others,
significantly from those expressed in or implied by the forward-looking forward-looking statements: risks that Vulcan's intentions, among others,
could cause actual results to differ materially from those described in thestatements. The following risks related to Vulcan's business,plans and
could with actual to cost reductions, profit from those described in sales, as well as streamlining and other strategic actions adopted by and
resultscauserespectresults to differ materiallyenhancements and asset the forward-looking statements: risks that Vulcan's intentions, plansVulcan,
results be able to be realized to the desired degree or within and asset sales, period and that the results thereof will differ from those anticipated or
will not with respect to cost reductions, profit enhancements the desired timeas well as streamlining and other strategic actions adopted by Vulcan,
will not be able to be as to the timing and valuations within the realized or attainable with respect to planned asset sales; those associated with
desired; uncertaintiesrealized to the desired degree orthat may bedesired time period and that the results thereof will differ from those anticipated or
desired; uncertainties as to the timing and valuations that may be of federal, attainable with respect to infrastructure; the those of the
general economic and business conditions; the timing and amount realized or state and local funding forplanned asset sales;effects 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
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
increasing reliance on such infrastructure does for Vulcan’s ticketing, procurement, financial statements the other processes could adversely
operations in the event technology infrastructurenot work as intended or experiences technical difficulties; and impact of the state of the global affect
operations Vulcan’s businesses and financial condition and intended or experiences technical in the level the impact for private residential and
economy onin the event such infrastructure does not work as access to capital markets; changes difficulties; of spendingof the state of the global
economy on Vulcan’s construction; the highly competitive nature of the construction materials in the level of spending for private residential
private nonresidential businesses and financial condition and access to capital markets; changes industry; the impact of future regulatory or and
private nonresidential construction; the highly proceedings; pricing the construction materials industry; the impact phenomena; energy costs;
legislative actions; the outcome of pending legalcompetitive nature of of Vulcan's products; weather and other natural of future regulatory or
legislative actions; the outcome of pending legal proceedings; pricing of Vulcan's products; weather and other natural phenomena; changes in
costs of hydrocarbon-based raw materials; healthcare costs; the amount of long-term debt and interest expense incurred by Vulcan;energy costs;
costs of hydrocarbon-based raw materials; healthcare grade debt rating on Vulcan's debt and interest expense incurred by Vulcan; changes in
interest rates; the impact of Vulcan's below investmentcosts; the amount of long-termcost of capital; volatility in pension plan asset values which may
interest rates; the impact to the pension plans; the impact of debt rating on clean-up costs capital; volatility in pension plan asset values which
require cash contributionsof Vulcan's below investment grade environmental Vulcan's cost ofand other liabilities relating to previously divested may
require cash contributions to secure and plans; the impact of environmental clean-up costs and other liabilities relating to previously divested
businesses; Vulcan's ability to the pensionpermit aggregates reserves in strategically located areas; Vulcan's ability to manage and successfully
businesses; Vulcan's ability to secure goodwill or long-lived asset impairment; the potential impact of future legislation or regulations relating
integrate acquisitions; the potential ofand permit aggregates reserves in strategically located areas; Vulcan's ability to manage and successfully to
integrate acquisitions; the potential of goodwill or definition asset impairment; the assumptions, risks future legislation detailed from relating to
climate change or greenhouse gas emissions or the long-lived of minerals; and other potential impact of and uncertainties or regulations time to time
climate change or by Vulcan with emissions or the definition of minerals; in this communication risks and uncertainties detailed this cautionary
in the reports filed greenhouse gas the SEC. All forward-looking statementsand other assumptions, are qualified in their entirety by 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 except as
statement. Vulcan disclaims and does not undertake any obligation to update or revise any forward-looking statement in this documentcautionary
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.
required by law.

2
2

Notes
COMPANY SNAPSHOT

Industry-Leading Position in Aggregates

Vulcan-Served States

Our value proposition and
leading position is based
upon…
1. Favorable geographic footprint
that provides attractive longterm growth prospects
2. Largest proven and probable
reserve base
3. Operational expertise and
pricing discipline which provides
attractive unit profitability

2012 Net Sales: $2.4 Billion

Aggregates Facilities: 341

95%
Headquarters: Birmingham, AL

Ticker: VMC

Company 2012 10-K Report


3

Notes
BUSINESS STRATEGY

Aggregates-led Value Creation
Build and Hold Substantial Reserves


Used in virtually all types of public and private construction projects



Strategically located in high-growth markets that will require large amounts of aggregates



Aggregates operations require virtually no other raw material other than aggregates reserves

Coast-to-coast Footprint


Diversified regional exposure



Complementary asphalt, concrete and cement businesses in select markets



More opportunities to further enhance long-term earnings growth

Profitable Growth


95% of Sales are tied to aggregates



Tightly managed operational and overhead costs



Benefits of scale as the largest producer

Effective Land Management


Can lead to attractive real estate transactions


4

Notes
BUSINESS STRATEGY

Positioning the Business to Maximize Future
Earnings Growth

Strategically
Positioned

75%

Share of U.S.
Population
Growth

Leading
Reserve
Position

Unit
Profitability
Continues to
Grow

15.0

27%

Billion Tons
of Aggregates
Reserves

Higher than
peak-year in
volumes

Source: Company 2012 10-K Report. As of December 31, 2012 . Unit Profitability = Cash Gross Profit / Ton. See Non-GAAP reconciliation at end of presentation.


5

Notes
SHARE OF TOTAL U.S. GROWTH (2010 – 2020)

Strategically Positioned in Attractive Markets
Population Growth

VMC-Served States

CA,FL,TX

43%

69%

38%

62%

Household Formation

74%

33%

Employment Growth

CA, FL and TX accounted for more than 40% of total sales in 2012. Source: Moody’s Analytics as of June 2013


6

Notes
MOST RECENT FULL YEAR FINANCIAL RESULTS

Operating Leverage Driven by Higher Pricing and
Effective Cost Control
Gross Profit Margin

Adjusted EBITDA Margin
17.1%

13.9%

14.6%

11.8%

2011

2012

Aggregates Gross Profit Margin

2011

Aggregates Cash Gross Profit per Ton
$4.21

20.4%

17.7%

2011

2012

$4.01

2012

2011

2012

Note: Please see Non-GAAP reconciliations at the end of this presentation. Aggregates Gross Profit Margin calculated using Segment Total Revenues.


7

Notes
CURRENT YEAR FINANCIAL RESULTS–YTD SEPT. 30,2013

Margin Expansion and Earnings Improvement in Each
Operating Segment
Net Sales up 8% and Gross Profit up 21%


Broad-based improvement in aggregates pricing, up 3%



Aggregates volumes up 2%, despite extremely wet weather in 1H’13



Concrete and Cement volumes up 13% and 14% respectively

Gross Profit Margin up 180 basis points


Aggregates earnings up 11%



Non-aggregates earnings improvement of $24 million

EPS Improvement of $0.53 per diluted share
Improved Credit Metrics


Net Debt / EBITDA 4.5x, down from 6.9x

Note: Please see Non-GAAP reconciliations at the end of this presentation. Margin calculated using Net Sales.


8

Notes
CASH GROSS PROFIT PER TON OF AGGREGATES

Unit Profitability That Was Maintained Throughout the
Downturn, Now Beginning to Grow
2012 Profitability is higher than prior year and 32% higher than peak-year in volumes (2005)

Tons in Millions. Note: Please see Non-GAAP reconciliations at the end of this presentation.


9

Notes
AGGREGATES PRICE GROWTH (INDEX, 1992=100)

Vulcan Consistently Outperforms, Contributing to Higher
Unit Profitability

CAGR

’92-’02 ’02-’12

Vulcan

3.6%

6.4%

Industry*

2.8%

5.3%

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.


10

Notes
SAG EXPENSES

Reduced During the Downturn. Well Positioned to
Leverage ERP Investment and Shared Services

Total SAG down $115
million from 2007
(31% decrease)

Millions of $

Source: Company filings Note: 2007 SAG includes Florida Rock on a pro forma basis ($84.5M).


11

Notes
2012 CASH FLOW BRIDGE

De-Risking the Balance Sheet Through Higher Cash
Generation from Operations and Asset Sales
Sources of Cash
Uses of Cash

Operating activities, less debt
service costs, generated $121
million of cash in 2012

Progress on Planned Asset Sales
coincidently offset cash used for
debt maturities and exchange
offer defense costs

VPP = Volumetric Production Payment. Exchange Offer = Costs incurred as a result of an unsolicited exchange offer initiated by Martin Marietta Materials on December 12, 2011 and subsequently withdrawn in 2012.


12

Notes
BALANCE SHEET

Significant Financial and Operational Flexibility With
Limited Near-Term Maturities

Amounts in Millions, except ratios

Total Debt
Cash and Cash Equivalents
Net Debt

Net Debt / TTM EBITDA

2013

As of Sept 30
2012

2011

$ 2,524
246
$ 2,278

$ 2,813
243
$ 2,569

$ 2,821
152
$ 2,669

4.5

6.9

6.6

Favorable debt maturity profile with substantial liquidity


Minimal maturities of $150 million over the next three years



$500 million line of credit (1)

Limited financial covenants

(1) Line

of credit is an Asset Based Lending facility: $500 million 5 year facility expiring March 2018.


13

Notes
AGGREGATES DEMAND IN VULCAN MARKETS (1972=100)

Vulcan’s Key Markets Are Leveraged to Favorable LongTerm Growth Prospects

Aggregate demand
significantly below
population trend line.

Source: Company estimates of aggregates demand using data from Woods & Poole CEDDS.


14

Notes
U.S. AGGREGATES DEMAND (MILLIONS OF TONS)

Privately Funded Construction Accounts for Most of
the Cyclicality

Source: Company estimates of aggregates demand.


15

Notes
U.S. HOUSING STARTS

Growth Bodes Well for Continued Recovery in Our Markets
Year-over-Year % Change in TTM – September 2013

Notes: States sorted high to low by largest absolute change in TTM housing starts.. For example, of the Vulcan-served states shown, FL had the largest absolute change and TX the next largest.
Source: McGraw-Hill and Company Estimates. TTM = Trailing Twelve Months. Includes both Single-family and Multi-family


16

Notes
U.S. PRIVATE NONRESIDENTIAL

Growth in Residential is Helping Drive Growth in Private
Nonresidential Buildings

YoY Chg. TTM
Housing +23%
Private NR +10%

Source: McGraw-Hill and Company Estimates. TTM = Trailing Twelve Months.


17

Notes
PRIVATE NONRESIDENTIAL

Another Leading Indicator, the ABI, Has Remained Above
50 for 11 of the Last 12 Months
Architectural Billing Index – Monthly Value
A value greater than 50
indicates an increase in
billing activity from the
prior month.

Note: The Architectural Billings Index (ABI) is a diffusion index derived from the monthly Work-on-the-Boards Survey conducted by the AIA Economics & Market Research Group


18

Notes
PUBLIC CONSTRUCTION - HIGHWAYS

More Stabile and Predictable Funding Environment Leads
to Improving Construction Activity
Growth in TTM Contract Awards for New Highway Projects


U.S. +7% and Vulcan-served states +11%

Growth in Obligation of Regular Highway Program Funds


Obligated $ greater than any year since 2009 (last year of SAFETEA-LU)

Increased State-led Highway Funding Initiatives
TIFIA Funding Authorization Expanded in MAP-21


$1.75 billion of funding authorization could support up to $50 billion of new
construction 1

As of June 2013. Sources: The American Road & Transportation Builders Association, McGraw-Hill and Company Estimates.


1

U.S. Department of Transportation Secretary July 27, 2012

19

Notes
PUBLIC CONSTRUCTION

Vulcan States Should Get a Disproportionate Number of
TIFIA-funded Projects
$74Bn of Potential
Projects Submitted

12 projects
$14 billion

>60%
Share of Total Project $
in Vulcan Markets

5 projects
$9 billion

3 projects
$3 billion

4 projects
$3 billion

 Enacted in 1998 to provide Federal credit assistance
for eligible transportation projects and stimulate private
capital investment.
 Each dollar put into TIFIA can provide approximately
$10 in loans and support up to $30 in infrastructure
investment.
 MAP-21 Funding Authorization: $1.75 billion over
two years (FY’13 & FY’14). Signed into law July 2012.


14 projects
$13 billion

LA, FL and GA
4 projects
$4 billion
59 projects submitted for approval as of August 2013 totaling $74 billion. Includes FY 2011-FY 2013

20

Notes
SUMMARY – VULCAN’S VALUE PROPOSITION

Well Positioned to Capitalize on Market Recovery

Superior Aggregates
Operations

Strong Operating
Leverage

 Largest reported reserve
base

 Attractive unit
profitability

 Favorable long term
growth prospects

 Cost reduction initiatives
resetting mid-cycle
EBITDA to new, higher
level

 Benefits of scale
 Operational expertise and
pricing growth
 Attractive real estate
opportunities


 Favorable trends in
private construction
activity

De-Risked Balance
Sheet
 Substantial liquidity
 Moderate debt maturity
profile
 Commitment to
strengthening balance
sheet
 Commitment to restore a
meaningful dividend

 New multi-year Federal
Highway Bill

21

Supplemental Information Follows

Notes
APPENDIX

Reconciliation of Non-GAAP Financial Measures
Amounts in millions of dollars, except per ton data
Generally Accepted Accounting Principles (GAAP) does not define "Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA)" and "aggregates segment cash gross profit."
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 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:
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.

EBITDA and Adjusted EBITDA
Net earnings (loss)
Provision (benefit) for income taxes
Interest expense, net
Discontinued operations, net of tax
EBIT

YTD
YTD
12/31/12 12/31/11
(52.6)
(66.5)
211.9
(1.3)
91.5

(70.8)
(78.4)
217.2
(4.5)
63.5

Plus: Depr., depl., accretion and amort.

332.0

361.7

EBITDA
Legal settlement

Restructuring charges
Exchange offer costs
Gain on sale of real estate and businesses
Adjusted EBITDA

423.5
9.5
43.4
(65.1)
411.3

425.2
(46.4)
12.9
2.2
(42.1)
351.8

Trailing 12 Months EBITDA
Net earnings (loss)
Provision (benefit) for income taxes
Interest expense, net
Discontinued operations, net of tax
Depr., depl., accretion and amort.
EBITDA

Q3
2013

Q3
2012

Q3
2011

18.9
(21.2)
205.7
(3.6)
309.2
509.0

(83.9)
(97.7)
212.4
(0.4)
341.4
371.8

(89.7)
(76.2)
210.1
(5.5)
366.4
405.1

Trailing 12 Months
Aggregates Segment Cash Gross Profit
Aggregates segment gross profit
Agg. Depr., depl., accretion and amort.
Aggregates segment cash gross profit
Aggregate tons
Aggregates segment cash gross profit per ton

Q4
2012

Q3
2012

Q2
2012

Q1
2012

Q4
2011

Q3
2011

Q2
2011

Q1
2011

Q4
2010

Q3
2010

Q2
2010

Q1
2010

Q4
2009

Q3
2009

Q2
2009

Q1
2009

352.1
240.7
592.8
141.0
4.21

350.0
247.7
597.6
142.1
4.20

338.5
255.1
593.6
145.3
4.08

329.5
261.8
591.3
145.8
4.06

306.2
267.0
573.2
143.0
4.01

284.6
272.5
557.1
142.2
3.92

296.4
279.3
575.7
143.0
4.03

315.5
284.8
600.3
146.8
4.09

320.1
288.6
608.8
147.6
4.12

332.2
293.1
625.3
147.4
4.24

340.2
295.9
636.1
148.6
4.28

345.0
298.6
643.6
146.2
4.40

393.3
303.9
697.1
150.9
4.62

451.2
304.9
756.1
160.7
4.70

503.2
304.4
807.6
172.6
4.68

594.3
302.7
897.0
190.8
4.70

Aggregates segment gross profit
Agg. Depr., depl., accretion and amort.
Aggregates segment cash gross profit
Aggregates tons
Aggregates segment cash gross profit per ton

Q4
2008
657.6
299.8
957.4
204.3
4.68

Q3
Q2
Q1
Q4
Q3
Q2
Q1
Q4
Q3
2008
2008
2008
2007
2007
2007
2007
2006 2006
722.3
775.2
808.2
828.7
846.3
849.7
826.9
819.0 772.8
298.8
283.2
266.4
248.0
228.3
220.8
213.1
206.6 205.1
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
217.4
224.4
228.5
231.0
234.5
239.8
246.7
255.4 258.8
4.70
4.72
4.70
4.67
4.58
4.46
4.22
4.05 3.78

Q2
2006
732.4
203.0
935.3
263.6
3.55

Q1
2006
690.4
202.7
893.1
265.3
3.37

Q4
2005
650.0
201.6
828.7
259.5
3.20

Q3
2005
591.9
197.7
789.7
255.0
3.10

Q2
2005
565.5
194.4
759.9
252.6
3.01

Q1
2005
524.1
191.8
715.9
245.8
2.91

Source: Company filings


22

Notes
APPENDIX – SIMPLIFIED GEOLOGY MAP

Below the Geological Fall Line, Little or No Hard Rock
Aggregates Reserves Suitable for Mining


23

Notes
APPENDIX

Comprehensive Distribution Network to Serve Attractive
Markets With Reserves
65 truckloads per barge
$0.02-0.03 per ton mile

Geological Fall Line

4-5 truckloads per rail car
20-25 tons per truck

2,500 truckloads per ship
Less than $0.01 per ton mile

Note: Per ton mile costs exclude loading and unloading.

24

Notes
APPENDIX

South Region Map


25

Notes
APPENDIX

Central Region Map


26

Notes
APPENDIX

East Region Map


27

Notes
APPENDIX

West Region Map


28

Notes
APPENDIX

Other Information

Registrar and Transfer Listing:
Computershare Shareowner Services LLC
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
Independent Auditors:
Deloitte & Touche LLP
Birmingham, Alabama
Investor Relations:
Mark Warren
Telephone: (205) 298-3191
Email: ir@vmcmail.com
Media Relations:
David Donaldson
Telephone: (205) 298-3220
Email: media@vmcmail.com


1200 Urban Center Drive
Birmingham, AL 35242-2545
Telephone: (205) 298-3000
Fax: (205) 298-2963

29

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