1st qtrearningsresults13

First Quarter 2013 Earnings Results

Earnings Conference Call, May 2, 2013

1Q 2013 Earnings Results – May 2, 2013 2

This document 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 intended 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; the impact of a prolonged economic recession on Vulcan's industry, business and financial condition and access to capital markets; changes in the level of spending for private residential and 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 Vulcan’s effective tax rate; 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; Vulcan’s increasing reliance on information technology; the potential of goodwill 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.

Important Disclosure Notes – Forward Looking Statements

1Q 2013 Earnings Results – May 2, 2013

First Quarter Highlights Business segments in line with expectations, outlook reaffirmed

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• Shipment levels in line with our expectations

• Broad-based improvement in aggregates pricing, up 5 percent overall

• Higher TTM cash gross profit per ton of aggregates, despite a 5 percent decline in first quarter shipments

• Non-aggregates gross profit improved $5 million • Trends in private sector construction continue to improve

• Contract awards for public highways, a leading indicator of future

construction activity, turned positive in the first quarter


First Quarter Aggregates Volumes Last year’s unseasonably mild winter distorts year-over-year comparisons

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Vulcan Operations in:

YoY % Volume Chg.

Precipitation / Temperature

1Q’13 1Q’12 1Q’13 1Q’12 1Q’11

East Coast & Central U.S. (16%) +9% Wet / Normal

Dry / Warm

Dry / Normal

Gulf Coast, Southwest & West U.S. +13% +13%

Dry / Normal

Dry / Warm

Dry / Normal

Total (5%) +10%

Source: Temperature and Precipitation from National Climatic Data Center


Aggregates Performance Higher unit profitability despite 5 percent decline in volumes

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Trailing Twelve Months Cash Gross Profit Per Ton of Aggregates

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

+2%


Non-Aggregates Performance Concrete and cement volumes recovering from cyclical lows

• Gross profit improved in each of the 3 segments. • Concrete and Cement segments have benefitted from increased private construction activity. • Asphalt materials margin increased 19 percent versus prior year.

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Year-Over-Year Change in First Quarter Volumes

-4%

6%

14%

Asphalt Tons Concrete Cyds Cement Tons


Amounts in Millions, except ratios 2013 2012 2011

Total Debt 2,666$ 2,814$ 2,733$ Cash and Cash Equivalents 188$ 191$ 63$ Net Debt 2,478$ 2,623$ 2,670$

Net Debt / TTM Adjusted EBITDA 6.4 6.7 7.5 Net Debt / Total Capital 38.8% 40.0% 40.3%

As of March 31

Balance Sheet Strengthening the balance sheet through debt reduction

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End Markets - Residential Most Vulcan-Served states have seen double-digit increases in starts

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Trailing Twelve Months of Total Starts, including Single-family and Multi-family. Source: McGraw-Hill and Company Estimates

• TTM U.S. housing starts up 27% versus the prior year • Vulcan-served states now account for more than 60% of all starts • TX, FL and CA starts more than next 10 states combined


End Markets – Private Nonresidential ABI has been above 50 for 8 consecutive months

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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. A value greater than 50 indicates an increase in activity.


End Markets – Private Nonresidential Contract awards in the U.S. up 16% year-over-year, with room to grow

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


End Markets - Highways MAP-21 beginning to provide stability and predictability in highways

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Source: McGraw-Hill and Company Estimates

First increase since January 2011

ARRA Signed into Law - Feb’09

SAFETEA-LU Expires September ’09. No Federal Hwy Bill MAP21 – July ’12


Full Year 2013 Outlook – Commentary On track for earnings improvement

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• Demand from private construction expected to grow, led by residential • Residential demand should increase approximately 20 percent • Private nonresidential demand should increase 8 percent

• Aggregates volume up 1 to 5 percent • In line with prior guidance • Growth weighted towards 2H of 2013 • Driven mostly by continued recovery in private construction

• Aggregates pricing up approximately 4 percent • Broad-based pricing gains expected to continue

• Earnings improvement expected in each non-aggregates segment

Question & Answer Session


Reconciliation of Non-GAAP Measures

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Source: Company filings

Reconciliation of Non-GAAP Financial MeasuresAmounts in millions of dollars, except per ton data

EBITDAEBITDA is an acronym for Earnings Before Interest, Taxes, Depreciation and Amortization.

Aggregates Segment Cash Gross ProfitAggregates segment cash gross profit adds back noncash charges for depreciation, depletion, accretion and amortization to gross profit.

Q12013

Q12012

Q1 2011

EBITDA and Adjusted EBITDANet earnings (loss) (55.3) (68.0) (112.4)Provision (benefit) for income taxes (66.9) (79.5) (92.9)Interest expense, net 212.4 227.3 179.7Discontinued operations, net of tax (3.1) 0.4 (10.2)

EBIT 87.1 80.2 (35.8)

Plus: Depr., depl., accretion and amort. 322.3 356.2 378.4

EBITDA 409.4 436.4 342.6Legal Settlement 0.0 (20.9) 14.5Restructuring charges 9.5 14.1 0.0Exchange offer costs 33.2 12.3 0.0Gain on sale of real estate and businesses (62.3) (48.2) 0.0

Adjusted EBITDA 389.9 393.7 357.1

Q12013

Q4 2012

Q32012

Q22012

Q12012

Q42011

Q32011

Q2 2011

Q1 2011

Q4 2010

Q3 2010

Q2 2010

Q1 2010

Q4 2009

Q3 2009

Q2 2009

Q1 2009

Q4 2008

Q32008

Aggregates Segment Cash Gross ProfitAggregates segment gross profit 342.8 352.1 350.0 338.5 329.5 306.2 284.6 296.4 315.5 320.1 332.2 340.2 345.0 393.3 451.2 503.2 594.3 657.6 722.3Agg. Depr., depl., accretion and amort. 234.2 240.7 247.7 255.1 261.8 267.0 272.5 279.3 284.8 288.6 293.1 295.9 298.6 312.2 304.9 304.4 302.7 310.8 298.8

Aggregates segment cash gross profit 577.1 592.8 597.6 593.6 591.3 573.2 557.1 575.7 600.3 608.8 625.3 636.1 643.6 705.5 756.1 807.6 897.0 968.4 1,021.1Aggregate tons 139.3 141.0 142.1 145.3 145.8 143.0 142.2 143.0 146.8 147.6 147.4 148.6 146.2 150.9 160.7 172.6 190.8 204.3 217.4

Aggregates segment cash gross profit per ton 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 4.68 4.70 4.68 4.70 4.74 4.70

Q22008

Q12008

Q42007

Q32007

Q22007

Q12007

Q42006

Q3 2006

Q2 2006

Q1 2006

Q4 2005

Q3 2005

Q2 2005

Q1 2005

Q4 2004

Q3 2004

Q2 2004

Q1 2004

Aggregates segment gross profit 775.2 808.2 828.7 846.3 849.7 826.9 819.0 772.8 732.4 690.4 650.0 591.9 565.5 524.1 517.0 519.1 513.7 510.8Agg. Depr., depl., accretion and amort. 283.2 266.4 246.9 228.3 220.8 213.1 210.3 205.1 203.0 202.7 206.4 197.7 194.4 191.8 191.1 191.1 191.8 192.6

Aggregates segment cash gross profit 1,058.4 1,074.6 1,075.6 1,074.6 1,070.4 1,040.0 1,029.3 977.8 935.3 893.1 856.4 789.7 759.9 715.9 708.1 710.2 705.5 703.4Aggregates tons 224.4 228.5 231.0 234.5 239.8 246.7 255.4 258.8 263.6 265.3 259.5 255.0 252.6 245.8 242.3 240.8 239.5 236.2

Aggregates segment cash gross profit per ton 4.72 4.70 4.66 4.58 4.46 4.22 4.03 3.78 3.55 3.37 3.30 3.10 3.01 2.91 2.92 2.95 2.95 2.98

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:

Trailing 12 Months

Trailing 12 Months

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