Investor Presentation, March 2013

Investor Presentation March 2013

Our strategy is based on our strength

Aggregates Essential Material | Valuable Asset

2 Investor Presentation, March 2013

Important Disclosure Notes

Certain matters discussed in this presentation, including expectations regarding future performance, contain forward-looking statements that are subject to assumptions, risks and uncertainties that could cause actual results to differ materially from those projected. These assumptions, risks and uncertainties include, but are not limited to, those associated with: cost reductions, profit enhancements and asset sales, as well as streamlining and other strategic actions we adopted will not be able to be realized to the desired degree or within the desired time period and that the results there of 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; general economic and business conditions; the impact of a prolonged economic recession on our 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 our 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 the Company; changes in Vulcan’s effective tax rate; changes in interest rates; the impact of our below investment grade debt rating on our 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; the Company’s ability to secure and permit aggregates reserves in strategically located areas; the Company’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 Company’s SEC reports, including the report on Form 10-K for the year. Forward-looking statements are made as of the date hereof, and Vulcan assumes no obligation to publicly update such statements.


Company Snapshot Vulcan is the Leading Aggregates Producer in the U.S.

95% 2012 Net Sales: $2.4 Billion Aggregates Facilities: 341

Headquarters: Birmingham, AL Ticker: VMC

Company 2012 10-K Report

Vulcan-Served States

Our leading position in aggregates is based on…

1. Favorable geographic footprint that provides attractive long-term growth prospects

2. Largest proven and probably reserve base

3. Operational expertise and pricing discipline which provides attractive unit profitability


Positioning the Business to Maximize Future Earnings Growth

Strategically Positioned

Leading Reserve Position

Unit Profitability

Continues to Grow

75% Share of U.S. Population Growth

27% Higher than peak-year in volumes

15.0 Billion Tons of Aggregates Reserves

Unit Profitability = Cash Gross Profit / Ton. See Non-GAAP reconciliation at end of presentation.


Aggregates-Led Value Creation

95%

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 to meet construction demand 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 manage portfolio of locations to further enhance

long-term earnings growth

Profitable Growth Tightly managed operational and overhead costs Benefits of scale as the largest producer

Effective Land Management Can lead to attractive real estate transactions

95 Percent

Sales Tied to Aggregates


Source: Moody’s Analytics as of November 2012

Share of Total U.S. Growth – 2010 to 2020 Vulcan’s Aggregates Assets are Strategically Positioned in Attractive Markets

75% in VMC-served states




2012 F(U)Amounts in Millions, except EPS 2012 2011 vs. 2011

Net Sales 2,411$ 2,407$ 4$

Gross Profit 334$ 284$ 50$ % Margin 13.9% 11.8% 2.1 pts

SAG 259$ 290$ 31$

EBITDA 423$ 425$ (2)$

Adjusted EBITDA1 411$ 352$ 59$ % Margin 17.1% 14.6% 2.5 pts

EPS from Cont. Ops, diluted (0.42)$ (0.58)$ 0.16$ Adjusted EPS1 from Cont. Ops, diluted (0.47)$ (0.93)$ 0.46$

Full Year

Recent Financial Results Demonstrate Operating Leverage Margin Expansion and Earnings Improvement on Flat Revenues

Note: Please see Non-GAAP reconciliations at the end of this presentation. Margin calculated using Net Sales. 1 Adjusted to exclude gain on sale of real estate and businesses, recovery from a legal settlement, exchange offer and restructuring costs.


$4.01

$4.21

2011 2012

17.7%

20.4%

2011 2012

11.8%

13.9%

2011 2012

14.6%

17.1%

2011 2012

Recent Financial Results Demonstrate Operating Leverage Increase in Profitability Driven by Higher Pricing and Effective Cost Control

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


Attractive Profitability Unit Profitability That Was Maintained Throughout the Downturn, Now Beginning to Grow

2012 profitability is higher than prior year and 27% higher than peak-year in

volumes (2005)

Trailing Twelve Months Cash Gross Profit Per Ton of Aggregates

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


Track Record for Price Growth Vulcan Consistently Outperforms, Contributing to Higher Unit Profitability

Aggregates Price Growth Index, 1992 = 100

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

6.4%

5.3%

CAGR ’92-’02 ’02-’12

Industry*

Vulcan 3.6%

2.8%


SAG Expenses Have Been Reduced During the Downturn Well Positioned to Leverage ERP Investment and Shared Services Platforms

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).


De-Risked Balance Sheet Higher Cash Generated from Operations and Asset Sales

2012 Cash Flow Bridge 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.


De-Risked Balance Sheet Significant Financial and Operational Flexibility With Limited Near-Term Maturities

(1) Line of credit is an Asset Based Lending facility: $600 million 5 year facility expiring December 2016.

Favorable debt maturity profile with substantial liquidity:

— Minimal maturities of $290 million over the next three years

― $275 million cash on hand with no borrowing on $600 million line of credit (1)

Debt maturities to be funded from available cash and free cash flows

Limited financial covenants

Debt Maturity Profile (Millions $)

Amounts in Millions, except ratios 2012 2011 2010

Total Debt 2,677.0$ 2,815.4$ 2,718.3$ Cash and Cash Equivalents 275.5 155.8 47.5 Net Debt 2,401.5$ 2,659.6$ 2,670.8$

Net Debt / Adjusted EBITDA 5.8 7.6 7.2

As of December 31

Debt Summary


Aggregates Demand Vulcan’s Key Markets Leveraged to Favorable Long Term Growth Prospects

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

2012 aggregate demand 47% below population trend line.


Aggregates Demand Privately funded construction accounts for most of the cyclicality

Source: Company estimates of aggregates demand.


Private Construction – Residential Growth Bodes Well for Continued Recovery in Our Markets…


Private Construction – Residential …Evident by the Significant Growth in Housing Starts in These Key Vulcan-Served States

Source: McGraw-Hill and Company Estimates


Private Construction – Nonresidential Growth in Residential is Helping Drive Growth in Private Nonresidential Buildings


Private Construction – Nonresidential Buildings Important End Use Categories Like Stores and Office Buildings Growing Again

Source: McGraw-Hill and Company Estimates


Public Construction – Other Public Infrastructure Supported by Large Projects Through the Downturn, Contract Awards Have Turned Positive


Public Construction – Highways Passage of Federal Highway Bill Should Provide Stability and Predictability to Funding


Public Construction - Highways Obligation of Federal Highway Funds is Beginning to Grow

Obligation of Federal Highway Funds for New Projects Through January of Fiscal Year (Billions $)

Obligation of Federal Highway Funds in the

Regular Highway Program are again growing - up

58% versus the prior year

Obligation - FHWA obligates the federal government to pay its share of the cost for an eligible project under the federal-aid highway program. The project can then proceed to bidding and construction Fiscal Year ends September 30. Source: ARTBA and FHWA


Public Construction – Highways Vulcan states should get a disproportionate number of TIFIA-funded projects

Potential TIFIA Projects in Vulcan-Served Counties

From the Fall of 2011 to January 2013, Letters of Interest (LOIs) totaling $77 billion have been

filed. Of these LOIs, 43 projects totaling $49 billion, or 64%, are

located in Vulcan-served counties.

Enacted in 1998 to provide Federal credit assistance for eligible transportation projects and stimulate private capital investment. Since enactment, 13 states and the District of Columbia have used $9.2 billion of TIFIA credit assistance to help fund more than $36 billion in projects (mostly large-scale highway projects).


Attractive unit profitability

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

Favorable trends in private construction activity

New multi-year Federal Highway Bill

Vulcan’s Value Proposition Well Positioned to Capitalize on Market Recovery

Superior Aggregates Operations

Strong Operating Leverage

De-Risked Balance Sheet

Largest reported reserve base

Favorable long term growth prospects

Benefits of scale

Operational expertise and pricing growth

Attractive real estate opportunities

Substantial liquidity

Moderate debt maturity profile

Commitment to strengthening balance sheet

Commitment to restore a meaningful dividend


Appendix - Reconciliation of Non-GAAP Financial Measures

Source: Company filings

Amounts in millions of dollars, except per share data

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

Cash gross profitCash gross profit adds back noncash charges for depreciation, depletion, accretion and amortization to gross profit.

Q42012

Q42011

YTD12/31/12

YTD 12/31/11

YTD 12/31/10

EBITDA and Adjusted EBITDANet earnings (loss) 3.5 (27.8) (52.6) (70.8) (96.5)Provision (benefit) for income taxes 0.6 (30.6) (66.5) (78.4) (89.7)Interest expense, net 52.9 53.4 211.9 217.2 180.7Discontinued operations, net of tax 1.0 1.9 (1.3) (4.5) (6.0)

EBIT 58.0 (3.1) 91.5 63.5 (11.5)

Plus: Depr., depl., accretion and amort. 78.6 88.0 332.0 361.7 382.1

EBITDA 136.6 84.9 423.5 425.2 370.6Legal settlement - - - (46.4) 40.0Restructuring charges 0.5 10.0 9.5 12.9 0.0Exchange offer costs 0.0 2.2 43.4 2.2 0.0Gain on sale of real estate and businesses (46.8) (2.5) (65.1) (42.1) (39.5)

Adjusted EBITDA 90.4 94.6 411.3 351.8 371.1

Q42012

Q42011

YTD12/31/12

YTD 12/31/11

EPS and Adjusted EPSAs reported 0.03 (0.20) (0.42) (0.58)Legal settlement - - - (0.22)Restructuring charges 0.00 0.05 0.05 0.06Exchange offer costs 0.00 0.01 0.20 0.01Gain on sale of real estate and businesses (0.22) (0.01) (0.30) (0.20)

Adjusted EPS (0.19) (0.15) (0.47) (0.92)

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 gross profit 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. 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 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 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 4.21 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 "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 and to monitor our cash and liquidity positions. 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 and provide the earnings per share (EPS) impact of these for the convenience of the investment community. 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 MonthsAggregates Segment Cash Gross Profit


Appendix – Simplified Geology Map Below Geological Fall Line, Little or No Hard Rock Aggregates Reserves Suitable for Mining

Simplified Geology Map


Appendix - Comprehensive Distribution Network to Serve Attractive Markets With Limited Aggregates Reserves

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 Note: Per ton mile costs exclude loading and unloading.

Geological Fall Line

20-25 tons per truck $0.15-0.35 per ton mile


Appendix - South Region Map


Appendix - Central Region Map


Appendix - East Region Map


Appendix - West Region Map

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

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: bnymellon.com/shareowner/equityaccess

Investor Relations: Mark Warren

Telephone: (205) 298-3191 Email: [email protected]

Independent Auditors: Deloitte & Touche, LLP Birmingham, Alabama

Registrar and Transfer Listing: Computershare Shareowner Services LLC

Investor Presentation, March 2013

Investor Relations

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