Steel Dynamics : Fourth Quarter and Full-Year 2020 Investor Call Presentation

Fourth Quarter and Full-Year 2020 Investor Call Presentation

26 January 2021

Forward Looking Statements and Non-GAAP Financial Measures

Forward-Looking Statements

This presentation contains some predictive statements about future events, including statements related to conditions in domestic or global economies, conditions in steel and recycled metals market places, Steel Dynamics' production capacities, shipments, revenues, costs of purchased materials, future profitability and earnings, and the operation of new, existing or planned facilities. These statements, which we generally precede or accompany by such typical conditional words as "anticipate," "intend," "believe," "estimate," "plan," "seek," "project" or "expect," or by the words "may," "will," or "should," are intended to be made as "forward-looking," subject to many risks and uncertainties, within the safe harbor protections of the Private Securities Litigation Reform Act of 1995. These statements speak only as of this date and are based upon information and assumptions, which we consider reasonable as of this date, concerning our businesses and the environments in which they operate. Such predictive statements are not guarantees of future performance, and we undertake no duty to update or revise any such statements. Some factors that could cause such forward-looking statements to turn out differently than anticipated include: (1) the effects of uncertain economic conditions; (2) the effects of pandemics or other health issues, such as the coronavirus outbreak (COVID-19); (3) cyclical and changing industrial demand; (4) changes in conditions in any of the steel or scrap-consuming sectors of the economy which affect demand for our products, including the strength of the non-residential and residential construction, automotive, manufacturing, appliance, energy, and other steel-consuming industries; (5) fluctuations in the cost of key raw materials and supplies (including steel scrap, iron units, zinc, graphite electrodes, and energy costs) and our ability to pass on any cost increases; (6) the impact of domestic and foreign imports, including trade policy, restrictions, or agreements; (7) unanticipated difficulties in integrating or starting up new, acquired or planned businesses or assets; (8) risks and uncertainties involving product and/or technology development; and (9) occurrences of unexpected plant outages or equipment failures.

More specifically, we refer you to Steel Dynamics' more detailed explanation of these and other factors and risks that may cause such predictive statements to turn out differently than expected or anticipated, as set forth in our most recent Annual Report on Form 10-K under the headings Special Note Regarding Forward-Looking Statements and Risk Factors, in our quarterly reports on Form 10-Q or in other reports which we from time to time file with the Securities and Exchange Commission. These are available publicly on the SEC website, www.sec.gov, and on the Steel Dynamics website, www.steeldynamics.com: Investors: SEC Filings.

Note Regarding Non-GAAP Financial Measures

Steel Dynamics reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). Management believes that EBITDA, Adjusted EBITDA, Adjusted Operating Income and Free Cash Flow, non-GAAP financial measures, provide additional meaningful information regarding Steel Dynamic's performance and financial strength. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, Steel Dynamics' reported results prepared in accordance with GAAP. In addition, because not all companies use identical calculations, EBITDA, Adjusted EBITDA, Adjusted Operating Income and Free Cash Flow included in this presentation may not be comparable to similarly titled measures of other companies. The reconciliations of these non-GAAP measures to their most comparable GAAP measures are contained in the appendix at the end of this presentation.

26 January 2021 1

Differentiated and Proven Business Culture

Safety is Our Number One Value

Total Recordable Injury Rate1					Total 2020 Recordable Injury Rate1 By Platform
																Steel					Steel			Metals
																							Fabrication			Recycling
	2.3												Each of our
																		4.4
									1.9		1.9		platforms perform
			1.8				1.8
											meaningfully
					1.5								better than					3.1						3.3
													industry
														2.4
													benchmarks
																				2.0
														1.3
2015	2016	2017		2018		2019		2020										Steel Dynamics			Industry²
Lost Time Injury Rate1							Severity Rate1
												24.9
0.66

																		14.2
		0.34								0.35
			0.33				0.33												12.2
					10.9				10.4
						0.25
																								5.8
2015	2016	2017	2018	2019		2020				2015	2016	2017	2018	2019		2020

1. Total Recordable Injury Rate is defined as OSHA recordable incidents x 200,000 / hours worked, Lost Time Injury Rate is defined as OSHA days away from work cases x 200,000 / hours worked, and Severity Rate is defined as OSHA days away from work x 200,000 / hours worked
2. Source: 2019 U.S. DOL Bureau of Labor Statistics

26 January 2021 2

Differentiated and Proven Business Culture

Solid Performance in an Unprecedented Year

2020 and Q4 2020 Highlights

Achieved

Strong 2020

Operating and

Financial

Results

Q4 2020

Results Reflect

Strong

Momentum

• Near-recordsteel shipments of 10.7 million tons
• Net sales of $9.6 billion
• Net income of $551 million, or $2.59 per diluted share, company's fourth best year
• Adjusted net income¹ of $603 million, or $2.84 per diluted share
• Adjusted EBITDA² of $1.2 billion
• Record steel fabrication shipments and operating income
• Commenced operations of the new Columbus metallic coating line
• Safety severity rate continues to improve, with 2020 being our best year
• Net income of $188 million, or $0.89 per diluted share
• Adjusted net income¹ of $205 million, or $0.97 per diluted share
• Adjusted EBITDA² of $367 million
• Liquidity of over $2.5 billion on December 31, 2020
• On track to commence operations for Sinton mid-year 2021

¹ The adjusted net income reconciliation is provided in the appendix to this presentation.

2 The adjusted EBITDA reconciliation to GAAP net income is provided in the appendix to this presentation.

26 January 2021 3

Differentiated and Proven Business Culture

Net Sales and EBITDA Reflect Stronger Market

Quarterly Operating Highlights

								Sequential		YoY
	Dollars in millions, except per share data		Q4 2020		Q3 2020		Q4 2019		Change		Change
	Net Sales	$	2,601	$	2,331	$	2,350	$	270	$	251
	Operating Income		259		156		182		103		77
	Net Income attributable to Steel Dynamics, Inc.		188		100		121		88		66
	Adjusted Net Income per Diluted Share¹		0.97		0.51		0.62		0.46		0.35
	Adjusted EBITDA²		367		238		270		128		97
	Operating Income
	Steel		298		144		201		154		97
	Fabrication		25		39		33		(14)		(8)
	Metals Recycling		27		15		(5)		12		32

¹ The adjusted net income reconciliation is provided in the appendix to this presentation.

2 The adjusted EBITDA reconciliation to GAAP net income is provided in the appendix to this presentation. Note: Calculations may not tie due to rounding.

26 January 2021 4

Differentiated and Proven Business Culture

Flat Roll Steel Metal Spreads Key Driver to Quarter

Quarterly Segment Highlights

								Sequential		YoY
			Q4 2020		Q3 2020		Q4 2019		Change		Change
	Steel Average External Sales Price $/t	$	814	$	734	$	763	$	80	$	51
	Steel Average Ferrous Cost $/t		279		259		243		20		36
	Steel Fabrication Average Sales Price $/t		1,351		1,375		1,419		(24)		(68)
	Shipments (thousands of tons)
	Total Steel		2,670		2,683		2,651		(12)		19
	Flat Roll		1,861		1,961		1,916		(100)		(56)
	Long Products		810		722		735		88		75
	Steel Fabrication		163		179		174		(17)		(11)
	Metals Recycling
	Ferrous		1,341		1,256		1,096		85		245
	Non-Ferrous (millions of pounds)		272		267		253		5		19

Note: Calculations may not tie due to rounding.

26 January 2021 5

Differentiated and Proven Business Culture

Our differentiated business model results in higher through-cycle steel utilization

We achieve consistently higher through-cycle steel utilization compared to our peers, driven by our low-cost, vertically connected business model, and diversified value-added product portfolio and supply-chain solutions.

Steel Mill Production Utilization

								96%		94%
							89%
	82%	82%	88%	88%		87%		88%			85%	84%
			79%						79%
73%								78%	80%	80%
	74%	75%	77%	78%
			74%
70%		70%	71%						72%
									65%
											56%
	22%	24%	23%	28%	29%	25%	27%	23%
21%						21%
				19%			18%
							17%	18%
2010	2011	2012	2013	2014	2015	2016	2017	2018	2019	Q1'20	Q2'20	Q3'20	Q4'20

Domestic Steel Industry Production Utilization (%)

Domestic Steel Imports Excluding Semi-finished as a % of Apparent Domestic Consumption Steel Dynamics Steel Mill Production Utilization (%)

2020

Est. Annual SDI Steel Mill Production Capacity

(Thousands of Tons)

Flat Roll Group - Butler	3,200
	- Columbus	3,200
Structural & Rail	2,200
Engineered Bar	950
Roanoke Bar	720
Steel of West Virginia	555
Total¹		10,825
Q4 2020	SDI Steel Mill Production	2,273
Q4 2020	SDI Steel Mill Utilization	84%

• Excludes our processing divisions capacity of approximately 2.4 million tons.

Source: AISI, U.S. Department of Commerce, Accenture

2 Domestic Steel Imports Excluding Semi-finished as a % of Apparent Domestic Consumption for the fourth quarter 2020 is through November 2020.

26 January 2021 6

Differentiated and Proven Business Culture

Our differentiated business model is a proven cash generator in all demand environments

Doubled Average Annual Free

Cash Flow

Free Cash Flow1 (dollars in millions)	5-year average: $1.2 billion

5-year average: $580 million

								$1,086	$908
							$1,835
					$974	$1,240		$881
$681		$479	$751	$591
$397
									($20)
2011	2012	2013	2014	2015	2016	2017	2018	2019	2020

Excluding 2019 and 2020 funding of $205M and $928M, respectively, for our new Texas flat roll steel mill, our 2019 and 2020 free cash flow would have been $1.1B and $0.9B.

1 "Free Cash Flow" is defined as Adjusted EBITDA - Capital Investments.

26 January 2021 7

Differentiated and Proven Business Culture

Capital allocation framework, committed to growth and investment grade ratings

Best-in-class performance

• Strong free cash flow conversion
• Leading EBITDA margin

Strong cash flow

generating business

model

• Capital investments largely funded through cash flow
• Acquisitions funded to maintain credit flexibility and prudent liquidity while ensuring strong strategic logic, cultural fit, levering core competencies, and clear execution roadmap

Strong balance sheet

• Broad access to low- cost debt
• Net leverage managed to not exceed 2.0x through-cycle
• Subsequent to an acquisition, committed to deleveraging in a timely manner

Significant strategic

optionality

• Current growth strategy plans funded through free cash flow and debt capacity
• Flexible shareholder distributions - maintain positive dividend profile and use share repurchases as appropriate

Balanced Capital Allocation - $5.4 billion Cash Flow

from Operations over the last five years1

Conservative net leverage while growing and

returning capital to shareholders

$3.0 billion

Growth

$ 0.7 B

M&A

$ 2.3 B

Internal

Capital

Investments

1 Period ended December 31, 2020.

$2.2 billion

Capital Returned to Shareholders

$ 1.3 B

Share

Repurchases

$ 0.9 B

Dividends

2.5

2.0

1.5

1.5 1.3

1.0	1.0		0.8
	0.6
0.5

0.0

2016 2017 2018 2019 2020

26 January 2021 8

Differentiated and Proven Business Culture

Strong liquidity and conservative credit metrics

Strong liquidity (dollars in millions)

As of December 31, 2020

We executed a

5 year $1.2B

unsecured credit facility

December 2019

$1,188

$2,557

$1,3691368.618

Cash and cash	Revolver	Total liquidity
equivalents	availability

Staggered debt maturity profile2 (dollars in millions)

											$600
												$500
No Near-Term		$400		$400		$400							$400
				$350
Maturities

2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2050

Low leverage, low-cost debt (dollars in millions)

	December 31, 2020	x Adjusted EBITDA¹
Cash and cash equivalents	$1,369
2.800% senior notes, 2024	400	0.3x
2.400% senior notes, 2025	400	0.3x
5.000% senior notes, 2026	400	0.3x
1.650% senior notes, 2027	350	0.3x
3.450% senior notes, 2030	600	0.5x
3.250% senior notes, 2031	500	0.4x
3.250% senior notes, 2050	400	0.3x
Other obligations	109	0.1x
Total debt	$3,159	2.7x
Net debt	$1,790	1.5x
Adjusted TTM EBITDA¹	$1,178

We are committed to maintaining investment grade credit ratings

¹ December 31, 2020 2020 Adjusted EBITDA. The reconciliation to GAAP net income is provided in the appendix to this presentation. 2 Excludes other debt obligations of $109 million.

26 January 2021 9

Differentiated and Proven Business Culture

We are operating from a position of strength, investing to deliver our next phase of meaningful growth

Timing

Leveraging expertise to create next generation EAF production capabilities, while gaining market share from disadvantaged, high-cost competitors and imports

 New Sinton, Texas Greenfield Flat Roll Steel Mill	Mid-20211
Current estimated investment of approximately $1.9 billion1

Continuing to grow and diversify premium, value-added product capabilities and unlock value of existing operations

• Columbus Flat Roll Division $160 million Metallic Coating Line, with galvanized and aluminized coating capability
• Roanoke Bar Division $38 million Reinforcing Bar Expansion
• Structural and Rail Division $82 million Reinforcing Bar Expansion

First prime coil July 2020

Q2 2018

Q1 2019

Collectively, these primary strategic growth investments provide estimated incremental annual EBITDA of over $425M on a through- cycle historical spread basis.

Growing high-margin downstream manufacturing to provide optional base-load,"pull-through" volume for our steel operations

	United Steel Supply Coated Flat Roll Steel Distributor,	March 2019
	75% Acquisition of Equity Interest, Valued at $134 million
	Heartland Flat Roll Steel Acquisition $434 million (includes $98 million of working capital)	June 2018

1 Estimated project cost and start-up timeline.

26 January 2021 10

Differentiated and Proven Business Culture

We are committed to sustainability
	Greenhouse Gas Emissions Intensity
	Metric tons of CO2 equivalent emissions / cast steel metric ton
		Scope 1 Emissions Intensity
	1.62	1.72
	0.20		0.21		0.20	N/A*
	2017		2018		2019
	Steel Dynamics 6 EAF steel mills	U.S. blast furnace average¹
		Scope 2 Emissions Intensity
	0.32		0.32		0.29
	2017		2018		2019
	Energy Intensity
	GJ / cast steel metric ton
Matching operations to sustainability	19.9		19.5		19.8
 EAF steel production uses a fraction of the energy and has a
fraction of the carbon footprint vs. blast furnace technology
 We are the largest nonferrous metals recycler and the 2nd largest	5.0		4.9		5.0
ferrous recycler in the U.S.
 We reintroduced 1.1 billion pounds of recycled nonferrous	2017		2018		2019
scrap into the manufacturing life cycle in 2019
 We reintroduced 11 million tons of recycled ferrous scrap	Steel Dynamics 6 EAF steel mills	World average²
into the manufacturing life cycle in 2019	Source: Our 2019 Sustainability Report located on our website at www.steeldynamics.com/Sustainability.aspx
	¹Based on Scope 1 CO2 equivalent emissions reported to the U.S. EPA
	²World Steel Association
						26 January 2021 11

Differentiated and Proven Business Culture

Steel Dynamics steel production is 100% electric-arc-furnace

EAF vs. blast furnace technology

100%

of our steel mills water withdrawn was recycled and reused in 2019

84%

of the material used in our furnaces to produce steel was recycled ferrous scrap and internally generated iron substitutes

Source: Our 2019 Sustainability Report located on our website at www.steeldynamics.com/Sustainability.aspx ¹Based on Scope 1 CO2 equivalent emissions reported to the U.S. EPA

²World Steel Association

12%

our steel mills generated only 12% of the Scope 1 emissions per metric ton of average U.S. blast furnaces¹

25%

our steel mills required only 25% of the energy needed per metric ton versus world steel averages²

26 January 2021 12

Differentiated and Proven Business Culture

New greenfield Sinton, Texas flat roll steel mill drives transformational growth and "next-generation" EAF steelmaking

Estimated 27 million tons in Targeted Regional Markets

• Texas and Surrounding States = 7 million tons1
• West Coast = 4 million tons1

 Mexico = 15 million tons2 (~45% imported)	Location Benefits

No Flat Roll Steel

Production Capacity

Houston

Sinton

SDI's New Texas Mill

Monterrey

Steel Dynamics flat roll steel mills

Other flat roll steel producers

• Customer-centriclogistics, providing shorter lead times and working capital savings
• Central to the largest domestic consumption of flat roll Galvalume® and construction painted products, with the ability to effectively compete with excessive imports
• Available acreage to allow customers to locate on-site, providing logistic savings and steel mill volume base-loading opportunities, representing over 1.0M annual tons of local steel processing and consumption capability
• Proximity to prime ferrous scrap generation via the four-state Texas region and Mexico through our existing metals recycling platform and our August 2020 acquisition of a Mexican metals recycling company
• Cost-effectiveaccess to pig iron through the deep-water port of Corpus Christi, as well as other alternative iron units
• Excellent logistics provided by on-site access to two class I railroads, proximity to a major U.S. highway system, and access to the deep-water port of Corpus Christi
• Existing, mature and dependable power, natural gas, and water sources

1 Source: 2017 CANACERO information published through AISI, market study including imports by regional ports, producer shipments and confidential customer information

2 Source: CRU

26 January 2021 13

Differentiated and Proven Business Culture

Our new Sinton, Texas flat roll steel mill provides transformational growth

Once completed as planned, will represent over a 25% increase in our annual steel production capacity

Investment

Track

Record

Strategically Compelling

• "Next Generation" electric-arc-furnace flat roll steel mill, including a higher-margin,value-added galvanizing line (550k tons) and paint line (250k tons)
• Estimated 3.0 million tons of annual production capability
• Differentiated production capabilities, with meaningful customer and supply-chain benefits
• • Widths (38" to 84") and gauges from 0.047" to 1.00" / Produce up to 52.5 ton coils
• Our team has an unparalleled track record for delivering organic investments "on time" and "on budget", creating significant value
• Expertise delivering "Next Generation", state-of-the-art steel production facilities
• "Next Generation" capabilities that goes beyond existing EAF-based production capabilities
• Latest generation of advanced high strength steel grades, including automotive and energy grades
• Diversified, higher-qualityvalue-added product mix
• Targeting underserved markets reliant on imports with long lead times and inferior product quality
• Competitively advantaged location

Smart	 Growth from import share gains and higher-growth,steel-consuming markets
 Mexican flat roll steel consumption grew over 20% from 2013 - 20191, with shipments of 15M tons in 2019
Growth

 Mexican market imported 6M tons of flat roll steel or over 40% in 20192

1. Source: CRU
2. Source: U.S. Department of Commerce

26 January 2021 14

Differentiated and Proven Business Culture

Sinton, Texas flat roll steel mill provides value-added product diversification

Sinton's targeted markets are similar to our other flat roll operations including construction,

automotive, energy tubulars, appliance, and other manufacturing. Like our other steel

operations, we can quickly pivot from one market to another based on underlying demand.

Estimated Sinton			Estimated Sinton
Product Mix¹			Shipments by Region¹
9%
12%		Hot Roll	30%
		Pickled & Oiled	United States
7%		Cold Roll
	Mexico
60%		Galvanized
	Painted
12%		70%

1 Based on a pro-forma full year of production at the Flat Roll Group Southwest - Sinton Division.

26 January 2021 15

Differentiated and Proven Business Culture

We are a leading North American steel producer with a differentiated and proven business model

Consistent best-in-class performance

Differentiated business model delivering strong profitability and cash flow

Smart growth - Gaining market share and growing with customers

100% of steel produced with electric-arc-furnace technology

Strong balance sheet provides strategic flexibility for current operations and prudent growth

Sustainable shareholder value creation and distribution growth

26 January 2021 16

Differentiated and Proven Business Culture

APPENDIX

Our primary steel operations - at a glance

We are one of the largest domestic steel producers, with approx. 13 million tons of steel shipping capability We have one of the most diversified product and end-market portfolios in the domestic steel industry

Flat Roll Steel Group

8.4M Tons Annual Shipping Capacity

Butler, Indiana

- Greenfield EAF Steel Mill

- 3.2M Tons

- 3 Galvanizing Lines

- 2 Paint Lines

Columbus, Mississippi

- Acquired / Expanded EAF Steel Mill

- 3.2M Tons

- 3 Metallic Coating Lines

- 1 Paint Line

Terre Haute, IN¹

- Heartland / Acquired Flat Roll

Processing Facility

- 1.0M Tons

- 1 Galvanizing Line

Pittsburgh, PA¹

- The Techs / Acquired Flat

Roll Galvanizing Facilities

- 1.0M Tons Galvanized

- 3 Galvanizing Lines

1 Processing locations

Long Product Steel Group

4.6M Tons Annual Shipping Capacity

Columbia City, Indiana

• Greenfield EAF Steel Mill
• 2.2M Tons
• Structural and Rail

Pittsboro, Indiana

• Acquired / Expanded EAF Steel Mill
• 950K Tons
• Special-bar-quality
• Value-AddedFinishing / Inspecting Lines

Roanoke, Virginia

• Acquired / Expanded EAF Steel Mill
• 720K Tons
• Merchant and Rebar

Huntington, WV

• Acquired / Expanded EAF Steel Mill
• 555K tons
• Specialty Shapes

26 January 2021 18

Differentiated and Proven Business Culture

Financial Strength in Diverse Market Environments

Revenue (dollars in billions)

			Record
			High
	$11.8
	$10.5
$9.5
$9.6

$7.8

2016

2017

2018

2019

2020

Net Income (dollars in millions)

Record

High

$1,258

$813

$671

$551

$382

Adjusted Operating Income1 (dollars in millions)

						Record
						High
						$1,738
			$1,067
								$987
	$861									$867

2016

2017

2018

2019

2020

Adjusted EBITDA1 (dollars in millions)

Record

High

$2,074

			$1,405
				$1,333
	$1,172					$1,178

2016

2017

2018

2019

2020

2016

2017

2018

2019

2020

¹ Please see the reconciliation of these amounts to GAAP measures in the appendix to this presentation.

26 January 2021 19

Differentiated and Proven Business Culture

Annual Steel Operations Results

Steel Operations Shipments (millions of tons)

Record

High

				10.6	10.8	10.7		Acquired
	9.2	9.7
								Heartland Flat
				3.4		3.1		3.1
	2.6		2.8					Roll Division Q3
									2018 and United
							7.7		7.6		Steel Supply
					7.2
			6.9
	6.6								March 2019.

2016	2017	2018	2019	2020
			Flat Roll		Long Products

Processing Locations¹ Shipments (included above)
(thousands of tons)							Record
											High		Our processing
															locations
											1,775
														represented 17% of
								1,668
														total steel shipments
															in 2020, and the
															associated steel
						1,070									procurement cost
				880											represented 18% of
		809
													our steel operations'
															cost of goods sold.
2016	2017	2018	2019			2020

¹ Processing locations include Heartland (flat roll), Techs (flat roll), United Steel Supply (flat roll) and Vulcan (SBQ).

Operating Income (dollars in millions)

Record

High

$1,855

			$1,114
				$1,048
	$941					$906

2016

2017

2018

2019

2020

26 January 2021 20

Differentiated and Proven Business Culture

Annual Metals Recycling Results

Ferrous Shipments (millions of gross tons)

	5.1		5.0		5.1						66% of 2019 and
							4.6		4.6		69% of 2020
											ferrous scrap
											volume was sold
											to Steel Dynamics'
											own steel mills

2016

2017

2018

2019

2020

Adjusted Operating Income¹ (dollars in millions)

$85 $88

Nonferrous Shipments (millions of pounds)

$40

$45

1,104 1,087 1,131 1,068

978

$28

2016

2017

2018

2019

2020

2016

2017

2018

2019

2020

¹ Adjusted operating income excludes non-cash goodwill and asset impairment charges of $6 million in 2016.

26 January 2021 21

Differentiated and Proven Business Culture

Annual Steel Fabrication Results

Shipments (thousands of tons)

Record

High

					666
	642		644
627

563

2016

2017

2018

2019

2020

Operating Income (dollars in millions)

Record

High

$119 $121

$91 $87

$62

2016

2017

2018

2019

2020

26 January 2021 22

Differentiated and Proven Business Culture

Steel Dynamics - Adjusted EBITDA, Free Cash Flow and Adjusted Operating Income Reconciliations

Dollars in millions	2010	2011	2012	2013	2014	2015	2016	2017	2018	2019	2020
Net Income (Loss)	$130	$266	$142	$164	$ 92	$ (145)	$ 360	$ 806	$1,256	$ 678	$ 571
Income Taxes (Benefit)	83	158	62	99	73	(97)	204	129	364	197	135
Net Interest Expense	166	172	154	123	135	153	141	124	104	99	86
Depreciation	171	177	180	192	229	263	261	265	283	286	291
Amortization	46	40	36	32	28	25	29	29	28	30	29
Noncontrolling Interests	12	13	21	26	65	15	22	7	3	(7)	(13)

EBITDA	$608	$826	$595	$636	$622	$	214	$1,017	$1,360	$2,038	$1,283	$	1,098
Unrealized (Gains) / Losses	2	(4)	(3)	5	(5)		3		1	5	(6)		3		2
Inventory Valuation	6	9	6	7	10		28		1	3	2		1		2
Equity-Based Compensation	14	17	12	16	23		29		30	34	40		43		49
Asset Impairment Charges	13	-	8	-	213		429		120	-	-		-		19
Refinancing Charges	-	-	3	2	-		3		3	3	-		3		8
Adjusted EBITDA	$643	$848	$621	$666	$863	$	706	$1,172	$1,405	$2,074	$1,333	$	1,178
Less Capital Investments	133	167	224	187	112		115		198	165	239		452		1,198
Free Cash Flow	$510	$681	$397	$479	$751	$	591	$	974	$1,240	$1,835	$	881	$	(20)
Dollars in millions									2016	2017	2018		2019		2020
Consolidated Operating Income								$	728	$ 1,067	$ 1,722	$	987	$	847
Asset Impairment Charges									133	-	-		-		19
Non-cash Purchase Accounting									-	-	16		-		-
Adjusted Operating Income								$	861	$ 1,067	$ 1,738	$	987	$	867

Note: Calculations may not tie due to rounding.

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Differentiated and Proven Business Culture

Steel Dynamics - Quarterly Adjusted EBITDA Reconciliation

Dollars in millions	Q4 2019	Q1 2020	Q2 2020	Q3 2020	Q4 2020
Net Income	$	124	$	191	$	79	$	104	$	197
Income Taxes		26		57		24		29		24
Net Interest Expense		25		22		26		18		20
Depreciation		70		71		70		73		76
Amortization		9		7		7		7		8
Noncontrolling Interests		(2)		(3)		(3)		(4)		(2)
EBITDA	$	252	$	345	$	203	$	228	$	322
Unrealized (Gains) / Losses		1		(1)		-		1		3
Inventory Valuation		-		1		-		0		1
Equity-Based Compensation		14		11		9		9		19
Asset Impairment Charges										19
Refinancing Charges		3		-		5		-		3
Adjusted EBITDA	$	270	$	356	$	217	$	238	$	367

Note: Calculations may not tie due to rounding.

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Differentiated and Proven Business Culture

Steel Dynamics - Adjusted Net Income Reconciliation

	2020		Q4 2020	Q3 2020		Q4 2019
Dollars in millions, except per share data	Net		Net			Net			Net
Income	EPS	Income	EPS	Income	EPS	Income	EPS
Net income Attributable to Steel Dynamics	$551	$ 2.59	$188	$ 0.89	$100	$	0.47	$121	$	0.56
Debt Refinancing Costs	25	0.12	8	0.04						3		0.01
Construction Costs Associated with Sinton Texas Flat Roll Steel Mill	28	0.13	10	0.05		8			0.04
Non-Cash Asset Impairment Charge	12	0.06	12	0.06
Tax Benefit Related to Reduction of a Valuation Allowance	(13)	(0.06)	(13)	(0.06)
Planned Flat Roll Mill Maintenance Outages										10		0.05
Adjusted Net Income Attributable to SDI	$603	$ 2.84	$205	$ 0.97		$108		$	0.51	$134	$	0.62

Note: Calculations may not tie due to rounding.

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Differentiated and Proven Business Culture