Nucor Case

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Operating assumptions

Exhibit 12B
				Modernized		Unmodernized
		Thin-slab Minimill		Integrated Mill		Integrated Mill
		HR	CR	HR	CR	HR	CR
	Operating assumptions
	Labor / hour	$20.00	$20.00	$23.50	$23.50	$23.50	$23.50
	Scrap / ton	$90.00	$90.00	$80.00	$80.00	$80.00	$80.00
	Man hours / ton	1.75	2.65	2.85	4.50	3.90	5.85
	Capacity Utilization	90.00%	90.00%	90.00%	90.00%	75.00%	75.00%
	Operation costs / ton
	Labor	$35.00	$53.00	$67.00	$105.50	$91.50	$141.00
	Ore	0	0	51	54	52	56
	Coal	0	0	35	37.5	38	40.5
	Energy	24	38	9	23	9.5	25
	Scrap	100	102	13.5	9.5	19.5	15.5
	Materials and supplies	56	72.5	71	93	72.5	95.5
	Maintenance & repairs	10	17.5	15	26.5	17	29.5
	Total costs / ton	$225.00	$283.00	$261.50	$349.00	$300.00	$403.00
	Revenue / ton	$306.50	$390.50	$326.00	$454.50	$325.00	$453.00

Summary

CF analysis- thin slab
	Original	Adj. 1 (price growth rate)	Adj. 2 (Operating Cost Growth Rate)	Adj. 3 (discount rate decreases)
Year 5 CF:	71.78	104.84	87.26	71.78
Year 5 Assets:	196	196	196	196
Year 5 ROA:	36.62%	53.49%	44.52%	36.62%

CF analysis-thin slab

Assumptions:
Annual growth rate of price of steel	4.00%		6.84%	(historical)
Annual growth rate of operating costs	4.00%
Tax rate	35.00%
Discount rate	15.00%
Thin Slab Minimill
	0	1	2	3	4	5	6	7	8	9	10	11	12
	1986	1987	1988	1989	1990	1991	1992	1993	1994	1995	1996	1997	1998
Capacity(million of tons of steel)	0	0	0
Shipments (12A)
- Hot-rolled sheets (HR) (12A)	0	0	0	0.25	0.5	0.5	0.5	0.5	0.5	0.5	0.5	0.5	0.5
- Cold-rolled sheets (CR) (12A)	0	0	0	0.175	0.35	0.35	0.35	0.35	0.35	0.35	0.35	0.35	0.35
Revenue / ton
- Hot-rolled sheets (HR) (12B)	306.5	318.76	331.51	344.77	358.56	372.90	387.82	403.33	419.47	436.25	453.69	471.84	490.72
- Cold-rolled sheets (CR) (12B)	390.5	406.12	422.36	439.26	456.83	475.10	494.11	513.87	534.43	555.80	578.04	601.16	625.20
Total revenue (shipment*rev/ton)
- Hot-rolled sheets (HR)	0.00	0.00	0.00	86.19	179.28	186.45	193.91	201.67	209.73	218.12	226.85	235.92	245.36
- Cold-rolled sheets (CR)	0.00	0.00	0.00	76.87	159.89	166.29	172.94	179.85	187.05	194.53	202.31	210.40	218.82
Operating costs / ton
- Hot-rolled sheets (HR) (12B)	225	234.00	243.36	253.09	263.22	273.75	284.70	296.08	307.93	320.25	333.05	346.38	360.23
- Cold-rolled sheets (CR) (12B)	283	294.32	306.09	318.34	331.07	344.31	358.09	372.41	387.31	402.80	418.91	435.67	453.09
Total operating costs(shipment*cost/ton)
- Hot-rolled sheets (HR)	0.00	0.00	0.00	63.27	131.61	136.87	142.35	148.04	153.96	160.12	166.53	173.19	180.12
- Cold-rolled sheets (CR)	0.00	0.00	0.00	55.71	115.87	120.51	125.33	130.34	135.56	140.98	146.62	152.48	158.58
Depreciate over 10 years	0.00	0.00	0.00	28.00	28.00	28.00	28.00	28.00	28.00	28.00	28.00	28.00	28.00
Income
- Hot-rolled sheets (HR)	0.00	0.00	0.00	22.92	47.67	49.58	51.56	53.62	55.77	58.00	60.32	62.73	65.24
- Cold-rolled sheets (CR)	0.00	0.00	0.00	21.16	44.02	45.78	47.61	49.51	51.49	53.55	55.69	57.92	60.24
Total income	$0.00	$0.00	$0.00	$16.08	$63.69	$67.36	$71.17	$75.14	$79.26	$83.55	$88.01	$92.65	$97.48
Taxes	$0.00	$0.00	$0.00	$5.63	$22.29	$23.57	$24.91	$26.30	$27.74	$29.24	$30.80	$32.43	$34.12
Income after taxes	$0.00	$0.00	$0.00	$10.45	$41.40	$43.78	$46.26	$48.84	$51.52	$54.31	$57.21	$60.23	$63.36
Add back depreciation	$0.00	$0.00	$0.00	$28.00	$28.00	$28.00	$28.00	$28.00	$28.00	$28.00	$28.00	$28.00	$28.00
Subtract capital expenditures	-$280.00	$0.00	$0.00	$0.00	$0.00	$0.00	$0.00	$0.00	$0.00	$0.00	$0.00	$0.00	$0.00
Subtract startup costs				30.00
Subtract working capital costs				30.00
Cash flow	-280.00	0.00	0.00	98.45	69.40	71.78	74.26	76.84	79.52	82.31	85.21	88.23	91.36
Internal rate of return (IRR)	15%	15%	15%	15%	15%	15%	15%	15%	15%	15%	15%	15%	15%
Discounted cash flow		$0.00	$0.00	$85.61	$60.35	$62.42	$64.57	$66.82	$69.15	$71.57	$74.09	$76.72	$79.45
Sum of discounted cash flow	$710.74
Investment criterion: 25% ROA by year 5?		Year 5 CF:	71.78
		Year 5 Assets:	196.00
		Year 5 ROA:	36.62%

CF analysis-thin slab - Adj #1

Assumptions:
Annual growth rate of price of steel	6.84%		6.84%	(historical)
Annual growth rate of operating costs	4.00%
Tax rate	35.00%
Discount rate	15.00%
Thin Slab Minimill
	0	1	2	3	4	5	6	7	8	9	10	11	12
	1986	1987	1988	1989	1990	1991	1992	1993	1994	1995	1996	1997	1998
Capacity(million of tons of steel)	0	0	0
Shipments (12A)
- Hot-rolled sheets (HR) (12A)	0	0	0	0.25	0.5	0.5	0.5	0.5	0.5	0.5	0.5	0.5	0.5
- Cold-rolled sheets (CR) (12A)	0	0	0	0.175	0.35	0.35	0.35	0.35	0.35	0.35	0.35	0.35	0.35
Revenue / ton
- Hot-rolled sheets (HR) (12B)	306.5	327.4646	349.86	373.79	399.36	426.68	455.86	487.04	520.36	555.95	593.98	634.60	678.01
- Cold-rolled sheets (CR) (12B)	390.5	417.2102	445.75	476.24	508.81	543.61	580.80	620.52	662.97	708.31	756.76	808.53	863.83
Total revenue (shipment*rev/ton)
- Hot-rolled sheets (HR)	0.00	0.00	0.00	93.45	199.68	213.34	227.93	243.52	260.18	277.97	296.99	317.30	339.01
- Cold-rolled sheets (CR)	0.00	0.00	0.00	83.34	178.08	190.26	203.28	217.18	232.04	247.91	264.87	282.98	302.34
Operating costs / ton
- Hot-rolled sheets (HR) (12B)	225	234.00	243.36	253.09	263.22	273.75	284.70	296.08	307.93	320.25	333.05	346.38	360.23
- Cold-rolled sheets (CR) (12B)	283	294.32	306.09	318.34	331.07	344.31	358.09	372.41	387.31	402.80	418.91	435.67	453.09
Total operating costs(shipment*cost/ton)
- Hot-rolled sheets (HR)	0.00	0.00	0.00	63.27	131.61	136.87	142.35	148.04	153.96	160.12	166.53	173.19	180.12
- Cold-rolled sheets (CR)	0.00	0.00	0.00	55.71	115.87	120.51	125.33	130.34	135.56	140.98	146.62	152.48	158.58
Depreciate over 10 years	0.00	0.00	0.00	28.00	28.00	28.00	28.00	28.00	28.00	28.00	28.00	28.00	28.00
Income
- Hot-rolled sheets (HR)	0.00	0.00	0.00	30.17	68.07	76.47	85.58	95.48	106.21	117.85	130.46	144.11	158.89
- Cold-rolled sheets (CR)	0.00	0.00	0.00	27.63	62.21	69.76	77.95	86.84	96.48	106.93	118.25	130.50	143.76
Total income	$0.00	$0.00	$0.00	$29.81	$102.28	$118.22	$135.53	$154.32	$174.70	$196.78	$220.71	$246.61	$274.65
Taxes	$0.00	$0.00	$0.00	$10.43	$35.80	$41.38	$47.44	$54.01	$61.14	$68.87	$77.25	$86.32	$96.13
Income after taxes	$0.00	$0.00	$0.00	$19.37	$66.48	$76.84	$88.10	$100.31	$113.55	$127.91	$143.46	$160.30	$178.52
Add back depreciation	$0.00	$0.00	$0.00	$28.00	$28.00	$28.00	$28.00	$28.00	$28.00	$28.00	$28.00	$28.00	$28.00
Subtract capital expenditures	-$280.00	$0.00	$0.00	$0.00	$0.00	$0.00	$0.00	$0.00	$0.00	$0.00	$0.00	$0.00	$0.00
Subtract startup costs				30.00
Subtract working capital costs				30.00
Cash flow	-280.00	0.00	0.00	107.37	94.48	104.84	116.10	128.31	141.55	155.91	171.46	188.30	206.52
Internal rate of return (IRR)	15%	15%	15%	15%	15%	15%	15%	15%	15%	15%	15%	15%	15%
Discounted cash flow		$0.00	$0.00	$93.37	$82.16	$91.17	$100.95	$111.57	$123.09	$135.57	$149.10	$163.74	$179.58
Sum of discounted cash flow	$1,230.30
Investment criterion: 25% ROA by year 5?		Year 5 CF:	104.84
		Year 5 Assets:	196.00
		Year 5 ROA:	53.49%

CF analysis-thin slab 1-Adj #2

Assumptions:
Annual growth rate of price of steel	4.00%		6.84%	(historical)
Annual growth rate of operating costs	2.00%
Tax rate	35.00%
Discount rate	15.00%
Thin Slab Minimill
	0	1	2	3	4	5	6	7	8	9	10	11	12
	1986	1987	1988	1989	1990	1991	1992	1993	1994	1995	1996	1997	1998
Capacity(million of tons of steel)	0	0	0
Shipments (12A)
- Hot-rolled sheets (HR) (12A)	0	0	0	0.25	0.5	0.5	0.5	0.5	0.5	0.5	0.5	0.5	0.5
- Cold-rolled sheets (CR) (12A)	0	0	0	0.175	0.35	0.35	0.35	0.35	0.35	0.35	0.35	0.35	0.35
Revenue / ton
- Hot-rolled sheets (HR) (12B)	306.5	318.76	331.51	344.77	358.56	372.90	387.82	403.33	419.47	436.25	453.69	471.84	490.72
- Cold-rolled sheets (CR) (12B)	390.5	406.12	422.36	439.26	456.83	475.10	494.11	513.87	534.43	555.80	578.04	601.16	625.20
Total revenue (shipment*rev/ton)
- Hot-rolled sheets (HR)	0.00	0.00	0.00	86.19	179.28	186.45	193.91	201.67	209.73	218.12	226.85	235.92	245.36
- Cold-rolled sheets (CR)	0.00	0.00	0.00	76.87	159.89	166.29	172.94	179.85	187.05	194.53	202.31	210.40	218.82
Operating costs / ton
- Hot-rolled sheets (HR) (12B)	225	229.50	234.09	238.77	243.55	248.42	253.39	258.45	263.62	268.90	274.27	279.76	285.35
- Cold-rolled sheets (CR) (12B)	283	288.66	294.43	300.32	306.33	312.45	318.70	325.08	331.58	338.21	344.98	351.87	358.91
Total operating costs(shipment*cost/ton)
- Hot-rolled sheets (HR)	0.00	0.00	0.00	59.69	121.77	124.21	126.69	129.23	131.81	134.45	137.14	139.88	142.68
- Cold-rolled sheets (CR)	0.00	0.00	0.00	52.56	107.21	109.36	111.55	113.78	116.05	118.37	120.74	123.16	125.62
Depreciate over 10 years	0.00	0.00	0.00	28.00	28.00	28.00	28.00	28.00	28.00	28.00	28.00	28.00	28.00
Income
- Hot-rolled sheets (HR)	0.00	0.00	0.00	26.50	57.51	62.24	67.22	72.44	77.92	83.67	89.71	96.04	102.68
- Cold-rolled sheets (CR)	0.00	0.00	0.00	24.31	52.68	56.93	61.39	66.08	71.00	76.16	81.57	87.25	93.20
Total income	$0.00	$0.00	$0.00	$22.81	$82.18	$91.17	$100.61	$110.52	$120.92	$131.83	$143.28	$155.29	$167.88
Taxes	$0.00	$0.00	$0.00	$7.98	$28.76	$31.91	$35.21	$38.68	$42.32	$46.14	$50.15	$54.35	$58.76
Income after taxes	$0.00	$0.00	$0.00	$14.83	$53.42	$59.26	$65.40	$71.84	$78.60	$85.69	$93.13	$100.94	$109.12
Add back depreciation	$0.00	$0.00	$0.00	$28.00	$28.00	$28.00	$28.00	$28.00	$28.00	$28.00	$28.00	$28.00	$28.00
Subtract capital expenditures	-$280.00	$0.00	$0.00	$0.00	$0.00	$0.00	$0.00	$0.00	$0.00	$0.00	$0.00	$0.00	$0.00
Subtract startup costs				30.00
Subtract working capital costs				30.00
Cash flow	-280.00	0.00	0.00	102.83	81.42	87.26	93.40	99.84	106.60	113.69	121.13	128.94	137.12
Internal rate of return (IRR)	15%	15%	15%	15%	15%	15%	15%	15%	15%	15%	15%	15%	15%
Discounted cash flow		$0.00	$0.00	$89.42	$70.80	$75.88	$81.21	$86.81	$92.69	$98.86	$105.33	$112.12	$119.24
Sum of discounted cash flow	$932.37
Investment criterion: 25% ROA by year 5?		Year 5 CF:	87.26
		Year 5 Assets:	196.00
		Year 5 ROA:	44.52%

CF analysis-thin slab- Adj #3

Assumptions:
Annual growth rate of price of steel	4.00%		6.84%	(historical)
Annual growth rate of operating costs	4.00%
Tax rate	35.00%
Discount rate	10.00%
Thin Slab Minimill
	0	1	2	3	4	5	6	7	8	9	10	11	12
	1986	1987	1988	1989	1990	1991	1992	1993	1994	1995	1996	1997	1998
Capacity(million of tons of steel)	0	0	0
Shipments (12A)
- Hot-rolled sheets (HR) (12A)	0	0	0	0.25	0.5	0.5	0.5	0.5	0.5	0.5	0.5	0.5	0.5
- Cold-rolled sheets (CR) (12A)	0	0	0	0.175	0.35	0.35	0.35	0.35	0.35	0.35	0.35	0.35	0.35
Revenue / ton
- Hot-rolled sheets (HR) (12B)	306.5	318.76	331.51	344.77	358.56	372.90	387.82	403.33	419.47	436.25	453.69	471.84	490.72
- Cold-rolled sheets (CR) (12B)	390.5	406.12	422.36	439.26	456.83	475.10	494.11	513.87	534.43	555.80	578.04	601.16	625.20
Total revenue (shipment*rev/ton)
- Hot-rolled sheets (HR)	0.00	0.00	0.00	86.19	179.28	186.45	193.91	201.67	209.73	218.12	226.85	235.92	245.36
- Cold-rolled sheets (CR)	0.00	0.00	0.00	76.87	159.89	166.29	172.94	179.85	187.05	194.53	202.31	210.40	218.82
Operating costs / ton
- Hot-rolled sheets (HR) (12B)	225	234.00	243.36	253.09	263.22	273.75	284.70	296.08	307.93	320.25	333.05	346.38	360.23
- Cold-rolled sheets (CR) (12B)	283	294.32	306.09	318.34	331.07	344.31	358.09	372.41	387.31	402.80	418.91	435.67	453.09
Total operating costs(shipment*cost/ton)
- Hot-rolled sheets (HR)	0.00	0.00	0.00	63.27	131.61	136.87	142.35	148.04	153.96	160.12	166.53	173.19	180.12
- Cold-rolled sheets (CR)	0.00	0.00	0.00	55.71	115.87	120.51	125.33	130.34	135.56	140.98	146.62	152.48	158.58
Depreciate over 10 years	0.00	0.00	0.00	28.00	28.00	28.00	28.00	28.00	28.00	28.00	28.00	28.00	28.00
Income
- Hot-rolled sheets (HR)	0.00	0.00	0.00	22.92	47.67	49.58	51.56	53.62	55.77	58.00	60.32	62.73	65.24
- Cold-rolled sheets (CR)	0.00	0.00	0.00	21.16	44.02	45.78	47.61	49.51	51.49	53.55	55.69	57.92	60.24
Total income	$0.00	$0.00	$0.00	$16.08	$63.69	$67.36	$71.17	$75.14	$79.26	$83.55	$88.01	$92.65	$97.48
Taxes	$0.00	$0.00	$0.00	$5.63	$22.29	$23.57	$24.91	$26.30	$27.74	$29.24	$30.80	$32.43	$34.12
Income after taxes	$0.00	$0.00	$0.00	$10.45	$41.40	$43.78	$46.26	$48.84	$51.52	$54.31	$57.21	$60.23	$63.36
Add back depreciation	$0.00	$0.00	$0.00	$28.00	$28.00	$28.00	$28.00	$28.00	$28.00	$28.00	$28.00	$28.00	$28.00
Subtract capital expenditures	-$280.00	$0.00	$0.00	$0.00	$0.00	$0.00	$0.00	$0.00	$0.00	$0.00	$0.00	$0.00	$0.00
Subtract startup costs				30.00
Subtract working capital costs				30.00
Cash flow	-280.00	0.00	0.00	98.45	69.40	71.78	74.26	76.84	79.52	82.31	85.21	88.23	91.36
Internal rate of return (IRR)	10%	10%	10%	10%	10%	10%	10%	10%	10%	10%	10%	10%	10%
Discounted cash flow		$0.00	$0.00	$89.50	$63.09	$65.26	$67.51	$69.85	$72.29	$74.83	$77.46	$80.21	$83.06
Sum of discounted cash flow	$743.05
Investment criterion: 25% ROA by year 5?		Year 5 CF:	71.78
		Year 5 Assets:	196.00
		Year 5 ROA:	36.62%

CF analysis - Modernize

Assumptions:
Annual growth rate of price of steel	4.00%		6.84%	(historical)
Annual growth rate of operating costs	4.00%
Tax rate	35.00%
Discount rate	15.00%
Modernized integrated mill
	0	1	2	3	4	5	6	7	8	9	10	11	12	13	14	15	16	17	18	19	20	21	22	23	24	25
	1986	1987	1988	1989	1990	1991	1992	1993	1994	1995	1996	1997	1998	1999	2000	2001	2002	2003	2004	2005	2006	2007	2008	2009	2010	2011
Capacity(million of tons of steel)	0	4.2	4.2	4.2	4.2	4.2	4.2	4.2	4.2	4.2	4.2	4.2	4.2	4.2	4.2	4.2	4.2	4.2	4.2	4.2	4.2	4.2	4.2	4.2	4.2	4.2
Shipments (12A)
- Hot-rolled sheets (HR) (12A)	0	2.1	2.1	2.1	2.1	2.1	2.1	2.1	2.1	2.1	2.1	2.1	2.1	2.1	2.1	2.1	2.1	2.1	2.1	2.1	2.1	2.1	2.1	2.1	2.1	2.1
- Cold-rolled sheets (CR) (12A)	0	1.35	1.35	1.35	1.35	1.35	1.35	1.35	1.35	1.35	1.35	1.35	1.35	1.35	1.35	1.35	1.35	1.35	1.35	1.35	1.35	1.35	1.35	1.35	1.35	1.35
Revenue / ton
- Hot-rolled sheets (HR) (12B)	326.00	339.04	352.60	366.71	381.37	396.63	412.49	428.99	446.15	464.00	482.56	501.86	521.94	542.81	564.53	587.11	610.59	635.02	660.42	686.83	714.31	742.88	772.59	803.50	835.64	869.06
- Cold-rolled sheets (CR) (12B)	454.50	472.68	491.59	511.25	531.70	552.97	575.09	598.09	622.01	646.90	672.77	699.68	727.67	756.78	787.05	818.53	851.27	885.32	920.73	957.56	995.87	1035.70	1077.13	1120.21	1165.02	1211.62
Total revenue (shipment*rev/ton)
- Hot-rolled sheets (HR)	0.00	711.98	740.46	770.08	800.89	832.92	866.24	900.89	936.92	974.40	1013.38	1053.91	1096.07	1139.91	1185.51	1232.93	1282.24	1333.53	1386.87	1442.35	1500.04	1560.04	1622.45	1687.34	1754.84	1825.03
- Cold-rolled sheets (CR)	0.00	638.12	663.64	690.19	717.80	746.51	776.37	807.42	839.72	873.31	908.24	944.57	982.35	1021.65	1062.51	1105.01	1149.21	1195.18	1242.99	1292.71	1344.42	1398.20	1454.12	1512.29	1572.78	1635.69
Operating costs / ton
- Hot-rolled sheets (HR) (12B)	261.50	271.96	282.84	294.15	305.92	318.15	330.88	344.12	357.88	372.20	387.08	402.57	418.67	435.42	452.83	470.95	489.78	509.38	529.75	550.94	572.98	595.90	619.73	644.52	670.30	697.12
- Cold-rolled sheets (CR) (12B)	349.00	362.96	377.48	392.58	408.28	424.61	441.60	459.26	477.63	496.74	516.61	537.27	558.76	581.11	604.36	628.53	653.67	679.82	707.01	735.29	764.70	795.29	827.10	860.19	894.59	930.38
Total operating costs(shipment*cost/ton)
- Hot-rolled sheets (HR)	0.00	571.12	593.96	617.72	642.43	668.12	694.85	722.64	751.55	781.61	812.88	845.39	879.21	914.38	950.95	988.99	1028.55	1069.69	1112.48	1156.98	1203.26	1251.39	1301.44	1353.50	1407.64	1463.94
- Cold-rolled sheets (CR)	0.00	490.00	509.60	529.98	551.18	573.23	596.16	620.00	644.80	670.59	697.42	725.31	754.33	784.50	815.88	848.51	882.46	917.75	954.46	992.64	1032.35	1073.64	1116.59	1161.25	1207.70	1256.01
Depreciate over 25 years	0	74.92	74.92	74.92	74.92	74.92	74.92	74.92	74.92	74.92	74.92	74.92	74.92	74.92	74.92	74.92	74.92	74.92	74.92	74.92	74.92	74.92	74.92	74.92	74.92	74.92
Income
- Hot-rolled sheets (HR)	0.00	140.87	146.50	152.36	158.46	164.80	171.39	178.24	185.37	192.79	200.50	208.52	216.86	225.53	234.56	243.94	253.70	263.84	274.40	285.37	296.79	308.66	321.01	333.85	347.20	361.09
- Cold-rolled sheets (CR)	0.00	148.12	154.05	160.21	166.62	173.28	180.21	187.42	194.92	202.72	210.82	219.26	228.03	237.15	246.63	256.50	266.76	277.43	288.53	300.07	312.07	324.55	337.54	351.04	365.08	379.68
Total income		214.07	225.63	237.65	250.15	263.16	276.68	290.74	305.37	320.58	336.40	352.86	369.97	387.76	406.27	425.52	445.53	466.35	488.00	510.52	533.94	558.29	583.62	609.96	637.36	665.85
Taxes		74.92	78.97	83.18	87.55	92.11	96.84	101.76	106.88	112.20	117.74	123.50	129.49	135.72	142.19	148.93	155.94	163.22	170.80	178.68	186.88	195.40	204.27	213.49	223.08	233.05
Income after Taxes		139.15	146.66	154.47	162.60	171.05	179.84	188.98	198.49	208.38	218.66	229.36	240.48	252.05	264.08	276.59	289.60	303.13	317.20	331.84	347.06	362.89	379.35	396.48	414.28	432.80
Add back depreciation	0	74.92	74.92	74.92	74.92	74.92	74.92	74.92	74.92	74.92	74.92	74.92	74.92	74.92	74.92	74.92	74.92	74.92	74.92	74.92	74.92	74.92	74.92	74.92	74.92	74.92
Subtract capital expenditures	-1,873	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
Cash flow	-1,873	214.07	221.58	229.39	237.52	245.97	254.76	263.90	273.41	283.30	293.58	304.28	315.40	326.97	339.00	351.51	364.52	378.05	392.12	406.76	421.98	437.81	454.27	471.40	489.20	507.72
Internal rate of return (IRR)	14%
Discounted cash flow	-$1,873.00	$186.14	$192.68	$199.47	$206.54	$213.89	$221.53	$229.48	$237.75	$246.35	$255.29	$264.59	$274.26	$284.32	$294.78	$305.66	$316.97	$328.74	$340.98	$353.70	$366.94	$380.70	$395.02	$409.91	$425.39	$441.50
n years	0	1	2	3	4	5	6	7	8	9	10	11	12	13	14	15	16	17	18	19	20	21	22	23	24	25
Sum of discounted cash flow	$5,499.58
Investment criterion: 25% ROA by year 5?		Year 5 CF:		245.97
		Year 5 Assets:		1498.4
		Year 5 ROA:		16.42%	0.3283133027

CF analysis - Unmodernized

Assumptions:
Annual growth rate of price of steel	4.00%		6.84%	(historical)
Annual growth rate of operating costs	4.00%
Tax rate	35.00%
Discount rate	15.00%
Unmodernized integrated mill
	0	1	2	3	4	5	6	7	8	9	10	11	12	13	14	15	16	17	18	19	20	21	22	23	24	25
	1986	1987	1988	1989	1990	1991	1992	1993	1994	1995	1996	1997	1998	1999	2000	2001	2002	2003	2004	2005	2006	2007	2008	2009	2010	2011
Capacity(million of tons of steel)	0	4.2	4.2	4.2	4.2	4.2	4.2	4.2	4.2	4.2	4.2	4.2	4.2	4.2	4.2	4.2	4.2	4.2	4.2	4.2	4.2	4.2	4.2	4.2	4.2	4.2
Shipments (12A)
- Hot-rolled sheets (HR)	0	1.68	1.68	1.68	1.68	1.68	1.68	1.68	1.68	1.68	1.68	1.68	1.68	1.68	1.68	1.68	1.68	1.68	1.68	1.68	1.68	1.68	1.68	1.68	1.68	1.68
- Cold-rolled sheets (CR)	0	1.08	1.08	1.08	1.08	1.08	1.08	1.08	1.08	1.08	1.08	1.08	1.08	1.08	1.08	1.08	1.08	1.08	1.08	1.08	1.08	1.08	1.08	1.08	1.08	1.08
Revenue / ton
- Hot-rolled sheets (HR) (12B)	325.00	338.00	351.52	365.58	380.20	395.41	411.23	427.68	444.78	462.58	481.08	500.32	520.34	541.15	562.79	585.31	608.72	633.07	658.39	684.73	712.12	740.60	770.22	801.03	833.07	866.40
- Cold-rolled sheets (CR) (12B)	453.00	471.12	489.96	509.56	529.95	551.14	573.19	596.12	619.96	644.76	670.55	697.37	725.27	754.28	784.45	815.83	848.46	882.40	917.69	954.40	992.58	1032.28	1073.57	1116.52	1161.18	1207.62
Total revenue (shipment*rev/ton)
- Hot-rolled sheets (HR)	0.00	567.84	590.55	614.18	638.74	664.29	690.86	718.50	747.24	777.13	808.21	840.54	874.16	909.13	945.50	983.32	1022.65	1063.55	1106.10	1150.34	1196.35	1244.21	1293.98	1345.73	1399.56	1455.55
- Cold-rolled sheets (CR)	0.00	508.81	529.16	550.33	572.34	595.24	619.04	643.81	669.56	696.34	724.19	753.16	783.29	814.62	847.21	881.09	916.34	952.99	991.11	1030.75	1071.99	1114.86	1159.46	1205.84	1254.07	1304.23
Operating costs / ton
- Hot-rolled sheets (HR) (12B)	300	312.00	324.48	337.46	350.96	365.00	379.60	394.78	410.57	426.99	444.07	461.84	480.31	499.52	519.50	540.28	561.89	584.37	607.74	632.05	657.34	683.63	710.98	739.41	768.99	799.75
- Cold-rolled sheets (CR) (12B)	403	419.12	435.88	453.32	471.45	490.31	509.92	530.32	551.53	573.59	596.54	620.40	645.22	671.02	697.87	725.78	754.81	785.00	816.40	849.06	883.02	918.34	955.08	993.28	1033.01	1074.33
Total operating costs(shipment*cost/ton)
- Hot-rolled sheets (HR)	0.00	524.16	545.13	566.93	589.61	613.19	637.72	663.23	689.76	717.35	746.04	775.88	806.92	839.20	872.76	907.68	943.98	981.74	1021.01	1061.85	1104.33	1148.50	1194.44	1242.22	1291.91	1343.58
- Cold-rolled sheets (CR)	0.00	452.65	470.76	489.59	509.17	529.54	550.72	572.75	595.66	619.48	644.26	670.03	696.83	724.71	753.69	783.84	815.20	847.80	881.72	916.99	953.66	991.81	1031.48	1072.74	1115.65	1160.28
Depreciate over 25 years (no expenditure to dep.)		0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
Income
- Hot-rolled sheets (HR)	0.00	43.68	45.43	47.24	49.13	51.10	53.14	55.27	57.48	59.78	62.17	64.66	67.24	69.93	72.73	75.64	78.67	81.81	85.08	88.49	92.03	95.71	99.54	103.52	107.66	111.97
- Cold-rolled sheets (CR)	0.00	56.16	58.41	60.74	63.17	65.70	68.33	71.06	73.90	76.86	79.93	83.13	86.46	89.91	93.51	97.25	101.14	105.19	109.39	113.77	118.32	123.05	127.98	133.09	138.42	143.96
Total income	0.00	99.84	103.83	107.99	112.31	116.80	121.47	126.33	131.38	136.64	142.10	147.79	153.70	159.85	166.24	172.89	179.81	187.00	194.48	202.26	210.35	218.76	227.51	236.61	246.08	255.92
Taxes	0	34.94	36.34	37.80	39.31	40.88	42.51	44.22	45.98	47.82	49.74	51.73	53.79	55.95	58.18	60.51	62.93	65.45	68.07	70.79	73.62	76.57	79.63	82.81	86.13	89.57
Total Income after Tax		64.90	67.49	70.19	73.00	75.92	78.96	82.11	85.40	88.81	92.37	96.06	99.90	103.90	108.06	112.38	116.87	121.55	126.41	131.47	136.73	142.20	147.88	153.80	159.95	166.35
Add back depreciation	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
Subtract capital expenditures	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
Cash flow	0	64.90	67.49	70.19	73.00	75.92	78.96	82.11	85.40	88.81	92.37	96.06	99.90	103.90	108.06	112.38	116.87	121.55	126.41	131.47	136.73	142.20	147.88	153.80	159.95	166.35
IRR
Discounted cash flow	$0.00	$56.43	$58.69	$61.04	$63.48	$66.02	$68.66	$71.40	$74.26	$77.23	$80.32	$83.53	$86.87	$90.35	$93.96	$97.72	$101.63	$105.69	$109.92	$114.32	$118.89	$123.65	$128.59	$133.74	$139.09	$144.65
n	0	1	2	3	4	5	6	7	8	9	10	11	12	13	14	15	16	17	18	19	20	21	22	23	24	25
Sum of discounted cash flow	$2,350.13
Investment criterion: 25% ROA by year 5?		Year 5 CF:	75.92
		Year 5 Assets:	0.00
		Year 5 ROA:	N/A

CF analysis - Formerly Unmodern

Assumptions:
Annual growth rate of price of steel	4.00%		6.84%	(historical)
Annual growth rate of operating costs	4.00%
Tax rate	35.00%
Discount rate	15.00%
Unmodernized integrated mill
	0	1	2	3	4	5	6	7	8	9	10	11	12	13	14	15	16	17	18	19	20	21	22	23	24	25
	1986	1987	1988	1989	1990	1991	1992	1993	1994	1995	1996	1997	1998	1999	2000	2001	2002	2003	2004	2005	2006	2007	2008	2009	2010	2011
Capacity(million of tons of steel)	0	4.2	4.2	4.2	4.2	4.2	4.2	4.2	4.2	4.2	4.2	4.2	4.2	4.2	4.2	4.2	4.2	4.2	4.2	4.2	4.2	4.2	4.2	4.2	4.2	4.2
Shipments (12A)
- Hot-rolled sheets (HR)	0	2.1	2.1	2.1	2.1	2.1	2.1	2.1	2.1	2.1	2.1	2.1	2.1	2.1	2.1	2.1	2.1	2.1	2.1	2.1	2.1	2.1	2.1	2.1	2.1	2.1
- Cold-rolled sheets (CR)	0	1.35	1.35	1.35	1.35	1.35	1.35	1.35	1.35	1.35	1.35	1.35	1.35	1.35	1.35	1.35	1.35	1.35	1.35	1.35	1.35	1.35	1.35	1.35	1.35	1.35
Revenue / ton
- Hot-rolled sheets (HR) (12B)	325.00	338.00	351.52	365.58	380.20	395.41	411.23	427.68	444.78	462.58	481.08	500.32	520.34	541.15	562.79	585.31	608.72	633.07	658.39	684.73	712.12	740.60	770.22	801.03	833.07	866.40
- Cold-rolled sheets (CR) (12B)	453.00	471.12	489.96	509.56	529.95	551.14	573.19	596.12	619.96	644.76	670.55	697.37	725.27	754.28	784.45	815.83	848.46	882.40	917.69	954.40	992.58	1032.28	1073.57	1116.52	1161.18	1207.62
Total revenue (shipment*rev/ton)
- Hot-rolled sheets (HR)	0.00	709.80	738.19	767.72	798.43	830.37	863.58	898.12	934.05	971.41	1010.27	1050.68	1092.70	1136.41	1181.87	1229.14	1278.31	1329.44	1382.62	1437.92	1495.44	1555.26	1617.47	1682.17	1749.46	1819.43
- Cold-rolled sheets (CR)	0.00	636.01	661.45	687.91	715.43	744.04	773.81	804.76	836.95	870.43	905.24	941.45	979.11	1018.28	1059.01	1101.37	1145.42	1191.24	1238.89	1288.44	1339.98	1393.58	1449.32	1507.30	1567.59	1630.29
Operating costs / ton
- Hot-rolled sheets (HR) (12B)	261.5	271.96	282.84	294.15	305.92	318.15	330.88	344.12	357.88	372.20	387.08	402.57	418.67	435.42	452.83	470.95	489.78	509.38	529.75	550.94	572.98	595.90	619.73	644.52	670.30	697.12
- Cold-rolled sheets (CR) (12B)	349.00	362.96	377.48	392.58	408.28	424.61	441.60	459.26	477.63	496.74	516.61	537.27	558.76	581.11	604.36	628.53	653.67	679.82	707.01	735.29	764.70	795.29	827.10	860.19	894.59	930.38
Total operating costs(shipment*cost/ton)
- Hot-rolled sheets (HR)	0.00	571.12	593.96	617.72	642.43	668.12	694.85	722.64	751.55	781.61	812.88	845.39	879.21	914.38	950.95	988.99	1028.55	1069.69	1112.48	1156.98	1203.26	1251.39	1301.44	1353.50	1407.64	1463.94
- Cold-rolled sheets (CR)	0.00	490.00	509.60	529.98	551.18	573.23	596.16	620.00	644.80	670.59	697.42	725.31	754.33	784.50	815.88	848.51	882.46	917.75	954.46	992.64	1032.35	1073.64	1116.59	1161.25	1207.70	1256.01
Depreciate over 25 years (no expenditure to dep.)		74.92	74.92	74.92	74.92	74.92	74.92	74.92	74.92	74.92	74.92	74.92	74.92	74.92	74.92	74.92	74.92	74.92	74.92	74.92	74.92	74.92	74.92	74.92	74.92	74.92
Income
- Hot-rolled sheets (HR)	0.00	138.68	144.23	150.00	156.00	162.24	168.73	175.48	182.50	189.80	197.39	205.29	213.50	222.04	230.92	240.16	249.76	259.75	270.14	280.95	292.19	303.87	316.03	328.67	341.82	355.49
- Cold-rolled sheets (CR)	0.00	146.02	151.86	157.93	164.25	170.82	177.65	184.76	192.15	199.83	207.83	216.14	224.78	233.78	243.13	252.85	262.97	273.49	284.42	295.80	307.63	319.94	332.74	346.05	359.89	374.28
Total income	0.00	284.70	296.09	307.93	320.25	333.06	346.38	360.24	374.65	389.63	405.22	421.43	438.28	455.81	474.05	493.01	512.73	533.24	554.57	576.75	599.82	623.81	648.77	674.72	701.70	729.77
Taxes	0	99.65	103.63	107.78	112.09	116.57	121.23	126.08	131.13	136.37	141.83	147.50	153.40	159.53	165.92	172.55	179.46	186.63	194.10	201.86	209.94	218.33	227.07	236.15	245.60	255.42
Total Income after Tax		185.06	192.46	200.16	208.16	216.49	225.15	234.15	243.52	253.26	263.39	273.93	284.88	296.28	308.13	320.46	333.27	346.60	360.47	374.89	389.88	405.48	421.70	438.57	456.11	474.35
Add back depreciation	0	74.92	74.92	74.92	74.92	74.92	74.92	74.92	74.92	74.92	74.92	74.92	74.92	74.92	74.92	74.92	74.92	74.92	74.92	74.92	74.92	74.92	74.92	74.92	74.92	74.92
Subtract capital expenditures	-1873	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
Cash flow	-1873	259.98	267.38	275.08	283.08	291.41	300.07	309.07	318.44	328.18	338.31	348.85	359.80	371.20	383.05	395.38	408.19	421.52	435.39	449.81	464.80	480.40	496.62	513.49	531.03	549.27
IRR	16%
Discounted cash flow	-$1,628.70	$226.07	$232.50	$239.20	$246.16	$253.40	$260.93	$268.76	$276.90	$285.37	$294.18	$303.34	$312.87	$322.78	$333.09	$343.80	$354.95	$366.54	$378.60	$391.14	$404.18	$417.74	$431.84	$446.51	$461.76	$477.63
n	0	1	2	3	4	5	6	7	8	9	10	11	12	13	14	15	16	17	18	19	20	21	22	23	24	25
Sum of discounted cash flow	$6,701.55
Investment criterion: 25% ROA by year 5?		Year 5 CF:	291.41
		Year 5 Assets:	1,498.40
		Year 5 ROA:	0.1944795621