Lightweighting Summit September 25, 2017 Safe Harbor Statement - - PowerPoint PPT Presentation

September 25, 2017

Lightweighting Summit

Safe Harbor Statement

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Statements contained in this presentation which are not historical facts are forward-looking statements which involve risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements. Such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act

• f 1995. Please refer to the Company’s Securities and

Exchange Commission filings for further information, including its most recent reports on Form 10-K and its quarterly reports on Form 10-Q.

Company Overview

• Olympic Steel founded in 1954
• Original service center business included

break bulk, warehousing and distribution

• Tubular & Pipe product segment founded

in 1914

• Aligned and growth-oriented management
• 18% of shares held by insiders
• Growth strategy included expansions into:
• Value-added processing
• Diversified product categories
• New geographies

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Company Overview

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Olympic Steel, Inc.

Carbon Flat Roll Specialty Metals

Core Values

• Achieve profitable growth by safely

providing quality business solutions for metal product users

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Mission Statement

• Accountability
• Corporate Citizenship
• Customer Satisfaction
• Employee Development
• Financial Stability
• Integrity
• Quality
• Respect
• Safety
• Teamwork

A Century of Service

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Growing with Our Customers

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1984 1994 2004 2014

Sales: $38M Sales: $382M Sales: $894M Sales: $1.4B Locations: 56K sq. ft. Locations: 1M sq. ft. Locations: 1.7M sq. ft. Locations: 3.7M sq. ft. Employees: 60 Employees: 531 Employees: 824 Employees: 1,810 Equipment: 4 Equipment: 50 Equipment: 92 Equipment: 333 Inventory: $109M Inventory: $186M Inventory: $311M Bar, Pipe and Tubular & Specialty Metals Products Trucking Fleet IPO (1996) Third Temper Mill

Expanding Geographic Reach

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Expanding Geographic Reach

• Strategically located in close proximity to

mills and customers

• 31 facilities with more than 3.6 million sq. ft.

in the U.S. and Mexico

• Proprietary truck fleet delivering core

shipping requirements and reliable just-in-time logistic advantages

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Strategic Value Creation

• Satisfying contemporary market demands

(higher complexity processing, intricate parts kits, enabling JIT logistics, etc.)

• Transformed into best-in-class manufacturing

logistics company

• Increasing skilled labor and machine intensiveness
• f products and services to reduce cyclicality
• Harnessing technology and operational excellence

to enhance efficiencies and customer service

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Strategic Direction

11 Break Bulk Tempering Specialized Processing Sheet & Plate Specialty Metals Fabrication Highly Engineered Tube & Pipe Products Aluminum Blanking

Strategic Plan

Achieving profitable growth and managing industry cycles

• Continue gaining market share
• Specialty Metals growth
• Organic & Inorganic
• Diversifying products and markets
• Reducing cyclicality
• Integrating with top tier OEMs
• Increase pre-assembly processing, higher

skilled labor and machine intensiveness of products and services

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Sales by Reporting Segment – 2Q 2017

65% 18% 17%

Carbon Flat Products Tubular & Pipe Products Specialty Metals Flat Products

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Specialty Metals Flat Products

• Stainless Steel and Aluminum
• 17% of 2017 first-quarter net sales
• Growing aluminum sales to auto sector
• Completed upgrades to existing equipment and

inorganic growth is also being planned.

• Strong and growing presence in stainless

steel markets

• 5.9% of stainless steel sheet & coil market*
• Food and beverage
• Appliances/white goods
• Medical, chemical and pharmaceutical vessels
• Transportation/tankers

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* 2017 first quarter, per MSCI’s Metals Activity Report

Specialty Metals Accelerated Growth Plan

• The Strategy for Specialty Metals

Accelerated Growth is based upon three supporting pillars. Development in all three of these pillars is required to successfully implement significant aluminum growth beyond our current capability.

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Specialty Metals Accelerated Growth Plan

• Supply Strategy includes creating

and maintaining mutually beneficial relationships with multiple Aluminum Suppliers existing and new to the Automotive market.

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Specialty Metals Accelerated Growth Plan

• As our past has demonstrated we

are targeting a multifaceted approach to processing growth including both organic and inorganic

• expansion. This will allow Olympic

to be a fully capable configured blank supplier to automotive OEM’s.

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Specialty Metals Accelerated Growth Plan

• This Aluminum growth message is

being marketed and delivered to key existing and potentially emerging customer base as a single invoice solution.

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Thank You!

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Olympic Overall Aluminum Growth

YEAR TONS SOLD GROWTH %

2017* 15,000 17.2% 2016 12,800 16.4% 2015 11,000 10.0% 2014 10,000 44.9% 2013 6,900 23.2% 2012 5,600

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* Projection

Flat Product Processing

Bettendorf, IA x x x x x x x x x x x Chambersburg, PA x x x x x x x x x x x x x Chicago, IL x x x x x Cleveland, OH x x x x x Detroit, MI x x x Dover, OH x x x x Gary, IN x Milford, CT x x x Minneapolis, MN x x x x x x x x x x x x x x Moses Lake, WA x Mount Sterling, KY x x x x x x x x Siler City, NC x x x x x x x x x x x x x x Winder, GA x x x x x x x x x x x x Integrity Stainless x x

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Aluminum Product Mix

Alloy 2016 Tonnage Percent of Aluminum Mix 2017 Projected Tonnage

1100 775 5% 100 3003 8 >1% 10 5083 15 >1% 850 5052 1,561 25.5% 1,600 5182 3895 40.3% 9,721 5754 1595 13.9% 1,932 6016 1,451 15.6% 1,337

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*Projection based on product availability