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CONFIDENTIAL 0 April 11, 2005 Management Presentation Leadership in Metal Processing and Distribution Lourenço Gonçalves Chairman, President and CEO October.

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Presentation on theme: "CONFIDENTIAL 0 April 11, 2005 Management Presentation Leadership in Metal Processing and Distribution Lourenço Gonçalves Chairman, President and CEO October."— Presentation transcript:

1 CONFIDENTIAL 0 April 11, 2005 Management Presentation Leadership in Metal Processing and Distribution Lourenço Gonçalves Chairman, President and CEO October 2, 2009 NASPD Fall Conference Chicago, IL

2 CONFIDENTIAL 11 Forward-Looking Statement Certain statements in this presentation and our response to various questions may constitute “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and applicable Canadian securities law. Such forward-looking statements are based on current expectations and involve certain risks and uncertainties. Actual results might differ materially from those projected in the forward-looking statements. In some cases, information regarding certain important factors that could cause actual results to differ materially from any such forward- looking statements appears or is discussed together with such statements. Additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements is contained in filings with the Securities and Exchange Commission made by Metals USA, Inc. In particular, the factors described under “Risk Factors” in those filings and other possible factors not listed, could affect our actual results and cause such results to differ materially from those expressed in forward-looking statements.

3 CONFIDENTIAL 2 The Ups and Downs of the Steel Market More Ups Than Downs

4 CONFIDENTIAL The Global Steel Market Metric Tons (000) 3 IISI and Company estimates

5 CONFIDENTIAL Global Steel Trade Flows 4 World Steel Dynamics Steel Net Imports (Million Tonnes Annualized) 2Q074Q072Q084Q082Q09 Europe N America Japan (36) (38) (33) (24) China (57) (34) (42) (27) 4

6 CONFIDENTIAL Global Steel Trade Flows 5 World Steel Dynamics Ratio of Exports to Apparent Consumption (Million Tonnes Annualized)

7 CONFIDENTIAL 6 CHINAUS Different Stimulus From Different Packages

8 CONFIDENTIAL US Industrial Production Trend Source: Federal Reserve Index: 2002 = 100 Y-o-Y Change 7

9 CONFIDENTIAL 8 US Steel Demand Has Changed  Domestic steel consumption’s remarkable resiliency has been shattered Source: AISI and WSD

10 CONFIDENTIAL 9 US Mills  The Good:  World class cost structures  Consolidation has allowed some rationalization  Located in the heart of the most sustaining economy in the world  The Bad:  Distracted by defensive focus  Still reacting the old-fashioned way (reducing prices)  Not looking forward or prepared for the next cycle

11 CONFIDENTIAL 10 US Mills  The Good:  World class cost structures  Consolidation has allowed some rationalization  Located in the heart of the most sustaining economy in the world  The Bad:  Distracted by defensive focus  Still reacting the old-fashioned way (reducing prices)  Not looking forward or prepared for the next cycle The US Steel Industry must grow steel consumption

12 CONFIDENTIAL 11 The Most Protected Market In The World  Special interests and trade lawyers are major contributors  Anti-dumping  Countervailing Duties  Section 201  Section 232  Section 421  The Weak Dollar

13 CONFIDENTIAL 12 The Most Protected Market In The World  Special interests and trade lawyers are major contributors  Anti-dumping  Countervailing Duties  Section 201  Section 232  Section 421  The Weak Dollar An Effective Barrier To Imports

14 CONFIDENTIAL 13 Macro Economic Conditions Setting The Tone  Banks still not lending as before  For the majority – tomorrow looks worse than today  As a result: Capital markets not fully recovered Employment levels still weak Businesses and individuals deleveraging No capital spending No construction

15 CONFIDENTIAL 14 My View:  Current conditions are unsustainable  Smart Investors will eventually perceive value and return to market  US Government stimulus yet to be realized – must be realized  Unless we assume that the US has changed for good, we should conclude that demand will grow in 2010 and beyond

16 CONFIDENTIAL 15


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