The David J. Joseph Company Audubon Metals SHV

David J. Joseph Company

 Founded in 1885  Evolved from dealer to full-service broker  Family-owned until 1975 sale to SHV, a global company with diverse energy and distribution activities based in Utrecht, The Netherlands  DJJ organization s Brokerage offices s Ferrous/Nonferrous operations s Mill services s Centralized staff support s January 2000 DJJ’s Transportation Services Division was separated to create Joseph Transportation Inc. Overview of DJJ

The David J. Joseph Company Executive Office Brokerage Offices Processing Operations Mill Service Facilities 9/00 TSR (Affiliate) Duisburg, Germany (includes ~60 European processing plants) Industrial Services (Gemini) The David J. Joseph Co. River Metals Recycling Trademark Metals Recycling Western Metals Recycling Corporate Locations of Rail Services Audubon Metals (Affiliate)

DJJ Background  The USA’s largest and oldest metal recycler  Operates 12 domestic and international brokerage offices and more than 30 scrap processing and mill service facilities (includes 11 auto shredders)  Employs 1200 people, including full time ferrous brokers and scrap buyers  Is financially sound s Sales of US $ billion s 5A1 D&B rating s US $350+ million assets s Strong equity base, minimal debt Jeff Davis, St. Louis District Manager

Guiding Principles  Long-term relationship (vs. transaction) orientation  Customer orientation (buyer drives the market)  Managed risk (not speculation)  Integrity  Financial strength  Grass roots coverage of markets  Focus on service & information  Cooperation and communication  Flat, simple organization DJJ Metallurgist at work at Nucor Hickman.

T he David J. Joseph Company will focus on deepening customer relationships. We will be the leading provider of value added services to the steel, metals, and related industries. We will extend our global reach in concert with SHV and affiliates. T he Company will seek to manage its business portfolio for earnings growth and investment return to exceed shareholder expectations. T he Company’s continuing success will be built upon its century- long core values as well as the quality and responsiveness of its employees. We will develop our human resources in sufficient depth and strength to assure the full realization of our mission and objectives. DJJ Mission Statement

 Brokerage Services s Scrap purchases s Sourcing of scrap alternatives s Coordination with mill inventory aims and operating plans s Monitor and enforce supplier performance  Support & Technical Services s Evaluation of scrap quality s Scrap management and loading charging buckets s Charge design optimized for mill operations and least-cost s Transportation services s Market analysis and statistical information s Supply Chain Management s Simplified administration, EDI, ScrapConnect (DJJ portal) The David J. Joseph Company provides a comprehensive, integrated program of scrap supply services.

DJJ plays a key role in international trade of scrap and substitutes  Affiliation with Thyssen Sonnenberg Recycling - Europe.  Develops new scrap/substitutes flows.  Leads development of ocean cargo trade into the USA - scrap, pig iron, HBI - from 5 continents. s During 2001, sold HBI and/or Pig Iron to 33 consumers in North America.

Value Added by DJJ  Complete coverage and knowledge of markets s Competing market information s Current scrap flows s Sources of alternative melt items  An everyday presence in all competing markets  Simplifies a very complex market; consolidates supply from a large number of sources  Ability to effectively price at “shipping point value”  Access to essentially all sources of all scrap grades and supplements...without paying a premium for control

Value Added by DJJ (con’t)  Transportation expertise  Technical services  Marketing support  Simplified administration and accounts payable functions  Supplier performance monitoring and assistance resolving quality and performance problems  Marketing and financial strength of the leading ferrous scrap company

DJJ is not a scrap trader, but has evolved into a full-service supplier of value-added ferrous raw material services and sourcing strategies. DJJ is redefining the expectations of the scrap industry.

 Developing new sources of metallics s Imported scrap s Low residual (prompt) scrap s Pig iron s DRI & HBI  Orderly re-orientation of scrap flows, esp. export  Expanded trading staff  Collaboration with TSR to develop an international position  Use of LLC vehicle for new activities with partners New and Ongoing DJJ Initiatives

 Additional shredding capacity (West, Southeast, and Midwest)  Utilizing Joseph Transportation’s private fleet  Rail services  Developing other transportation alternatives  Maximizing value of NF (esp. aluminum) shredder products  Industrial scrap management (Gemini) DJJ Initiatives (con’t)

 Incorporating Enterprise Resource Planning (ERP) s To lower costs s Improve customer service s Support eCommerce s Implement continuous improvement  Integrating best-in-class eBusiness services with DJJ’s business systems to provide supply chain optimization for the scrap and steel industries DJJ Initiatives (con’t)

Marketing the DJJ “Brand” DJJ’s limited trade advertising focuses on the company’s core values...

DJJ’s Role Steel MillsFoundries DJJ Scrap YardsIndustrialRailroadsDemo

What is Scrap Metal?

Modes of Transportation

Scrap Metal is then recycled

Finished Products

What do we look for?

Brokerage Representatives

What do we look for?  Well-rounded  Aggressive  Out-going  Team Oriented  Flexible  Entrepreneurial

The David J. Joseph Company Executive Office Brokerage Offices Processing Operations Mill Service Facilities 9/00 TSR (Affiliate) Duisburg, Germany (includes ~60 European processing plants) Industrial Services (Gemini) The David J. Joseph Co. River Metals Recycling Trademark Metals Recycling Western Metals Recycling Corporate Locations of Rail Services Audubon Metals (Affiliate)

The David J. Joseph Company Audubon Metals SHV

Brokerage Representatives