Industrial Investment Banking Round-Up Capital Markets Perspectives As of December 18Th, 2020

Industrial Investment Banking Round-Up Capital Markets Perspectives As of December 18th, 2020

Real-Time Market Perspectives • The initial round of the U.S. COVID-19 vaccination shipments to states and hospitals was launched this week, as long-term- care facilities and nursing homes began receiving doses – The vaccine has deployed at a crucial time in the U.S., in which more than 247,000 new COVID-19 cases have recently been reported, hospitalizations have set a new record, and the number of deaths in a single day has also hit an all-time high • The Federal Reserve announced it raised its economic outlook for 2021, anticipating ~4% growth and ~5% unemployment – The Federal Open Market Committee (FOMC) indicated it would continue to buy at least $120 billion of bonds each month “until substantial further progress has been made toward the Committee’s maximum employment and price stability goals” – The Fed also increased its estimated rate of inflation for 2021 to 1.8% from 1.7%, based on its preferred personal consumption expenditures (PCE) price index M&A Markets (1) • 2H 2020 U.S. M&A reached $979.9 billion of aggregate value, a 160% increase from 1H 2020, when there was only $378.4 billion of announced transaction value – 2H 2020 generated the highest M&A volume in a second half since 2016 – Megadeals were scarce in 2020, with just 19 deals with a value above $10 billion announced in 2020, versus 33 in 2019 • The U.S. remained the most sought-after geography for cross-border M&A in 2020, despite a slight decline of 6% in aggregate value YoY to $269.1 billion • The number of SPAC buyers in U.S. M&A sharply increased in 2020, with 73 U.S. SPAC acquisitions announced, totaling $110.8 billion in aggregate transaction value – 85% of SPAC acquisitions in 2020 was targeted at U.S. companies, with technology companies attracting ~40% of volume . A total of 206 U.S. SPACs were raised this year alone, which accounted for 52% of the IPO capital raised in the U.S. • Distressed M&A transactions represented $62.3 billion of announced transaction value this year, a decrease of 11% YoY, while the total number of deals increased by 4%, from 425 in 2019 to 444 in 2020 – The most impacted industry during 2020 was the retail sector, with 48 distressed M&A deals in total Debt Capital Markets • Middle market M&A leveraged loan activity remains robust as arrangers are seeing an improved pipeline into the new year – In December, arranger’s launched loan volume was $1.2 billion from four deals – Middle market leveraged loan spreads are currently higher than pre-pandemic levels by 25-50 bps, but down from peak levels of 50-125 bps reached in March-May of 2020 • The CLO market continues to rebound with volumes increasing due to lower liability costs and ample loan supply – CLO new issue volume is projected to be $100-$110 billion next year, as managers take advantage of favorable terms on new facilities and an expected pick-up in primary loan activity in Q1 2021 • High yield bond new issue volume totaled $28.7 billion in the first two weeks of December, the most active primary market in the month on record – High yield funds reported a $1.0 billion outflow for the week ended December 16th, compared to a $2 million inflow the week prior – Year-to-date net fund flows for the high yield bond market totaled $44.6 billion • The investment grade fixed income market had $1.8 trillion of issuance year-to-date, with little activity expected for the remainder of the year – In 2021, the investment grade fixed income issuance is expected to return to an average annual issuance of $1.2 trillion Equity Capital Markets • The recent comeback in the equities market was initially fueled by mega-cap technology stocks, as well as companies that have benefited from the COVID-19 environment – The announcement of a highly effective COVID-19 vaccine has accelerated equity market gains after a brief pause in November amid uncertainty about the presidential election and fiscal stimulus – Volatility has subsided from near record levels, signaling improving certainty of the economic outlook despite the worst of the COVID-19 outbreak expected in the coming winter months • The market recovery of 2020 has provided a white-hot equity market resulting in the most active year on record in terms of equity issuance volume as companies aimed to bolster their balance sheets and lock-in liquidity Sources: CNBC, WSJ, Dealogic, KeyBanc Capital Markets; (1) Data as of 12/15/2020 per Dealogic report Disclosure: KeyBanc Capital Markets is a trade name under which corporate and investment banking products and services of KeyCorp and its subsidiaries, KeyBanc Capital Markets Inc., Member FINRA/SIPC and KeyBank National Association (“KeyBank N.A.”), are marketed. Securities products and services are offered by KeyBanc Capital Markets Inc. and its licensed securities representatives, who may also be employees of KeyBank N.A. Banking products and services are offered by KeyBank N.A. This report was not issued by our research department. The information contained in this report has been obtained from sources deemed to be reliable but is not represented to be complete and it should not be relied upon as such. This report does not purport to be a complete analysis of any security, issuer, or industry and is not an offer or a solicitation of an offer to buy or sell any securities. This report is prepared for general information purposes only and does not consider the specific investment objectives, financial situation and particular needs of any individual person or entity. Industrial Investment Banking Round-Up Building Products As of December 18th, 2020

Building Products Market Perspective • Employment conditions reeled last week as the Labor Department recorded 885,000 new unemployment claims, well above economists’ estimates of 808,000 – This week represented the highest level of initial unemployment claims since early September, underlining the current fragility of the labor market – The rise in unemployment comes on the heels of Congress passing a $900 billion stimulus package that will include direct payments to citizens across the country but will exclude liability protections for businesses as well as aid to state and local governments • After tapering from their all-time highs in August, lumber prices have spiked again as the industry continues to grapple with labor shortages – Cold weather typically brings a stagnation in demand for saw mills, however pent up demand from earlier in the pandemic has carried through to the fourth quarter – Lumber demand is expected to remain strong in the short term with lumber-dependent single family home construction projected to rise by 5% in 2021 – In response to such strong lumber demand, Norbord Inc. announced that it is planning to restart OSB production at its Canadian mill in Chambord, Quebec • Home Depot’s $8.7 billion acquisition of HD Supply Holdings pushed North American building products M&A deal value to a record high of $15.2 billion for the year – The previous record of $10.3 billion was reached in 2007 during the pre-crash housing boom • Quanex reported earnings for Q4 2020 and FY 2020, posting a strong quarter to end a turbulent year marked by global uncertainty and COVID-19 related shutdowns – Net sales grew by 6.3% and adjusted EBITDA increased by 14.5% compared to the fourth quarter of 2019 as a result of increased demand across all of the Company’s operating segments

Public Company Stock Performance Since February 21 Public Company Trading Performance Since February 21

(Indexed to 0%) (Enterprise Value / Next-Twelve-Months EBITDA) 45% 15.0x 36% 14.4x 30% 12.2x 15% 13% 11% 5% 0% 4% 10.0x 9.5x (15%) 9.3x

(30%)

(45%)

(60%) 5.0x Feb-21 Apr-04 May-17 Jun-29 Aug-11 Sep-23 Nov-05 Dec-16 Feb-21 Apr-04 May-17 Jun-29 Aug-11 Sep-23 Nov-05 Dec-16 Manufacturing (Large Cap) Manufacturing (Mid Cap) Manufacturing (Small Cap) Distribution / Installation S&P 500 For additional information on KeyBanc Capital Markets, please contact any of the individuals listed below: Building Products Team

Pat Curry J.R. Doolos Ali Zahrieh Cole Morrison Managing Director Managing Director Associate Analyst Head of Building Products Industrial M&A Building Products Building Products 212.476.7428 216.689.7674 212.476.7467 212.476.7477 [email protected] [email protected] [email protected] [email protected] Sources: CNBC, Wall Street Research Note: Market data as of 11/11/2020; Manufacturing (Large Cap): ALLE, AOS, ASX:JHX, CSL, FBHS, HUBB, IR, LII, MAS, MHK, NYSE:CNR, OC, SHW, SWK; Manufacturing (Mid Cap): AAON, AMWD, AWI, AYI, BCC, CREE, CVCO, DOOR, FRTA, GFF, JELD, LPX, NYSE:LCII, PATK, ROCK, SSD, TILE, TREX, TSX:OSB, WMS; Manufacturing (Small Cap): AFI, APOG, CSTE, DXYN, IIIN, LYTS, NX, NYSE:SKY, PGTI, TGLS; Distribution / Installation: BECN, BLD, BLDR, BMCH, BXC, FBM, GMS, HDS, IBP, POOL, SIC, SITE, TSX:HDI, UFPI, WSO

Chemicals & Materials Market Perspectives • The Chemicals indexes were up in the last month, with Specialties up 2% and Commodities / Diversifieds up 2.5% – The market continues to look through the noise of post-election dynamics, COVID vaccine announcements, potential COVID aid rumors and other economic news • M&A continues its strong momentum, with carve-outs and PE portfolio sales continuing to launch, supported by strong leveraged financing markets – Trinseo will acquire Arkema’s MMA business – Spectrum Automotive acquired CalTex Protective Coatings – Saint Gobain acquired PAIGUM – TOTAL acquired Polyblend – Huntsman will acquire Gabriel Performance Products – LyondellBasell acquired Tivaco – Arkema acquired Colorado Photopolymer Solutions – Spartech Polycom acquired Tufpak – PPG will acquire Ennis-Flint – Rechochem acquired KOST USA – INEOS will acquire Gemini HDPE – Advanced Medical Solutions acquired Raleigh Adhesive Coatings – Symrise will acquire the fragrance business of Sensient Trading Perspectives by Sector

Share Price Performance by Sector Enterprise Value / NTM EBITDA 10-Yr. 1-Yr. 3-Mon. 1-Mon. 10-Yr. Avg 1-Yr. Avg 3-Mon. Avg. 1-Mon. Avg. Specialties 171.4% 20.1% 3.6% 2.0% Specialties 10.8x 14.5x 15.6x 15.8x Commodities / Diversified 9.5% 7.1% 15.7% 2.5% Commodities / Diversified 7.0x 8.3x 8.9x 9.2x S&P 500 197.5% 16.0% 10.3% 8.3% 30.0% 18.0x % of 52-Week High: 98.7%

20.0% % of 52-Week High: 94.0% 20.1% 16.0x 15.9x 16.0% 14.0x 10.0% 7.1% 10-Yr. Avg. 12.0x - 10.7x 10.0x (10.0%) 9.3x 8.0x (20.0%) 7.0x 6.0x 10-Yr. Avg. (30.0%) 4.0x

(40.0%) 2.0x

(50.0%) 0.0x Dec-19 Dec-20 Dec-19 Dec-20 Specialties Commodities / Diversified S&P 500 Specialties Commodities / Diversified For additional information on KeyBanc Capital Markets, please contact any of the individuals listed below: Chemicals and Materials Team David Ruf Chris Hogan Luke Korney Trent Glasser Managing Director Managing Director Associate Analyst Head of Chemicals & Materials Chemicals M&A Chemicals & Materials Chemicals & Materials 212.476.7424 216.689.3447 216.689.4716 216.689.3318 [email protected] [email protected] [email protected] [email protected]

Sources: Capital IQ as of 12/17/2020 Commodities / Diversified: ASIX, ENXTPA:AKE, ASH, XTRA:BAS, BOVESPA:BRKM5, CBT, SWX:CLN, CE, NYSE:CF, CINR, NYSE:CMP, XTRA:1COV, NYSE:UAN, Dow, EMN, XTRA:EVK,NYSE: FOE, HUN, IPHS, TASE: ICL, KPLUY, ENXTAM:DSM, KOP, KRA, KRO, LXS, LYB, TSX:MX, MTX, TSX:NTR, OLN, BMV:ORBIA *,AVNT, SASE:2010,SOLB, LSE:SYNT,CC,NYSE:MOS,NYSE:MOS,TSE,TROX,VNTR,WLK, XTRA:WCH,OB:YAR Specialty: NasdaqGS:AGFS, APD, ENXTAM:AKZA, ALB, AVD, AXTA, BCPC, CCMP, CBM,LSE:CRDA, NYSE:CTVA,NYSE:DD,ECL, ESI, ENTG, FMC, GIVN, FUL, HXL, XTRA:HEN3,NGVT, IFF, ENXTPA:AI, LIN, LONN, NEU, PPG, KWR, RPM, SXT, SY1, SHW, GRA

Recent Trends in Manufacturing Global PMI Output & Economic Growth 1 Global PMI by IHS Markit Global GDP annual % change Global Recovery Slows in November, but Optimism for 2021 Surges • Global PMI surveys, compiled by IHS Markit, edged down slightly in November to 53.1 (from 53.3 in October), primarily driven by the services component as a result of rising COVID-19 infections – However, the PMI has now indicated expanding business activity for five successive months – Successful vaccine news has painted a brighter picture for the coming months and contributed to a lifting of worldwide business expectations for the year ahead, as manufacturing optimism hit its highest level since February 2015 Rising Goods Exports Help Sustain Manufacturing Resilience • Encouragingly, manufacturing output growth continued to accelerate globally during November, reaching the highest recorded since January 2018 – The upturn was led by auto makers followed by machinery & equipment (rising investment Global Employment and New Orders spending) and household & personal products (rising consumer spending) Global PMI • The encouraging resilience of the manufacturing sector is in part attributable to a sustained recovery of goods trade as global goods export orders rose for a third successive month • Besides the upturn seen in manufacturing, there were some additional encouraging signals from other PMI series regarding the global economic recovery – Global employment rose in November to the greatest extent since April 2019 amid further increases in incoming new business orders – Producers of investment goods such as plant and machinery, reported especially strong gains during the month, providing a welcome signal of reviving capital spending as businesses prepare for stronger 2021 demand Diversified Industrials EV / LTM EBITDA Trading Dashboard

22.8x 1-Month r vs. YTD r vs. Category Current Avg. 1-Month Avg. YTD

20.4x 20.0x Industrial Technology 22.8x 22.6x 0.2x 18.6x 4.2x

17.9x Food Equipment 20.4x 20.6x (0.2x) 16.2x 4.2x 17.9x 17.8x 17.3x Flow Control / Water 17.9x 17.8x 0.1x 14.9x 3.0x 17.1x 15.0x Construction 17.9x 17.8x 0.1x 13.1x 4.7x

Capital Goods 17.8x 17.4x 0.4x 13.4x 4.4x 12.3x 11.5x Diversified Index 17.3x 17.2x 0.1x 13.5x 3.8x

10.0x Large Cap Diversifieds 17.1x 17.1x (0.0x) 13.7x 3.4x

Power Transmission 12.3x 12.1x 0.2x 9.6x 2.7x

Engineered Components 11.5x 11.4x 0.1x 9.9x 1.5x

5.0x Overall, diversified industrials sector valuations have fully recovered, and in some cases exceeded pre-pandemic levels

For additional information on KeyBanc Capital Markets, please contact any of the individuals listed below: Diversified Industrials Team

Chris Roehm TJ Monico Jeff Johnston Marco Palacio Luke Korney Connor Willsey Managing Director Managing Director Managing Director, M&A Vice President Associate Analyst 312.730.2708 216.689.3079 216.689.4115 216.689.3096 216.689.4716 312.730.2790 [email protected] [email protected] [email protected] [email protected] [email protected] [email protected]

Sources: IHS Markit, Capital IQ market data as of 12/16/20 1 PMI shown is a GDP-weighted average of the survey manufacturing and services indices; readings above 50 indicate activity is expanding across the manufacturing sector, while those below 50 signal contraction Capital Goods: CFX, GNRC, LECO, MTW, THR, TNC; Construction: ASTE, CAT, DE, MTW, TEX; Engineered Components: EPAC, HI, KMT, NPO, NVT; Flow Control / Water: AOS, AQUA, BMI, FELE, PNR, WTS, XYL; Food Equipment: ITW, JBT, MIDD, WBT; Industrial Technology: CTS, GGG, IEX, LFUS, NDSN; Large Cap Diversifieds: AME, DOV, EMR, ETN, HON, ITW, JCI, PH; Power Transmission: AIMC, RBC, RXN, TKR; Diversified Index: Average of all indexes Disclosure: KeyBanc Capital Markets is a trade name under which corporate and investment banking products and services of KeyCorp and its subsidiaries, KeyBanc Capital Markets Inc., Member FINRA/SIPC and KeyBank National Association (“KeyBank N.A.”), are marketed. Securities products and services are offered by KeyBanc Capital Markets Inc. and its licensed securities representatives, who may also be employees of KeyBank N.A. Banking products and services are offered by KeyBank N.A. This report was not issued by our research department. The information contained in this report has been obtained from sources deemed to be reliable but is not represented to be complete and it should not be relied upon as such. This report does not purport to be a complete analysis of any security, issuer, or industry and is not an offer or a solicitation of an offer to buy or sell any securities. This report is prepared for general information purposes only and does not consider the specific investment objectives, financial situation and particular needs of any individual person or entity. Industrial Investment Banking Round-Up Industrial & Business Services As of December 18th, 2020 Industrial & Business Services Market Perspectives COVID-19 cases have continued to rise throughout the country, prompting new restrictions on some Industrial & Business Services companies, particularly in California. While hope for a strong economic rebound has been bolstered by vaccine approvals, concerns about the long-term effects of the shutdown on public funding, particularly at the state and local levels, has cast doubts on the near-term funding of infrastructure-related projects • A number of state, local and federal infrastructure programs have made emergency funding arrangements or discussed significant spending and program cuts – Amtrak has requested $4.9 billion in federal funding for 2021, saying that will have to make significant cuts without the funding – The NY-NJ Port Authority announced that it may cut capital plans by $1.2 billion, based on a projected $3 billion revenue loss – Pennsylvania lawmakers agreed to allow PennDOT to borrow $600 million to bridge a funding shortfall – Congress has passed a stopgap funding bill to keep the government open during omnibus spending and coronavirus relief negotiations • Despite uncertainty generated by COVID-19, the waste and recycling industry saw major activity in M&A and consolidation – Most of the major public and large private providers were active in 2020 – including Waste Management, Republic Services, Waste Connections, GFL Environmental, Wheelabrator and many others • Staffing industry growth and survey results show optimism for the labor market heading in to 2021 – The ASA Staffing Index reached a 10-month high in November, matching a level not seen since January, before any COVID-related shutdowns or restrictions – The ASA Candidate Sentiment Survey found that 80% job seekers foresee working for a new company in the next 12 months • Richie Bros. Auctioneers, one of the largest providers of rental equipment in the U.S. has announced that its largest annual auction, held in February, will take place entirely online in 2021 due to COVID-related restrictions Industrial & Business Services Subsector Median Trading Multiples

Field Services Construction Services Engineering & Consulting

13.3x 9.8x 12.0x 11.8x 12.4x 8.8x 7.6x 7.4x 7.8x 5.8x 4.9x 5.6x

3/31/2020 6/30/2020 9/30/2020 12/17/2020 3/31/2020 6/30/2020 9/30/2020 12/17/2020 3/31/2020 6/30/2020 9/30/2020 12/17/2020 Waste & Environmental Staffing / Training / Security Rental Services

13.2x 13.6x 13.2x 13.2x 12.2x 11.4x 11.3x 11.5x 10.2x 10.3x 8.7x

5.4x

3/31/2020 6/30/2020 9/30/2020 12/17/2020 3/31/2020 6/30/2020 9/30/2020 12/17/2020 3/31/2020 6/30/2020 9/30/2020 12/17/2020 For additional information on KeyBanc Capital Markets, please contact any of the individuals listed below: Industrial & Business Services Team

Steve Hughes Jeff Johnston Ed Hertz Steve Meehan Luke Korney John Wen Managing Director, I&BS Managing Director, M&A Director, I&BS Associate, I&BS Associate, I&BS Analyst, I&BS 216.689.4101 216.689.4115 216.689.5006 216.689.3494 216.689.4716 216.689.5089 [email protected] [email protected] [email protected] [email protected] [email protected] [email protected]

Distribution Market Perspectives • Positive momentum has continued in the distribution M&A markets over the last month, as several notable transactions were announced – On November 16, 2020, The Home Depot announced its plan to reacquire HD Supply, one of North America’s largest industrial distributors, for $8 billion ▪ HD Supply was spun-off from Home Depot in 2013, and has since divested meaningful divisions of the business in recent years, including the Company’s White Cap and Waterworks businesses – On December 16, 2020, FEMSA announced that its holding company NW Synergy acquired Southeastern Paper Group, a distributor of packaging, non-food disposables and JanSan products ▪ The acquisition adds to FEMSA’s portfolio of regional leaders in JanSan, packaging and specialty distribution including WAXIE Sanitary Supply, North American Corporation and SWPlus – After putting M&A activity on pause in March due to COVID, international HVAC distributor Ferguson stated that acquisitions will be a considerable focus moving forw ard, w ith several bolt-on deals in the pipeline and expected to add significant grow th in 2021 • Sales mix continues to normalize for industrial distributors as COVID related uncertainty is still prevalent and demand for s afety and PPE products remains elevated – Fastenal has seen a steady improvement in fastener product sales since bottoming out at a 22.5% YoY decline in April, w ith November declining just 1.7% YoY ▪ Sales to manufacturing customers increased 1.4% YoY during November, up from a 3.8% YoY decline during October, while sales to non-residential construction customers fell 10.2% YoY, up from an 11.3% YoY decline the month prior – MSC Industrial has seen sequential improvement of non-safety and non-janitorial products from Q3 to Q4, how ever safety and janitorial product sales remain strong, grow ing on average ~20% YoY each month since March • FCH Sourcing Network’s monthly Fastener Distributor Index showed a seasonally adjusted reading of 54.5 during November, down 2 points MoM but still indicating growth with a reading above 50 – FDI’s forw ard-looking indicator, a measure of respondents’ expectations of future fastener market conditions, fell to 63.2 from 64.5 the month prior • Distributors continue to perform well in the equity markets, trading on average 166% above 52-week lows Public Company 30-Day Stock Performance Public Company 30-Day Trading Performance

(Indexed to 0.0%) (EV / NTM EBITDA) 30.0x 15% 1-Mo. 1-Wk. 1-Yr. Average 13% 5% (46%) Today 1-Mo. 1-Wk. 1-Yr. Lev.1 10% 7% 3% 34% 25.0x 24.8x 23.9x 24.2x 23.3x 1.7x 3% 0% 27% 17.6x 17.2x 17.5x 16.4x 2.5x 5% 3% 4% 55% 20.0x 16.4x 16.7x 16.3x 14.0x 1.5x 2% 1% 16% 13.3x 13.2x 13.5x 13.0x 2.0x 0% 1% 2% 1% 15.0x 12.3x 12.1x 12.1x 12.9x 3.7x 1% (0%) 26% 11.8x 11.8x 11.8x 10.6x 2.2x

(5%) (0%) (3%) (8%) 10.0x 10.8x 10.8x 10.7x 10.3x 3.0x (3%) 4% (1%) 8.6x 8.6x 8.4x 8.6x 3.5x

(10%) 5.0x Nov-16 Nov-26 Dec-06 Dec-16 Nov-16 Nov-26 Dec-06 Dec-16

Broadline / Industrial MRO Technology / Electronics / Electrical Chemicals Building Products S&P 500 Oil & Gas Food / Foodservice Vehicle Aftermarket Other Specialty Distributors

Note: Market Data as of 11/11/2020; BL / Ind MRO: AIT, BOSN, FAST, GWW, HDS, LAWS, MSM, PKOH, SYX; O&G: DXPE, MRC, DNOW; Tech / E / E: ARW, AVT, BDC, ECM, HWCC, RXL, SNX, TRNS, WCC; Food / Foods: BNZL, CHEF, CORE, PFGC, SYY, UNFI, USFD; Chem: BNR, DKSH, IMCD, UNVR; Vehicle: AAP, AZO, DORM, GPC, LKQ, MPAA, ORLY, SMP, UNS; BP: BECN, BMCH, BLDR, BXC, FERG, FBM, GMS, HDI, RCH; Other: POOL, SITE, WSO For additional information on KeyBanc Capital Markets, please contact any of the Distribution Team individuals listed below: TJ Monico Jeff Johnston John Ebert Will Beecher Sam Beecher Managing Director Managing Director Director Associate Senior Analy st Head of Distribution Head of M&A Distribution Distribution Distribution 216.689.3079 216.689.4115 216.689.3553 216.689.5683 216.689.5836 [email protected] [email protected] [email protected] [email protected] [email protected]

Sources: MDM, Industrial Distribution 1 Lev erage = Index Average Net Debt / NTM EBITDA Disclosure: KeyBanc Capital Markets is a trade name under which corporate and investment banking products and services of KeyCorp and its subsidiaries, KeyBanc Capital Markets Inc., Member FINRA/SIPC and KeyBank National Association (“KeyBank N.A.”), are marketed. Securities products and services are offered by KeyBanc Capital Markets Inc. and its licensed securities representatives, who may also be employees of KeyBank N.A. Banking products and services are offered by KeyBank N.A. This report was not issued by our research department. The inf ormation contained in this report has been obtained from sources deemed to be reliable but is not represented to be complete and it should not be relied upon as such. This report does not purport to be a complete analysis of any security, issuer, or industry and is not an offer or a solicitation of an offer to buy or sell any securities. This report is prepared f or general information purposes only and does not consider the specific investment objectives, financial situation and particular needs of any individual person or entity. Global metals & mining review Aluminum ▪ Alcoa has entered into a definitive agreement to sell its Warrick, IN rolling mill to Kaiser Aluminum for ~$670 million. Alcoa will continue to operate its smelter and power plant at the facility and enter into a primary aluminum supply agreement with Kaiser. The transaction is expected to close by April of 2021 Steel ▪ HRC pricing is up 57.8% MoM (see pg. 4), enticing BOF producers to resume normalized production levels. Most recently, U.S. Steel has announced plans to restart its Gary Works, Blast Furnace No. 4 to capitalize on recovering demand, particularly in the automotive sector. BOF No. 4 is the last furnace to be restarted at the Company’s Gary Works, IN facility (see pg. 5) ▪ U.S. Steel has exercised its option to acquire the remaining 50.1% of Big River Steel (‘BRS’) for ~$774 million. The transaction is expected to close in the 1Q of 2021 and will increase U.S. Steel’s annual EAF production capacity by ~3.3 million tons, enhancing the Company’s flexibility in lower volume demand environments. Following the November completion of BRS’ ~$716 million Phase II at its facility in Osceola, AK, the mill is expected to reach full production by the 2H of 2021 ▪ Valbruna ASW, a subsidiary of Italy’s Acciaierie Valbruna S.p.A., has announced plans to install a new EAF at its specialty stainless mill in Welland, Ontario. Replacing an existing furnace, the new EAF will improve productivity and increase the mill’s melting capacity ▪ JSW Steel USA, a subsidiary of India’s JSW Steel Ltd, has announced an expansion of the Company’s original EAF modernization plan at its idled mill in Mingo Junction, OH. In addition to planned improvements to the facility’s EAF, JSW will upgrade their slab caster with air mist cooling, a modernized oscillator and a Level II process automation system. The Ohio facility produces HRC and supplies slab to JSW’s plate and DSAW pipe mill in Baytown, TX. The Company plans to resume production at Mingo junction in March of 2021 Copper, Lead and Zinc ▪ Copper pricing has risen 19.3% MoM (see pg. 4), on strong demand from the construction sector, but with the continued spread of Covid-19 a slowdown industrial production remains a key risk for the copper market. Despite the risk of a slowdown in industrial production some analysts are expecting copper to hit >$9,500 per metric ton in 2021 Specialty & Alloys ▪ ATI has announced that it will exit its stainless sheet business by the 2H of 2021 and will redeploy the capital towards its aerospace & defense business. The Company will cease production at five facilities and consolidate its Advanced Alloys & Solutions (‘AA&S’) finishing operations at its facility in Vandergrift, PA, where ATI is slated to invest $65 – $85 million over the next three years Mining, Scrap and Materials ▪ In the first week of October, China banned imports of Australian coking coal. The import ban has flooded the international market with coking coal, but driven up Asian coke prices. Chinese steel mills source ~90% of their coking coal domestically and use high-quality, low-vol coal imports to ‘blend-up’ quality. Without a high quality domestic supply of coking coal, the import ban has driven up pricing for finished coke from the U.S. and Canada. There is no indication when the import ban will be lifted

Quarterly GDP – Annualized and Seasonally Adjusted (through 3Q of 2020)

10.0% According to the U.S. Bureau

7.4% of Economic Analysis, annualized GDP increased 7.4% in the 3Q of 2020, 5.0% following a decrease of 9.0% in the 2Q of 2020 Nominal GDP remains below pre-pandemic levels, but is 0.0% expected to improve as the economy recovers from the

Covid-19 induced recession GDP (% changeQoQ)

(5.0%)

(10.0%) Q3 2017 Q1 2018 Q3 2018 Q1 2019 Q3 2019 Q1 2020 Q3 2020

Purchasing Managers Index (PMI) (through November 2020)

65.0 The U.S. manufacturing PMI decreased from 59.3 in October to 57.5 in November 60.0 The PMI was above 50.0 for 57.5 the 6th time since its April 55.0 low, driven by the on-going recovery in the manufacturing sector and 50.0 overall economy; An index value over 50.0 indicates

45.0 expansion in the manufacturing sector

40.0 ISM Purchasing Managers (PMI) Index PurchasingISM

35.0

30.0 Nov-17 May-18 Nov-18 May-19 Nov-19 May-20 Nov-20

Source: Bloomberg, U.S. Census Bureau, Institute for Supply Management, U.S. Bureau of Economic Analysis

2 Economic commentary (continued…)

Construction Put In Place – Annualized and Seasonally Adjusted (through October 2020)

$930 According to the U.S. Census Bureau, September $830 2020 construction spending 792.4 totaled $1,438.5 billion, up $730 14.5% YoY

646.1 $630 Gains are attributable to an 14.6% increase and only a $530 (3.7%) decrease in Residential Construction and $430 Non-Residential Construction, respectively

Billions of Dollars Billions $330

$230

$130

$30 Oct-13 Oct-14 Oct-15 Oct-16 Oct-17 Oct-18 Oct-19 Oct-20

Residential Non-residential Oil & Gas Drilling Activity – U.S. 1 (December 16, 2020)

100.0% 2,200

90.0% 2,000

1,800 80.0%

1,600 70.0%

1,400 60.0% 1,200 50.0% 1,000 40.0%

800 Oil vs. Gas (Rig Count) (Rig Gas vs. Oil % of Total CountRig Total % of 30.0% 600

20.0% 400

10.0% 200

0.0% 0 2010 2012 2014 2016 2018 2020 2010 2012 2014 2016 2018 2020 % Horizontal % Vertical Oil Gas

Source: Bloomberg, U.S. Census Bureau, Institute for Supply Management 1 Horizontal drilling data includes directional drilling wells

3 Industry fundamentals

Steel Prices (through December 16, 2020)

Steel HRC CRC HDG Plate Rebar Merchant Bar

End of Month Price ($ / Ton) $978 $1,040 $1,145 $730 $690 $745

MoM % Change 57.8% 33.3% 29.4% 25.9% 16.0% 4.2%

YoY % Change 85.7% 44.4% 40.5% 21.7% 16.0% 13.7%

$1,600 $1,200

$1,400 $1,000

$1,200

$800 $1,000

$800 $600

U.S. $ / U.S. / ton $ U.S. $ / U.S. / ton $ $600 $400

$400

$200 $200

$0 $0 Dec-15 Jun-16 Dec-16 Jun-17 Dec-17 Jun-18 Dec-18 Jun-19 Dec-19 Jun-20 Dec-20 Dec-15 Jun-16 Dec-16 Jun-17 Dec-17 Jun-18 Dec-18 Jun-19 Dec-19 Jun-20 Dec-20

HRC CRC HDG Plate Rebar Merchant Bar

Base Metals Prices (through December 16, 2020)

Base Metals Aluminum Copper Nickel Zinc

End of Month Price ($ / lb) $0.92 $3.55 $8.01 $1.28

MoM % Change 18.6% 19.3% 23.7% 22.4%

YoY % Change 16.2% 34.8% 17.8% 16.1%

$5.00 $15.00

$12.50 $4.00

$10.00

$3.00

$7.50

U.S.$ / / lb U.S.$ U.S. $ / / lb U.S. $ $2.00

$5.00

$1.00 $2.50

$0.00 $0.00 Dec-15 Jun-16 Dec-16 Jun-17 Dec-17 Jun-18 Dec-18 Jun-19 Dec-19 Jun-20 Dec-20 Dec-15 Jun-16 Dec-16 Jun-17 Dec-17 Jun-18 Dec-18 Jun-19 Dec-19 Jun-20 Dec-20

Aluminum Copper Zinc Nickel

Source: American Metal Market Note: Midwest quotes used for steel pricing

4 Industry fundamentals (continued…)

U.S. Capacity Utilization (through November 30, 2020)

2,000 90.0% U.S. steel production increased throughout 1,800 November with capacity 75.0% utilization at 71.5%, up from 1,600 71.1% in October

1,400 Mills have produced 70.8 Capacity Utilization (%) 60.0% million tons in 2020 at an 1,200 average capacity utilization rate of 66.5% 1,000 45.0%

Tons(000s) 800

30.0% 600

400 15.0%

200

0 0.0% Nov-19 Jan-20 Mar-20 May-20 Jul-20 Aug-20 Oct-20 Total Production Capacity Utilization

Idled N.A. Mill Operations (as of December 16, 2020)

ArcelorMittal ▪ Dofasco, Blast Furnace No. 3

▪ Hot strip mill in Dearborn, MI Cleveland-Cliffs ▪ Stainless mill in Mansfield, OH ▪ Cleveland, Blast Furnace No. 6

Evraz ▪ Seamless pipe mill in Pueblo, CO

JSW Steel ▪ EAF and mill in Mingo Junction, OH ▪ Plate mill in Baytown, TX

Liberty Steel ▪ Wire rod mill in Georgetown, SC ▪ EAF and mill in LaPlace, LA

▪ Billet mill in Koppel, PA Tenaris ▪ Tubular operations in Baytown, TX ▪ Tubular operations in Ambridge, PA

▪ Granite City, Blast Furnace A U.S. Steel ▪ Tubular operations in Lorain, OH ▪ Tubular operations in Lone Star, TX

Source: American Iron and Steel Institute, Baker Hughes Investor Relations/Rig Data

5 Industry fundamentals (continued…)

Monthly Steel Production (LTM through October 31, 2020)

('000s M T) U.S. China Rest of World World Total LTM Production 74,251 1,040,069 695,753 1,810,073

MoM % Change 2.8% (0.4%) 7.2% 2.6%

YoY % Change (15.3%) 13.1% 2.0% 7.1% 180,000 % of World Total 4.1% 57.5% 38.4% 100.0%

160,000

140,000

120,000

100,000

80,000

60,000

40,000 Monthly Production ('000s Tons) ('000s Monthly Production 20,000

0 Oct-17 Feb-18 Jun-18 Oct-18 Feb-19 Jun-19 Oct-19 Feb-20 Jun-20 Oct-20

U.S. China Rest of World MSCI Ending Inventories & Average Daily Shipments (through October 31, 2020)

10,000 300.0

250.0

8,000 Avg.Daily Tons) Shipments ('000s 200.0

6,000

150.0

4,000

100.0

Ending Inventory ('000s Tons) ('000sEnding Inventory 2,000 50.0

0 0.0 Oct-17 Feb-18 Jun-18 Oct-18 Feb-19 Jun-19 Oct-19 Feb-20 Jun-20 Oct-20

Ending Inventory Avg. Daily Shipments

Source: World Steel Association, Metals Service Center Institute

6 Industry fundamentals (continued…) Ferrous Monthly Scrap Net Exports 1 Non-Ferrous Monthly Scrap Net Exports 1

$500 $300

$400 $225 221

330 174

$300 $150

$200 $75

$100 $0 (12

$0 ($75) Oct-15 Oct-16 Oct-17 Oct-18 Oct-19 Oct-20 Oct-15 Oct-16 Oct-17 Oct-18 Oct-19 Oct-20

Aluminum Scrap Copper Scrap Nickel Scrap Ferrous & Non-Ferrous Scrap Prices (through December 16, 2020)

Ferrous ($ / ton) Non-ferrous ($ / lb) Scrap Heavy Melt #1 Shredded Auto Aluminum Scrap Copper Scrap Nickel Scrap

End of Month Price $335 $370 $0.63 $3.29 $4.03

MoM % Change 36.7% 32.1% 24.8% 20.5% 11.0%

YoY % Change 39.6% 56.1% 17.8% 35.3% 1.3%

Scrap Spread $643 $608 $0.29 $0.26 $3.98

$500 $12.00

$400 $9.00

$300

$6.00 U.S. $ / / U.S. lb $

U.S. $ / / U.S. ton $ $200

$3.00 $100

$0 $0.00 Dec-15 Jun-16 Dec-16 Jun-17 Dec-17 Jun-18 Dec-18 Jun-19 Dec-19 Jun-20 Dec-20 Dec-15 Jun-16 Dec-16 Jun-17 Dec-17 Jun-18 Dec-18 Jun-19 Dec-19 Jun-20 Dec-20

Heavy Melt #1 Shredded Auto Aluminum Scrap Copper Scrap Nickel Scrap

Source: U.S. Census Bureau, American Metal Market 1 Scrap trade data through 10/31/2020; $ in millions

7 Select KeyBanc Capital Markets’ equity research KeyBanc Capital Markets’ top-ranked 1 equity research team covers numerous companies across the Metals and Mining sector. Selected recent research notes are provided below. Click on the respective ‘tear out’ to read the entire note.

Carbon Steel

December 14, 2020 December 11, 2020 ALERT: Sheet Drives Demand; Destocking MT - ALERT: The Ilva Saga Concludes Continues for Seventh Straight Month

Steel

December 9, 2020 December 7, 2020 CLF - ALERT: Walking Through the Door of Steel - ALERT: China's November Steel Exports Transformation as MT USA Deal Closes Increase; Broader Data Improves Further

December 6, 2020 December 2, 2020 ATI: Stainless Unwind = Higher ROIC Profile, HAYN: Nearing the Trough as Orders Stabilize Multiple Expansion; Raising Target to $25

Steel Aerospace

November 24, 2020 November 12, 2020 Steel - ALERT: Chinese Output Elevated; RoW Aerospace: Recovery on Track; Favoring ATI, Production Sees Y/Y Increase HXL

1 KeyBanc Capital Markets’ Industrial Research platform has consistently achieved a Top 3 ranking in Greenwich Associates annual survey of small / mid-cap fund managers. In its June 2019 Analyst Awards, ThomsonReuters recognized Phil Gibbs as the #1 earnings estimator in the Metals & Mining sector

8 Capital markets update

Index Performance (through December 16, 2020)

40.0% KeyBanc’s Global Producers index has overtaken the S&P 500 in 20.0% 18.6% December, up 18.6% YoY 16.0% 4.8% Service Centers are up 0.0% 4.8%, while Specialty Metals are down by (26.6%) (20.0%) (26.6%)

(40.0%)

(60.0%)

(80.0%) Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20

Global Producers Service Centers Specialty Metals S&P 500 Investment Grade and High Yield Bond Spreads (through December 4, 2020)

1,400 All bond spreads continued to tighten into 1,200 December, with BB and B rated spreads decreasing the greatest 1,000

800

600

Spread to Maturity Spread to 498 400 309

200 158 102 0 Dec-15 Dec-16 Dec-17 Dec-18 Dec-19 Dec-20

A Index BBB Index BB Index B Index

Source: Capital IQ

9 Capital markets update (continued…) Current Rate Snapshot (as of December 14, 2020) Inflation Picked Up In November, Driven by Service Costs 1.00% Friday Prior Week Change 1-Month LIBOR 0.16% 0.15% 0.01%  3-Month LIBOR 0.22% 0.23% (0.01%)  SOFR 1 0.08% 0.09% (0.01%)  0.50% Fed Funds 0.25% 0.25% 0.00%  Fed Discount 2.75% 2.75% 0.00%  Prime 3.25% 3.25% 0.00%  US Treasury Yields 0.00% 2-year Treasury 0.12% 0.15% (0.03%)  5-year Treasury 0.37% 0.42% (0.05%)  10-year Treasury 0.90% 0.97% (0.07%)  April of 2020’s CPI drop of (0.8%) was (0.50%) Swaps vs. 3M LIBOR the largest MoM drop since April 2008, driven by a steep decline in demand 2-year 0.20% 0.23% (0.03%)  across the service sector due to strict 5-year 0.42% 0.48% (0.06%)  stay-at-home orders across the country 10-year 0.89% 0.97% (0.08%)  (1.00%) Source: Bloomberg Nov-15 Nov-16 Nov-17 Nov-18 Nov-19 Nov-20 Consumer Price Index (CPI) MoM

The Consumer Price Index, a critical inflation measure, rose by 0.2% from October to November, per the U.S. Labor Department. This result beat the consensus expectation of 0.1% and comes after no gain at all in October. November’s CPI was driven by increased demand for services across industries such as travel and (retail) apparel. Despite this advance, inflation continues to remain well below the FED’s target of 2%. FED Speak & Economic News • Despite the bearish labor market result in the week ended December 11, government officials in the Senate and House of Representatives have yet to signal any sort of bipartisan agreeance on the terms included within the most recent proposal for a nearly $1 trillion fiscal aid package. The economic report during the week ended December 11 was mixed, but the headline result was a bearish labor market result. For the week ended December 5, weekly claims for unemployment jumped by ~137,000 to 853,000. This result for new claims missed the consensus expectation by ~128,000 claims. Continuing claims, representing individuals who receive unemployment benefits on a recurring basis, increased for the first time since August. Continuing claims for unemployment missed the consensus expectation by ~547,000 claims for the week ended November 28. Both of these headline results signal that there is a near immediate negative reaction in the labor market as Covid-19 cases rise and hamper employers’ ability to hire • Equities sold off and retreated from the record levels reached recently due to the stimulus gridlock headlines that dominated newsfeeds in early December. Riskless assets saw a pickup in demand throughout the week due to the shift in investor sentiment toward safe-haven assets. This risk-off investor sentiment, combined with asset purchases by the FED, drove the bid in U.S. Treasuries higher and yields fell along the curve. The 10-year U.S. Treasury yield declined 7 bps last week, ultimately flattening out the curve after the gains made during the previous week’s trading sessions. USD swap rates followed almost an identical trend to that of U.S. Treasuries with losses of 3 – 8 bps along the curve. LIBOR was basically unchanged, with the 1-month designated maturity setting at roughly 8 bps above the FED funds effective rate of 0.08% • The December 2020 Federal Open Market Committee (‘FOMC’) meeting takes place December 16. In accordance with previous statements, the FED is expected to leave the range of its target rate unchanged and the upper-bound will remain at near zero (0.25%) to be accommodative as the pandemic worsens. Also, FED officials will likely make statements specific to the future pace of asset purchases considering the pace experienced throughout 2020. A new dot plot will be released as well, but market participants believe there will not be any material deviation from the existing dot plot that was released following the June FOMC meeting

Source: Bloomberg, Federal Reserve 1 SOFR is a secured overnight rate, currently without a term structure

10 Select recent transaction activity

Acquirer Target Announced Closed Highlights (Parent) (Seller)

▪ Metal Recycling Corp has acquired Sol Alman Co. The transaction consideration was not disclosed 12/10/2020 12/18/2020 Metal Recycling Corp Sol Alman Co. ▪ This transaction increases Metal Recycling’s presence in Arkansas, expanding the Company’s operations to a third full-service scrap metal recycling facility

▪ SPS has acquired U.S. Wholesale Pipe & Tube. The transaction U.S. Wholesale Pipe & consideration was not disclosed 11/30/2020 11/30/2020 SPS Companies Tube ▪ This acquisition will expand SPS footprint and extend the Company’s offerings into new geographies

▪ Kaiser Aluminum has acquired Alcoa's Warrick, IN rolling mill. The Warrick Operations of transaction consideration is $670.0 million 11/30/2020 Pending Kaiser Aluminum Alcoa ▪ This transaction is part of Alcoa’s strategic reorganization, putting nearly half of the Company’s global smelting capacity under review. (Alcoa) The Company will continue to operate its smelter and power plant at the location

▪ Magris has acquired Imerys’ Talc business as a stalking horse bidder. Imerys’ North American Magris Resources The transaction consideration is ~$223.0 million 11/16/2020 Pending Talc business Canada ▪ This sale was part of Imerys’ Chapter 11 proceedings in the U.S. (Imerys) Bankruptcy Court

▪ Senergy Holding has acquired the Cumberland Mine and other Pennsylvania Operations Pennsylvania assets from Contura Energy. The transaction Senergy Holdings 11/12/2020 Pending of Contura consideration was not disclosed (Iron Senergy) (Contura Energy) ▪ Senergy plans to operate the mine past Contura’s planned exit at the end of 2022

▪ Cleveland-Cliffs has entered into a definitive agreement with ArcelorMittal to purchase ArcelorMittal’s U.S. operations. The 9/28/2020 12/9/2020 Cleveland-Cliffs ArcelorMittal USA transaction consideration is ~$1.4 billion ▪ This acquisition continues Cliff’s downstream acquisition strategy to transition into a fully integrated high-value steel enterprise

Source: American Metal Market, The Daily Deal, MergerMarket

11 Recent capital markets’ activity

Closed Company Gross Offering Size Highlights

$63.4 million ▪ $63.4 million, 6.375% green bonds issued through the Industrial Development Environmental board of the City of Hoover, AL due 2050 11/24/2020 U.S. Steel Improvement Revenue ▪ The proceeds will be used to fund the Company’s new EAF at its Fairfield, AL Bonds facility

Source: American Metal Market, The Daily Deal, MergerMarket

12 Metals public operating & trading statistics

$ in millions, except per share data Prices as of Market Enterprise LTM CY 2021 LTM CY 2021 Company Ticker 12/16/2020 Cap Value Sales EBITDA % Margin EPS EBITDA EPS EV / EBITDA P/E Ratio EV / EBITDA P/E Ratio

ArcelorMittal ENXTAM:MT $23.00 $26,532 $35,097 $54,600 $3,751 6.9% ($2.07) $5,691 $1.50 9.4x NM 6.2x 15.3x

Companhia Siderúrgica Nacional BOVESPA:CSNA3 5.52 7,624 13,266 5,480 1,337 24.4% 0.62 1,628 0.36 9.9x 8.9x 8.1x 15.2x

Gerdau S.A. BOVESPA:GGBR3 3.83 6,567 9,013 7,736 1,079 13.9% 0.17 1,499 NA 8.4x 22.9x 6.0x NA

Grupo Simec, S.A.B. de C.V. AMEX:SIM 9.38 1,449 1,108 1,656 261 15.8% 0.29 229 NA 4.2x NM 4.8x NA

PAO Severstal LSE:SVST 17.17 14,165 15,958 7,080 2,291 32.4% 1.08 2,679 1.87 7.0x 15.8x 6.0x 9.2x

SSAB AB (publ) OM:SSAB A 3.55 3,660 4,978 7,810 216 2.8% (0.24) 775 0.22 NM NM 6.4x 16.4x International Producers International Tata Steel Limited 500470 8.74 10,010 23,055 17,999 2,304 12.8% (0.34) 3,588 0.91 10.0x NM 6.4x 9.6x

thyssenkrupp AG XTRA:TKA 8.64 5,380 (321) 35,195 1,502 4.3% (4.70) 83 (0.96) NM NM NM NM

Average $9,423 $12,769 $17,194 $1,593 14.1% $2,022 8.1x 15.9x 6.3x 13.1x Median $7,095 $11,140 $7,773 $1,419 13.4% $1,564 8.9x 15.8x 6.2x 15.2x

Commercial Metals Company CMC $20.73 $2,512 $3,054 $5,476 $646 11.8% $2.36 $458 $1.78 4.7x 8.8x 6.7x 11.6x

Nucor Corporation NUE 56.44 17,131 19,793 20,011 2,125 10.6% 2.38 2,505 3.22 9.3x 23.7x 7.9x 17.5x

Steel Dynamics, Inc. STLD 38.32 8,063 9,511 9,371 1,092 11.6% 2.30 1,174 2.85 8.7x 16.7x 8.1x 13.4x

United States Steel Corporation X 18.37 4,049 7,298 10,003 (78) (0.8%) (6.51) 636 (0.92) NM NM 11.5x NM Domestic Producers Domestic

Average $7,939 $9,914 $11,215 $946 8.3% $1,193 7.6x 16.4x 8.5x 14.2x Median $6,056 $8,405 $9,687 $869 11.1% $1,193 7.6x 16.7x 8.0x 13.4x

Olympic Steel Inc. ZEUS $15.96 $186 $353 $1,222 $20 1.7% ($0.57) $38 $0.00 NM NM 9.4x NA

Reliance Steel & Aluminum Co. RS 120.13 7,659 8,719 9,126 942 10.3% 7.49 1,032 9.03 9.3x 16.0x 8.5x 13.3x

Russel Metals Inc. TSX:RUS 17.47 1,102 1,440 2,238 102 4.6% 0.32 139 1.13 14.1x NM 10.4x 15.5x

Processors Ryerson Holding Corporation RYI 12.19 465 1,163 3,575 151 4.2% (1.03) 168 0.88 7.7x NM 6.9x 13.8x Service Centers / Centers Service

Worthington Industries, Inc. WOR 52.53 2,856 2,773 2,906 294 10.1% 0.26 334 3.84 9.4x NM 8.3x 13.7x

Average $2,454 $2,890 $3,813 $302 6.2% $342 10.1x 16.0x 8.7x 14.1x Median $1,102 $1,440 $2,906 $151 4.6% $168 9.4x 16.0x 8.5x 13.7x

ALBA SE DB:ABA $79.16 $784 $696 $346 ($2) -0.5% ($1.35) NA NA NM NM NA NA

Schnitzer Steel Industries, Inc. SCHN 30.73 833 923 1,712 79 4.6% 0.27 NA NA 11.7x NM NA NA

Scrap Scrap Recycling Sims Limited ASX:SGM 9.51 1,935 1,852 3,719 41 1.1% (0.64) 221 0.32 NM NM 8.4x NM

Average $1,184 $1,157 $1,926 $39 1.7% $221 11.7x NM 8.4x NM Median $833 $923 $1,712 $41 1.1% $221 11.7x NM 8.4x NM

Allegheny Technologies Incorporated ATI $16.46 $2,087 $3,172 $3,342 $290 8.7% ($0.88) $229 ($0.42) 10.9x NM 13.9x NM

Carpenter Technology Corporation CRS 29.39 1,420 1,894 1,949 183 9.4% 0.68 NA NA 10.3x NM NA NA

Haynes International, Inc. HAYN 26.73 339 300 381 13 3.5% (0.52) 7 NA NM NM NM NA

Kaiser Aluminum Corporation KALU 93.08 1,526 1,613 1,269 174 13.7% 3.61 237 6.03 9.2x NM 6.8x 15.4x

Materion Corporation MTRN 59.61 1,253 1,284 1,184 161 13.6% 5.25 126 2.91 8.0x 11.4x 10.2x 20.5x Specialty Metals & Alloys & Metals Specialty Universal Stainless & Alloy Products, Inc. USAP 7.02 62 124 204 8 3.8% (1.24) 8 (0.88) 15.8x NM 15.3x NM

Average $1,114 $1,398 $1,388 $138 8.8% $121 10.9x 11.4x 11.5x 18.0x Median $1,336 $1,449 $1,227 $168 9.0% $126 10.3x 11.4x 12.0x 18.0x

Source: CapitalIQ, ThomsonReuters, SEC Filings Note: Outlying EV/EBITDA and P/E multiples were excluded from average and median calculations

13 Metals public credit statistics

$ in millions Total Net Total Debt / Net Debt / Total Debt / Net Debt / EBITDA / Company Ticker Debt Debt EBITDA EBITDA Cap (book) Cap (book) Interest

ArcelorMittal ENXTAM:MT $13,384 $6,767 3.6x 1.8x 25.8% 13.0% 2.5x

Companhia Siderúrgica Nacional BOVESPA:CSNA3 7,041 5,380 NM 4.0x 87.9% 67.1% 3.8x

Gerdau S.A. BOVESPA:GGBR3 3,805 2,403 3.5x 2.2x 38.5% 24.3% 3.8x

Grupo Simec, S.A.B. de C.V. AMEX:SIM 0 (343) NM NM 0.0% NM NM

PAO Severstal LSE:SVST 2,563 1,779 1.1x 0.8x 50.3% 34.9% 15.9x

SSAB AB (publ) OM:SSAB A 1,952 1,305 NM NM 22.0% 14.7% 1.0x Select Global Producers Global Select Tata Steel Limited 500470 15,121 12,708 NM NM 63.1% 53.0% 2.2x

thyssenkrupp AG XTRA:TKA 7,919 (6,144) NM NM 39.9% NM 0.8x

Average $6,473 $2,982 2.7x 2.2x 40.9% 34.5% 4.3x Median $5,423 $2,091 3.5x 2.0x 39.2% 29.6% 2.5x

Commercial Metals Company CMC $1,084 $542 1.8x 0.9x 36.5% 18.2% 9.8x

Nucor Corporation NUE 5,526 2,247 2.6x 1.1x 34.9% 14.2% 14.4x

Steel Dynamics, Inc. STLD 2,719 1,451 2.5x 1.3x 39.3% 21.0% 10.2x

United States Steel Corporation X 4,890 3,194 NM NM 58.6% 38.3% NM Domestic Producers Domestic

Average $3,555 $1,859 2.3x 1.1x 42.3% 22.9% 11.5x Median $3,804 $1,849 2.5x 1.1x 37.9% 19.6% 10.2x

Olympic Steel, Inc. ZEUS $171 $166 NM NM 36.4% 35.3% 2.3x

Reliance Steel & Aluminum Co. RS 1,644 1,053 1.7x 1.1x 24.6% 15.7% 14.8x

Russel Metals Inc. TSX:RUS 434 339 4.3x 3.3x 37.6% 29.4% 3.5x

Processors Ryerson Holding Corporation RYI 961 839 6.4x 5.6x 87.9% 86.4% 1.8x Service Centers / Centers Service Worthington Industries, Inc. WOR 707 (230) 2.6x NM 46.3% NM 9.1x

Average $784 $433 3.7x 3.3x 46.6% 41.7% 6.3x Median $707 $339 3.4x 3.3x 37.6% 32.4% 3.5x

ALBA SE DB:ABA $23 ($87) NM NM 13.4% NM NM

Schnitzer Steel Industries, Inc. SCHN 104 87 1.3x 1.1x 13.4% 11.1% 9.1x Scrap

Recycling Sims Limited ASX:SGM 88 (83) 2.1x NM 5.6% NM 3.5x

Average $72 ($28) 1.7x 1.1x 10.8% 11.1% 6.3x Median $88 ($83) 1.7x 1.1x 13.4% 11.1% 6.3x

Allegheny Technologies Incorporated ATI $1,541 $969 NM 3.6x 47.1% 29.6% 2.9x

Carpenter Technology Corporation CRS 694 475 3.8x 2.6x 33.0% 22.6% 6.3x

Haynes International, Inc. HAYN 9 (39) 0.4x NM 2.7% NM 15.2x

Kaiser Aluminum Corporation KALU 838 88 4.8x 0.5x 53.8% 5.6% 4.8x

Materion Corporation MTRN 149 31 0.9x 0.2x 19.6% 4.1% NM

Specialty Metals & Alloys & Metals Specialty Universal Stainless & Alloy Products, Inc. USAP 62 62 NM NM 21.0% 20.9% 2.5x

Average $549 $264 2.5x 1.7x 29.5% 16.6% 6.3x Median $421 $75 2.4x 1.5x 27.0% 20.9% 4.8x

Source: CapitalIQ, ThomsonReuters, SEC Filings

14 Select transaction experience

Deal Value Client Business Description ($ mm) Type Closed

American Securities - Manufactures high-precision metal and plastic $750 Buy-Side Advisor Oct-20 NN Life Sciences components

Manufactures high-precision metal and plastic NN Life Sciences $485 Senior Secured Credit Facility Oct-20 components

Reliance Steel & Aluminum Processor and distributor of metals $900 Senior Notes Jul-20

Ryerson Inc. Processor and distributor of metals $500 Senior Secured Notes Jul-20

Senior Secured Credit Kymera International Producer of specialty, non-ferrous metal powders $185 Mar-20 Facilities

Manufacturer of metal bearing components, plastic and Senior Secured Credit NN Inc. $345 Dec-19 rubber components, and precision metal components Facilities

Senior Secured Revolving Zochem Manufacturer of zinc oxide $70 Dec-19 Credit Facility

Navajo Transitional Energy Company Miner of coal reserves on the Navajo Nation $25 Senior Revolving Credit Facility Oct-19

Senior Secured Revolving Venture Metals LLC Processor of non-ferrous scrap metal $125+ Sep-19 Credit Facilites

Versatile Processing Group Processor of non-ferrous scrap metal ND Sell Side Advisor Jul-19

Johnstown Wire Technologies Producer of cold-drawn steel wire products ND Sell Side Advisor Jun-19

ATI Manufacturer of complex forgings for blue-chip OEMs ND Sell Side Advisor Jun-19

Global manufacturer of high-quality, engineered, heavy Senior Unsecured Revolving Ellwood Group $150 May-19 metal components Credit Facilities

Kymera International Producer of specialty, non-ferrous metal powders $275 Senior Secured Credit Facilites Oct-18

Palladium Equity Partners - Producer of specialty, non-ferrous metal powders $275 Buy Side Advisor Oct-18 Kymera International

Manufacturer of metal bearing components, plastic and NN Inc. $230 Follow-On Sep-18 rubber components, and precision metal components

Senior Secured Junior Priority Aleris International Manufacturer of aluminum rolled products $400 Jun-18 Notes

Conuma Coal Resources Limited Miner of metallurgical coal in British Columbia $200 Senior Secured Notes Apr-18

White metals toll processor, specializing in stainless Main Steel LLC ND Sell Side Advisor Nov-17 steel coil polishing

For additional information about KeyBanc Capital Markets, contact: Metals & Mining Team

Eric Klenz Arindam Basu Barry Stormer Donald Bleifuss Alex Leszcz 216.689.3974 216.689.4262 216.689.7921 216.689.8404 216.689.5011 [email protected] [email protected] [email protected] [email protected] [email protected]

Disclosure: KeyBanc Capital Markets is a trade name under which corporate and investment banking products and services of KeyCorp and its subsidiaries, KeyBanc Capital Markets Inc., Member FINRA/SIPC and KeyBank National Association (“KeyBank N.A.”), are marketed. Securities products and services are offered by KeyBanc Capital Markets Inc. and its licensed securities representatives, who may also be employees of KeyBank N.A. Banking products and services are offered by KeyBank N.A. This report was not issued by our research department. The information contained in this report has been obtained from sources deemed to be reliable but is not represented to be complete and it should not be relied upon as such. This report does not purport to be a complete analysis of any security, issuer, or industry and is not an offer or a solicitation of an offer to buy or sell any securities. This report is prepared for general information purposes only and does not consider the specific investment objectives, financial situation and particular needs of any individual person or entity. 15 Industrial Investment Banking Round-Up Paper and Packaging As of December 18th, 2020 Earning Announcements • Berry reported earnings: Sales were flat at $3.0 billion; Adjusted EBITDA increased 18% to $586 million • Greif reported earnings: sales declined 6% to $1.2 billion; Adjusted EBITDA declined 17% to $155 million • Transcontinental reported earnings: sales declined 17% to CAD 656 million; Adjusted EBITDA increased 6% to CAD 147 million Facility News • Ardagh Group acquired a facility in Ohio that it will convert into a manufacturing plant producing beverage cans and ends • Cold Chain Technologies opened a new facility in Lebanon, Tennessee, to support the needs for COVID-19 vaccine distribution • Nice-Pak will expand its manufacturing capacity at the company's Jonesboro facility, increasing employment by 300 associates • Amcor Flexibles North America is closing its Akron, Ohio, plant that makes labels, cutting 108 jobs • Supremex will close its Edmonton facility, thus reducing its Canadian envelope facility headcount by 39 employees • Cascades will close its napkin plant in Laval, Que., at the end of June next year; the plant currently employs 54 workers Mergers & Acquisitions • International Paper announced that it will spin off its Printing Papers segment into a standalone, publicly traded company • Steel Partners submitted a non-binding expression of interest to acquire Steel Connect • UFP Industries agreed to acquire PalletOne for $232 million plus $18 million for PalletOne’s recent capital expenditures – PalletOne had $672 million in sales and $44 million in Adjusted EBITDA • Novolex, owned by The Carlyle Group, acquired B&H Bag Company, a manufacturer of paper bags • Resource Label Group, owned by First Atlantic and TPG Growth, acquired Seattle-based Labels West • Fortis Solutions Group, owned by Main Post Partners, acquired Kala Packaging • May River Capital acquired PaperTech, a manufacturer of paperboard packaging to frozen food and foodservice industries • Spartech, owned by Nautic Partners, acquired Tufpak, a manufacturer of engineered plastic films • Royal Paper, owned by Gridiron Capital, acquired Sun Paper Company, a supplier of bath, towel, napkin, and facial tissue • Applied Adhesives, owned by Goldner Hawn, acquired Premier Packaging Solutions • PPC Flexible Packing, owned by Morgan Stanley Private Equity, acquired Alliance, Ohio-based Custom Poly Bag • Supply Chain Services, owned by Sole Source Capital, acquired Coridian Technologies • ProAmpac, owned by Pritzker Private Capital, acquired Rosenbloom Groupe, Hymopack, and Dyne-A-Pak in Canada • Audax Private Equity acquired 48forty Solutions • Spectrum Plastics Group, owned by AEA Investors, acquired PeelMaster Medical Packaging Corporation • Imperial Dade, owned by Bain Capital, acquired Great Southwest Paper Company • ACON Investments acquired Novipax Absorbent Pads Business from Atlas Holdings; business will be renamed NPX ONE • SupplyOne, owned by Wellspring Capital, acquired Riverside Paper • Duravant, owned by Warburg Pincus, agreed to acquire Cloud Packaging Solutions from Hearthside Food Solutions • Green Bay Packaging acquired Third Dimension • Craftsmen Industries acquired GDS Retail and Display Graphics • Belmont Engineered Plastics purchased Cedar Springs, Michigan-based Display Pack Inc.'s In-Mold division • Mercury Plastics acquired Maryland Thermoform Corp • good natured Products acquired IPF Holdings • EverGreene Tag & Label Group acquired Dixie Labels and Systems • Alcom Printing Group acquired Christmas City Printing