Slides
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Investor Presentation May 2025
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Forward-Looking Statements Statements contained in this presentation that 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 of 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. 2
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complementary segments 3 2025 Revenue Mix Carbon Flat Products Specialty Metals Flat Products Tubular & Pipe Products Olympic Steel (NASDAQ: ZEUS) – At A Glance 3 North American metal service center founded in 1954 Approximately 2,100 employees2024 Revenue $1.9B 58%26% 16% 54 sales and warehouse locations totaling more than 4.4 million sq. ft.
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Why Invest in ZEUS? 4 • Expanding EBITDA Returns • Disciplined Approach • Disciplined Capital Allocation Strategy • Strong Balance Sheet & Liquidity • Positioned to Capitalize on a Favorable Environment • Aligned with Shareholders • Reducing cyclicality through investment and M&A, with a focus on higher-margin and metal-intensive branded products • Diligent management of operating expense, working capital and capital deployment • Investing in higher- return growth opportunities • Returning cash to shareholders • Well-positioned to fund future growth initiatives • Ability to produce free cash flow in counter- cyclical markets • Heavily U.S.-based supply chain and customer base • Poised to benefit from Build America infrastructure spending, reshoring and increased fabrication outsourcing, and reshaping of manufacturing supply chains • Experienced leadership team and Board of Directors hold ~14% of shares • Four years of consecutive quarterly dividend increases from $0.02 per share to $0.16 per share
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Three Complementary Segments Diverse product offering, distinct value-added processing capabilities • Stainless steel and aluminum • Fastest-growing segment, serving growth markets • Higher returns vs. carbon service centers • Recent expansion of processing capabilities and M&A • Less cyclical and higher returns due to niche markets • Highly engineered value-added processing • Traditionally highest EBITDA to sales Specialty Metals Flat Products Tube, Pipe & Bar Products • High-volume business • Margin enhancement through value- added processing and acquisition of metal-intensive branded products • Focus on higher margin products and fabrication Carbon & Coated Flat Products 5
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Fabricators 22.6% Industrial Equipment 20.0% Olympic Manufactured Products 8.2% Transportation 8.2% Energy, Communications & Utilities 8.1% Service Centers 7.2% Construction Material 5.7% Agriculture 4.9% Auto 4.7% Food Service, Industrial Appliances & Furniture 3.2% Other 6.1% Scrap 1.1% Diversified End Markets and Customer Base • Diversification of served markets mitigates risk • Thousands of unique customers mitigates customer concentration • End-markets poised to benefit from domestic infrastructure spending and reshoring to U.S. 1Q 2025 Net Sales by End Market 6
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Drivers of Our Growth Strategy Greater Consistency in Earnings 7 Increased EBITDA Returns Rigorous Operating Expense Disciplines Attention to Working Capital Focused Capital Allocation Strategy
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Delivering Higher Returns with Less Volatility Current State Future State Future Expansion of Higher Margin Fabricated and Manufactured Metal Products and Processes Strategic M&A and Organic Investments 8 Carbon Flat Products Specialty Metals Flat Products Tubular & Pipe Products (Revenue Mix) Previous State (2010)
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Capital Allocation Strategy (Since 2018) Strategic M&A and Higher-Return Investments Driving Results and More Consistent Earnings Specialty Metals (Stainless & Aluminum) Products Segment Pipe, Tube & Bar Products Segment Carbon & Coated Flat Products Segment M&AOrganic Growth • Expanded Schaumburg, IL facility by 42,000 sq. ft. and added white metals cut-to-length line • Added 80,000 sq. ft. greenfield fabrication facility in Bartlett, IL • Installed fully-automated packaging line in Streetsboro, OH facility • Moved Action-Houston to larger facility to support growing stainless distribution and fabrication business in Texas • CTI expanded distribution and fabrication in Southeast U.S. • Installed new, state-of-the-art tube laser equipment throughout CTI & CTB • Increased automation and valued-added processing • Added (2) automotive stamping lines in Winder, GA • Added 120,000 sq. ft. greenfield fabrication facility in Buford, GA • Enhanced robotic welding capabilities and automation throughout the organization • Divested of Detroit, MI facility devoted to Big 3 automotive 9
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2024 Acquisition: • Fabricator of canopy panels, solar water management products, gutters, purlins, trims, and clips • Headquartered in Oakwood, GA • Complements Olympic Steel’s growing cold-rolled and coated business • Adds another immediately accretive, counter-cyclical end products company to the Olympic family of businesses 10
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2024-2026 Organic Growth Initiatives • Improved productivity and throughput: • Automated stacking line for Atlanta stamping press • Automated packaging line for Integrity slitter • Semi-automated packaging line for Cleveland Temper Mill • ≈25–30% capacity increase • Specialty Metals • New white metals cut-to-length line in Schaumburg • New high-speed slitter for Berlin Metals • Expanded distribution and fabrication facility for Action-Houston • New cut-to-length line in Minneapolis to support growing carbon coated business • Automation of Chambersburg fabrication facility 11 = Completed Project
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The Results of our Growth Strategy 12 More consistent performance in volatile markets Improved return on assets Increased EBITDA margins Significantly higher total shareholder returns
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Funding Future Growth • Access to significant liquidity to fund both organic growth and M&A opportunities • Low-cost $625 million Asset Based Loan (ABL), with $200M accordion feature, maturing in June 2030 • S-3 shelf filing access up to $200 million through debt or stock offerings, including $50M At-The-Market (ATM) program • Majority of real estate is unencumbered • Strong, counter-cyclical cash flow generator 13
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Our culture drives results Safety first. Always. 14 Doing Business the Right Way
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Why Invest in ZEUS? 15 • Expanding EBITDA Returns • Disciplined Approach • Disciplined Capital Allocation Strategy • Strong Balance Sheet & Liquidity • Positioned to Capitalize on a Favorable Environment • Aligned with Shareholders • Reducing cyclicality through investment and M&A, with a focus on higher-margin and metal-intensive branded products • Diligent management of operating expense, working capital and capital deployment • Investing in higher- return growth opportunities • Returning cash to shareholders • Well-positioned to fund future growth initiatives • Ability to produce free cash flow in counter- cyclical markets • Heavily U.S.-based supply chain and customer base • Poised to benefit from Build America infrastructure spending, reshoring and increased fabrication outsourcing, and reshaping of manufacturing supply chains • Experienced leadership team and Board of Directors hold ~14% of shares • Four years of consecutive quarterly dividend increases from $0.02 per share to $0.16 per share
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Appendix
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Financial Highlights * See Company’s earnings release dated May 1, 2025 for the reconciliation of this item to the most comparable GAAP financial measure 17 2025 2024 2024 2023 Net sales 492,941$ 526,642$ 1,941,672$ 2,158,163$ Operating income 7,793 15,938 47,859 77,671 Net income 2,509 8,697 22,980 44,529 EBITDA * 16,090$ 23,272$ 77,989$ 104,114$ Earnings per share: Net income per share - diluted 0.21$ 0.75$ 1.97$ 3.85$ Adjusted net income per share - diluted* 0.21$ 0.77$ 1.62$ 3.44$ Weighted average shares outstanding - diluted 11,755 11,663 11,677 11,578 Three Months Ended Twelve Months Ended March 31 Decem ber 31 (in thousands, except per-share data) (in thousands, except per-share data)
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End-Use & Branded Products 18 Bollards & Custom Water Tanks Self-Dumping Hoppers Air Venting & Filtration Metal Truck Inserts Canopy Panels, Gutters, Trims, Clips & Boat Docks
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Specialty Metals 19 Stainless Slitting Slit Coil Slit Tin Mill Product Stainless Formed Product Stainless Coil Aluminum Coil
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Pipe, Tube & Bar 20 Precision Tube Laser Cutting Tube Welding Bar Product Tube Product
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Carbon & Coated Carbon 21 Temper Passing Laser Cutting Robotics / Automation Carbon Coils Carbon Sheet & Plate Stamping / Blanking Welding Carbon Parts
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A Family of Brands
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www.olysteel.com