Investor Presentation September 2012

31 

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Investor Presentation

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Safe Harbor Provision

This presentation includes forward-looking statements within the meaning of Section 27A of the Securities Act

of 1933, (the “Exchange Act”), as amended, and Section 21E of the Securities Exchange Act of 1934, as

amended, with respect to our financial condition, results of operations and business and our expectations or beliefs concerning future events. Such forward-looking statements include the discussions of our business strategies, estimates of future global steel production, trends toward outsourcing and other market metrics and our expectations concerning future operations, margins, profitability, liquidity and capital resources, among others. Although we believe that such forward-looking statements are reasonable, there can be no assurance that any forward-looking statements will prove to be correct. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or

achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.

Certain areas of this presentation depict Revenue After Raw Materials Costs, EBITDA and Discretionary Cash Flow, which are non-GAAP financial measures. Revenue After Raw Materials Costs, EBITDA and Discretionary Cash Flow are not and should not be considered alternatives to revenues or net income or any other financial measure under U.S. GAAP. We reconcile these measurements to GAAP in our quarterly and annual reports on forms 10-Q and 10-K, filed with the S.E.C. pursuant to the Exchange Act. Our calculation of Revenue After Raw Materials Costs, EBITDA and Discretionary Cash Flow may differ from methods used by other companies.

When we use the term “North America”in this presentation, we are referring to the United States and Canada;

when we use the term “international,”we are referring to countries other than the United States and Canada;

when we use the term “Latin America”, we are referring to Mexico, Central America, South America and the

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Management Team

Joe Curtin:

Chairman, President and CEO

Ray Kalouche:

Chief Operating Officer, and President and COO

of the Mill Services Group

David Aronson:

COO, Raw Materials and Optimization Group

Tom Lippard:

Executive Vice President & General Counsel

Dan Rosati:

Executive Vice President & CFO

Kelly Boyer:

VP, Investor Relations & Treasurer

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Company Overview

Current Operating Environment

Global Growth Strategy

Financial Overview

Outlook

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Company Overview

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A Leading Provider of Mission Critical Services

Throughout the Steel Production Process

TMS enables steel producers to generate substantial operational efficiencies and cost savings

Raw Materials Procurement and Logistics Proprietary, Software-Based Raw Materials Cost Optimization Scrap Management and Preparation Semi-Finished and Finished Material Handling Metal Recovery and Slag Handling, Processing and Sales Surface Conditioning

Pre-Steel Making Post-Steel Making

Steel Making

Raw Material and Optimization Group (RMOG)

Mill Services Group (MSG)

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Outsourcing to TMS Allows Steel Producers to Focus

on Their Core Business – Making Steel

Iron Ore

Coke

Limestone

Blast Furnace

Produces molten pig iron from iron ore

Scrap Steel

Electric Arc Furnace

Produces molten steel

Pig Iron

Basic Oxygen Furnace

Produces molten steel

TMS is embedded in all phases of our customers

operations –

providing mission critical services throughout the steel-making process

80-85% A s N e e d e d fo r q u a li ty Rolling/Finishing Facilities Slag 70-75% 80-85% 15-20% Surface Conditioning

Liquid Steel ===to Casting 85-87% Aggregate On-Site Transport Finished Goods Loading Dock/Rail/Truck On-Site Transport On-Site Transport

Liquid Steel ===to Casting

Semi-Finished Material Raw Materials Sourcing & Logistics 6

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Contracts typically have minimums/tiered pricing

Approximately 80% of cash operating costs variable

Capital not spent until contract is signed

Long-term contracts with price indexing provides good visibility

Leading Global Provider of Outsourced

Services to Steel Mills

Raw Materials Procurement and Logistics Proprietary, Software-Based Raw Materials Cost Optimization

Scrap Management and Preparation

Semi-Finished and Finished Material Handling Metal Recovery and Slag Handling, Processing

and Sales

Surface Conditioning

Mill Services Group

34 offices supporting global operations

82 customer sites in 11 countries

Unique Business Model Reduces Cyclicality And Risk Operations Services / North America Market Share #1 #1 #1 #1 #2 #1

TTM at 06/30/12

Revenue After Raw Materials Costs:

$587MM

Adjusted EBITDA:

$141MM

Raw Material and Optimization Group

Minimal inventory and commodity price risk

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Broadest Portfolio of Services in the Industry

Coverage Scrap Management and Preparation Semi-Finished and Finished Material Handling Metal Recovery and Slag Handling

Processing and Sales Surface Conditioning Raw Materials Procurement and Logistics Proprietary, Software-Based Raw Materials Cost Optimization Global

Harsco Corporation (Metals & Minerals

Segment)

Global

Phoenix Services Global

Edward C. Levy (Steel Mill Services

Segment)

Global

Stein U.S Regional

David J. Joseph (owned by Nucor)

Global

Schnitzer Steel Global

Sims Metal Management Global

Omnisource (owned by SDI) U.S Regional

TSR Recycling Europe/Asia

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2005 2006 2007 2008 2009 2010 2011 1Q12 2Q12 EAF Mills (SMA) 4.01 4.32 4.33 3.97 3.19 4.15 4.91 2.98

Integrated Mills (AISI) 5.42 3.63 2.64 2.33 1.97 2.45 1.87 Slag (NSA) 6.47 6.46 4.7 4.47 2.72 3.25 TMS 4.17 4.7 3.06 2.6 0.93 1.44 1.51 1.48 1.57

0

1

2

3

4

5

6

7

Note: Rates are calculated using the OSHA formula which is multiplying the number of recordable injuries by 200,000 and dividing by the total number of hours worked.

Incident

Rates

Our industry leading safety record, which is our #1 priority, and strong operational expertise set us

apart from other companies in our industry.

This, in turn, helps us maintain our high contract renewal rate - which is 97% since 2005.

TMS Target: 0

Industry Leading Safety Performance

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Long-Standing Relationships with World

s

Leading Steel Producers

Customer Number of TMS Sites Years of Service (1) AK Steel 4 24 ArcelorMittal 12 72 CMC 3 18 Evraz 2 23 Gerdau 11 35 Nucor 9 33 SSAB 1 23 Tata Steel 2 51 Ternium 2 5

United States Steel 9 69

Average length of service >34

(1) Includes service to predecessor entities.

Customer base includes 12 of top 15 largest global

steel producers by volume

Average length of top 10 customer relationships –

over 34 years

Offer broadest portfolio of services

Deep operational integration

Contracts written on a site-level and service-level

basis, mitigating potential customer concentration

Mission-critical, cost-effective service offerings

Contracts are written on a site-by-site basis which

reduces the risk associated with customer concentration

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Strong North American Base with Significant Global

Scale and Growing Geographic Diversification

Revenue by Geography

International Revenue after Raw Material Costs has increased from 6% in 2007 to 26% YTD 6/30/12

2007 6/30/12 YTD

North America 94% 74%

International 6% 26%

Raw Material Procurement Offices Mill Services Locations

Point Lisas

Monclova

Monterrey Puebla Saltillo

Ho Chi Minh City Singapore Jakarta Kaohsiung Taichung Beijing Dubai Abu Dhabi Vanderbijlpark S.A Saldanha, S.A. Kosice Smederevo Gent Immingham Florange Le Creusot Teeside Sheffield Dunkerque Commentry Marseilles Genk Scunthorpe MN Saskatchewan IPSCO (Regina) UT Nucor Steel (Plymouth) IA

North Star Steel (Wilton) AR MacSteel (Ft. Smith) GA Gerdau AmeriSteel WI Charter Steel (Saukville) L'Orignal NY Nucor Steel (Auburn) WV ISGWeirton Steel (Weirton) IL MN OR MS DE Saskatchewan Regina UT AR GA WI Ontario NY TN TX NE IN SC CA VA MI PA OH NJ AZ KY FL AL CT Belo Horizonte Seoul WA

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Current Operating Environment

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Steel Production and Outsourcing Expanding Globally

Notes: Figures represent CAGR over stated period. Regional GDP and Industrial Production represents a weighted average of selected countries in region.

Middle East ’’’’12-’’’’16 Steel Production: 6.4% GDP: 3.8% Industrial Production: 4.2% China ’’’’12-’’’’16 Steel Production: 4.9% GDP: 8.1% Industrial Production: 11.5% South Africa ’’’’12-’’’’16 Steel Production: 5.2% GDP: 3.7% Industrial Production: 4.6%

Eastern Europe / Russia

’12-’16 Steel Production: 3.0% GDP: 3.5% Industrial Production: 4.2% Turkey ’12-’16 Steel Production: 4.1% GDP: 5.0% Industrial Production: 5.5% Brazil ’12-’16 Steel Production: 5.2% GDP: 4.1% Industrial Production: 4.0% Latin America ’12-’16 Steel Production: 5.5% GDP: 4.2% Industrial Production: 4.1% Mexico ’12-’16 Steel Production: 3.6% GDP: 3.7% Industrial Production: 4.8% India ’’’’12-’’’’16 Steel Production: 7.4% GDP: 7.8% Industrial Production: 8.2%

United States / Canada

’12-’16 Steel Production: 2.9% GDP: 2.2% Industrial Production: 3.1%

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680 696 667 508 621 654 669 687 706 726 569 649 662 724 795 859 894 926 955 982 0 500 1,000 1,500 2,000 2006 2007 2008 2009 2010 2011 2012F 2013F 2014F 2015F 14

Robust Steel Production Growth Expected

Global Steel Production

Continued Growth Expected Through 2015

(in millions of metric tons)

Rest of World BRIC 1,249 1,231 1,345 1,330 1,416 1,513 1,5631,613 1,6601,708

Source: AME, June 2012

130 131 123 82 110 117 120 123 126 130 50 70 90 110 130 150 2006 2007 2008 2009 2010 2011 2012F 2013F 2014F 2015F

North American Steel Production

(in millions of metric tons)

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0 500 1,000 1,500 2,000 1990 1995 2000 2005 2010 2015 15.1 12.6 8.6 11.9 13.1 14.9 15.3 16.0 0.0 4.0 8.0 12.0 16.0 20.0 2007 2008 2009 2010 2011 2012F 2013F 2014F 30 40 50 60 70 80 90 100 2002 2004 2006 2008 2010 2012

North American Demand Continues to Rebound

Service Center Inventories Still Low

Cap Utilization Recovering From Lows

Total Steel Inventories (mm tons)

Source: MSCI, July 2012

Capacity Utilization %

Source: AISI, September 2012

85.4

75.4

U.S. Steel Industry Capacity Utilization 2002-2008 Average Utilization

0 4,000 8,000 12,000 16,000 2005 2007 2009 2011

NA Vehicles Production Rebounding

(in millions)

Source: IHS AutoInsight, July 2012

U.S. steel industry recovery being driven by auto, energy, industrial and agricultural end-markets

Delayed Rebound in Non-Res Construction

(in million sq. feet)

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Increased Adoption of Outsourcing as a Best Practice

Notes: Size of bubble represents current market size based on current Crude Steel Production Source: Management, CRU. Expected Market Growth is based on 2011E – 2015E Crude Steel Production CAGR. Source: CRU.

Expected Market Growth

M a tu ri ty o f S te e l S e rv ic e s O u ts o u rc in g M a rk e t Low High L o w H ig h China APAC ex-China Middle East Eastern Europe / Russia Latin America Western Europe North America 16 Increasing Acceptance of Outsourcing as a Best Practice

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Our Growth Strategy

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Continue to expand our global raw materials procurement network

Win new service contracts globally

-

Expand to new locations

-

Cross sell services at existing locations

-

Take advantage of new outsourcing opportunities

Selectively expand service and product offerings

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Current Operational Highlights

The North American market, where we are the market leader, continues to

be healthy and strong

TMS European sites continue to operate at above average levels for Europe

Company will continue to deploy capital where it makes sense and based on

strict ROIC hurdle rates

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August YTD 2012:

13 new contracts wins

-

Seven international contracts

-

11 of the 13 were the result of cross-selling efforts

Startups are performing as expected

Pipeline of opportunities remains strong

2011:

Nine new contract wins

-

Eight international contracts

-

Three contract wins in new geographies (Middle East and South Africa)

-

Two contract wins were cross-sells at existing sites

Summary of New Contracts:

MSG Operational Highlights

August YTD 2012 and 2011

2011 August YTD 2012

# of contract wins 9 13

Additional revenue backlog $433MM $270MM

Growth capital commitment $60 - $65MM $30 - $35MM

Average new contract term 5 - 10 years 7 - 15 years

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Risk-minimizing business model validated in 2Q results

Continued to strengthen and diversify global procurement network

-

34 offices covering 5 continents

-

Traders hired and offices opened in Mexico, Brazil, Texas and Dubai

-

Opened Miami office to cover Latin America

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Opened new office in Indiana to serve as a central support location for

International activities

-

Continuing to expand commodity menu

Continued success with large vessel transactions contributed positively to

per ton margins

RMOG Operational Highlights

August YTD 2012

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Financial Overview

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Unique Business Model Reduces Cyclicality and Risk

- Average term of contracts: 7 years

- Average length of relationship: 34 years

Tiered pricing structure

Minimum monthly fees regardless of volume

Price adjustments based on published price indices

Approximately 80% of operating costs variable

Variable maintenance capital expenditures

Procurement contracts matched

Long-term contracts with long-term customers

BUSINESS MODEL ATTRIBUTES

BUSINESS MODEL STRENGTHS

Revenue grows as steel production grows – not linked to steel prices.

Built-in protection from:

1) steel production declines and 2) increases in key operating costs

Ability to respond quickly to changing business conditions

Maintenance capital expenditures tied to equipment utilization

Two complementary business segments

Complementary segments produce cross-selling opportunities and more complete

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Strong Adjusted EBITDA Margins

24% to 26%

High Discretionary Cash Margins

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Variable Operating Cost Structure

~80%

Superior Contract Renewal Rate

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>97%

Long-Term Contracted Revenue Base

88%

Highly Visible Contracted Backlog

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(1) Discretionary Cash is defined as Adjusted EBITDA – Maintenance Capital Expenditures. (2) Since 2005.

(3) Estimated future Revenue After Raw Materials Costs over existing contracts’remaining terms. (4) As of June 30, 2012 1 2 3 4 5 6

$1.8 billion

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Strong Balance Sheet with Significant Liquidity

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$350MM Revolver

$27MM Cash

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Attractive Financial Profile

~17% to 19% of

Revenue After Raw

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Historical Financial Performance

Revenue After Raw Materials Costs ($MM)

Total Revenue ($MM)

Adjusted EBITDA ($MM)

$54 $54 $67 $68 $89 $92 14.2% 13.1% 14.4% 19.0% 19.0% 16.8% 0% 5% 10% 15% 20% 25% 30% $0 $20 $40 $60 $80 $100 2006 2007 2008 2009 2010 2011

DCP % of Revenue After Raw Materials Costs

Discretionary Cash Production

4

($MM)

4 Adjusted EBITDA – Maintenance Capex

Revenue Growth and Disciplined Cost Management Driving Leading Margins

$1,376 $1,670 $2,983 $1,298 $2,031 $2,661 $224 $257 $384 $209 $332 $411 $0 $100 $200 $300 $400 $500 $600 $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 2006 2007 2008 2009 2010 2011

Total Revenue Average Scrap Price / Ton1

3 % of Revenue After Raw Materials Costs

$378 $410 $467 $358 $466 $549 85.3% 86.4% 81.2% 51.0% 70.1% 74.8% 0% 25% 50% 75% 100% $0 $100 $200 $300 $400 $500 $600 2006 2007 2008 2009 2010 2011

Rev enue Af ter Raw Materials Costs U.S. Steel Industry Capacity Utilization

2 2012P EBITDA based off midpoint of 2012 guidance ($142-$148 million) 1 #1 Heavy Melt, American Metal Market

3

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2012 Financial Highlights

Quarter Ended June 30

($MM)

YTD June 30

($MM)

2012

2011

%

Change

2012

2011

%

Change

Avg. U.S. Steel

Industry Capacity

Utilization

78.6% 74.0% +5% 78.2% 74.2% +5%

Revenue After Raw

Materials Costs

$153.6 $137.0 +12% $309.5 $272.3 +14%

Adjusted EBITDA

$37.8 $33.5 +13% $74.6 $68.1 +10%

Discretionary

Cashflow

(1) $28.2 $22.9 +23% $57.2 $50.2 +14%

Growth Capital

(2) $12.6 $3.6 $38.1 $8.1

(1) Defined as Adjusted EBITDA less Maintenance Capital Expenditures. (2) Capital expenditures includes 2011 carry-forward.

New contract wins in MSG and new business wins in RMOG

driving significant year-over-year growth

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Significant liquidity available and no debt maturities until December 2016

Cash interest savings from new term debt structure: $8.5MM before taxes

New $300MM Senior Secured Term Loan completed on March 20, 2012

ABL Revolver facility increased from $165MM to $350MM on Dec 15, 2011

Corporate ratings: BB- (S&P, 4Q 2011) and Ba3 (Moody

s, 1Q 2012)

Capital Structure Summary

($MM)

Rate

Maturity

ABL Revolver ($350MM facility)

$0

L + 150/225

Dec 2016

Senior Secured Term Loan

$297

L + 450

(1)

Mar 2019

Capital Leases and Other

$13

Total Debt

$310

Less: Cash

$27

Net Debt

$283

Adjusted EBITDA (TTM 2Q 2012)

$141

Net Debt / EBITDA

2.0x

6/30/2012

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Outlook

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2012 Focus

Continue global expansion of Mill Service contracts by selectively

penetrating new locations and cross-selling services

Expand Outsourced Purchasing presence in Asia, Middle East/Africa, Latin

America and Europe

Carefully manage start-ups to ensure smooth operational transitions and

achievement of profitability forecasts

Continue to monitor customer production volumes and implement

cost-actions, if necessary

-

Continued stringent cost discipline

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Figure

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References

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