Glass Recycling Georgias Opportunity Georgia Recycling Coalition September

Glass Recycling: Georgia’s Opportunity Georgia Recycling Coalition September 18 Bill Clark | Regional Sourcing Development Manager Strategic Materials

Agenda • • Why Glass? Who is Strategic Materials? Our Challenges How Can We Do Better Together? Company Confidential. All Rights Reserved. 2

Who needs Georgia Glass ? ? ? The market for recycled glass in Georgia glass is strong, over 1200 people employed by five companies in eight locations in Georgia make over $1 billion of products with recycled glass: fiberglass insulation, new food grade glass containers, abrasive media, and road beads. 1 End Market Companies Operating in GA: 1 Reference: SERDC http: //www. serdc. org/maps • Anchor – 358 people - $75 mm sales / OC – 300 people - $500 mm sales / Johns Manville – 266 people - $25 mm sales / Certain Teed – 192 people - $500 mm sales / Potters – 120 people - $50 mm sales 5 companies; 8 locations; 1, 236 Georgia jobs; $1. 1 B Revenues End Market Companies Operating in Georgia, North Carolina, South Carolina & Tennessee: 9 companies; 13 locations; 2386 jobs; $3. 3 B Revenues Company Confidential. All Rights Reserved. 3

The Obvious! Glass puts people to work! Glass does not belong in landfills! Company Confidential. All Rights Reserved. 4

Why Glass? Environmental Benefits It is a sustainable, versatile, cost-saving material. Glass never wears out and can be recycled forever. One 6 -pack of recycled beer bottles produces enough fiberglass insulation to fill a standard wall cavity. Recycling glass takes 30% less energy to produce glass from virgin materials. Company Confidential. All Rights Reserved. 5

Strategic Materials Who We Are Company Confidential. All Rights Reserved. 6

Strategic Materials Markets Served We are the largest glass recycler in North America, with 50+ plants. With over 100 years of experience, we are a recycling market leader for glass. The markets we serve with our recycled glass helps to reduce manufacturing costs and improve sustainability. We recycle nearly 3 million tons of glass a year into a variety of applications. Company Confidential. All Rights Reserved. 7

Strategic Materials Our History Throughout our 100+ year history, we have remained focused on creating value for our customers through innovation and customer improvement. During this time we developed new, innovative glass recycling techniques. We also acquired a number of regional glass recyclers, becoming the first nationwide glass recycler. Strategic Materials got its start in glass recycling as the Bassichis Company. 1896 1990 s 1989 Bassichis Company was purchased by Allwaste Recycling Acquisition of American Specialty Glass, coloring glass with glassmelting furnaces with proprietary methods & formulations for landscape, terrazzo, and fireplace markets. In 2002, we acquired Nex. Cycle, a glass and plastic recycling business in Ontario, Canada. 2002 1994 In 1994, Strategic Materials, Inc. officially spun off from Allwaste to become its own company. Company Confidential. All Rights Reserved. 2008 2004 In 2004, we acquired Container Recycling Alliance, expanding our U. S. footprint 2015 In late 2014, New Age Blast Media* was acquired, expanding our crushed glass air blast abrasives. Reflective Recycling was purchased in December 2015, adding nine processing facilities to our portfolio. *New Age Blast was rebranded as Tru. Abrasives in 2017 8

How much Glass? We recycle nearly 3 million tons of glass a year into a variety of applications. Recycled glass demand is more than current supply in the container glass and fiberglass insulation industries. Company Confidential. All Rights Reserved. 9

Strategic Materials Our Leadership Denis Suggs President & CEO Mike Ramirez EVP & CFO Jimmy Rayford SVP, Sales Core Markets & Marketing Curt Bucey EVP, Supply & Industry Strategy Dan Allinger SVP, HR Paul Faherty EVP, West/Midwest Operations Company Confidential. All Rights Reserved. Steve Bowles EVP, East Operations David Cabello VP, Business Development Mexico/S. America & Strategy Matt Keresman SVP, Operations Scott Trom General Manager, Specialty 10

Strategic Materials Footprint Seattle Cornwall Withee St. Paul Collingwood Guelph Owatonna Toronto Franklin Brampton South Windsor East Troy Muscatine Fairfield San Leandro Modesto Chicago Salt Lake City Kansas City St. Louis Abrasive Sales Office Indianapolis Shelbyville Commerce Vernon Cleveland Newark Hartford City Dunkirk Madera Las Vegas Ashley Phoenix Lexington Versailles Ashland City Durham Atlanta (2) Raleigh Wilson Laurinburg Mexicali Midlothian Jacksonville Houston Nearly 50 facilities in North America Sarasota HQ Company Confidential. All Rights Reserved. 11

Glass Processing Supplier & Quality Requirements Company Confidential. All Rights Reserved. 12

Testing Protocols Inspections We perform inbound quality inspections and rate them based on the percentage of usable glass, generally clean glass with minimal or no visible contamination, and amount of ceramic, rock, or color contamination. Our delivery inspection is either by: • Visual inspection - in the case of Mixed Window Plate (MWP), Clear Window Plate (CWP), whole or 3 -dimensional flint, amber, green or mixed color or • Sample analysis - in the case of 3 Mix (single stream) glass from a Material Recovery Facility (MRF) Company Confidential. All Rights Reserved. 13

Pricing Better Supply = Better Pricing Higher revenue for cleaner glass can pay for MRF equipment Our pricing for incoming glass is now tied to the quality of the supply. Key factors that drive processing: • Non-Glass Residue % and local landfill rates • Undersize %, plant capabilities and local disposal options Color Description Examples Normal Target • Significant variance from these color percentages may reduce or increase the value of cullet stream. Amber Brown container glass Beer bottles 80% |20% other glass Flint Clear container glass Food and beverage bottles 95% | 5% other glass Emerald Green (and Others) Various shades of green, blue, and other 7 up, Sprite green, wine bottles, blue bottles 60% | 40% other glass 3 -Mixed glass Brown container glass, clear container glass, and shades of green or blue Beer bottles, beverage bottles, wine bottles 50% amber, 30% flint, 20% emerald green Curbside, MRF glass Post-consumer food or beer bottles, other recyclables 78% glass, all colors 10% non glass residuals 12% undersize Single Stream Company Confidential. All Rights Reserved. 14

Glass Specifications 3 -MIX Single Stream Specification Industry specifications are a key component of our business. It is critical that our product meet or exceed the standards set by each of our manufacturing clients. Want to supply glass for our markets? Learn more about their specifications: Criteria Description Examples Target NGR Non-Glass-Residual found in municipal recycling program Paper, Plastic, Aluminum, steel 10% Maximum U/S Undersize Glass particles < 3/8” (or < 1/4”*) Mixed color glass particles 12% Maximum Other Criteria Ceramics Broken bits of household ceramic Dinner plates, mugs, cups 2% Maximum Color Flint, Amber, Green(s) & other Food containers, beer bottles, wine/ soda bottles 20 -50% Moisture Excessive water mixed with glass** Rain, snow, ice 5% Maximum Other, possibly hazardous waste Any glass ceramic blends, such as Pyro. Ceram or Neoceram, mirror, leaded glass or any CRT glass, batteries, medical waste, or any radioactive, 0% (Zero volatile, corrosive, biohazardous, toxic, or hazardous material as defined by applicable law Excluded Waste * Undersize target depending on plant’s capabilities **See Additional Description in Moisture Definitions above Target WARNING: Excluded Waste is NOT acceptable and is subject to immediate rejection. Examples: batteries, needles, corundum, quartz glass, gypsum, desiccants, and all types of grinding media Company Confidential. All Rights Reserved. 15

Our Challenges How can we do better together? Company Confidential. All Rights Reserved. 16

Single Steam Challenge As recycling becomes more prevalent in American households, the amount of single stream glass material has become a larger part of our supply base. We perform a sample analysis of the material for to determine glass content and undersize, ceramics, moisture and hazardous wastes. This allows us to most accurately price the incoming material, giving each supplier a pricing matrix, based on glass content. Pricing Based on quality Matrix Processing Raw Material SUPPLIER Cost Drivers CUSTOMER SPECIFICATION S More non-glass material yields increased disposal costs Separating glass from nonglass items requires more equipment and more processing time. Allowable ceramic levels have been lowered by as much as 50%. Company Confidential. All Rights Reserved. Sorting More glass is unrecoverable and color sorting is less accurate. Final Product Final product has unintended glass loss and must also meet stringent specifications. Allowable green (emerald) glass levels in amber (brown) mixes has been lowered significantly. 17

How Can We Do Better? There are several ways to improve the cleanliness of recycled glass from single sort recycling: • Educate residents through social media or website about what is acceptable to recycle • Improve or develop regular maintenance practices for MRF equipment • Invest in new or upgrade equipment • More glass, cleaner glass = $$ for MRFs Company Confidential. All Rights Reserved. 18

Other Challenges Removal of glass from curbside collections • Convenience site program available to avoid MRF glass handling • Drop off program developed • Need community involvement and commitment • Logistics are difficult to solve • Possible grants required for capital equipment and collection site upgrades 19

Best Practices What works well • Containers, deployment • Working to implement easy to recognize, branded containers with customizable areas for local partnerships • Creating local partnerships, community involvement, and awareness • Small, independent collectors – job stimulus • We are not in the collection business. We foster small business creation by working with existing or start-up, local collectors. We provide contracts (much like a PO) to promise to buy, for financing of start up. • Aggregation Site / Collection Hub • We work to create a centralized collection spot within the state from collectors to drop off materials. We will then transport them in bulk to our glass processing facility. We’ve had a successful program in Houston, Texas and most recently with De. Kalb County Sanitation. We provide “Best Practices” for implementing these programs – creating win-win partnerships. Company Confidential. All Rights Reserved. 20

Supplier Services When you work with Strategic Materials, our experts can work with you to assess your operations and develop areas of improvement such as: • • • New site construction suggestions to maximize value Quality improvement suggestions to maximize value Handling suggestions (i. e. spotted equipment, containers) Improvement financing Training Company Confidential. All Rights Reserved. 21

Glass is Viable We believe recycling glass is viable and should continue to be a part of city recycling programs. Glass never wears out. Demand for products made from recycled glass continues to be high. Company Confidential. All Rights Reserved. 22

Thank You Company Confidential. All Rights Reserved. 23

Thank You Primary Contact, your Regional Sourcing Manager: Bill Clark | 281 -520 -0613 bclark@strategicmaterials. com Our toll-free supplier hotline is 1 -844 -256 -8985 or suppliers@strategicmaterials. com. • Monday through Friday, 7: 00 am - 4: 00 pm CST • Voicemails are typically returned within 24 hours. Other Notable Contacts: Credit, Accounts Receivable: AR@strategicmaterials. com Facebook. com/strategicmaterials Accounts Payable: AP@strategicmaterials. com Twitter. com/stratmaterials Laura Hennemann | Director of Marketing 281 -638 -6469 lhennemann@strategicmaterials. com Linked. In. com/strategicmaterials Instagram. com/strategicmaterials Company Confidential. All Rights Reserved. 24