The David J Joseph Company SHV Audubon Metals

The David J. Joseph Company SHV Audubon Metals

David J. Joseph Company

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

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

DJJ Background ¨ The USA’s largest and oldest metal recycler ¨ Operates 12 domestic and international brokerage offices and more than 30 scrap processing and mill service facilities (includes 11 auto shredders) ¨ Employs 1200 people, including 50 -55 full time ferrous brokers and scrap buyers ¨ Is financially sound s s Sales of US $1. 5 - 2. 0 billion 5 A 1 D&B rating US $350+ million assets Strong equity base, minimal debt Jeff Davis, St. Louis District Manager

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

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

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

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

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

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

DJJ’s Role Steel Mills Foundries DJJ Scrap Yards Industrial Railroads Demo

What is Scrap Metal?

Modes of Transportation

Scrap Metal is then recycled

Finished Products

What do we look for?

Brokerage Representatives

Brokerage Representatives

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

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

The David J. Joseph Company SHV Audubon Metals