S E P T E M B E R 2 0 2 0...This presentation contains certain statements that are, or may be deemed...

36
1 SEPTEMBER 2020

Transcript of S E P T E M B E R 2 0 2 0...This presentation contains certain statements that are, or may be deemed...

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S E P T E M B E R 2 0 2 0

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This presentation contains certain statements that are, or may be deemed to be, forward-looking statements within the meaning of the Private Securities LitigationReform Act of 1995. Forward-looking statements may include, but are not limited to, discussions of Reliance’s industry, end markets, business strategies andexpectations concerning future demand and metals pricing and the Company’s results of operations, margins, profitability, impairment charges, taxes, liquidity,litigation matters and capital resources. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “could,”“would,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “preliminary,” “range” and “continue,” the negative of these terms, and similarexpressions.

These forward-looking statements are based on management's estimates, projections and assumptions as of today’s date that may not prove to be accurate.Forward-looking statements involve known and unknown risks and uncertainties and are not guarantees of future performance. Actual outcomes and results maydiffer materially from what is expressed or forecasted in these forward-looking statements as a result of various important factors, including, but not limited to,actions taken by us, including restructuring or cash-preservation initiatives, as well as developments beyond our control, including, but not limited to, the impactof COVID-19 and changes in worldwide and U.S. economic conditions that materially impact our customers and the demand for our products and services. Theextent to which the COVID-19 pandemic will continue to negatively impact our operations will depend on future developments which are highly uncertain andcannot be predicted, including the duration of the outbreak, new information which may emerge concerning the severity or duration of the COVID-19 pandemic,the actions taken to control the spread of COVID-19 or treat its impact, and changes in worldwide and U.S. economic conditions. Further deteriorations ineconomic conditions, as a result of COVID-19 or otherwise, could lead to a further or prolonged decline in demand for our products and services and negativelyimpact our business, and may also impact financial markets and corporate credit markets which could adversely impact our access to financing, or the terms of anyfinancing. We cannot at this time predict the extent of the impact of the COVID-19 pandemic and resulting economic impact, but it could have a material adverseeffect on our business, financial position, results of operations and cash flows. Other factors which could cause actual results to differ materially from our forward-looking statements include those disclosed in reports Reliance has filed with the United States Securities and Exchange Commission (the “SEC”). As a result, thesestatements speak only as of the date that they are made, and Reliance disclaims any and all obligation to publicly update or revise any forward-looking statements,whether as a result of new information, future events or otherwise. Important risks and uncertainties about Reliance’s business can be found in “Item 1A. RiskFactors” of the Company’s Annual Report on Form 10-K for the year ended December 31, 2019, as updated in the Company’s Quarterly Report on Form 10-Q forthe quarter ended June 30, 2020 and in other documents Reliance files or furnishes with the SEC.

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L O C AT I O N S M E TA L P R O D U C T S C U S T O M E R S

F O U N D E D I N Y E A R S O F O P E R AT I O N A L E X C E L L E N C E

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Net Sales ($ billions)Performance Summary

• Net sales of $2.02 billion

• 19.6% year-over-year decline in tons sold as a result of customer shut-downs and project delays attributable to COVID-19

• Strong and resilient business model

• Gross profit margin of 30.4% surpassed estimated sustainable range of 28% to 30%

• Improved 0.8% year-over-year on a non-GAAP basis despite decline in net-sales

• Strong non-GAAP pretax income of $112.4 million

• Reacted quickly to rapidly changing business conditions from COVID-19 by reducing SG&A expense 17.5% year-over-year

• GAAP EPS of $1.24; non-GAAP EPS of $1.36

• Generated significant cash flow from operations of $475.7 million, up 37.5% year-over-year

(1) NON-GAAP AMOUNTS EXCLUDE IMPAIRMENT AND RESTRUCTURING CHARGES AND NON-RECURRING SETTLEMENT CHARGES, NET OF TAX, WHICH ARE RECONCILED IN THE COMPANY’S Q2 2020 EARNINGS PRESS RELEASE ISSUED ON JULY 23, 2020.

29.6%

30.3% 30.4%

29.6%

31.9%

30.4%

Q2 2019 Q1 2020 Q2 2020

$245.8

$83.1$102.0

$247.0$220.6

$112.4

Q2 2019 Q1 2020 Q2 2020

$2.69

$0.92 $1.24

$2.71 $2.45

$1.36

Q2 2019 Q1 2020 Q2 2020

Gross Profit Margin

EPS

GAAP Non-GAAP

Pretax Income ($ millions)

$2.88 $2.57

$2.02

Q2 2019 Q1 2020 Q2 2020

(1)

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• Reliance deemed an essential business

• Vast majority of locations remain operational

• Health, safety and wellbeing of employees is top priority

• Implemented enhanced health and safety practices that led to improved safety performance

• Providing paid time away from work to support employees impacted by COVID-19

• Expanded employee emergency assistance fund, Reliance Cares, to provide grants to employees impacted by COVID-19

• Impact to demand environment & actions taken in response to COVID-19

• Adjusted working capital in response to reduced activity levels

• Reduction in workforce through layoffs and reductions in force

• Have recalled almost 40% of employees in response to improving demand

• Extended healthcare benefits for a transitionary period to support impacted employees and their families

• Reduced SG&A expenses by 17.5% year-over-year in Q2 2020 to offset declining sales

• Maintain high-level of financial flexibility

• $1.4 billion total liquidity(1) as of June 30, 2020

• $900 million senior notes offering in late July 2020

• Focus on working capital management and prudent cash preservation

• Rightsizing inventory to reflect current demand

• Reduced 2020 capital expenditure budget from $250 million to $190 million

• Deferring non-essential capital expenditures(1) AVAILABLE LIQUIDITY COMPRISED OF $222.7 MILLION OF CASH AND CASH EQUIVALENTS AND $1.16 BILLION AVAILABLE FOR BORROWING ON THE $1.5 BILLION REVOLVING CREDIT FACILITY AT JUNE 30, 2020.

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AUTOMOTIVE(2)

ENERGY

RELIANCE GROWTH DRIVERS

KEY DRIVERS / MARKET INDICATORS

• Investments in value-added processing equipment; Facility expansions (domestic & international)

• Participation weighted towards light truck and SUV platforms

• Continued investments in processing equipment

• Proactively downsized certain operations to maintain profitability standards

• Products and processing focused on niche customer needs

COVID-19 ASSESSMENT

• SAARS• Consumer confidence levels• Regulatory (CAFE) standards• Increased aluminum usage

• Agricultural exports• Construction machinery new orders

• Oil and gas rig counts• Oil prices• Drilling and completion activity

HEAVY INDUSTRY

END MARKET

(1) INCLUDES INFRASTRUCTURE.(2) PRIMARILY TOLL PROCESSING, WHERE RELIANCE DOES NOT OWN THE METAL BUT PROCESSES FOR A FEE, WITH NO METAL PRICE RISK.

• Ongoing investments in value-added processing equipment to prepare for resurgence in activity

• Architecture Billings Index (ABI)• North American industrial construction &

housing recovery• Infrastructure spending

NON-RESIDENTIAL CONSTRUCTION(1)

AEROSPACE

• Exposure to defense and space markets• Participation on single aisle programs

• Increased defense spending• Build rates for commercial aerospace• Backlog for commercial plane orders• Passenger air miles

• Cautiously optimistic outlook for improved demand levels in 2H 2020

• Expect demand to begin recovering in 2H 2020 based on positive customer feedback from diverse range of industrial customers

• Improved demand from Q2 levels following reopening of automotive OEMs and mills

• Continued focus on growth and innovation

• Reduced backlog and build rates for commercial aerospace with uncertain long-term outlook due to significant reduction in passenger air miles

• Aerospace defense activity remains solid

• Experienced reduction in demand prior to COVID-19

• Activity levels remain low • Unclear path to recovery

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$0.00

$20.00

$40.00

$60.00

$80.00

$100.00

$120.00

$140.00

On January 17, 2020, shares of Reliance closed at a record high of $121.50;Compound annual growth rate of 15.1% as of July 31, 2020 since the 1994 IPO

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We’ve remained profitable every year, even during recessionary periods and achieved record EPS of $10.34 in 2019

$0.00

$2.00

$4.00

$6.00

$8.00

$10.00

$12.00

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Diluted Earnings per Share Attributable to Reliance

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The countercyclical nature of our cash flows helps fuel our growth and longstanding history of stockholder returns throughout all cycles. In 2019, we generated record cash flow from operations of $1.30 billion.

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Cash Flow From Operations Net Sales

Ca

sh F

low

Fro

m O

per

ati

on

s ($

M)

Net Sa

les ($M

)

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CapEx investments over the last 5

years(1)

Annual CapEx budget dedicated

to growth

Invested in acquisitions over the last 5 years(1)

Acquisitions since 1994

IPO

Our investments in innovation drive growth and continuous improvements to our business, far outpacing our peers.

(1) AS OF THE YEAR ENDED DECEMBER 31, 2019.

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Consecutive years of quarterly

dividend payments

Dividend increases

since 1994 IPO(1)

Increase in quarterly dividend since 1994 IPO(1)

Common stock repurchased over the last 5+ years(2)

Cash dividends and share repurchases are core to our capital allocation philosophy.

(2) TIMEFRAME REPRESENTS JANUARY 1, 2015 THROUGH JUNE 30, 2020.

(1) INCLUDES FIRST QUARTER CASH DIVIDEND OF $0.625 DECLARED ON FEBRUARY 18, 2020 AND PAID ON MARCH 27, 2020.

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ZEUSZEUS ZEUS

RUS

RUSRUS

WORWOR WORRYI

RYI RYI

KCO

KCO

KCO

RS

RSRS

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

2017 2018 2019

Net Sales ($M)

KCOKCO

KCO

ZEUSZEUS ZEUS

RUS

RUS

RUS

RYI

RYI RYI

WOR

WOR

WOR

RS

RS

RS

-$100

$100

$300

$500

$700

$900

2017 2018 2019

Pretax Income ($M)

NOTE: FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2017, DECEMBER 31, 2018 AND DECEMBER 31, 2019 FOR RS, ZEUS, RUS, RYI AND KCO. FOR THE TWELVE MONTHS ENDED NOVEMBER 30, 2017, NOVEMBER 30, 2018 AND NOVEMBER 30, 2019 FOR WOR. FINANCIALS FOR KCO AND RUS CONVERTED FROM LOCAL REPORTING CURRENCY TO U.S. DOLLARS AT THE AVERAGE EXCHANGE RATE FOR EACH FISCAL YEAR, AS DISCLOSED IN THEIR RESPECTIVE ANNUAL REPORTS.

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of products, end

markets and

geography

reduces volatility

puts decision

making and

resources close

to the customer

and focus on

small customers

/ orders for

higher margins

vs. large volume

by managers in

the field to

appropriately

price the value

provided to

customers

helps effectively

manage working

capital &

minimizes impact

of changing

metal prices

through industry-

leading investments

in state-of-the-art

value-added

processing

equipment

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Non-Residential Construction -

1/3

Transportation -1/3

General Manufacturing -

1/3

APPROXIMATE NET SALES BREAKDOWNBY END MARKET

Includes:Infrastructure

Includes:AerospaceAutomotive(1)

Other

Includes:Heavy equipmentEnergySemiconductorOther

(1) PRIMARILY TOLL PROCESSING, WHERE RELIANCE DOES NOT OWN THE METAL BUT PROCESSES FOR A FEE, WITH NO METAL PRICE RISK.

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3%

5%

1%

1%

3%

2%

6%

8%

1%

1%

4%

6%

7%

3%

4%

6%

7%

10%

11%

11%

Toll processing & Logistics⁽³⁾

Other⁽²⁾

Alloy tube

Alloy plate, S&C

Alloy bar & rod

Stainless steel plate

Stainless steel S&C

Stainless steel bar & tube

Common alloy aluminum plate

Heat-treated aluminum S&C

Common alloy aluminum S&C

Aluminum bar & tube

Heat-treated aluminum plate

Cold-rolled steel S&C

Galvanized steel S&C

Carbon steel bar

Hot-rolled steel S&C

Carbon steel plate

Carbon steel structurals

Carbon steel tubing

Limited exposure to HRC

despite correlation to

trading activity

BY COMMODITY BY PRODUCTBY REGION

(1) NOTE: FOR THE THREE MONTHS ENDED JUNE 30, 2020. SALES BY PRODUCT BASED ON GROSS SALES.(2) MISCELLANEOUS, INCLUDING BRASS, COPPER, TITANIUM, MANUFACTURED PARTS AND SCRAP.(3) TOLL PROCESSING OF ALUMINUM, CARBON STEEL AND STAINLESS STEEL, INCLUDES REVENUES FOR LOGISTICS SERVICES PROVIDED BY OUR TOLL PROCESSING COMPANIES..

Mountain - 3%Pacific Northwest - 4%

Northeast - 7%

Mid-Atlantic - 7%

International - 7%

Southeast - 18%

West/Southwest - 24%

Midwest - 30%

Toll processing & Logistics⁽³⁾ - 3%Other⁽²⁾ - 5%

Alloy - 5%

Stainless steel - 16%

Aluminum - 19%

Carbon steel - 52%

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Reliance operates a decentralized operating structure, placing the day-to-day decision-making in the hands of local managers.

Manager Incentives

High-Touch Service Model

Pricing Decisions

Made Locally

Strong Customer

Relationships

Unique Go-To-Market

Strategies

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O r d e r s D e l i v e r e d i n 2 4 H o u r s o r L e s s

O r d e r s I n c l u d e Va l u e - a d d e d P r o c e s s i n g

C u s t o m e r s S e r v e d

R e p e a t C u s t o m e r B a s e

A v e r a g e O r d e r S i z e

Our decentralized operating model enables quick turnaround, high quality servicesthat save our customers significant time, labor, and expense.

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Performance-based compensation structure

Rich level of talent at middle management level / entrepreneurial approach

Semi-annual manager meetings to ensure best practices, reward outstanding performance and set new goals

Product and end market diversification

Model of focusing on smaller orders with quick turnaround and high levels of service

Increased levels of value-added processing due to significant investments in capital expenditures in recent years

Ensuring the true value we provide our customers is reflected in our price

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20NOTE: INDUSTRIAL DISTRIBUTORS AVERAGE INCLUDES: GWW, MRC, MSM, WCC, AND WSO. METAL SERVICE CENTERS AVERAGE INCLUDES: RUS-T, RYI, WOR, AND ZEUS. U.S. MILLS AVERAGE INCLUDES: AA, ATI, CMC, KALU, NUE, STLD, AND X.(1) FOR THE SIX MONTHS ENDED JUNE 30, 2020. CMC, MSM AND WOR REFLECT THE SIX MONTHS ENDED MAY 31, 2020. ATI, RYI, RUS, WCC, X AND ZEUS REFLECT THE SIX MONTHS ENDED MARCH 31, 2020.

Reliance:30.4% (1)

Industrial Distributors:26.7% (1)

Metal Service Centers:17.8%(1)

U.S. Mills: 13.9% (1)

Our gross profit margin consistently tracks more closely to industrial distribution companies given business model similarities including diversification, small order sizes, growth in value-added processing and focus on providing value and service to our customers.

Gro

ss P

rofi

t M

arg

in (

%)

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020⁽¹⁾

RS Peer Average Industrial Distributor Peer Average Service Center Peer Average U.S. Mill

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EBITDA margin consistently tracks closely to higher multiple industrial distribution companies.

Reliance:9.3%

Industrial Distributor Average: 8.5% (1)

NOTE: EBITDA IS A NON-GAAP FINANCIAL MEASURE. REFER TO SLIDE 29 OF THE PRESENTATION FOR ADDITIONAL DETAILS ON NON-GAAP FINANCIAL INFORMATION.(1) INDUSTRIAL DISTRIBUTORS AVERAGE INCLUDES: GWW, MRC, MSM, WCC, AND WSO.(2) FOR THE SIX MONTHS ENDED JUNE 30, 2020. MSM REFLECTS THE SIX MONTHS ENDED MAY 31, 2020. WCC REFLECTS THE SIX MONTHS ENDED MARCH 31, 2020.

EBIT

DA

Ma

rgin

(%

)

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020⁽²⁾

RS Peer Average Industrial Distributor

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Organic:• Open facilities in new markets and expand existing facilities• Extend capabilities through addition or upgrading of value-added

processing equipment

Acquisitions:• Continue to be a consolidator in a highly fragmented market

through strategic acquisitions of well-managed service centers and processors

Dividends:• Regular quarterly dividends preferred method of returning

capital to stockholders • Most recent increase of 13.6% to $0.625 per share of

common stock in the first quarter of 2020

Share Repurchases:• Opportunistically repurchase shares with available cash• ~3.1 million shares remain authorized for repurchase as of

June 30, 2020

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47.0% 47.0% 48.0% 49.0%51.0%

27.2%30.1% 28.7% 28.4%

30.3%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

50.0%

55.0%

60.0%

$-

$50.00

$100.00

$150.00

$200.00

$250.00

2015 2016 2017 2018 2019 2020E

Maintenance CapEx Growth CapEx Value-Added Processing (% of orders) Gross Profit Margin

$172 $155 $162

$240

Capital Expenditures ($M)

$242

$190

(1)

(1) 2020 CAPITAL EXPENDITURE BUDGET OF $190 MILLION.

• 310 basis point increase in gross profit margin from 2015 to 2019 fueled by growth in CapEx• Pausing nonessential capital expenditures as a result of COVID-19• Reduced capital expenditure budget from $250M to $190M in 2020

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• Reliance’s acquisition criteria has been unchanged over the years• No set targets on the number of acquisitions per year• Focus on value

Immediately accretive to earnings with positive cash flow

High quality businesses:

• Experienced management teams

• Superior customer service

• Strong brand equity and reputation

Does not compete with our existing customer base

Priorities Include:

Based on normalized pretax income

Excludes projected synergies

Excludes cost of financing

12% - 15% ROI

Disciplined Valuation Methodology

Quality Over Quantity

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$4.16 $4.16

$8.34 $8.75

$10.34

2015 2016 2017 2018 2019

$459 $429

$584

$851 $929

2015 2016 2017 2018 2019

Gross Profit ($ millions) EBITDA(1) ($ millions)

Pretax Income ($ millions)GAAP EPS

Record Annual Gross Profit ($) in 2019

Record Annual EPS in 2019

Record Annual EBITDA in 2019

Record Annual Pretax Income in 2019

(1) EBITDA IS A NON-GAAP FINANCIAL MEASURE. REFER TO SLIDE 29 OF THE PRESENTATION FOR ADDITIONAL DETAILS ON NON-GAAP FINANCIAL INFORMATION.

$2,547 $2,590 $2,788 $3,282 $3,329

2015 2016 2017 2018 2019

$815 $788 $880

$1,189 $1,235

2015 2016 2017 2018 2019

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We record all of our operating expenses within SG&A which is comprised of Warehouse, delivery, selling, general and administrative expenses.1• Enhanced gross profit margin and effective working capital management contribute to consistent, strong free cash flow generation

• On July 28, 2020, opportunistically completed a $400 million 1.3% Senior Notes offering due 2025 and a $500 million 2.15% Senior Notes offering due 2030

• Investment grade credit ratings

• Moody’s: Baa3 (positive outlook)

• S&P: BBB (stable outlook)

• Fitch: BBB (stable outlook)

• Target Leverage Ratios:

• Net Debt-to-Total Capital: ~40%

• Net Debt-to-EBITDA: 2.0x

($ in millions) As of June 30, 2020

Cash & Cash Equivalents $222.7

Revolving Credit Facility (due 9/30/21) $300.0

Term Loan (due 9/30/20 – 9/30/21) $435.0

Senior Unsecured Notes (due 4/15/23) $500.0

Senior Unsecured Notes (due 11/15/36) $250.0

Other Notes and Revolving Credit Facilities $13.2

Total Debt $1,498.2

Net Debt-to-Total Capital(¹) 20.4%

Net Debt-to-EBITDA 1.3x

(1) NET DEBT-TO-TOTAL CAPITAL IS CALCULATED AS TOTAL DEBT (NET OF CASH) DIVIDED BY TOTAL RELIANCE STOCKHOLDERS’ EQUITY PLUS TOTAL DEBT (NET OF CASH).

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The health and safety of our employees, customers and communities is our top priority.

• 10% YOY improvement in incident rates in 2019

• Average DOT fleet accident rate of approximately 0.75 over last

three years

• Significantly better than national benchmark rate of 1.50

• Remain committed to reducing the rate of injuries to zero

• Implemented a peer-to-peer “SMART Safety” Program in 2017

• 2020 program focus “Make It Personal” to further improve

safety performance

• Each employee accountable for safety

• Heightened health and safety standards as a result of COVID-19

• Promoting remote work when possible

• Implementation of strict social distancing and improved

sanitation measures

• Limited travel and visitors to facilities

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Diversification of products, customers, end markets and geography reduces volatility

Decentralized operating model retains local brand equity while leveraging Reliance’s scale

Ability to expand and sustain industry-leading gross profit margins directly related to investments in value-added processing capabilities and decentralized operating structure

Consistently profitable throughout all economic cycles

Strong balance sheet and countercyclical cash flow generation helps fuel our growth and longstanding history of stockholder returns

The health and safety of our employees, customers, suppliers and communities is our most important core value

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Our operations by nature do not have a significant impact on the environment.In addition to GAAP data, Reliance (RS) may also disclose in this presentation certain non-GAAP financial information

(including, without limitation, results of operations, EBITDA, EBITDA margin, gross profit, gross profit margin, free cash flow,

net income, diluted earnings per share, operating expenses, operating income, pretax income, financial ratios, operational

data, etc.) that includes certain adjustments or excludes certain charges and gains. Management believes that this non-GAAP

information provides investors with additional information to assess Reliance’s operating performance by making certain

adjustments or excluding certain costs or gains and assists investors in comparing our operating performance to prior periods.

Management uses this non-GAAP information, along with GAAP information, in evaluating its historical operating

performance. The non-GAAP information in the foregoing presentation was not prepared in accordance with GAAP and may

not be comparable to non-GAAP information used by other companies. The non-GAAP information should not be viewed as a

substitute for, or superior to, other data prepared in accordance with GAAP. A full reconciliation of GAAP to non-GAAP

financial data can be found in Reliance’s Fourth Quarter and Full Year 2019 earnings release issued on February 20, 2020, First

Quarter 2020 earnings release issued on April 23, 2020 and Second Quarter 2020 earnings release issued on July 23, 2020.

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• Reliance is the industry-leader with significant

scale in a large, highly fragmented market

• Several acquisition growth opportunities still

remain

• Reliance has 300+ global locations in 14 countries,

including 40 U.S. states

• ~10,700 metal wholesale locations in the U.S.

operated by ~7,800 companies(1) in 2018

$237.0 BILLIONU.S. METAL WHOLESALE INDUSTRY(1) (2019)

~90%Other Metal Wholesalers

~4.3% Reliance

~5.7%4 Next Largest

Service Centers

(1) SOURCE: IBISWORLD INC.’S DECEMBER 2019 REPORT ON THE U.S. METAL WHOLESALE INDUSTRY.

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• Strategically located near metals producers (mills) and customers

• Ensures when-needed logistics and reduced carbon footprint

• 300+ locations in 40 states and 13 countries outside of the U.S.

• Most customers located within a 200 mile radius of our service centers

• Proprietary fleet of ~1,800 trucks provides quick turnaround, when-needed deliveries

AustraliaBelgiumCanadaChinaFrance

IndiaMalaysiaMexicoSingaporeSouth Korea

TurkeyUnited Arab EmiratesUnited Kingdom

Reliance’s International Presence

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Service centers provide value-added services that lower costs, increase efficiencies and improve quality.

• Acquires products from primary metals producers (mills) and

provides value-added services to process metals to customer

specifications

• Utilizes specialized equipment to process metals, which requires

high-volume production to achieve cost efficiencies

• End customers generally not willing or able to invest in the

necessary technology and equipment to process metals

• Customers purchase from service centers to obtain value-added

metals processing, readily available inventory, reliable and timely

delivery, flexible order size and quality control

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Veterans Support

• Support a non-profit since 2013 that trains veterans in advanced manufacturing skills

• Participate in national program focused on supporting enlisted members of the Armed Forces and their families

Community Organizations

• Encourage our Family of Companies to engage in and initiate events serving their communities (often match and support fundraising efforts)

“Reliance Cares”

• Our employee relief fund to support employees impacted by natural disasters and pandemics

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Our operations by nature do not have a significant impact on the environment.

Sustainability Actions & Efforts

• Purchase significant volumes of metal produced from recycled material

• Sell scrap material generated in our operations to recyclers

• Installed natural and energy efficient lighting in many of our operations

• Utilize energy-efficient diesel tractors that consume less fuel and reduce emissions for the majority of our trucking fleet

• Use propane fuel to operate forklifts

Ongoing Initiatives

• Continue to evaluate and implement energy conservation and other initiatives to reduce our environmental impact

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