Slide 1

March 21, 2012

An Advanced Manufacturer in Steel

California Steel Industries, Inc.Fontana, CA#1Supposition: Californias Basic Industry Companies Are Best in Class and Support Advanced TechnologiesCalifornias basic industrial companies are among the worlds most efficientWe are large consumers of advanced technology Other states treat all manufacturing investments equally Advanced Technology providers depend upon a broad-based manufacturing sector as customers#California Steel Industries (CSI) SnapshotSingle site, in Fontana, CAProduce carbon steel sheet and tubular productsLargest steel company in Western U.S.200-plus active steel customers, majority in CaliforniaMore than $900 million in capital investment since 1984About 1,000 employees and onsite contractorsAverage pay $60,000 with strong benefits and profit sharing27 years with no layoffs AND WE ARE HIRINGDuring recession, loaned employees to community projectsAn industry leader in employee safety, operational efficiency, and environmental excellence

#4Business Model: CSI Does Not Make Steel; Purchased Slabs Are Converted to Coil Sheet & Pipe SlabsElectric Resistance Welded PipeConverted to:Hot Rolled Coil SheetCold Rolled Coil SheetGalvanized Coil Sheet

Hot Rolled coil formed into

#

LimestoneCoalIron OreSinterCokePelletsMolten IronBlast FurnaceCaster

Slab Caster

Steelmaking FacilityMolten Steel

Slabs

Hot Strip Rolling

Reheat FurnaceIntegrated Steel Mill vs CSI 90% of the Greenhouse Gases from producing a hot rolled steel coil are generated in the steelmaking process, NOT by CSI CSI slab rolling process produces just 10% of the GHG for coiled steel#6More than one million tons of imported steel slab are received at the Port of Los Angeles annuallyAll steel slab, whether coming through the Port or from domestic steel locations, arrives by at CSI by rail

CSI Is a Major Customer of the Port of Los Angeles#7End Uses of CSI Products

#7

CSIs Success is Based Primarily on Sales Within 11 Western StatesCSIEastern U.S. Integrated Steel MillsCSI Target Market #

#4 Hot Strip Mill Reheat Furnace1997$25.5 million62 Continuous Pickle Line1994$68 millionCooling Pond1999$13.2 millionFive Stand Cold Reduction Mill1997$64.3 million#2 Continuous Galvanizing Line1998$73 million

Major Modernization Projects at CSI

#5 Hot Strip Mill Reheat Furnace2010$71 million#

CSI is Heavily Dependent upon Process Control Technology#11Future Growth and Innovation: CSIs Leap of FaithState-of-the-art slab Reheat Furnace installed 2010$71 million investment at height of recessionIncreases CSI capacity 50% with lower emissionsLatest burner technologyWaste heat produces steam, replaces boilersGHG emissions reduced by approx. 20%NOx emissions reduced by 50% 67% (Selective Catalytic Reduction technology) PM-10 emissions reduced by approx. 20%#

Production slab from new CSI Reheat Furnace#13Since 1990, CSI Steel Production Has RisenWhile CO2 Emissions Remained Relatively Flat

#Why Investment in Steel is ImportantFor every job formed in the steel industry, seven additional HIGH VALUE jobs are created in other economic sectors, such as:Raw materials and TransportationElectronicsComputers and related technical servicesTodays steel industry is characterized byMassive capital investmentsWorld-class efficienciesHeavy reliance on computer controls and roboticsSteel is the most recycled material on the planet

#Hot Rolled Sheet: Spiral weld pipe, shipping containers, construction

Pickled & Oiled Sheet:Auto wheels and rims, strapping, grape stakes, tubing

Cold Rolled Sheet:Electronic cabinetry, lighting fixtures, metal office furniture, water heaters, containers, tubing, construction

Galvanized Sheet:Solar panels, framing, tubing, drums, tanks, culvert, decking, fireplaces, stoves, HVAC, general construction, grape stakes

ERW Pipe:Oil and gas transmission pipelines; construction

Emission CalcsCSI GHG Emission Calculations Emission CalculationsARB Reported or Equivalent, CO2, Metric tonsStationary Source CombustionNatural GasFuel OilTotalGasolineDieselStat. Sources, Metric tonsElectricity Use, Metric tonsGasoline Use, Metric tonsDiesel Use, Metric tonsStat. Srcs.STEEL
kevina: kevina:Bille quantity of prime and secondary tons.% Change CO2-eq fromKWH perCO2 MT perAs % 1990 BaselineYearmmbtummscfmmbtummbtuKWH(gallons)(gallons)CO2CH4-eqN2O-eqCO2CH4-eqN2O-eqCO2CH4-eqN2O-eqCO2CH4-eqN2O-eqMetric TonsTOTALTons Sold19902004ton Steelton SteelCO2/tonCO2Steel Prod.KWH/ton19862,715,4812,67602,715,481200,492,44772,287251,286143,97551.3284.1880,65214.10114.98699.704.0298.812,783.534.6534.35144,110242,85619872,940,2002,89832,8062,973,006210,165,07972,287251,286158,47555.5791.1584,54314.79120.53699.704.0298.812,783.534.6534.35158,621262,72519882,520,1532,484340,0662,860,219202,972,25872,287251,286160,41647.6578.2081,65014.28116.40699.704.0298.812,783.534.6534.35160,542262,09719893,233,2013,187117,8983,351,099228,845,04772,287251,286180,71561.11100.2692,05716.10131.24699.704.0298.812,783.534.6534.35180,876294,76519903,459,3923,41068,2883,527,680203,795,94872,287251,286188,79865.39107.2681,98114.34116.88699.704.0298.812,783.534.6534.35188,971293,5471,030,727197.720.183100%100%100%100%19914,234,9114,17404,234,911208,634,66372,287251,286224,53580.04131.2883,92714.68119.65699.704.0298.812,783.534.6534.35224,746334,7971,002,72018.9%208.070.224122%119%97%105%19923,823,4523,76803,823,452211,651,10472,287251,286202,71972.26118.5385,14114.89121.38699.704.0298.812,783.534.6534.35202,910312,0031,025,3267.4%206.420.198108%107%99%104%19933,879,0713,82303,879,071234,328,91972,287251,286205,66873.31120.2594,26316.49134.39699.704.0298.812,783.534.6534.35205,862324,3861,267,9088.9%184.820.16289%109%123%93%19944,474,5444,41004,474,544257,332,45572,287251,286237,24084.57138.71103,51718.10147.58699.704.0298.812,783.534.6534.35237,464368,4001,538,63125.7%167.250.15484%126%149%85%19953,812,2453,75703,812,245259,688,62672,287251,286202,12572.05118.18104,46518.27148.93699.704.0298.812,783.534.6534.35202,315330,7041,548,3577.1%167.720.13171%107%150%85%19964,041,4773,98304,041,477271,074,14872,287251,286214,27976.38125.29109,04519.07155.46699.704.0298.812,783.534.6534.35214,481348,6671,643,41713.5%164.950.13171%113%159%83%19974,171,2544,11104,171,254285,100,48672,287251,286221,16078.84129.31114,68720.06163.51699.704.0298.812,783.534.6534.35221,368361,8911,641,21717.1%173.710.13574%117%159%88%19983,816,5353,76203,816,535283,600,77072,287251,286202,35372.13118.31114,08419.95162.65699.704.0298.812,783.534.6534.35202,543340,5891,602,1887.2%177.010.12669%107%155%90%19994,173,5344,11304,173,534301,009,91157,416237,252221,28178.88129.38121,08721.18172.63555.753.1978.482,628.074.3932.43221,489368,1121,735,88317.2%173.400.12870%117%168%88%20004,339,0014,27604,339,001315,440,71084,272280,547230,05482.01134.51126,89222.19180.91815.704.68115.193,107.655.2038.35230,270384,3661,789,82021.9%176.240.12970%122%174%89%20014,034,8353,97704,034,835302,000,66475,243251,795213,92776.26125.08121,48621.25173.20728.314.18102.852,789.164.6634.42214,128360,7791,846,92413.3%163.520.11663%113%179%83%20024,193,5244,13304,193,524325,097,22480,951237,755222,34179.26130.00130,77722.87186.44783.564.50110.652,633.644.4032.50222,550379,2502,009,25217.8%161.800.11160%118%195%82%20034,133,7934,07404,133,793329,560,33966,177226,801219,17478.13128.15132,57223.18189.00640.553.6890.452,512.304.2031.00219,380377,2761,958,74516.1%168.250.11261%116%190%85%20044,415,3394,35204,415,339334,571,83667,355276,372234,10183.45136.88134,58823.54191.88651.953.7492.073,061.405.1237.78234,322396,2942,106,37024.0%158.840.11161%124%204%80%20053,967,8233,91103,967,823302,552,69774,597248,481210,37474.99123.00121,70821.28173.51722.054.14101.962,752.454.6033.96210,572357,0471,814,03111.4%-10.1%166.780.11663%111%176%84%20064,242,3114,18104,242,311312,069,57472,865248,241224,92780.18131.51125,53621.95178.97705.284.0599.602,749.794.6033.93225,139376,8761,930,17819.1%-3.9%161.680.11764%119%187%82%20073,830,1593,72403,830,159279,729,22994,092292,449203,07572.39118.73112,52719.68160.42910.755.23128.613,239.495.4239.97203,266340,5291,727,9307.6%-13.3%161.890.11864%108%168%82%20083,109,0203,02903,109,020241,499,61475,326232,564164,90258.7896.4297,14816.99138.50729.114.18102.962,576.144.3131.79165,057282,1651,442,837-12.7%-29.6%167.380.11462%87%140%85%20091,931,6381,89001,931,638169,222,14345,196139,538102,16436.5159.8868,07311.9097.05437.472.5161.781,545.682.5819.07102,261172,512800,375-45.9%-56.4%211.430.12870%54%78%107%20103,157,4131,89003,157,413232,183,23327,11783,723166,99659.6897.8893,40016.33133.16262.481.5137.07927.411.5511.44167,153261,9441,335,256-11.5%-28.7%173.890.12568%88%130%88%20113,575,1261,89003,575,126261,319,34016,27050,234189,08867.57110.83105,12118.38149.87157.490.9022.24556.450.936.87189,267295,3011,522,4630.2%-19.2%171.640.12468%100%148%87%

1990-20041991-2007 AverageAnnual Increase

4,093,165