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NoI

ea

Ger

dau

had

not

tiled

thei

rQl

2013

reta

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onof

the

valu

atio

nda

te,

resu

lting

ultic

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Gor

don’

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131/

12(F

YE

2012

)nu

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LT

M3/

31/1

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calc

ulat

eth

era

nkin

gs

Income Statement Analysis($ in millions)

Commercial Metals Company

Nucor Corporation

Steel Dynamics, Inc.

Gilbralter Steel Corp.

Leggett & Plaft Inc.

Insteel Industries

Gerdau SA

Latest Twelve Months (LTM) Operating Results LTM Margins

Gross Gross

Revenue Profit EBITDA EBIT Profit EBITDA EBIT

$ 7,403.8 $ 694.7 $ 379.1 $ 242.8 9.4% 5.1% 3.3%

18,907.5 1,436.2 1,580.8 972.2 7.6% 8.4% 5.1%

7,103.9 660.2 602.5 375.8 93% 85% 53%

794.7 150.3 69.7 43.1 18.9% 8.8% 5.4%

3,710.0 759.1 458.8 343.7 20.5% 12.4% 9.3%

360.2 32.0 22.1 12.5 8,9% 6.1% 3.5%

19,519.6 2,439.9 2,141.7 1,202.5 12.5% 11.0% 6.2%

Low $ 360.2 $ 32.0 $ 22.1 $ 12.5 7.6% 5.1% 3.3°jHigh $ 19,519.6 $ 2,439.9 $ 2,141.7 $ 1,202.5 20.5% 12.4% 9.3%

Median $ 5,556.9 $ 726.9 $ 418.9 $ 293.3 10.9% 86% 5.3%

Mean $ 8,449.3 $ 918.7 $ 775.4 $ 469.5 13.0% 8.6% 5.5%

I Keystone Consolidated Industries, Inc. $ 537.2 $ 41.4 $ 27.9 $ 16.5 7.7% 5.2% 3.1%I

FYE 2013 Margins FYE 2014 Margins 13 - ‘14

FYE 2013 FYE 2014 Revenue

Revenue EBITDA EBIT Revenue EBITDA EBIT Growth

Commercial Metals Company $ 7,402.4 4.8% 3.0% $ 7,896.3 5.7% 3.9% 6.7%

Nucor Corporation $ 19,215.1 9.2% 5.8% $ 21,312.3 12.5% 9.4% 10.9%

Steel Dynamics, Inc. $ 7,372.6 9.7% 6.5% $ 8,043.3 11.6% 86% 9.1%

Gilbralter Steel Corp. 882.0 11.0% 7.9% 943.3 12.1% 8.5% 6.9%

Leggett & Platt Inc. 3,826.0 13.0% 10.0% 3,973.3 13.7% 10.5% 3.9%

Insteel Industries 365.5 9.9% 0.0% 435.0 9.5% 0.0% 19.0%

Gerdau SA 20,428.3 12.5% 7.6% 21,969.1 13.9% 9.2% 7.5%

Low $ 365.5 4.8% 0.0% $ 435.0 5.7% 00% 0.0%

High $ 20,428.3 13.0% 10.0% $ 21,969.1 13.9% 10.5% 19.0%

Median $ 7,372.6 9.9% 6.5% $ 7,896.3 12.1% 8.6% 7.2%

Mean $ 8,498.8 10.0% 5.8% $ 9,224.6 11.3% 7.2% 8.0%

I Keystone Consolidated Industries, Inc. $ 564.9 5.5% 3.4% $ 570.5 5.5% 3.1% 1.0%I

Note:

Gerdau had not filed their QI 2013 results as of the valuation date, resulting in ultizing Gerdau’s 12/31/12 (FYE 2012) numbers instead of LTM 3/31/13 numbers for relevent calculations

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s:(1

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Foot

note

s:

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ghte

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vera

geC

ost

ofC

apita

l(W

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=(C

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ofD

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DRAFT & PRELIMINARY

Discounted Cash Flow Approach

($ in millions)

Revenue

Adjusted EBITIncome Taxes at

Debt-free Earnings

39.5%

Net Investment:Depreciation & AmortizationCapital ExpendituresChange in WC

Net Debt-free Cash Flow

Projected Fiscal Year End2013 2014 2015 2016 2017

$ 564.9 $ 570.5 $ 576.2 $ 602.1 $ 629.2

19.4 17.5 18.3 191 20.07.2 7.6 7.97.7 6.9

$ 11.7 $ 10.6 $ 11.1 $ 11.6 $ 12.1

11.8 13,6 14.6 15.3 16.0(19.5) (19.5) (17.4) (18.1) (190)10.1 (4.1) (0.8) (0.9) (0.9)

S 14.1 $ 0.7 $ 7.5 $ 79 $ 8.2

Base WACC 14.5%Increment 1.0%

Base EBITDA Multiple 7.0Increment 0.5

Base Growth Rate 4.5%Increment 0.25%

Terminal EBITDA $ 36.0Terminal NDFCF $ 11.2Last Period Factor - EBITDA 4.17Last Period Factor - Gordon Growth 4.17

Period0.33 1.17 3.17 4.17

• 12.5% $ 13.6 $ 0.6 $ 5.8 $ 5.4 $ 50 $ 30.4

13.5% $ 13.6 $ 0.6 $ 5.7 $ 5.3 $ 48 $ 30.0

14.5% $ 13.5 $ 0.6 $ 5.6 $ 5.1 $ 4.7 $ 29.5

15.5% $ 13.5 $ 0.6 $ 5.5 $ 5.0 $ 4.5 $ 29.0

16.5% $ 13.4 $ 0.6 $ 5.4 $ 4.8 $ 4.3 $ 28.6

12.5%13.5%14.5%15.5%16.5%

12.5%13.5%14.5%15.5%16.5%

lAverage of LowlHigh $ 121.6 $ 149.1

Total I

Terminal Value EBITDA ApproachTerminal Value EBITDA Multiple

6.0 6.5 7.0 7.5 8.0Present Value of Terminal Value

$ 132.2 $ 143.2 $ 154.2 $ 165.2 $ 176.2

$ 127.4 $ 138.0 $ 148.6 $ 159.2 $ 169.8

$ 122.8 $ 133.0 $ 143.3 $ 153.5 $ 163.7

$ 118.4 $ 128.3 $ 138.2 $ 148.0 $ 157.9

$ 114.3 $ 123.8 $ 133.3 $ 142.8 $ 152.3Total EV Conclusion

$ 162.6 $ 173.6 $ 184.6 $ 195.6 $ 206.7

$ 157.3 $ 167.9 $ 178.61 $ 189.2 $ 199.8

$ 152.3 $ 162.5 $ 172.8 $ 183.0 $ 193.2

$ 147.5 $ 157.31 $ 167.2 $ 177.1 $ 186.9

$ 142.8 $ 152.4 $ 161.9 $ 171.4 $ 180.9

Terminal Growth Rate ApproachTerminal Growth Rate

4.0% 4.3% 4.5% 4.8% 5.0%Present Value of Terminal Value

$83.9 $86.6 $89.5 $92.6 $95.9$72.3 $74.4 $76.7 $79.1 $81.6$63.1 $64.8 $66.5 $68.4 $70.4$55.5 $56.9 $58.3 $59.8 $61 4$49.3 $50.4 $51.6 $52.8 $54.1

Total EV Conclusion$114.3 $117.0 $120.0 $123.1 $126.4$102.3 $104.4 $106.7 I $109.0 $111.6

$92.6 $94.3 $96.0 $97.9 $99.9$84.6 $85.9 I $87.4 $88.9 $90.4

$77.9 $79.0 $80.2 $81.4 $82.7

Terminal Net Debt-free Cash Flow adjusted for taxes at 39,5%

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Income StatemeM LTM Mar2ins

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__________________

Income Statement LTM Mareins

I UN’9llhV TED TED 4 flE 1 fl.E Grasfl’søSt fl%

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*wsJ&l $suAeabkle4ostwtaufqe1lt SOsE • flt 0441 5524 flO $12.4

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Balance Sheet (8eentos 170%

Irni 0320E$ -1w; ‘ntF 0aW Wt cu4. 1(n1E Vlantt Xt7*tEJkE$1E$ IE 7%

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O0Qs1esstLst8oEtoe - 024 I-% M ,- 2$ S0 WøWs1d7%Gfl1

t980ttser0stLnbsItdeS $1, i $1034 $2S4 SE 44 Cdier$L,* VL4tifrT8t30tDc$9 3 380 .1111’ ‘thu I 100 1610 4280

OOsorttsbi2ttIos I j 898 g j Leveraçe Ratios

ttSIlLOSWtEIpt $6 47 $4261 $6864 2659E WsLFEBETDA

Mtitotqbtøt*S 235 144 $12. lIE 0tbltI4Y 046%0 0 0 0 EYctiEIrnf

$88t&soEdWVEq’t6 ZIOl 1b W Z7 ZEO 8t1t4s0cw8t*g4 0 $lc

rs41 LtJjt1s$& 0%nhoEOt?s EsizEr $It02. dkllf $3.4 22. flillOMiscellaneons Calculations

Statement orCnsh Flows Rdsisv.oDqsssttottitt 15-9%

Zsjsttdtlatik Assososntsott 3609 8149 $148 $607 $590 $583 5-8%

EøçtE6hhp8adltu8e1. $1 EEL $331 $167 $948 $439 $345 I.;;.; ;:;r!.i.54E: $0 $0 $0 $0

Enterprise Value Calcnlation Mnltiple Calculation/Projections

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M#4Bs*dcSwfn4k 0 tFow $3031 $18S3 $14277 0N02$ 80fl0IP08r8’08484lal1s8[0taelEpb0u 0 4øip8y $7413 975-42 17 $2.7 8DTh0 $DW[0t

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[Ebaø& *1 IzafleIncome Statement LTM Manins

h u 1Th( YTD YTD I fl WE 1 h4 êaPnftt PC

I U O3I 03/20131 I2/2O12[ 12dD11 EBflt4 ._ -. .: *8%*18vtW* I $197 $192 $790 $767 $637 Eflfl fli mtC3g*iGoødsSøiWncl9deD&A) l’ 644 161 157 $640 $621 $534 Cthficm tllll I 11111 I 44

:N’cLJnoøaie L!L ‘ ‘I II 1.1!IJ!iI’IIdI 08*4ko*8Pr*k$fl 4*w 4__ Isi, 538 Iii’ $I% t4

Sd%n8Gen.t&M$flwe j6d%r(jqp i 28 105 109 100

óNQp9dngE*pgu 49il{ li o 2 0 Growth Rate

wopemMmto ¶ a!s $ cnI$twflkat)‘ sMrt2I 11 5 19 19 20 Yar3twfl4kt) 31%

*iterfttlm) }IM? ‘0 0 0 0 0 Z)r4fr%tfr4tt9Ifr) 208%

011w I i1I!c1!jI 4 (0) (0) 4 (0) 77 2 YwZNTDAGhM)Noe.O9r&aQttø4tm8twmt I j{j j 0 0 0 (7) 16 1 flarE8(TDAakt) 148%

Rsp*ewdPrfr0Øbsattnø 4rqIj q1lJq11 $A ($6) $8 *82 II 204 i$iI 2 VtvZIflT Øflsfl 22*3%Mrn0tq*ft t Ill U1 o o o obwtneTn Iii p{ 8 (2) 1 ‘0 t (17) 2 YeaD&At3ltti) 48%

Rrported jpbøtn8fmw $8 183 8438 $238 fl8 fllPfr s9ot 2 tCtpØ(t8)

prret1iowaI o o o 0 2 1YeuRfltfl 11Wfl ft m a %c*rEWT8%43r) 382%

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Dqvetio1olt &A36658fl600 *0M2 1J11Il i8 8eW 22 nS! 842114

20J1i.bn$te4J Kflh1E3i8i *70 lHIjIl 1rniiiji ;882. Ih ‘1

lI 1d1 ... IReflI*84*’k4tt09ine &519t*1fl43udtt8*tl0Y I ttPla4 II J$1 *Z3iiiiI Iii’ $zt h i 1891)ttgE3*pttaLtnt9 uJ 0 (7) 0 7) 16

$8 $6Ø n3 — &- I ‘

t?*pr681w!1 - U 2 I 4 2&Adsu8tdpaThtw 88 $34 $3 S4 *39 iai o is Common Stze

1L86Quot$a6ca9u 1*3%Balance Sheet :I00ertoty 41%

03/2013 0*f2t1t2 12344. 1l1/Qi 12ØffJfl HtatVtptty&utp 166%

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Statement of Cash Flows .RaWte8tIt3sftl450ttltt 403%

Uctsos8tWm& A8%dt8tt II 1%

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Statement ofCash Flows 4° $10 $10 $7

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