Delivering Results

Poised for GrowthInvestor Presentation

September 2017

2

Safe HarborSAFE HARBORStatements and information included in this presentation by Schnitzer Steel Industries, Inc. (the "Company") that are not purely historical are forward-looking statements within themeaning of Section 21E of the Securities Exchange Act of 1934 and are made pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995.Forward-looking statements in this presentation include statements regarding future events or our expectations, intentions, beliefs and strategies regarding the future, which mayinclude statements regarding trends, cyclicality and changes in the markets we sell into; the Company's outlook, growth initiatives or expected results or objectives, includingpricing, margins, sales volumes and profitability; strategic direction or goals; and targets. Forward-looking statements by their nature address matters that are, to differentdegrees, uncertain, and often contain words such as “outlook,” ‘target,” “aim,” “believes,” “expects,” “anticipates,” “intends,” “assumes,” “estimates,” “evaluates,” “may,” “will,”“should,” “could,” “opinions,” “forecasts,” “projects,” “plans,” “future,” “forward,” “potential,” “probable,” and similar expressions. However, the absence of these words or similarexpressions does not mean that a statement is not forward-looking.

We may make other forward-looking statements from time to time, including in reports filed with the Securities and Exchange Commission, press releases, presentations and onpublic conference calls. All forward-looking statements we make are based on information available to us at the time the statements are made, and we assume no obligation toupdate any forward-looking statements, except as may be required by law. Our business is subject to the effects of changes in domestic and global economic conditions and anumber of other risks and uncertainties that could cause actual results to differ materially from those included in, or implied by, such forward-looking statements. Some of theserisks and uncertainties are discussed in “Item 1A. Risk Factors” in Part I of our most recent Annual Report on Form 10-K, as supplemented in “Item 1A. Risk Factors” in Part II ofsubsequent Quarterly Reports on Form 10-Q. Examples of these risks include: potential environmental cleanup costs related to the Portland Harbor Superfund site or otherlocations; the cyclicality and impact of general economic conditions; instability in international markets; volatile supply and demand conditions affecting prices and volumes in themarkets for both our products and raw materials we purchase; imbalances in supply and demand conditions in the global steel industry; the impact of goodwill impairmentcharges; the impact of long-lived asset and joint venture investment impairment charges; the realization of expected benefits or cost reductions associated with productivityimprovement and restructuring initiatives; difficulties associated with acquisitions and integration of acquired businesses; customer fulfillment of their contractual obligations;changes in the relative value of the U.S. dollar; the impact of foreign currency fluctuations; potential limitations on our ability to access capital resources and existing creditfacilities; restrictions on our business and financial covenants under our bank credit agreement; the impact of the consolidation in the steel industry; inability to realize expectedbenefits from investments in technology; freight rates and the availability of transportation; the impact of equipment upgrades, equipment failures and facility damage onproduction; product liability claims; the impact of legal proceedings and legal compliance; the adverse impact of climate change; the impact of not realizing deferred tax assets; theimpact of tax increases and changes in tax rules; the impact of one or more cybersecurity incidents; costs associated with compliance with environmental regulations; inability toobtain or renew business licenses and permits; compliance with greenhouse gas emission regulations; reliance on employees subject to collective bargaining agreements; andthe impact of the underfunded status of multiemployer plans in which we participate.

NON-GAAP FINANCIAL MEASURESThis presentation contains certain non-GAAP financial measures as defined under SEC rules. Reconciliations of the non-GAAP financial measures contained in this presentation to the most directly comparable U.S. GAAP measure are provided in the Appendix. These non-GAAP financial measures should be considered in addition to, but not as a substitute for, the most directly comparable U.S. GAAP measures.

3

Auto and Metals Recycling (AMR)• Sourcing Scrap

─ 53 auto parts stores purchase 390 thousand salvage vehicles annually─ 43 metals recycling facilities collect obsolete machinery and equipment,

railroad cars and tracks, automobiles, home appliances, consumer goods, manufacturing, construction and demolition metal

• Processing Scrap Metal─ 3.6 million long tons of ferrous and 574 million pounds of nonferrous

annually for use in steel and other manufacturing globally─ Six deep water ports on East (2) and West (2) Coasts, Hawaii and Puerto

Rico serve domestic and global steel manufacturers

• Electric Arc Furnace (EAF) Producer of Finished Steel and Recycled Metals─ Steel manufacturing facility in McMinnville, OR and metals recycling and

deep water export operation in Portland, OR with 6 feeder yards─ Long product producer of wire rod and rebar from recycled scrap for

construction markets on the West Coast and Western Canada

Leading North American Auto and Metals Recycler and West Coast Steel Manufacturer

Cascade Steel & Scrap (CSS)

Company data as of 3Q fiscal 2017 last four quarters

Company Overview

4

Geographic Platform Enables Worldwide AccessSourcing scrap through 96 auto parts and metals recycling facilities in North America and

providing processed recycled metals to customers around the world

Schnitzer export facilitiesExport destinations

EAME: Europe, Africa, Middle East

Asia EAME

North America

40%18%

42%AsiaEAMEAmericas

3QYTD17 Ferrous Export Sales by Region

Northwest23

CA / HI25 Southeast

21

Midwest17

Northeast10

5

Metal Market Trends

$150

$175

$200

$225

$250

$275

$300

$325

$350

Jan-16 Mar-16 May-16 Jul-16 Sep-16 Nov-16 Jan-17 Mar-17 May-17

East Coast HMS West Coast HMS Domestic Shred

Iron Ore & Met Coal Price Trends ($/ton)Ferrous Market Price Trends ($/ton)

Nonferrous Market Price Trends

Data as of June 2017Sources: SBB, MetalPrices.com

• Ferrous market prices softened approximately $25/ton in April from peak levels in February, then stabilized in May

• Iron ore prices declined 35% from peak levels in February but remained higher than trough levels experienced in January 2016, while met coal prices rose nearly 10% in Q3

• Nonferrous market prices for aluminum and copper were relatively stable in Q3 with prices trading in a narrow range of around 5%

3Q17 3Q17

3Q17

3Q16 3Q16

3Q16

$0.60$0.65$0.70$0.75$0.80$0.85$0.90$0.95

$1.80

$2.00

$2.20

$2.40

$2.60

$2.80

$3.00

$/Al lb

$/Cu l

b

Copper Aluminum

$50$100$150$200$250$300$350$400

$30$40$50$60$70$80$90

$100

Met C

oal

Iron O

re

Iron Ore Fines 62% Qingdao CFR Metallurgical Coal 65% FOB North China

6

35% 39% 35% 40%

24% 12% 23% 18%2% 7% 4% 4%

39% 42% 38% 38%

3Q16 3Q17 FY169 Months

FY179 Months

Asia EAME Latin America Domestic

510 5511,480 1,639322 400

895 998

3Q16 3Q17 FY169 Months

FY179 Months

Export Domestic

SSI Ferrous Sales Volumes by Region

SSI Ferrous Sales Volumes(000s LT) 11%

14%

SSI Ferrous Sales TrendsDrivers of Increased SSI Ferrous Volumes

• Increased sales diversification

• Volume growth initiatives

• Higher raw material prices

• Stronger supply flows

• Lower Chinese steel exports

• Improved economic outlook

7

30,000

35,000

40,000

45,000

50,000

U.S. Personal Consumption Expenditures & Consumer Confidence

U.S. Appliance Shipments U.S. Light Vehicle Sales (M)

Leading U.S. Economic Trends

Data as of June 2017.Source: Federal Reserve, Department of Commerce, Whirlpool Corporation estimates of US appliance shipments, Conference Board, KeyBanc Research estimates

U.S. Housing Starts (000s)

600

700

800

900

1000

1100

1200

1300

1400

(2.5) (2.0) (1.5) (1.0) (0.5)

- 0.5 1.0 1.5 2.0 2.5

7.58.08.59.09.510.010.511.011.512.0

5

10

15

20

US Light Vehicle Sales Ms (LHS) Average Age in Years (RHS)

U.S. Industrial ProductionMonthly % Change YOY

80

90

100

110

120

130

140

$12.0

$12.2

$12.4

$12.6

$12.8

$13.0

$13.2

Cons

umer

Con

fiden

ce

Cons

umer

Exp

endit

ures

($B)

Personal Consumption Expenditures Consumer Confidence

Highest since Jan-15

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AMR StrategyStrategic Initiatives

IncreaseVolumes

Expand Margins

Strategic Investments

Improving macro-economic environment

Sustainable Growth

• Diversifying customer base

• Growing supplier network

• Expanding value-added services

• Enhancing product quality

• Sustainable cost reductions

• Optimizing asset efficiency

• Enhanced logistics and transportation

• Capitalizing on internal synergies

• Investing in advanced recovery technologies

• Automating and improving operational technologies

• Developing adjacent business lines

Increasing and diversifying demand for recycled metals

Strengthening supply flows

Benefits of Operating Leverage

Utilizing Retained Capacity of 5MT

Volume and margin growth objectives driven by internal initiatives and supported by stable to improving

macro-economic and industry trends

FY16$15 adjusted OI per Fe ton

FY19 Target$35 OI per Fe ton

FY19 Target4.1 – 4.3M tons

Volume Growth Initiative

FY163.3M tons

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Formation of Cascade Steel and Scrap BusinessSMB and AMR Oregon businesses integrated to form a new division: Cascade Steel and Scrap (CSS)

CSS Strategic Rationale• Create a vertically integrated steel manufacturing and metals recycling business to enhance customer service,

improve product quality, increase operational flexibility, and more effectively manage logistics CSS Platform

• Includes steel manufacturing facility in McMinnville, OR and metals recycling and export operations in Portland, OR– Electric arc furnace long product mini-mill– Six wholly-owned or joint venture metals recycling feeder yards, located in Oregon, Washington, and Idaho– Distribution center in Southern California

CSS Capacity• Ability to sell finished steel and recycling products to domestic and export markets

– Rolling mill capacity for rebar and wire rod currently 580,000 short tons with permitting to expand meltshop capacity to 950,000 short tons

– Recycling capacity to meet all internal steel mill scrap requirements while continuing to sell ferrous and nonferrous recycled metals into third-party domestic and export markets

CSS Initial Internal Synergies and Productivity Initiatives• Initial CSS operational synergies, combined with productivity initiatives already underway, expected to benefit FY18

CSS Segment Reporting• New CSS segment for financial reporting beginning in 4Q17

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AMR Volume and Price Trends

111 124 122 153 136 123

162

$0.63 $0.59 $0.59 $0.59 $0.58 $0.65 $0.66

1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17NFe Volumes M Lbs Average Selling Price $/Lb, net of freight

805 737 832 914 834 852 951

$179 $169 $215 $209 $196

$248 $259

1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17Fe Volumes 000s Average Selling Price $/LT, net of freight

• Ferrous sales volumes up 14% and average selling prices up 20% YOY

• Nonferrous sales volumes up 32% and average selling prices up 12% YOY

• Q3 car purchase volumes achieved a quarterly record

Ferrous Volumes and Average Prices

Nonferrous Volumes and Average Prices

77 70 7992 94 96

108

1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17

Car Purchase Volumes

Car Purchase Volumes 000s

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AMR Operating Trends

Best Q3 operating income since FY12– Better market conditions, increased sales diversification, and improved supply flows led to increased sales volumes and higher

average selling prices– Seasonally higher parts sales from retail stores– Operating leverage from multi-year cost reductions and productivity initiatives– Immaterial impact from average inventory accounting

Performance excluding average inventory accounting– Adjusted operating income increased by $7 million sequentially and $5 million from the prior year quarter – Adjusted operating income per ton increased by $5/ton sequentially and $2/ton from the prior year quarter due to higher sales

volumes, increased supply flows, seasonality, sustained benefits from our cost savings and productivity initiatives

$32

$21 $15

$30 $30 $29 $24

$17

$26 $31

3Q16 4Q16 1Q17 2Q17 3Q17

$27

$20

$12

$26 $29

$24 $22

$14

$22

$29

3Q16 4Q16 1Q17 2Q17 3Q17

Note: For a reconciliation to U.S. GAAP, including quarterly estimated impact of average inventory accounting, see appendix.

Adjusted Operating Income $ Per Ferrous Ton

Adjusted Operating Income per Ton

Adjusted Operating Income Excluding Average Inventory Accounting per Ton

Adjusted Operating Income$ In Millions

Adjusted Operating Income Adjusted Operating Income Excluding Average Inventory Accounting

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SMB Operating Trends

554

504 501

528

492

517

545

1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17

123

110

133 123

101 106

141

1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17

$3

($1)$1

$3

($3) ($2) $0.4

1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17

Q3 Performance• Adjusted operating income of $0.4 million• Sales volume increase of 33% sequentially and 6% YOY

– Q3 benefited from seasonally higher construction activity compared to Q2

• Average selling prices increased 5% sequentially and 9% YOY, reflecting higher raw material costs and improved product mix, tempered by continued price pressure from imports

Note: For a reconciliation to U.S. GAAP of adjusted operating income (loss), see appendix.

SMB Adjusted Operating Income (Loss)($Millions)

Sales Volumes (000 ST) Average Sales Price ($/ST)

Average selling prices are net of freight

Major equipment upgrade impacted operating results in

1Q and 2Q

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Capital Structure

$368 $294

$205 $166 $180 $200

$169

FY13 FY14 FY15 FY16 1Q17 2Q17 3Q17

Net Debt ($ Millions)

3.8x

2.6x 2.5x2.0x

1.6x

FY13 FY14 FY15 FY16 3Q17LFQ

Net Debt to Adjusted EBITDA

Note: Net debt is total debt, net of cash. For a reconciliation to U.S. GAAP of net debt and adjusted EBITDA, see appendix.

Reduced by $200M

• Consistent trend of positive operating cash flow generation

• Q3 operating cash flow of $45 millionCash Flow

• Net debt to adjusted EBITDA ratio of 1.6x• Net debt to net capital of 25%

Strong Balance Sheet

• Priorities include capital investment, debt reduction, and returning capital to shareholders

Balanced Capital

Allocation

$51 $51

$48

FY16 FY179 Months

Operating Cash Flow ($ Millions)

9 Months Fourth Quarter

$99

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Summary

Increased Earnings

- 3Q17 significantly higher EPS sequentially and YOY- Best nine-month EPS since fiscal 2012 - Sustained benefits from multi-year productivity initiatives

Market Outlook

- Macro-economic and industry indicators trending positively - Preliminary 4Q17 results expected in late September

Strong Balance Sheet

- Strong operating cash flow - Net debt to adjusted EBITDA ratio 1.6x- 93rd consecutive quarterly dividend

Strategic Priorities

- Increasing volumes - Expanding margins- Investing in growth

Improving Results Delivering Growth

Historical Operating Statistics and Non-GAAP Measures

Third Quarter Fiscal 2017

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Non-GAAP Financial MeasuresThis presentation contains performance based on adjusted income (loss) and adjusted diluted earnings (loss) per share from continuing operationsattributable to SSI and adjusted consolidated, AMR and SMB operating income (loss), which are non-GAAP financial measures as defined underSEC rules. As required by SEC rules, the Company has provided reconciliations of these measures for each period discussed to the most directlycomparable U.S. GAAP measure. Management believes that presenting adjusted non-GAAP financial measures provides a meaningful presentationof our results from business operations excluding adjustments for a goodwill impairment charge, other asset impairment charges net of recoveries,restructuring charges and other exit-related activities, recoveries related to the resale or modification of previously contracted shipments, the non-cash write-off of debt issuance costs, and the income tax expense (benefit) associated with these adjustments, items which are not related tounderlying business operational performance, and improves the period-to-period comparability of our results from business operations. Adjustedoperating results in fiscal 2015 excluded the impact of the resale or modification of the terms, each at significantly lower prices due to sharp declinesin selling prices, of certain previously-contracted bulk shipments for delivery during fiscal 2015. Recoveries resulting from settlements with theoriginal contract parties, which began in the third quarter of fiscal 2016, are reported within SG&A expense in the quarterly statements of operationsand are also excluded from these measures. Further, management believes that debt, net of cash is a useful measure for investors because, ascash and cash equivalents can be used, among other things, to repay indebtedness, netting this against total debt is a useful measure of ourleverage. Management believes that the ratio of total debt to total capital, both net of cash and cash equivalents, is also a useful measure of ourleverage. These non-GAAP financial measures should be considered in addition to, but not as a substitute for, the most directly comparable U.S.GAAP measures.

Further, management believes that:• Adjusted EBITDA is a useful measure of the Company’s financial performance and liquidity;• Debt, net of cash is a useful measure for investors because, as cash and cash equivalents can be used, among other things, to repay

indebtedness, netting this against total debt is a useful measure of our leverage; and• Net Debt to Adjusted EBITDA Ratio is a useful measure of the Company’s liquidity; and• Adjusted operating income (loss) excluding estimated impacts of average inventory accounting is a useful indicator of the Company’s financial

performance because it excludes the impact of the rapid changes in purchase prices compared to our cost of goods sold which adjusts moreslowly due to use of average inventory accounting and provides a measure of operating performance excluding the differential.

These non-GAAP financial measures should be considered in addition to, but not as a substitute for, the most directly comparable U.S. GAAPmeasures.

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The following is a reconciliation of each of these measures to the most directly comparable U.S. GAAP measure:

Non-GAAP Financial Measures

Consolidated Operating Income (Loss) Quarter($ in millions) 3Q17 2Q17 1Q17 4Q16 3Q16 2Q16 1Q16Operating income (loss) $19 $14 $1 $18 $15 ($37) ($4)Goodwill impairment charge — — — — — 9 —Other asset impairment charges, net of recoveries (1) — — 2 — 18 —Restructuring charges and other exit-related activities — — — (1) 1 5 2Contract resale or modification, net of recoveries — — — (1) — — —Consolidated adjusted operating income (loss)(1)

$18 $13 $1 $19 $15 ($4) ($2)

AMR Operating Income (Loss) Quarter($ in millions) 3Q17 2Q17 1Q17 4Q16 3Q16 2Q16 1Q16Operating income (loss) $30 $26 $12 $20 $27 ($26) $2Goodwill impairment charge — — — — — 9 —Other asset impairment charges, net of recoveries (1) — — — — 18 —Contract resale or modification, net of recoveries — — — (1) — — —Adjusted AMR operating income(1)

$29 $26 $12 $20 $27 $1 $2

(1) May not foot due to rounding.

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Non-GAAP Financial MeasuresThe following is a reconciliation of each of these measures to the most directly comparable U.S. GAAP measure:

Income (Loss) from Continuing Operations Attributable to SSI Quarter($ in millions) 3Q17 2Q17 1Q17 4Q16 3Q16 2Q16 1Q16Income (loss) from continuing operations attributable to SSI $17 $11 ($1) $16 $11 ($40) ($5)Goodwill impairment charge — — — — — 9 —Other asset impairment charges, net of recoveries (1) — — 2 — 18 —Restructuring charges and other exit-related activities — — — (1) 1 5 2Contract resale or modification, net of recoveries — — — (1) — — —Non-cash write-off of debt issuance costs — — — — 1 — —

Income tax expense (benefit) allocated to adjustments(2) — — — — — 1 —

Adjusted net income (loss) from continuing operations attributable to SSI(1) $16 $10 ($1) $17 $13 ($7) ($4)

Diluted EPS from Continuing Operations Attributable to SSI Quarter($ per share) 3Q17 2Q17 1Q17 4Q16 3Q16 2Q16 1Q16Net income (loss) per share attributable to SSI $0.60 $0.40 ($0.05) $0.58 $0.40 ($1.52) ($0.20)

Loss per share from discontinued operations attributable to SSI — — — (0.01) — (0.04) —

Net income (loss) per share from continuing operations attributable to SSI(1) $0.60 $0.40 ($0.05) $0.59 $0.41 ($1.48) ($0.19)

Goodwill impairment charge — — — — — 0.33 —

Other asset impairment charges, net of recoveries ($0.04) — $0.01 0.08 — 0.68 —

Restructuring charges and other exit-related activities — ($0.02) $0.01 (0.04) 0.02 0.19 0.07

Contract resale or modification, net of recoveries ($0.01) ($0.01) ($0.01) (0.02) (0.01) — —

Non-cash write-off of debt issuance costs — — — — 0.03 — —

Income tax expense (benefit) allocated to adjustments(2) — — — (0.01) 0.01 0.03 (0.01)

Adjusted diluted EPS from continuing operations attributable to SSI(1) $0.56 $0.37 ($0.03) $0.60 $0.46 ($0.25) ($0.13)

(1) May not foot due to rounding.(2) Income tax allocated to adjustments reconciling reported and adjusted net income (loss) from continuing operations attributable to SSI and diluted earnings (loss) per share from continuing operations attributable to SSI is determined based on a tax prov ision calculated w ith and w ithout the adjustments.

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Non-GAAP Financial MeasuresAdjusted EBITDA

• Adjusted EBITDA – Earnings before interest, taxes, depreciation, amortization, goodwill impairments and other assetimpairments net of recoveries, restructuring charges and other exit-related activities, net income attributable to noncontrollinginterests, discontinued operations, and contract resale or modification, net of recoveries.

• The following is a reconciliation of net income (loss) attributable to SSI and Adjusted EBITDA:

Quarter

Adjusted EBITDA ($ 000s) 3Q17 2Q17 1Q17 4Q16 3Q16 2Q16 1Q16

Net Income (loss) attributable to SSI $16,565 $11,037 (1,326)$ 16,132$ 11,000$ (41,245)$ (5,296)$ Plus net income attributable to noncontrolling interests 687 662 618 528 689 275 329Plus interest expense 2,131 2,097 1,741 2,110 2,905 2,015 1,859

Plus tax expense (benefit) 161 637 (62) (75) 95 1,293 (578)

Plus depreciation & amortization 12,318 12,598 12,543 12,687 12,990 14,124 14,828

Plus goodwill & other asset impairments,net (1,044) — 401 2,224 — 27,303 —Plus restructuring charges and other exit-related activities 93 (494) 201 (976) 542 5,291 1,925Plus loss from discontinued operations, net of tax 127 95 53 143 116 1,024 65

Plus contract resale or modification, net of recoveries (171) (417) (139) (555) (139) — —

Total 30,867$ 26,215$ 14,030$ 32,218$ 28,198$ 10,080$ 13,132$

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Non-GAAP Financial MeasuresNet Debt Leverage Ratio

• Debt, net of cash is the difference between (i) the sum of long-term debt and short-term debt (i.e., total debt) and (ii) cash andcash equivalents.

• The leverage ratio of net debt to net capital is the net debt as a percentage of net debt plus total equity.

• The following is a reconciliation of the net debt leverage ratio:

Leverage Ratio 3Q17 2Q17 1Q17 4Q16 3Q16 2Q16 1Q16($000s) 5/31/2017 2/28/2017 11/30/2016 8/31/2016 5/31/2016 2/29/2016 11/30/2015

Total debt $184,443 $209,477 $187,645 $192,518 $202,718 $197,839 $203,546Less cash (15,209) (9,830) (8,100) (26,819) (7,018) (8,940) (18,925)

Net debt 169,234 199,647 179,545 165,699 195,700 188,899 184,621

Total debt 184,443 209,477 187,645 192,518 202,718 197,839 203,546Total equity 517,558 502,684 494,067 501,432 488,930 477,072 524,448Total capital 702,001 712,161 681,712 693,950 691,648 674,911 727,994

Less cash (15,209) (9,830) (8,100) (26,819) (7,018) (8,940) (18,925)Net capital 686,792$ 702,331$ 673,612$ 667,131$ 684,630$ 665,971$ 709,069$

Total debt to capital ratio 26.3% 29.4% 27.5% 27.7% 29.3% 29.3% 28.0%Impact excluding cash from both Total debt and total capital (1.6%) (1.0%) (0.9%) (2.9%) (0.7%) (0.9%) (2.0%)

Net debt leverage ratio 24.6% 28.4% 26.7% 24.8% 28.6% 28.4% 26.0%

21

Non-GAAP Financial MeasuresNet Debt to Adjusted EBITDA Ratio

• The following is a reconciliation of cash flows from operating activities to adjusted EBITDA; debt to debt, net of cash; the debt tocash flows from operating activities ratio; and the net debt to adjusted EBITDA ratio:

Net Debt to Adjusted EBITDA Ratio LFQ Fiscal Year($ in 000) 3Q17 2016 2015 2014 2013Cash Flows from Operating Activities 99,332$ 99,240$ 144,628$ 141,252$ 39,289$

Exit-related gains, asset impairments and accelerated depreciation, net 1,744 (1,790) (6,502) (566) - Write-off of debt issuance costs - (768) - - - Inventory write-down - (710) (3,031) - - Deferred income taxes (1,379) (507) 1,988 3,815 59,102 Undistributed equity in earnings of joint ventures 4,180 819 1,490 1,196 1,183 Share-based compensation expense (12,983) (10,437) (10,481) (14,506) (11,475) Excess tax benefit from share-based payment arrangements - - 343 194 343 Gain (loss) on disposal of assets (258) 465 2,875 1,126 (131) Unrealized foreign exchange gain (loss), net (55) 109 1,909 (240) (1,583) Bad debt (expense) recoveries, net (12) (131) 264 (449) (584) Change in current assets and current liabilities 11,849 (19,317) (76,736) (39,011) 53,654 Changes in other operating assets and liabilities (5,788) (405) 2,252 (2,550) (2,699) Interest expense 8,079 8,889 9,191 10,595 9,623 Tax expense (benefit) 661 735 (12,615) 2,583 (56,943) Restructuring charges and other exit-related activities (1,176) 6,782 13,008 6,830 7,906 Loss from discontinued operations, net of tax 418 1,348 7,227 2,809 4,242 Depreciation and amortization from discontinued operations - - (821) (1,335) (861) Contract resale or modification, net of recoveries (1,282) (694) 6,928 - -

Adjusted EBITDA 103,330$ 83,628$ 81,917$ 111,743$ 101,066$ Debt 184,443 192,518 228,156 319,365 381,837 Cash and cash equivalents (15,209) (26,819) (22,755) (25,672) (13,481)

Net Debt 169,234$ 165,699$ 205,401$ 293,693$ 368,356$

Debt to Cash Flows from Operating Activities Ratio 1.9 1.9 1.6 2.3 9.7 Net Debt to Adjusted EBITDA Ratio 1.6 2.0 2.5 2.6 3.6

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Non-GAAP Financial Measures

• Estimated Effect of Average Inventory Accounting – We account for the cost of our inventory using the average cost method. Inperiods of rising or falling selling prices for our products, we seek to adjust the purchase price paid for raw materials. However, thecost of our inventory changes more slowly than the purchase prices due to the effect of the average cost method. As a result,changes in the average inventory cost recorded through our cost of goods sold lag the changes in purchase prices, thus generallyimpacting our operating results positively in periods of rising market prices and negatively in periods of falling market prices.

• The following is a presentation of the estimated impact of average inventory accounting during the comparable periods:

Adjusted Operating Income (Loss) Excluding Estimated Average Inventory Accounting

AMR Adjusted Operating Income Excluding QuarterEstimated Average Inventory Accounting Impact ($ in millions) 3Q17 2Q17 1Q17 4Q16 3Q16 2Q16 1Q16Adjusted operating income $29 $26 $12 $20 $27 $1 $2

Estimated average inventory accounting impact (1) 4 (2) (3) 3 (1) (7)

Adjusted operating income excluding estimated average inventory accounting(1) $29 $22 $14 $22 $24 $2 $9

Ferrous volumes (000) 951 852 834 914 832 737 805

Adjusted operating income per ton $30 $30 $15 $21 $32 $1 $3

Adjusted operating income per ton excluding estimated average inventory accounting $31 $26 $17 $24 $29 $3 $11

Consolidated Adjusted Operating Income (Loss) Excluding QuarterEstimated Average Inventory Accounting Impact ($ in millions) 3Q17 2Q17 1Q17 4Q16 3Q16 2Q16 1Q16Consolidated adjusted operating income (loss) $18 $13 $1 $19 $15 ($4) ($2)

Estimated average inventory accounting impact (1) 4 (2) (3) 3 (1) (7)

Adjusted operating income (loss) excluding estimated average inventory accounting(1) $19 $9 $3 $22 $12 ($3) $5(1) May not foot due to rounding.