COMPANY UPDATE

AUGUST 2020

CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION

Certain statements made on this conference call constitute forward-looking statements or information within the meaning of applicable securities laws, including statements as to our future capital expenditures, our outlook, the availability of our future financing and our ability to pay dividends. Forward-looking statements relate to future events or our future performance. All statements, other than statements of historical fact, are forward-looking statements. Forward-looking statements are necessarily based on estimates and assumptions that, while considered reasonable by us, inherently involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements.Our actual results could differ materially from those anticipated in our forward-looking statements including as a result of the risk factors described below, in our MD&A and in our Annual Information Form.While we believe that the expectations reflected in our forward-looking statements are reasonable, no assurance can be given that these expectations will prove to be correct, and our forward-looking statements included in this call should not be unduly relied upon. These statements speak only as of the date of this call and, except as required by law, we do not assume any obligation to update our forward-looking statements.

Risk Factors - We are subject to a number of risks and uncertainties which could have a material adverse effect on our future profitability and financial position, including the risks and uncertainties listed below, which are important factors in our business and the metals distribution industry. Such risks and uncertainties include, but are not limited to: volatility in metal prices; volatility in oil and natural gas prices; cyclicality of the metals industry; capital budgets in the energy industry; pandemics and epidemics; climate change; product claims; significant competition; sources of metals supply; manufacturers selling directly; material substitution; credit risk; currency exchange risk; restrictive debt covenants; asset impairments; the unexpected loss of key individuals; decentralized operating structure; future acquisitions; the failure of our key computer-based systems, labour interruptions; laws and governmental regulations; litigious environment; environmental liabilities; carbon emissions; health and safety laws and regulations and common share risk.

2

MARKET TRENDS

STEEL PRICES VS. RUSSEL EBIT

Adjusted EBIT Q3-19 and Q4-19Source: American Metal Market

$0

$20

$40

$60

$80

$100

$120

$140

$160

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600Q

2-2

00

8

Q2

-20

09

Q2

-20

10

Q2

-20

11

Q2

-20

12

Q2

-20

13

Q2

-20

14

Q2

-20

15

Q2

-20

16

Q2

-20

17

Q2

-20

18

Q2

-20

19

Q2

-20

20

EBIT

(m

illio

ns)

Car

bo

n P

late

/ H

R S

hee

t (U

S$ p

er T

on

)

HR Sheet, Plate & Russel EBIT

Carbon Plate HR Sheet EBIT

4

$425

$450

$475

$500

$525

$550

$575

$600

$625

03/A

pr/

20

17/A

pr/

20

01/M

ay/2

0

15/M

ay/2

0

29/M

ay/2

0

12/J

un/2

0

26/J

un/2

0

10/J

ul/2

0

24/J

ul/2

0

07/A

ug/2

0

SCRAP AND STEEL PRODUCTION

Source: American Metal Market Source: American Metal Market

$150

$200

$250

$300

$350

$400

$450

$500

Jan

-11

Jul-

11

Jan

-12

Jul-

12

Jan

-13

Jul-

13

Jan

-14

Jul-

14

Jan

-15

Jul-

15

Jan

-16

Jul-

16

Jan

-17

Jul-

17

Jan

-18

Jul-

18

Jan

-19

Jul-

19

Jan

-20

Jul-

20

AMM Scrap Values

5

700

900

1,100

1,300

1,500

1,700

1,900

2,100

Jan

-11

Jul-

11

Jan

-12

Jul-

12

Jan

-13

Jul-

13

Jan

-14

Jul-

14

Jan

-15

Jul-

15

Jan

-16

Jul-

16

Jan

-17

Jul-

17

Jan

-18

Jul-

18

Jan

-19

Jul-

19

Jan

-20

Jul-

20

Net

To

ns

(00

0's

)

US Raw Steel Production

NORTH AMERICAN RIG COUNTS

0

250

500

750

1000

1250

1500

1750

2000

2250

0

100

200

300

400

500

600

700

800

900

1000

Canada U.S

Source: Baker Hughes6

COMPANY OVERVIEW

SUMMARY OBSERVATIONS

Proactively approached the COVID-19 challenges:• Implemented the appropriate protocols for the health and safety of our employees, customers and suppliers• Deemed an essential service, but customer demand declined in late Q1/early Q2• Adjusted operating schedules, staffing and inventories on order

The flexible business model is working:• Value-added processing – high return projects• Variable cost structure – compensation adjusts with market conditions• Countercyclical cash flows – working capital reduction• Diversified across N. America – economies are coming back at various stages

Strong capital structure:• Net debt to invested capital of 28%• Liquidity of $478 million

8

BUSINESS OVERVIEW

Energy Products Steel Distributors

We are one of the largest metals distribution and processing companies in North America.

Metals Service Centers

9

SERVICE CENTER/ DISTRIBUTION COMPETITORS

10

Ranked by Revenue

(in billions) 2019 2018

Reliance Steel & Aluminum Co. 11.0$ 11.5$

Ryerson Inc. 4.5 4.4

MRC Global 3.7 4.2

Russel Metals Inc. * 3.7 4.2

Samuel, Son & Co. * 4.0

Worthington Steel Co. 3.8 3.6

Klockner (North America) 2.2 3.2

NOW Inc. 2.9 3.1

ThyssenKrupp Materials NA, Inc. 2.5 3.0

O'Neal Steel Inc. 2.7

Steel Technologies LLC 2.6

Alro Steel Corp. 2.0

Olympic Steel Inc. 1.6 1.7

* Noted in Canadian Funds

Source: Metals Center News or public data

2019 information for private companies not available at this time

VALUE-ADDED PROCESSING

11

VARIABLE COST MODEL – BREAKDOWN OF CASH COSTS

THREE MONTHS ENDED JUNE 30, 2020 $562 Million

YEAR ENDED DECEMBER 31, 2019$3,499 Million

RECENT HEADCOUNT REDUCTION OF ~15%

Note: Figures exclude mark-to-market adjustments for stock based compensation, gains/losses on sale of assets, asset impairment and foreign exchange.

Cost of Materials,

$3,028

Employee Expenses -

Variable, $31

Operating Expenses -

Variable, $66

Employee Expenses -Fixed, $265

Operating Expenses -Fixed, $109

Cost of Materials, $476

Employee Expenses -

Variable, $3

Operating Expenses -

Variable, $14

Employee Expenses -Fixed, $50

Operating Expenses -Fixed, $19

12

COUNTERCYCLICAL CASH FLOWS

$(150,000)

$(100,000)

$(50,000)

$-

$50,000

$100,000

$150,000

$200,000

$250,000

Q2 2007 Q2 2008 Q2 2009 Q2 2010 Q2 2011 Q2 2012 Q2 2013 Q2 2014 Q2 2015 Q2 2016 Q2 2017 Q2 2018 Q2 2019 Q2 2020

Quarterly EBITDA vs. Change in Working Capital ($000’s)

Change in Working Capital EBITDA

EBITDA positive throughout the cycles; working capital repatriation during market downturns.

13

DIVERSIFIED BUSINESSGeography - 141 Locations

Canada - 99

United States - 42

Product Mix

Structurals -26%

Plate - 17%

Flanges 18%

Pipe 16%

Flat Rolled 8%

Bars 6%Other 5%

Non-Ferrous4%

Customers

• 33,000 customers• Average invoice < $2,500• Top 10 customers < 10% of 2020 revenues

Long Product -9.8%

Flat Roll, Plate, Long Product -

7.1%

Pipe, 5.4%

Long Product, Plate, Pipe,

5.2%

Tubing, 5.0%

Flat Roll, Plate, 4.9%

Plate, 4.7%

Pipe, 3.0%OCTG, 2.5%

Tubing, OCTG, 1.7%

Others, 50.8%

Suppliers

14

ESG FOCUSED

Environmental• Environment Management System• Low carbon emissions from operations• Our GHG emissions in 2019 were

approximately 56,346 CO2(e) company wide which represents an emission intensity of 0.00001533 tonnes CO2(e) per dollar of revenue

Governance• Independent Board and Audit Committee• Majority Voting• Code of Business Conduct• Independent Whistleblower program• Female: 22% Board; 38% Senior Corporate Management

Social• Structured H&S Program• Ethical, Privacy and Social Policies• Community Involvement• Scholarship fund for children of employees

2019 2018 2017

Number of Employees 3,400 3,420 3,150

Number of Lost Time Accidents 21 31 49

Number of Lost Time Days 592 962 1,250

Frequency * 0.61 0.89 1.42

Severity * 17.40 27.73 37.02

Medical Aids * 163 208 170

First Aids * 236 244 160

Note: Disclosure updated on Russel’s website when data is available

Health and Safety Metrics:

* See Russel Metals Annual Information Form for definitions and additional information

Diesel Fuel41%

Natural Gas20%

Gasoline7%

Propane3%

Electricity30%

15

Aggregate Emissions Sources:

FINANCIAL OVERVIEW

FINANCIAL HIGHLIGHTS

$million, unless otherwise stated Q2 2019 Q1 2020 Q2 2020

Income Statement:

Revenues $937 $815 $588

Gross Margin ($million/ %) $176 / 18.8% $152 / 18.7% $110 / 18.7%

EBITDA ($million/ %) $65 / 6.9% $36 / 4.4% $32 / 5.4%

EBIT ($million/ %) $51 / 5.4% $20 / 2.4% $16 / 2.7%

Net Income $31 $11 $5

EPS $0.50 $0.17 $0.07

Cash Flow:

Changes in non-cash working capital $14 $36 $95

Capex $(9) $(7) $(5)

Balance Sheet:

Net Debt $482 $443 $368

Shareholders’ Equity $980 $980 $931

Available Liquidity $445 $393 $478

Net Debt/Capitalization 33% 31% 28%

• Gross margin % holding steady, but lower total $• Significant reduction in operating expenses• Stock-based comp: $3 million expense in

Q2 vs. $4 million recovery in Q1• Inventory reserve increased by $5 million• Declared dividend of $0.38/share

• Significant cash generation from WC (AR: +$151 million; Inventory: +$34 million; AP: -$94 million)

• Capex of $5 million is below depreciation

• Term debt of $445 million offset by net cash/investments of $77 million

• Fx at March 31 ($1.4187) vs. June 30 ($1.3628) impacted Other Comprehensive Income

• Liquidity is strong

Q2 2020 Observations:

17

SEGMENT BREAKDOWN: OPERATING RESULTS

$538 $535

$474

$412 $437

$373

$373

$298 $298

$343 $316

$149

$122 $100 $94 $81

$62 $64

$0

$100

$200

$300

$400

$500

$600

Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020

Revenue Breakdown (C$ millions)

MSC Energy Distribution

19% 19% 19% 19%

21% 21%

19% 19%

17%

11%

16%

15%

14% 14%

11%

4%

14%

10%

0%

5%

10%

15%

20%

25%

Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020

Gross Margins %

MSC Energy Distribution

$27 $23

$16 $9

$18

$25

$30

$24

$18

($2)

$6

($4)

$9 $6

$3

($3)

$1 $2

($10)

($5)

$0

$5

$10

$15

$20

$25

$30

$35

Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020

Earnings from Operations (C$ millions)

MSC Energy Distribution 18

BALANCE SHEET AT JUNE 30, 2020

• Net Debt/Invested Capital: 28%

• Net Debt/LTM EBITDA: 2.8x

• Liquidity: $478 million

• Long Term Debt Maturities: 2022 & 2026

• Net Working Capital: $837 million

(millions)

ASSETS EMPLOYED

Cash 89$

Accounts Receivable 320

Inventories 862

Property, Plant and Equipment 286

Goodwill/Intangibles 136

Other 132

1,825$

Bank Indebtedness 11$

Trade Creditors 345

Long-term Debt 445

Lease Obligations and Other 93

Shareholders Equity 931

1,825$

FINANCED BY

19

SEGMENT BREAKDOWN: NET IDENTIFIABLE ASSETS(1)

Metals Service Centers

$600 45%

Energy Products$612 46%

Steel Distributors$115 9%

At June 30, 2020 ($millions)

Total$1,327

(1) Includes total current and non-current identifiable assets less liabilities included in segments.

Metals Service Centers

$615 43%

Energy Products$706 49%

Steel Distributors$122 8%

At March 31, 2020 ($millions)

Total$1,443

Metals Service Centers

$581 40%

Energy Products$754 52%

Steel Distributors$121 8%

At December 31, 2019 ($millions)

Total$1,456

20

RETURN ON NET ASSETS OVER THE CYCLE

21

12%

17%

23%

10%

6%

0%

5%

10%

15%

20%

25%

2016 2017 2018 2019 June 2020 YTDAnnualized

Target: 15%

SUMMARY

SUMMARY

Leading Market Position• Strong supplier relationships and unique market insight• Low customer concentration, multiple business segments with diversified customer base• Superior service and product availability• Strong value-added processing

Flexible Business Model• Variable cost/compensation model• Counter cyclical cash flow from working capital

Disciplined Deployment of Capital• Prudent inventory management• High return discretionary investments• Successful acquisition history• Declared dividend of $0.38 per share payable September 15, 2020

Strong Balance Sheet

• Liquidity of $478 million at June 30, 2020

Experienced Management Team

23