Investor Presentation

November 2018 Nasdaq: SCHN

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 the meaning ofSection 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. Except as noted herein or as thecontext may otherwise require, all references to “we,” “our,” “us,” “Company,” “Schnitzer,” and “SSI” refer to the Company and its consolidated subsidiaries. Forward-looking statements in thispresentation include statements regarding future events or our expectations, intentions, beliefs and strategies regarding the future, which may include statements regarding trends, cyclicality andchanges in the markets we sell into; the Company's outlook, growth initiatives or expected results or objectives, including pricing, margins, sales volumes and profitability; strategic direction orgoals; targets; changes to manufacturing and production processes; the cost of and the status of any agreements or actions related to our compliance with environmental and other laws;expected tax rates, deductions and credits and the impact of federal tax reform; the impact of tariffs, quotas and other trade actions; the realization of deferred tax assets; planned capitalexpenditures; liquidity positions; ability to generate cash from continuing operations; the potential impact of adopting new accounting pronouncements; obligations under our retirement plans;benefits, savings or additional costs from business realignment, cost containment and productivity improvement programs; and the adequacy of accruals. Forward-looking statements by theirnature address matters that are, to different degrees, 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 orsimilar expressions 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 on public conferencecalls. 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 to update any forward-lookingstatements, except as may be required by law. Our business is subject to the effects of changes in domestic and global economic conditions and a number of other risks and uncertainties thatcould cause actual results to differ materially from those included in, or implied by, such forward-looking statements. Some of these risks and uncertainties are discussed in “Item 1A. Risk Factors”in Part I of our most recent Annual Report on Form 10-K, as supplemented by our subsequently filed Quarterly Reports on Form 10-Q. Examples of these risks include: potential environmentalcleanup costs related to the Portland Harbor Superfund site or other locations; the cyclicality and impact of general economic conditions; changing conditions in global markets including theimpact of tariffs, quotas and other trade actions; volatile supply and demand conditions affecting prices and volumes in the markets for both our products and raw materials we purchase;imbalances in supply and demand conditions in the global steel industry; the impact of goodwill impairment charges; the impact of long-lived asset and cost and equity method investmentimpairment charges; inability to sustain the benefits from productivity and restructuring initiatives; difficulties associated with acquisitions and integration of acquired businesses; customerfulfillment of their contractual obligations; increases in the relative value of the U.S. dollar; the impact of foreign currency fluctuations; potential limitations on our ability to access capital resourcesand existing credit facilities; restrictions on our business and financial covenants under our bank credit agreement; the impact of 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 on production; productliability claims; the impact of legal proceedings and legal compliance; the adverse impact of climate change; the impact of not realizing deferred tax assets; the impact of tax increases andchanges in tax rules; the impact of one or more cybersecurity incidents; environmental compliance costs and potential environmental liabilities; inability to obtain or renew business licenses andpermits or renew facility leases; compliance with climate change and greenhouse gas emission laws and regulations; reliance on employees subject to collective bargaining agreements; and theimpact 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 mostdirectly 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 directlycomparable U.S. GAAP measures.

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Company Overview

• Sourcing Scrap─ 52 auto parts stores purchase more than 400,000 salvage vehicles annually─ 44 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 (Ferrous and Nonferrous)

─ 3.7 million long tons of ferrous* and 572 million pounds of nonferrous metal annually for use in steel and other manufacturing globally

• Electric Arc Furnace (EAF) Producer of Finished Steel and Recycled Metals─ Steel manufacturing facility in Oregon with effective annual production capacity of 580 thousand tons─ Long product producer of rebar and wire rod from recycled scrap for construction markets on the West Coast

and Western Canada─ Also includes metals recycling and deep water export operation in Portland, OR with 4 metals recycling yards,

selling externally and delivering to our steel mill approx. 0.6 million long tons of ferrous* metal annually

Schnitzer Steel Industries, Inc. (SSI) is a leading North American Auto and Metals Recycler and West Coast Steel Manufacturer• 4.3 million long tons of ferrous metal processed annually by SSI*• 7 deep water ports on East and West Coasts, Hawaii and Puerto Rico serve domestic and

global steel manufacturers• Integrated operating platform includes auto parts stores with approximately 5 million annual

retail visits• Steel manufacturing operations produce finished steel products

Cascade Steel & Scrap (CSS)

Company data based on fiscal 2018*Total SSI volumes are 4.3 million long tons of ferrous in fiscal 2018, including volumes sold externally by AMR and CSS and delivered to our steel mill for finished steel production.

Auto and Metals Recycling (AMR)

4

Geographic Platform Enables Worldwide Access

Sourcing scrap through 96 auto parts and metals recycling facilities in North America and providing processed recycled metals to customers around the world

Asia EAMEAmericas

Northwest15 AMR5 CSS

Northeast11 AMR

Southwest and Hawaii

29 AMR

Midwest and South

18 AMR

Southeast and Puerto

Rico19 AMR

Schnitzer export facilitiesExport destinationsCSS Steel Mill

(1) Europe, Africa and Middle East(2) Domestic includes CSS, brokerage and other

FY18 Ferrous Sales Volume Destinations

5

3,289 3,628 4,299

FY16 FY17 FY18

SSI VolumesFerrous (000s LT)

FY18 Financial Highlights

$28 $54

$147

FY16 FY17 FY18

Consolidated Adjusted Operating Income($M)

+429%+429%

Note: For a reconciliation to U.S. GAAP of adjusted operating income and adjusted EPS from continuing operations, see appendix.*FY18 adjusted EPS includes discrete income tax benefits of $1.58 from the release of valuation allowances on deferred tax assets and tax reform.

$0.69 $1.53

$5.39

FY16 FY17 FY18

Adjusted EPS*

+678%+678%

$166 $138

$103

FY16 FY17 FY18

Net Debt ($M)

-38%-38%

510 585 636

FY16 FY17 FY18

SSI VolumesNonferrous (M LB)

+25%+25%

$99 $100

$160

FY16 FY17 FY18

Operating Cash Flow ($M)

+61%+61%

+31%+31%

Strategic initiatives to increase volumes and expand margins, supported by positive market conditions, have been delivering steady growth

6

8.0

9.0

10.0

11.0

12.0

5

10

15

20

Aver

age A

ge

Vehic

le Sa

les

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

30,000

35,000

40,000

45,000

50,000

Personal Consumption Expenditures & Consumer Confidence

Appliance Shipments Light Vehicle Sales(Autos in M)

Leading U.S. Economic Trends

Source: Federal Reserve, US Census Bureau, Whirlpool Corporation estimates of US appliance shipments, Conference Board, KeyBanc Research estimates, AHAM, BTS*2018 Average Age in Years is a forecast amount

Housing Starts (000s)

Industrial Production(Monthly % Δ YOY)

7

70%

75%

80%

85%

90%

5

25

45

65

85

105

125

2013 2014 2015 2016 2017 TTM**Chinese Steel Exports mmt ‐ LHS Chinese Utilization Rate % ‐ RHS

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

Ferrous Market Price Trends($/ton)

Metal Market Trends4Q17 4Q17 4Q18

Aluminum vs. Zorba Market Price Trends4Q184Q17

4Q18

37% decrease from 2016

37% decrease from 2016

Chinese Steel Export & Utilization Trends

Sources: Platts, Argus, AMM.com, Worldsteel.org, OECDCFR price includes loading and transportation costs to the destination port; FOB price only includes loading and transportation costs to the named location. *Aluminum based on 3 Mo LME Aluminum, and Aluminum Scrap Zorba is CIF China prices. **Trailing 12 months ended August 31, 2018

8

$275

$375

$475

$575

$675

$775

Jan‐17

Feb‐17

Mar‐17

Apr‐1

7May

‐17

Jun‐17

Jul‐1

7Au

g‐17

Sep‐17

Oct‐17

Nov

‐17

Dec‐17

Jan‐18

Feb‐18

Mar‐18

Apr‐1

8May

‐18

Jun‐18

Jul‐1

8Au

g‐18

Domestic prices* Import prices*

 ‐

 200

 400

 600

 800

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q

FY12 FY13 FY14 FY15 FY16 FY17 FY18

US Imports of Rebar Products(000s of tons)

Rebar Market Price Trends($/ST)

Steel Market Trends

Sources: Platts, US Census Bureau, SBB*Domestic and import prices based on US Midwest and Houston import prices, respectively.

4Q17

Historical Rebar and Domestic Scrap Prices($/ST) Average 4Q18 domestic rebar market prices were up

$178/short ton or 34%, YoY• Increases in selling prices outpaced increases in

the cost of steelmaking raw materials• Recent import prices (including duties/tariffs)

tracking higher than domestic prices, further reflecting the impact of Section 232 measures

Rebar prices approximate FY11 levels• Rebar to scrap spread higher than previous peak

in 1Q16

4Q18

Announcement of Section 232 tariffs with temporary exemptions

Import prices exclude tariffs

and other duties

U.S. Department of Commerce initiated Section 232 investigation

Fiscal Year

9

Strategic Growth InitiativesSSI Ferrous Volumes

(000s LT)

AMR Adjusted Operating Income Per Ton

4.3 million tons ferrous volume FY19 target

achieved early

Note: For a reconciliation to U.S. GAAP of adjusted operating income, see appendix.(1) Europe, Africa and Middle East(2) Domestic includes CSS, brokerage and other

SSI FY18 Ferrous Sales Volume Diversification

SSI ferrous volume organic growth target of 4.3 million tons achieved in FY18, one year ahead of schedule

• Accelerated SSI ferrous volume organic growth target to 5 million tons by FY20

AMR FY18 adjusted operating income per ferrous ton of $45 is similar to FY11, at which time SSI volumes and ferrous prices were approximately 25% higher

Our products were shipped to 25 countries in FY18 - the strength, flexibility and breadth of our sales platform enables us to access demand wherever it is greatest

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Nonferrous Operations & Strategy

*Yield improvement of 4.4% per annum since FY16

39%46%

15%

34% 38%

28%35%

24%

41%

0 %

5 %

1 0%

1 5%

2 0%

2 5%

3 0%

3 5%

4 0%

4 5%

5 0%

Domestic China All othersSSI Total Nonferrous Volumes by Destination

FY17 FY18 4Q18

Nonferrous Operating Priorities

Volume Growth

Sales Diversification

Commercial Initiatives

Productivity Improvements

New Technology

Increasing sales destinationsExpanding supply channelsProductivity benefits of $10MIncreased annual yields by 4%*Increased NF separationNew wire choppersFY19 technology investments

SSI Total FY18 Nonferrous Product Mix by Volume

Nonferrous Other

Nonferrous from shredder production

Demonstrated ability to diversify sales destinations• 76% of nonferrous sales volumes to destinations other than China in 4Q18 • Broad-based global demand for scrap aluminum

Focused nonferrous business strategy• Increase efficiency of our processes in order to

produce a quality product for customers on a cost-effective basis

• Recover higher nonferrous volumes from shredding process

• Invest in additional processing technologies to increase throughput, lower processing costs, increase recovery rates, and create products with the metallic content sought by our customers

FY17 FY18 4Q18 FY17 FY18 4Q18

36%

5%2% 2%

30%

12%13%

11

3.8%

7.3%

15.5%

0 .0 %

2 .0 %

4 .0 %

6 .0 %

8 .0 %

1 0. 0%

1 2. 0%

1 4. 0%

1 6. 0%

1 8. 0%

FY16 FY17 FY18

Return on Capital Employed*

Strong Operating Performance & Returns

Increased EBITDA driven by improved performance in both operating businesses

• AMR adjusted operating income increased 86% from $90 million in FY17 to $168 million in FY18

• CSS adjusted operating income increased 706% from $5 million in FY17 to $38 million in FY18

Strong operating performance with higher YoY adjusted operating income in each quarter of FY18 driven by:

• Expanded metals spreads, increased sales volumes and higher selling prices

• Continued focus on productivity and commercial initiatives, including measures to increase supply flows

Return on Capital Employed* of 15.5% in FY18

• Significantly exceeding the cost of capital• Excludes discrete tax benefits

Adjusted EBITDA ($M)

$84 $105

$198

$ -

$ 5 0

$ 1 00

$ 1 50

$ 2 00

$ 2 50

FY16 FY17 FY18

*Return on Capital Employed = Adjusted net income from continuing operations attributable to SSI, excluding interest expense (net of tax) and for FY18 excluding discrete tax benefits of $45M, divided by average adjusted capital (average of the last day of the fiscal year and the four preceding fiscal quarters of SSI's consolidated total assets less consolidated total liabilities other than debt and capital lease obligations).

Note: For a reconciliation to U.S. GAAP of adjusted EBITDA, see appendix.

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$28 $33

$29

$45

$25

$35 $27

$44

4Q17 4Q18 FY17 FY18Adjusted Operating Income per Ton

Adjusted Operating Income Excluding Inventory Accounting per Ton

150 167

$0.64 $0.69

$0.40

$0.50

$0.60

$0.70

$0.80

$0.90

$1.00

100

120

140

160

180

200

220

240

4Q17 4Q18 FY17 FY18NFe Volumes M Lbs Average Selling Price $/Lb, net of freight

541 572

$0.63 $0.72

0 .3

0 .3 5

0 .4

0 .4 5

0 .5

0 .5 5

0 .6

0 .6 5

0 .7

0 .7 5

0 .8

4 00

4 20

4 40

4 60

4 80

5 00

5 20

5 40

5 60

5 80

6 00

864 1,032

$262 $321 $0

$100

$200

$300

$400

$500

$600

4Q17 4Q18 FY17 FY18Fe Volumes 000s LT Average Selling Price $/LT, net of freight

3,145 3,708

$242 $317

0

5 0

1 00

1 50

2 00

2 50

3 00

AMR Volume & Operating TrendsAdjusted Operating Income Per Ferrous Ton

(in $)

+18% YoY

+18% YoY

Improved YoY quarterly AMR operating performance• 4Q18 adjusted operating income per ton of $33, up 18% YoY• Ferrous sales volumes and average net selling prices were up

YoY 19% and 23% in 4Q18, respectively• Nonferrous sales volumes and average net selling prices were

up YoY 11% and 8% in 4Q18, respectively• Strong operating performance driven by expanded metal

spreads, higher ferrous and nonferrous volumes, and focus on productivity including nonferrous processing improvements

• 4Q18 negative impact from average inventory accounting of $2/ton

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

+58% YoY

+58% YoY

Volume+19% YoY

Volume+19% YoY

Volume +18% YoY

Volume +18% YoY

Volume11% YoYVolume

11% YoY

Volume +6% YoYVolume

+6% YoY

Ferrous Volumes and Average Prices Nonferrous Volumes and Average Prices

13

147 127

4Q17 4Q18 FY17 FY18

CSS Volume & Operating Trends4Q18 financial performance improved significantly YoY

• 4Q18 adjusted operating income of $14 million, an increase of $7 million YoY

• Selling prices up 31% YoY in 4Q18 reflecting reduced pressure from imports and impact of higher raw material costs

• Continued benefits from integration synergies and productivity improvements

• Finished steel sales volumes lower by 14% YoY due to lower production as a result of planned maintenance, including rolling mill upgrades aimed at improving productivity

+5% YoY+5% YoY

Finished Steel Sales Volumes(000s ST)

Average Finished Steel Sales Prices*($/ST)

CSS Adjusted Operating Income (Loss)($ Millions)

Note: For a reconciliation to U.S. GAAP of adjusted operating income (loss), see appendix. Amounts may not add due to rounding.*Average selling prices are net of freight

+31% YoY

+31% YoY +25%

YoY+25% YoY

-14% YoY-14% YoY

496 519

14

$39

$141 $145 $99 $100

$160

$- $20 $40 $60 $80

$100 $120 $140 $160 $180

FY13 FY14 FY15 FY16 FY17 FY18

3.6 x2.6 x 2.5 x

2.0 x1.3 x

0.5 x

FY13 FY14 FY15 FY16 FY17 FY18

$368 $294

$205 $166 $138 $103 $50

$100

$150

$200

$250

$300

$350

$400

FY13 FY14 FY15 FY16 FY17 FY18

Net Debt ($ Millions)

Capital Structure

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

• FY18 operating cash flows of $160M driven by profitability and strong working capital management

• Amended $700M credit facility provides additional financial flexibility; maturity date extended to 2023

Cash Flows& Liquidity

• Net debt to adj. EBITDA ratio of 0.5x• Net leverage ratio of 13%

StrongBalanceSheet

Capital expenditures of $78M in FY18 Net debt reduction of 26% in FY18 Dividends paid of $21 million in FY18 Share repurchases of $17 million, or almost 2% of

total outstanding shares, in FY18 Transactional growth

Capital Allocation Priorities

Net Debt to Adjusted EBITDA

Operating Cash Flows ($ Millions)

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Delivering Sustainable Growth

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

• SSI ferrous volume growth of 19% YoY• AMR adjusted operating income of $45 per

ton in FY18• Strong CSS performance• FY18 operating cash flow of $160M

• Leading macro-economic and industry indicators trending positively, subject to impact of trade and other regulatory actions

• Productivity initiatives• Operating leverage from volume growth• Focus on nonferrous processing technology• Enhanced commercial analytics• Balanced capital allocation strategy• Transactional growth opportunities

MarketConditions

Key Growth Enablers &

FY19 Priorities

Strong FY18 Operating

Performance

• On track for 5M ton ferrous volume target• Increasing operating leverage as we add

more tons towards our FY20 volume goal

Delivering on Growth Targets

Sustainable Growth

Expand Margins

Increase Volumes

Capital Investment

• Improving nonferrous yields

• Enhancing product quality

• Productivity initiatives

• Increasing automation

• Optimizing asset utilization

• Supply channel initiatives

• Expanding access to domestic and export markets

• Refining logistics capabilities

• Capturing increase in end-of-life vehicles in auto parts franchise

• Nonferrous processing technology

• Grow auto parts and metals recycling platforms

• Reinvesting in capital equipment

Operational ExcellenceInnovation & Technology Investments

Environmental Stewardship

Realize Operating Leverage

Strong Balance Sheet

APPENDIXFiscal 2018

17

Non-GAAP Financial MeasuresThis presentation contains performance based on adjusted net income (loss) and adjusted diluted earnings (loss) per share from continuingoperations attributable to SSI; adjusted consolidated, AMR and CSS operating income (loss); adjusted EBITDA; net debt, net debt leverage ratio,and net debt to adjusted EBITDA leverage ratio; and adjusted operating income excluding average inventory accounting, which are non-GAAPfinancial measures as defined under SEC rules. As required by SEC rules, the Company has provided reconciliations of these measures for eachperiod discussed to the most directly comparable U.S. GAAP measure. Management believes that providing non-GAAP financial measures providesa meaningful presentation of our results from business operations excluding adjustments for goodwill impairment, other asset impairment chargesnet of recoveries, restructuring charges and other exit-related activities, recoveries related to the resale or modification of certain previouslycontracted shipments, the non-cash write-off of debt issuance costs, and the income tax expense (benefit) allocated to these adjustments, itemswhich are not related to underlying business operational performance, and improves the period-to-period comparability of our results from businessoperations. Adjusted operating results in fiscal 2015 excluded the impact from the resale or modification of the terms, each at significantly lowerprices due to sharp declines in selling prices, of certain previously contracted bulk shipments for delivery during fiscal 2015. Recoveries resultingfrom settlements with the original contract parties, which began in the third quarter of fiscal 2016 and concluded in the first quarter of fiscal 2018, arereported within selling, general and administrative expense in the quarterly statements of income and are also excluded from these measures.Further, management believes that debt, net of cash is a useful measure for investors because, as cash and cash equivalents can be used, amongother things, to repay indebtedness, netting this against total debt is a useful measure of our leverage. Management believes that the ratio of totaldebt to total capital, both net of cash and cash equivalents, is also a useful measure of our leverage. These non-GAAP financial measures should beconsidered 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;• Net Debt to Adjusted EBITDA Ratio is a useful measure of the Company’s liquidity; and• Adjusted operating income 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($ in thousands) 4Q18 3Q18 2Q18 1Q18 4Q17 3Q17 2Q17 1Q17 2018 2017Operating income $ 37,973 $ 51,234 $ 33,358 $ 26,423 $ 22,108 $ 19,147 $ 14,171 $ 587 $ 148,988 $ 56,013 Other asset impairment charges (recoveries), net 532 (1,465) - (88) (74) (1,044) - 401 (1,021) (717)Restructuring charges and other exit-related activities (922) 70 91 100 90 93 (494) 201 (661) (109)Contract resale or modification, net of recoveries - - - (417) (417) (171) (417) (139) (417) (1,144)Consolidated adjusted operating income(1) $ 37,583 $ 49,839 $ 33,449 $ 26,018 $ 21,707 $ 18,025 $ 13,260 $ 1,050 $ 146,889 $ 54,043

AMR Operating Income($ in thousands) 4Q18 3Q18 2Q18 1Q18 4Q17 3Q17 2Q17 1Q17 2018 2017Operating income $ 33,836 $ 54,980 $ 45,132 $ 35,172 $ 23,992 $ 29,520 $ 25,288 $ 12,606 $ 169,120 $ 91,405 Other asset impairment charges (recoveries), net 532 (1,465) - - 860 (1,044) - - (933) (184)Contract resale or modification, net of recoveries - - - (417) (417) (171) (417) (139) (417) (1,144)Adjusted AMR operating income(1) $ 34,368 $ 53,515 $ 45,132 $ 34,755 $ 24,435 $ 28,305 $ 24,871 $ 12,467 $ 167,770 $ 90,077

CSS Operating Income (Loss)($ in thousands) 4Q18 3Q18 2Q18 1Q18 4Q17 3Q17 2Q17 1Q17 2018 2017Operating income (loss) $ 13,604 $ 10,793 $ 5,413 $ 8,476 $ 8,019 $ 1,163 $ (1,279) $ (2,628) $ 38,286 $ 5,275 Other asset impairment charges (recoveries), net - - - (88) (934) - - 401 (88) (533)Adjusted CSS operating income (loss)(1) $ 13,604 $ 10,793 $ 5,413 $ 8,388 $ 7,085 $ 1,163 $ (1,279) $ (2,227) $ 38,198 $ 4,742 (1) May not foot due to rounding.

Quarter Fiscal Year(1)

Fiscal Year(1)Quarter

Quarter Fiscal Year(1)

19

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)(in millions) 2018 2017 2016 2015 2014Operating income (loss) $ 149 $ 56 $ (8) $ (196) $ 24 Goodwill impairment charge - - 9 141 - Other asset impairment charges (recoveries), net (1) (1) 21 45 1Restructuring charges and other exit-related activities (1) - 7 13 7Contract resale or modification, net of recoveries - (1) (1) 7 - Consolidated adjusted operating income(1) $ 147 $ 54 $ 28 $ 11 $ 33

Diluted EPS from continuing operations attributable to SSI($ per share) 2018 2017 2016 2015 2014Net income (loss) per share attributable to SSI $ 5.47 $ 1.58 $ (0.71) $ (7.29) $ 0.22 Income (loss) per share from discontinued operations attributable to SSI 0.01 (0.01) (0.05) (0.27) (0.10)Net income (loss) per share from continuing operations attributable to SSI(1) $ 5.46 $ 1.60 $ (0.66) $ (7.03) $ 0.32 Goodwill impairment charge - - 0.32 5.22 - Other asset impairment charges (recoveries), net (0.04) (0.03) 0.76 1.67 0.05 Restructuring charges and other exit-related activities (0.02) - 0.25 0.48 0.25 Contract resale or modification, net of recoveries (0.01) (0.04) (0.03) 0.26 - Non-cash write-off of debt issuance costs - - 0.03 - - Income tax expense (benefit) allocated to adjustments - - 0.02 (0.47) (0.05)Adjusted diluted EPS from continuing operations attributable to SSI(1) $ 5.39 $ 1.53 $ 0.69 $ 0.13 $ 0.58 (1) May not foot due to rounding.

Fiscal Year

Fiscal Year

20

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

Net Income (Loss) from Continuing Operations Attributable to SSI(in thousands) 4Q18 3Q18 2Q18 1Q18 4Q17 3Q17 2Q17 1Q17 2018 2017Net income (loss) from continuing operations attributable to SSI $ 59,396 $ 37,458 $ 40,852 $ 18,399 $ 18,349 $ 16,692 $ 11,132 $ (1,273) $ 156,105 $ 44,901 Goodwill impairment charge - - - - - - - - - Other asset impairment charges (recoveries), net 532 (1,465) - (88) (74) (1,044) - 401 (1,021) (717)Restructuring charges and other exit-related activities (922) 70 91 100 90 93 (494) 201 (661) (109)Contract resale or modification, net of recoveries - - - (417) (417) (171) (417) (139) (417) (1,144)Income tax expense (benefit) allocated to adjustments(2) (171) 86 (41) 131 (9) 3 46 (40) 5 - Adjusted net income (loss) from continuing operations attributable to SSI(1) $ 58,835 $ 36,149 $ 40,902 $ 18,125 $ 17,939 $ 15,573 $ 10,267 $ (850) $ 154,011 $ 42,931

Diluted EPS from continuing operations attributable to SSI($ per share) 4Q18 3Q18 2Q18 1Q18 4Q17 3Q17 2Q17 1Q17 2018 2017Net income (loss) per share attributable to SSI $ 2.09 $ 1.31 $ 1.42 0.64 $ 0.64 $ 0.60 $ 0.40 $ (0.05) $ 5.47 $ 1.58 Income (loss) per share from discontinued operations attributable to SSI 0.01 - 0.01 - - - - - 0.01 (0.01)Net income (loss) per share from continuing operations attributable to SSI(1) $ 2.08 $ 1.31 $ 1.42 $ 0.64 $ 0.65 $ 0.60 $ 0.40 $ (0.05) $ 5.46 $ 1.60 Other asset impairment charges (recoveries), net 0.02 (0.05) - - - (0.04) - 0.01 (0.04) (0.03)Restructuring charges and other exit-related activities (0.03) - - - - - (0.02) 0.01 (0.02) - Contract resale or modification, net of recoveries - - - (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.04)Income tax expense (benefit) allocated to adjustments(2) (0.01) - - - - - - - - - Adjusted diluted EPS from continuing operations attributable to SSI(1) $ 2.06 $ 1.26 $ 1.42 $ 0.63 $ 0.63 $ 0.56 $ 0.37 $ (0.03) $ 5.39 $ 1.53 (1) May not foot due to rounding

Quarter Fiscal Year(1)

Fiscal Year(1)Quarter

(2) Income tax allocated to adjustments reconciling reported and adjusted net income (loss) from continuing operations attributable to SSI and diluted earnings per share from continuing operations attributable to SSI is determined based on a tax prov ision calculated with and without the adjustments.

21

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:

Adjusted EBITDA4Q18 3Q18 2Q18 1Q18 4Q17 3Q17 2Q17 1Q17

$ 59,669 $ 37,402 $ 41,016 $ 18,364 $ 18,235 $ 16,565 $ 11,037 $ (1,326)Plus net income attributable to noncontrolling interests 532 1,046 903 857 500 687 662 618 Plus interest expense 2,160 2,483 2,281 2,059 2,112 2,131 2,097 1,741 Plus tax expense (benefit) (23,620) 10,650 (10,577) 5,957 586 161 637 (62)Plus depreciation & amortization 12,663 12,327 12,160 12,522 12,381 12,318 12,598 12,543 Plus other asset impairment charges (recoveries), net 532 (1,465) - (88) (74) (1,044) - 401 Plus restructuring charges and other exit-related activities (922) 70 91 100 90 93 (494) 201 Plus (gain) loss from discontinued operations, net of tax (273) 56 (164) 35 114 127 95 53 Plus contract resale or modification, net of recoveries - - - (417) (417) (171) (417) (139)

$ 50,741 $ 62,569 $ 45,710 $ 39,389 $ 33,527 $ 30,867 $ 26,215 $ 14,030

(in thousands)Net Income (loss) attributable to SSI

Quarter

Total Adjusted EBITDA

22

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:

4Q18 3Q18 2Q18 1Q18 4Q17 3Q17 2Q17 1Q17 4Q16 3Q16 2Q16 1Q168/31/2018 5/31/2018 2/28/2018 11/30/2017 8/31/2017 5/31/2017 2/28/2017 11/30/2016 8/31/2016 5/31/2016 2/29/2016 11/30/2015

$ 107,376 $ 172,691 $ 210,824 $ 184,882 $ 145,124 $ 184,443 $ 209,477 $ 187,645 $ 192,518 $ 202,718 $ 197,839 $ 203,546 Less Cash (4,723) (10,090) (15,007) (9,194) (7,287) (15,209) (9,830) (8,100) (26,819) (7,018) (8,940) (18,925)

$ 102,653 $ 162,601 $ 195,817 $ 175,688 $ 137,837 $ 169,234 $ 199,647 $ 179,545 $ 165,699 $ 195,700 $ 188,899 $ 184,621

$ 107,376 $ 172,691 $ 210,824 $ 184,882 $ 145,124 $ 184,443 $ 209,477 $ 187,645 $ 192,518 $ 202,718 $ 197,839 $ 203,546 670,110 619,562 587,096 551,617 537,493 517,558 502,684 494,067 501,432 488,930 477,072 524,448 $ 777,486 $ 792,253 $ 797,920 $ 736,499 $ 682,617 $ 702,001 $ 712,161 $ 681,712 $ 693,950 $ 691,648 $ 674,911 $ 727,994

Less Cash (4,723) (10,090) (15,007) (9,194) (7,287) (15,209) (9,830) (8,100) (26,819) (7,018) (8,940) (18,925) $ 772,763 $ 782,163 $ 782,913 $ 727,305 $ 675,330 $ 686,792 $ 702,331 $ 673,612 $ 667,131 $ 684,630 $ 665,971 $ 709,069

13.8% 21.8% 26.4% 25.1% 21.3% 26.3% 29.4% 27.5% 27.7% 29.3% 29.3% 28.0%Impact excluding cash from bothTotal Debt and Total Capital -.5% -1.0% -1.4% -.9% -.8% -1.6% -1.0% -.9% -2.9% -.7% -.9% -1.9%

13.3% 20.8% 25.0% 24.2% 20.4% 24.6% 28.4% 26.7% 24.8% 28.6% 28.4% 26.0%

Leverage Ratio($ in thousands)

Total Debt

Net Debt

Total DebtTotal EquityTotal Capital

Net Capital

Total Debt to Capital Ratio

Net Debt Leverage Ratio

23

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($ in thousands) 2018 2017 2016 2015 2014 2013Cash Flows from Operating Activities $ 159,676 $ 100,370 $ 99,240 $ 144,628 $ 141,252 $ 39,289 Exit-related gains, asset impairments and accelerated depreciation, net 1,000 407 (1,790) (6,502) (566) - Write-off of debt issuance costs - - (768) - - - Inventory write-down (38) - (710) (3,031) - - Deferred income taxes 37,995 (2,278) (507) 1,988 3,815 59,102 Undistributed equity in earnings of joint ventures 1,953 3,674 819 1,490 1,196 1,183 Share-based compensation expense (18,965) (10,847) (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 (56) (448) 465 2,875 1,126 (131)Unrealized foreign exchange gain (loss), net 104 (361) 109 1,909 (240) (1,583)Bad debt (expense) recoveries, net (323) (126) (131) 264 (449) (584)Change in current assets and current liabilities 34,081 10,666 (19,317) (76,736) (39,011) 53,654 Changes in other operating assets and liabilities (6,987) (4,958) (405) 2,252 (2,550) (2,699)Interest expense 8,983 8,081 8,889 9,191 10,595 9,623 Tax expense (benefit) (17,590) 1,322 735 (12,615) 2,583 (56,943)Restructuring charges and other exit-related activities (661) (109) 6,782 13,008 6,830 7,906 Loss (gain) from discontinued operations, net of tax (346) 390 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 (417) (1,144) (694) 6,928 - - Adjusted EBITDA $ 198,409 $ 104,639 $ 83,628 $ 81,917 $ 111,743 $ 101,066 Debt 107,376 145,124 192,518 228,156 319,365 381,837 Cash and cash equivalents (4,723) (7,287) (26,819) (22,755) (25,672) (13,481)Net Debt $ 102,653 $ 137,837 $ 165,699 $ 205,401 $ 293,693 $ 368,356

Debt to Cash Flows from Operating Activities Ratio 0.7 1.4 1.9 1.6 2.3 9.7Net Debt to Adjusted EBITDA Ratio 0.5 1.3 2.0 2.5 2.6 3.6

Fiscal Year

24

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 Excluding Estimated Average Inventory Accounting

AMR Adjusted Operating Income ExcludingEstimated Average Inventory Accounting Impact ($ in thousands, except per ton) 4Q18 3Q18 2Q18 1Q18 4Q17 3Q17 2Q17 1Q17 2018 2017 2016Adjusted operating income $ 34,368 $ 53,515 $ 45,132 $ 34,755 $ 24,435 $ 28,305 $ 24,871 $ 12,467 $ 167,770 $ 90,077 $ 47,730 Estimated average inventory accounting impact (2,224) 1,558 4,591 163 2,854 (793) 4,065 (1,698) 4,088 4,428 (4,474)Adjusted operating income excluding estimated average inventory accounting(1) $ 36,592 $ 51,957 $ 40,541 $ 34,592 $ 21,581 $ 29,098 $ 20,806 $ 14,165 $ 163,682 $ 85,649 $ 52,204 Ferrous volumes (LT) 1,031,808 983,342 896,309 796,618 864,098 825,391 739,175 716,765 3,708,077 3,145,429 2,898,789 Adjusted operating income per ton $ 33 54 50 44 28 34 34 17 $ 45 $ 29 $ 16 Adjusted operating income per ton excluding estimated average inventory accounting $ 35 53 45 43 25 35 28 20 $ 44 $ 27 $ 18

Consolidated Adjusted Operating Income ExcludingEstimated Average Inventory Accounting Impact (in thousands) 4Q18 3Q18 2Q18 1Q18 4Q17 3Q17 2Q17 1Q17 2018 2017 2016Consolidated adjusted operating income $ 37,583 $ 49,839 $ 33,449 $ 26,018 $ 21,707 $ 18,025 $ 13,260 $ 1,050 $ 146,889 $ 54,043 $ 27,772 AMR estimated average inventory accounting impact (2,224) 1,558 4,591 163 2,854 (793) 4,065 (1,698) 4,088 4,428 (7,890)Adjusted operating income excluding estimated average inventory accounting(1) $ 39,807 $ 48,281 $ 28,858 $ 25,855 $ 18,853 $ 18,818 $ 9,195 $ 2,748 $ 142,801 $ 49,615 $ 35,662 (1) May not foot due to rounding.

Quarter

Quarter

Fiscal Year(1)

Fiscal Year(1)

25

The following provides recast values of segment data for AMR and CSS following the completed reorganization in 4Q17:

Historical Segment Data

Recast Segment Financials ($000s)Auto and Metals Recycling 4Q18 3Q18 2Q18 1Q18 4Q17 3Q17 2Q17 1Q17 2018 2017Reported operating income $ 33,836 $ 54,980 $ 45,132 $ 35,172 $ 23,992 $ 29,520 $ 25,288 $ 12,606 $ 169,120 $ 91,405 Adjusted operating income 34,368 53,515 45,132 34,755 24,435 28,305 24,871 12,467 167,770 90,077 Cascade Steel and Scrap 4Q18 3Q18 2Q18 1Q18 4Q17 3Q17 2Q17 1Q17 2018 2017Reported operating income (loss) $ 13,604 $ 10,793 $ 5,413 $ 8,476 $ 8,019 $ 1,163 $ (1,280) $ (2,628) $ 38,286 $ 5,275 Adjusted operating income (loss) 13,604 10,793 5,413 8,388 7,085 1,163 (1,280) (2,227) 38,198 4,742 Consolidated 4Q18 3Q18 2Q18 1Q18 4Q17 3Q17 2Q17 1Q17 2018 2017Reported operating income $ 37,973 $ 51,234 $ 33,358 $ 26,423 $ 22,108 $ 19,147 $ 14,171 $ 587 $ 148,988 $ 56,013 Adjusted operating income 37,583 49,839 33,449 26,018 21,707 18,025 13,260 1,050 146,889 54,043

Recast Segment VolumesAuto and Metals Recycling 4Q18 3Q18 2Q18 1Q18 4Q17 3Q17 2Q17 1Q17 2018 2017Ferrous volumes (000s LT)(2) 1,032 983 896 797 864 825 739 717 3,708 3,145 Nonferrous volumes (000s LB)(2) 166,976 146,043 129,549 129,137 150,343 150,356 114,275 125,817 571,705 540,791 Car purchase volumes (000s) 105 109 102 108 113 108 96 94 424 411 Cascade Steel and Scrap 4Q18 3Q18 2Q18 1Q18 4Q17 3Q17 2Q17 1Q17 2018 2017Ferrous volumes (000s LT) 174 135 166 116 126 126 113 117 591 482 Nonferrous volumes (000s LB) 21,907 17,180 14,997 12,412 14,441 11,964 8,703 10,673 66,496 45,782 Finished steel volumes (ST) 127,010 140,221 124,711 127,220 147,431 141,221 105,989 100,875 519,162 495,516 SSI Total Volumes(3) 4Q18 3Q18 2Q18 1Q18 4Q17 3Q17 2Q17 1Q17 2018 2017Ferrous volumes (000s LT) 1,206 1,119 1,062 912 991 951 852 834 4,299 3,628 Nonferrous volumes (000s LB) 188,359 162,667 144,024 141,046 164,342 161,832 122,554 136,057 636,096 584,785

(3) Ferrous and nonferrous volumes sold ex ternally by AMR and CSS and delivered to our steel mill for finished steel production. (2) Includes transfers to CSS.

Quarter Fiscal Year(1)

Fiscal Year(1)Quarter

(1) May not foot due to rounding.

26

YTD Fiscal Year Fiscal Year1Q18 2Q18 3Q18 4Q18 2018 1Q17 2Q17 3Q17 4Q17 2017 1Q16 2Q16 3Q16 4Q16 2016

Auto and Metals RecyclingFerrous selling prices ($/LT)(1)

Domestic $ 259 $ 278 $ 314 $ 303 $ 291 $ 169 $ 237 $ 263 $ 257 $ 236 $ 167 $ 155 $ 206 $ 214 $ 188 Export $ 306 $ 327 $ 347 $ 328 $ 328 $ 203 $ 252 $ 255 $ 263 $ 244 $ 180 $ 175 $ 218 $ 207 $ 196 Average $ 292 $ 314 $ 337 $ 321 $ 317 $ 194 $ 247 $ 258 $ 262 $ 242 $ 176 $ 169 $ 214 $ 209 $ 193

Ferrous sales volume (LT)Domestic 237,464 239,571 293,323 314,974 1,085,332 197,255 220,975 291,227 238,930 948,387 189,250 196,759 227,861 244,742 858,612 Export 559,154 656,738 690,019 716,834 2,622,745 519,510 518,200 534,164 625,168 2,197,042 515,109 454,924 509,502 560,642 2,040,177 Total 796,618 896,309 983,342 1,031,808 3,708,077 716,765 739,175 825,391 864,098 3,145,429 704,359 651,683 737,363 805,384 2,898,789

Nonferrous average price ($/LB)(1)(2) $ 0.73 $ 0.72 $ 0.74 $ 0.69 $ 0.72 $ 0.58 $ 0.64 $ 0.65 $ 0.64 $ 0.63 $ 0.61 $ 0.58 $ 0.59 $ 0.60 $ 0.60

Nonferrous sales volume (000s LB)(2) 129,137 129,549 146,043 166,976 571,705 125,817 114,275 150,356 150,343 540,791 103,135 116,452 114,726 139,425 473,737

Car purchase volume (000s)(3) 108 102 109 105 424 94 96 108 113 411 77 70 79 92 319

Auto stores at end of quarter 53 53 53 52 52 52 52 53 53 53 55 55 53 52 52

Cascade Steel and Scrap

Finished steel average sales price ($/ST)(1) $ 599 $ 619 $ 703 $ 741 $ 666 $ 492 $ 517 $ 545 $ 565 $ 534 $ 554 $ 504 $ 501 $ 528 $ 522

Sales volume (ST)Rebar 84,243 79,718 91,603 81,182 336,746 73,903 69,136 84,166 96,323 323,528 85,899 71,935 84,193 88,591 330,618 Coiled products 40,928 43,056 46,673 43,878 174,535 23,934 34,371 54,629 48,349 161,283 32,482 33,742 42,168 29,891 138,283 Merchant bar and other 2,049 1,937 1,945 1,950 7,881 3,038 2,482 2,426 2,759 10,705 4,757 3,974 6,490 4,080 19,301 Finished steel products sold 127,220 124,711 140,221 127,010 519,162 100,875 105,989 141,221 147,431 495,516 123,138 109,651 132,851 122,562 488,202

Rolling mill utilization(4) 95% 83% 91% 83% 88% 65% 89% 85% 95% 83% 68% 61% 53% 71% 63%

(1) Price information is shown after a reduction for the cost of freight incurred to deliver the product to the customer.(2) Excludes PGM metals in cataly tic converters.(3) Cars purchased by auto stores only.(4) Rolling mill utilization is based on effective annual production capacity under current conditions of 580 thousand tons of finished steel products.

(Unaudited)The following provides recast values of segment data for AMR and CSS following the completed reorganization in 4Q17:

Historical Segment Operating Statistics