0 1 eurometal presentations may include forward-looking information and statements about the steel...

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EUROMETAL presentations may include forward-looking information and statements about the steel sector (production, distribution, consuming industries and their stake-holders). Forward-looking statements are not historical facts but have to include financial or other projections & estimates and their underlying assumptions, statements regarding plans, objectives and expectations with respect to future operations, products and services, and statements regarding future performance.

For EUROMETAL, expectations reflected in such information and statements are reasonable. Any third parties are cautioned that forward-looking information and statements are subject to various risks and uncertainties, many of which are difficult to predict and generally beyond the control of EUROMETAL, that could cause actual results and developments to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements.

Consequently EUROMETAL • denies all responsibility regarding the said informations and statements• undertakes no obligation to publicly update forward-looking statements, whether as a result of

new information, future events, or otherwise.

DISCLAIMERDISCLAIMER

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18 MAY 2011

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EUROMETAL PRESENTATION

JUERGEN NUSSEREXECUTIVE VICE PRESIDENT EUROMETAL

5

EUROPEAN STEEL DISTRIBUTION - STRUCTURES OF MARKET SUPPLY © EUROMETAL - JUERGEN NUSSER, EXECUTIVE VICE PRESIDENT

EUROPEAN ECONOMIC CONGRESS KATOWICE 18 MAY 2011

EUROMETAL: THE VOICE OF EUROPEAN STEEL INTERMEDIATION

MASOC PUDS SFN SSHV STAL O.G. STAL FOR.

UAHE COMPANIESTRANSIDTEK.KAUPPA WKOOEVSEHM

EHV GRYMAFERBDSASSOFERMETARDIMET FFDM

STAL O.M.

ACOMEFER MAFE

ASSOCIATES

SOHM

COMMONRESOURCES

COMMONINTERESTS

STUDY GROUP OF EUROPEAN DISTRIBUTORS

OF STEEL, TUBES AND METALS

EUROPEAN ASSOCIATION OF FLAT STEEL SERVICE

CENTERS

STUDY GROUP OF EUROPEAN STEEL TRADING COMPANIES

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STUDY GROUP OF EUROPEAN DISTRIBUTORS

OF STEEL, TUBES AND METALS

EUROPEAN ASSOCIATION OF FLAT STEEL SERVICE CENTERS

EUROMETAL STUDY GROUPOF STEEL TRADING COMPANIES

FEDERATION OF EUROPEAN NATIONAL ASSOCIATIONS OF

STEEL, TUBE AND METAL DISTRIBUTION

EUROMETAL 2012: A PROFESSIONALISED FEDERATION

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EUROMETAL GENERAL ASSEMBLY STATUARY RIGHTS

EUROMETAL 2012: ORGANISATIONAL, GOVERNANCE & MANAGEMENT STRUCTURE

EUROMETAL PRESIDENCY SUPERVISION OF MANAGEMENT

NOMINATION OF DIRECTOR GENERALNOMINATION OF EXTERNAL AUDITOR

DIRECTOR GENERALMANAGEMENT OF MEMBER ACTIVITIES

MANAGEMENT OF STUDY GROUPSMARKET MONITORING & RESEARCH

PROFESSIONAL AUDITOR TREASURY AND COMPLIANCE RULES

8



PART I

POSITION OF STEEL DISTRIBUTIONIN THE SUPPLY OF EUROPEAN STEEL MARKETS2010 FACTS & FIGURES

EUROPEAN STEEL DISTRIBUTION PLAYS A MAJOR ROLEIN THE SUPPLY OF EUROPEAN STEEL MARKETS

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STRIP MILL PRODUCTS, PLATES, BEAMS, REBARS,WIRE MESH, MERCHANT BARS,TUBES AND STAINLESS ARE THE MAIN AND TYPICAL STEEL PRODUCTS SOLD BY EUROPEAN STEEL DISTRIBUTION AND DELIVERED FROM ITS WAREHOUSES AND SSCS TO THE STEEL CONSUMING INDUSTRIESIN 2010 IN EU 27, THIS PRODUCT PORTFOLIO (NOT INCLUDING WIRE ROD, RAILS AND PRE-MATERIAL FOR REROLLING AND FOR TUBE PRODUCTION) REACHED A MARKET SUPPLY OF AN ESTIMATED 132 MILLION TONS (2008: 159 MT) OF WHICH 85 MT (102 MT IN 2008) WERE DELIVERED BY EU STEEL DISTRIBUTION : STEEL STOCKHOLDERS: 56 MT (71 MT IN 2008); FLAT SSC: 29 MT (31 MT IN 2008)

KEY FIGURES EU-27 MARKET SUPPLY FOR CONSIDERED PORTFOLIO YEAR 2008 YEAR 2010

STOCKHOLDING DISTRIBUTION DELIVERIES 71 MT 45 % 56 MT 42 %FLAT STEEL SERVICE CENTER DELIVERIES 31 MT 19 % 29 MT 22 %

STEEL DISTRIBUTION DELIVERIES 102 MT 64 % 85 MT 64 %

DIRECT MILL DELIVERIES 57 MT 36 % 47 MT 36 % EU MARKET SUPPLY IN CONSIDERED PRODUCTS 159 MT 100 % 132 MT 100 %

OF STEEL DISTRIBUTION PORTFOLIO PRODUCTSIN 2010 STEEL DISTRIBUTION ACCOUNTED FOR 64 % OF MARKET SUPPLY

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FLAT SSC

DELIVERIES BY: STOCKHOLDING DISTRIBUTION MILLS

132 MIO TONS

MA

RK

ET

SH

AR

E

0 %

50

%

1

00

%

RA

IL

S

ME

RC

HA

NT

BA

RS

BE

AM

S

REBARS& MESH STRIP MILL PRODUCTS

PL

AT

ES

TUBES

* EXCLUSIVE PRE-MATERIAL FOR REROLLING AND FOR TUBE PRODUCERST

UB

ES

ST

AIN

LE

SS

FLAT SSC

EU 27 MARKET SUPPLY 2010: MARKET SHARES / FINISHED PRODUCTS* / SUPPLIERS

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EU 27 STEEL PRODUCERS DELIVERED 87 % OF APPARENT CONSUMPTION AND ACCOUNTED FOR 47% END USER DELIVERIES (DIRECT BUSINESS)EU 27 STEEL DISTRIBUTION ACCOUNTED FOR 53 % OF MARKET SUPPLY, 38% BY FLAT SSC AND 15% BY STOCKHOLDING DISTRIBUTION

EU 27MILL DELIVERIES

EU 27IMPORT

DIRECT DELIVERIES TO END USERS FLAT SSC STOCKHOLDING

EU 27STEEL CONSUMING INDUSTRIES

59 MT = 87 % 9 MT = 13 %

32 MT = 47 % 26 MT = 38 % 10 MT = 15 %

MARKET SUPPLY 2010: 68 MT

ESTIMATE BASED ON AVAILABLE DATA* EXCLUSIVE PRE-MATERIAL FOR REROLLERS AND FOR TUBE PRODUCERS

EU 27 MARKET SUPPLY 2010: STRIP MILL PRODUCTS*

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EU 27 STEEL PRODUCERS DELIVERED 86% OF APPARENT CONSUMPTION AND ACCOUNTED FOR 40 % OF END USER SUPPLY (DIRECT BUSINESS)EU 27 STEEL DISTRIBUTION ACCOUNTED FOR 60 % OF MARKET SUPPLY, OF WHICH 32 % BY PROCESSING CENTERS AND 28 % BY STOCKHOLDING DISTRIBUTION

EU 27MILL DELIVERIES

EU 27IMPORT

DIRECT DELIVERIES BY PRODUCERS PROCESSING SSC STOCKHOLDING


7,6 MT = 86 % 1,2 MT = 14 %

3,5 MT = 40 % 2,8 MT = 32 % 2,5 MT = 28%

MARKET SUPPLY 2010: 8,8 MT

ESTIMATE BASED ON AVAILABLE DATA* EXCLUSIVE PRE-MATERIAL FOR REROLLERS AND FOR TUBE PRODUCERS

EU 27 MARKET SUPPLY 2010: PLATES*

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EU 27 STEEL PRODUCERS DELIVERED 97% OF APPARENT CONSUMPTION AND ACCOUNTED FOR 10% OF DILIVERIES TO END USERS (DIRECT BUSINESS)EU 27 STEEL DISTRIBUTION ACCOUNTED FOR 90% OF END USE SUPPLY (BY STOCKHOLDING DISTRIBUTION ONLY)

EU 27PRODUCTION

EU 27IMPORT

PROD. STOCKHOLDING


6,4 MT = 97 % 0,2 MT = 3 %

0,7 MT = 10 % 5,9 MT = 90 %


ESTIMATE BASED ON AVAILABLE DATA

EU 27 MARKET SUPPLY 2010: BEAMS

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EU 27 MARKET SUPPLY 2010: MERCHANT BARS

EU 27 STEEL PRODUCTION DELIVERED 94% OF APPARENT CONSUMPTION AND ACCOUNTED FOR 10% OF MARKET SUPPLY (DIRECT DELIVERIES)EU 27 STEEL DISTRIBUTION ACCOUNTED FOR 90% OF MARKET SUPPLY (BY STOCKHOLDING DISTRIBUTION ONLY)

EU MILLDELIVERIES

EU 27IMPORT


10,,8 MT = 94 % 0,7 MT = 6 %

1,2 MT = 10 % 10,3 MT = 90 %


DIRECT STOCKHOLDING


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EU 27 MARKET SUPPLY 2010: REBARS & DEBARS & WIRE MESH

EU 27 STEEL PRODUCTION DELIVERED 95 % OF APPARENT CONSUMPTION AND ACCOUNTED FOR 10 % OF END USER DELIVERIES (DIRECT BUSINESS)EU 27 STEEL DISTRIBUTION ACCOUNTED FOR 90 % OF MARKET SUPPLY BY STOCKHOLDING DISTRIBUTION & REBAR FABRICATORS

EU MILLDELIVERIES

EU 27IMPORT


20,0 MT = 95 % 1,0 MT = 5 %

2,0 MT = 10 % 19 MT = 90 %


PRODUCERS STOCKHOLDING &REBAR FABRICATORS


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EU 27 MARKET SUPPLY 2010: TUBULAR PRODUCTS

EU 27 STEEL PRODUCERS DELIVERED 85% OF APPARENT CONSUMPTION AND ACCOUNTED FOR 50% OF END USE DELIVERIES (DIRECT BUSINESS)EU 27 STEEL DISTRIBUTION ACCOUNTED FOR 50% OF MARKET SUPPLY (BY STOCKHOLDING DISTRIBUTION ONLY)

EU 27PRODUCTION

EU 27IMPORT


9,3 MT = 85 % 1,7 MT = 15 %

5,5 MT = 50 % 5,5 MT = 50 %

MARKET SUPPLY 2010: 11,0 MT (ESTIMATE)

PRODUCERS STOCKHOLDING


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EU 27 MARKET SUPPLY 2010: STAINLESS

EU 27 STEEL PRODUCTION DELIVERED 90 % OF APPARENT CONSUMPTION AND ACCOUNTED FOR 33 % OF MARKET SUPPLY (DIRECT DELIVERIES)EU 27 STEEL DISTRIBUTION ACCOUNTED FOR 67% OF MARKET SUPPLY BY STOCKHOLDING DISTRIBUTION AS WELL AS BY FLAT SSC DISTRIBUTION


5,0 MT = 90 % 0,5 MT = 10 %

1,8 MT = 33 % 3,7 MT = 67 %


EU 27PRODUCTION

EU 27IMPORT

DIRECT DELIVERIES BY PRODUCERS STEEL DISTRIBUTION


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PART II

GLOBAL REACH AND RANKING OF EUROPEAN STEEL DISTRIBUTION

ONLY A FEW EUROPEAN STEEL DISTRIBUTION GROUPS HAVE A GLOBAL REACH.MOST OF THESE GLOBAL STEEL DISTRIBUTION PLAYERS ARE SPECIALISED IN PRODUCTS AND SERVICES DEDICATED TO SPECIFIC STEEL END USE SEGMENTS

OR TO MARKET NICHES.

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NAFTA STH.AM EUROPE CIS MENA SE ASIAINDIA CHINA

DESPITE A DECADE OF GLOBALISING STEEL, ONLY VERY FEW STEEL DISTRIBUTORSARE PLAYING IN THE WORLD LEAGUE AND TEND TO HAVE A GLOBAL REACH

TKMATERIALS

TKMATERIALS

TKMATERIALS

TKMATERIALS

TKMATERIALS

TKMATERIALS

AMDS AMDS AMDSAMDSAMDSAMDS

TKMATERIALS

KLOECO KLOECO

METALONE

METALONE

METALONE

METALONE

METALONE

METALONE

EDGENMURRAY

EDGENMURRAY

EDGENMURRAY

EDGENMURRAY

EDGENMURRAY

EDGENMURRAY

EDGENMURRAY

EDGENMURRAY

GONVARRI GONVARRIGONVARRII GONVARRI

IMS IMSIMSIMS

SCHMOLZBICKENBACH

SCHMOLZBICKENBACH

SCHMOLZBICKENBACH

SCHMOLZBICKENBACH

SCHMOLZBICKENBACH

SCHMOLZBICKENBACH

SCHMOLZBICKENBACH

SCHMOLZBICKENBACH

GONVARRI

BENTELERDISTRIBUTION





AMDS

VAN LEEUWEN VAN LEEUWENVAN LEEUWENVAN LEEUWEN

KLOECO

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SOUTH WEST EU CENTRAL NORTH EASTSTH.EAST TURKEY

IN A MORE AND MORE INTERLINKING EUROPEAN MARKET, ABOUT 20 EUROPEANSTEEL DISTRIBUTION GROUPS ARE OPERATING IN THE TOP EUROPEAN LEAGUE

AMDS

BAMESA

MECHELSERVIS

IMS

TKMATERIALS

AMDS

BAMESA

KLOECO

MECHELSERVIS

SCHMOLZBICKENBACH

TKMATERIALS

GONVARRI

MECHELSERVIS

SCHMOLZBICKENBACH


AMDS

SCHMOLZBICKENBACH


AMDS

KLOECO

GONVARRI

TATA STEELDISTRIBUTION

MECHELSERVIS

IMS

ROSCASARES

SZMH

BE GROUP;TIBNOR; LEMU

TKMATERIALS

SCHMOLZBICKENBACH


TK MATERIALS

AMDS


IMS

KLOECO

GONVARRI

BAMESA

ROSCASARES

SCHMOLZBICKENBACH


STEMCOR

TKMATERIALS

AMDS

KLOECO

GONVARRI

BAMESA


IMS

MECHELSERVIS

ROSCASARES

SZMH

SCHMOLZBICKENBACH


STEMCOR

VAN LEEUWEN VAN LEEUWEN VAN LEEUWEN

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SOUTH WEST EU CENTRAL NORTH EASTSTH.EAST TURKEY

IN A MORE AND MORE INTERLINKING EUROPEAN MARKET, ONLY THREE ITALIAN STEEL DISTRIBUTION GROUPS HAVE OPERATIONAL ASSETS OUTSIDE ITALY

GRUPPO BIANCO

GRUPPO BIANCO

GRUPPO BIANCO

GRUPPO BIANCO

CLNCLN

MARCEGAGLIA MARCEGAGLIA

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TOP RANKING 2010 OF EUROPEAN STEEL DISTRIBUTION

BY VOLUMES: BY SALES:

NR.1 ARCELORMITTAL NR.1 TK MATERIALS

NR.2 TK MATERIALS NR.2 ARCELORMITTAL

NR.3 KLOECKNER & CO NR.3 KLOECKNER & CO

NR.4 SALZGITTER MANNESMANN NR.4 SALZGITTER MANNESMANN

NR.5 TATA STEEL DISTRIBUTION NR.5 TATA STEEL DISTRIBUTION

THE NEXT RANKING LEVEL BY ALPHABETIC ORDER: 30 COMPANIESACERINOX SSC, AMARI, BAMESA, BE GROUP, BENTELER DISTRIBUTION, CLN, DAMSTAHL,

DH HANDEL, DESCOURS & CABAUD, DUFERCO SSC, FERONA, GABRIELLI, GONVARRI, GRUPPO BIANCO, HIEMESA, MANNI, MARCEGAGLIA DISTR. & SSC, MECHEL SERVIS, IMS-JACQUET,

KNAUF INTERFER, LEMVIGH-MULLER, MCB, RIVA SSC, ROS CASARES, RUUKKI DISTRIBUTION. SCHMOLZ+BICKENBACH, SPAETER, STEMCOR, TIBNOR, VAN LEEUWEN,

VOEST ALPINE SSC, WILLIAM KING

THYSSENKRUPP MATERIALS SERVICES, ARCELORMITTAL DISTRIBUTION SOLUTIONS AND KLOECKNER & CO ARE THE MAIN EUROPEAN STEEL DISTRIBUTION GROUPS

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PART III

EUROPEAN STEEL DISTRIBUTION STRUCTURAL INDICATORS

THE MAIN DIFFERENCE IN EUROPEAN STEEL DISTRIBUTION STRUCTURESARE SEEN IN OWNERSHIP ( MILL TIED AND NON MILL TIED )

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OTHER68 %

TOP FIVE32 %

OTHER68 %

TOP FIVE32 %

2006 2010

UNCHANGED IN THE LAST YEARS THE TOP 5 STEEL DISTRIBUTORSREPRESENT A 32 % SHARE IN EU STEEL DISTRIBUTION.

AS ECONOMIES OF SCALE WILL BE KEY DURING THE NEXT YEARS, THERE REMAINS ROOM FOR MORE MERGERS & ACQUISITIONS AND CONSEQUENT CONCENTRATION

% ARE RELATED TO SALES OF EU STEEL DISTRIBUTION

BETWEEN 2006 AND 2010 IN EU STEEL DISTRIBUTION, POSITION OF TOP FIVE STAYS UNCHANGED

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NON TIEDDISTRIBUTION

72 %

MILL TIEDDISTRIBUTION

28 %

NON TIEDDISTRIBUTION

69 %

MILL TIEDDISTRIBUTION

31 %

2006 2010

MILL TIED STEEL DISTRIBUTORSHAVE INCREASED THEIR POSITION IN EU STEEL DISTRIBUTION BETWEEN 2006 AND 2010

THIS INDICATES THAT STEEL DISTRIBUTION HAVING SHARE CAPITAL TIES WITH MILLS IS BACK ON THE AGENDA OF STEEL PRODUCERS.

ON THE OTHER HAND IT SEEMS TO INDICATE THAT MILL TIED DISTRIBUTION HAS BETTER RESISTED THE RECENT STEEL MARKET CRUNCH THAN NON MILL TIED DISTRIBUTION

BETWEEN 2006 AND 2010, MILL TIED STEEL DISTRIBUTION HAS ENHANCED ITS POSITION FROM 28 % TO 33 % IN EU STEEL DISTRIBUTION


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2010

OWNERSHIP OF EU STEEL DISTRIBUTION IS HOLD BY 59 % BY PRIVATE INVESTORS OR BY FAMILY TRUSTS

ONLY 10 % OF EU STEEL DISTRIBUTION IS FINANCED BY SHARE CAPITAL TRADED ON A EUROPEAN STOCK EXCHANGE

SHARE CAPITAL CONTROLLED BY MILLS

31 %

PRIVATEOWNERSHIP

59 %

10 %

OWNERSHIP STRUCTURE

SHAREHOLDERSEQUITY TRADED ON A EUROPEAN STOCK EXCHANGE


EU STEEL DISTRIBUTION IS MAINLY PRIVATELY OWNED

27



PART IV

EUROPEAN STEEL DISTRIBUTION: STRUCTURAL CHANGES

MILL OWNERSHIP IS BACK ON THE AGENDACIS MILLS AND ASIAN STEEL PRODUCERS ARE GAINING FOOTPRINTS IN EUROPEAN DOWNSTREAM STEEL DISTRIBUTIONMAJOR STEEL DISTRIBUTION GROUPS ENHANCE THEIR MARKET POSTIONS BY BUYING MARKET SHARES

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MILLCONSOLIDATORS

STOCKHOLDINGDISTRIBUTION

STEEL PRODUCERS HAVE SIGNIFICANTLY ENHANCED THEIR FOOTPRINTS IN DOWNSTREAM STEEL DISTRIBUTION

JV WITH PRESIDER (I)DUFERDOFIN

ARCELORMITTAL COGNOR POLAND

THAMESTEEL KIERBECK /UK)

MECHEL RAMATEKS (TURKEY)

NEW SITE GOSLAR (D)

NEW WAREHOUSES (F)

COGNOR STAHLH. (A)

EVRAZ INPROM (RUSSIA)

WNL STAAL (NL)

FERRUM HW PIETRZAK HOLD.(PL)

ROZAK:NEW SSC (TU)

WOLGOGRAD (RU)

FEMAX (C.R.)

MECHEL SERVIS (B)

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MILLCONSOLIDATORS

FLAT SSC DISTRIBUTION

SLOVENIAN S.G. ACRONI NIRO WENDEN (D)

ESSAR SERVOSTEEL (UK)

SSAB TIBNOR POLSKA(PL)

JV.ANSHAN / STEMCOR USS LTD (UK)

SSC MAASTRICHT(NL)

BAOSTEEL SID.MODENESE (I)

ACERINOX NEW SSC (PL)

JEMAPPES SSC (B)NMLK MANAGE SSC (B) SAFEF BELGIUM (B)

STEEL PRODUCERS HAVE SIGNIFICANTLY ENHANCED THEIR FOOTPRINTS IN DOWNSTREAM STEEL DISTRIBUTION

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STOCKHOLDINGDISTRIBUTION

STEEL DISTRIBUTIONCONSOLIDATORS

ESMAR NORTHERN STEEL , US

TECNO-STAHL (A)TK MATERIALS

IMS JACQUET METALS (F)

KONSORCIUM STALI BOWIM (MERGER), PL

COGNOR STALEXPORT (PL)

KLOECKNER LAKE STEEL (USA) BLAESI, (CH))

ROS CASARES BLOQMARINE INT. (MO)

STEMCOR CHESTERFIELD (UK) STAINLESS IMPORTS(UK)SEMIMETALS (P)

STUERM ( CH) SFS LOCHER ( CH )

ANGELES WELD. (USA)

ANBUMA (B)VAN LEEUWEN

INSIDE EU STEEL DISTRIBUTION, A WAVE OF MERGERS & ACQUISITIONSHAVE ACCELERATED CONCENTRATION AFTER THE CRUNCH OF 2009

STEMCOR SECTIONS (UK)

FREFER (BRAZIL)

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FLAT SSC & PROCESSINGDISTRIBUTION

STEEL DISTRIBUTIONCONSOLIDATORS

KNAUF INTERFER GNIDA SSC (D)

KLOECKNER & CO SSC BECKER (D) MACSTEEL S.C. (USA)

BE GROUP RTS PROCESSING (S)

STENA STAL AHAB STEEL (S)

INSIDE EU STEEL DISTRIBUTION, A WAVE OF MERGERS & ACQUISITIONSHAVE ACCELERATED CONCENTRATION AFTER THE CRUNCH OF 2009

32

EUROMETAL PRESENTATION

JUERGEN NUSSEREXECUTIVE VICE PRESIDENT EUROMETAL

THANK YOU FOR YOUR INTEREST AND ATTENTION

0 1 eurometal presentations may include forward-looking information and statements about the steel...

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