ISO 9001:2008

AN OVERVIEW

www.barsource.com

Bar Source International, LLC 

Providing Highest Quality Carbon and Alloy Bars

Comprehensive Inventory&

Distinctive Customer Service  

Low Cost Mill Distributor of Specialty Carbon and Alloy Bar Products

 National Stocking Locations

“No Frills” Master Distributor

Call Us FirstLow Overhead Translates into Competitive Pricing Low Cost Supplier We Value Our Customers Sales Driven Organization with a Focus on Asset Management--Inventory--Accounts Receivables--People--Equipment--Suppliers--Customers BSI Management Philosophy:Entire Team Sells Every Day

Unique Management Capabilities:

BSI, LLC Models Inventory Management to Current Customer Base...Get on Board the BSI Team! BSI Operating Components: -- Commitment to Customer Service-- BSI Aims to be the “Partner of Choice” for Customers

Targeted Specialty Bar Quality(SBQ) Steel-- Strategically Focused on Repeatable Program and Contract Business:

Sales Programs, JIT, Blanket Orders, Contract Programs-- Broad In-House Inventory Selection and Processing Tailored to Customer

Requirements-- Inventory Tailored to Current Customer Requirements-- Customized Stocking Programs Geared Specific Customers-- Complete Logistics Management-- Source Customer Requirements Worldwide BSI Values-- Type of Company: Financially Stable, Entrepreneurial, Growth Oriented-- Sell Nationally-- Procure through proven quality sources

Bar Source International Mission Statement

Achieve a position of leadership as an International Stocking Master Distributor and provider of Steel Processing Services in the Carbon, Alloy Bar and Tube of Specialty Metals Markets.

Overview of Bar Source International 200 accumulative years in SBQ BARS

and specialty metals Supplying over 1,500 products to 450

customers with 250-300 monthly transactions

Foremost distributor of Alloy grade bars for the Energy Industry

Diversified product portfolio with a focus on the Oil & Gas markets

Provider of supply chain solutions and management.

Strong exposure to high-growth end markets including Oil & Gas, Mining, Automotive and Heavy Equipment and Aerospace

Expanding global footprint

OUTLINE OF BSI, LLC MARKETING STRATEGIES AND CUSTOMER

MARKETS

Low cost storage:• Material stacked on the floor separated by 4 x 4

dunnage• 2-4 bundles high for timely deliveries with lean

staffing

• 4 warehouse bays• Main bay: 80’ wide x 900’ long• 3 bays: 60’ wide x 780’ long• 5 drive-through bays • 7 overhead cranes • 1 recessed dock

• Indoor rail served• 186,000 square foot warehouse

Aurora warehouse footprint

Diversified End Markets and Product Offering

End Markets

Focused on high value, non-commodity products

• Automotive

• Agricultural

• Oil & Gas

• Defense

• Hand Tools

• Springs

• Bolts & Nuts

Route to end Markets

• Service Centers

• Forgers

• Investment Casters

• Machine Shops

7

Markets Served Government

Automotiveand Capital Equipment

MarketsCommercial Markets

AEROSPACE

DEFENSEAIR BAG COMPONENTSAUTOMOTIVE PARTSFARM IMPLEMENT AND

EQUIPMENTFLUID POWERMACHININGOIL FIELD EQUIPMENTRAILROAD EQUIPMENTPARTSPOWER GENERATIONTRUCK TRAILOR

BOLT ManufacturingBIOMEDICALFORGERSGEARSHAND TOOLSINVESTMENT CASTERSREMELTSERVICE CENTERSSCREW MACHINE

PRODUCTSSPRINGS

High Growth End Markets

Aerospace

2%

Ongoing aircraft manufacturers

provide long-term revenue streams

Forging

25%

*Defense/ Ordnance

*Railroad Equipment

*Agriculture

*Off Highway

*Hardware/ Hand Tools

*Valves & Fittings

Oil & Gas52%

Global energy demand continuing to drive

production and drilling momentum

Strategically positioned to succeed with growing global

presence including UK, Canada,

Singapore,Brazil and U.S. Gulf region

Heavy Equipment & Infrastructure

18%

Funding for capital spending expected

to increase as economic recovery

continues

Long-term relationships with the leading global

OEMs in this marketplace

BSI provides Unmatched Experience and Expertise in Key End-Markets

North American SBQ demand

ApplicationDemand

2011 2020 Δ(%)

1 - Differential Components 465 640 37.6

2 - CVJ Components 190 265 39.5

3 - Wheel Hubs and Spindles 270 375 38.9

4 - Transmission Components 380 560 47.4

5 - Other Light Vehicle Parts 350 485 38.6

6 - Crankshafts 255 350 37.3

7 - Stabilizer Bars 135 190 40.7

8 - Steering Racks 60 80 33.3

9 - Camshafts 25 40 60.0

10 - Other Shafts 145 200 37.9

11 - Full and Semi-Float Axles 105 145 38.1

12 - Bearings 25 40 60.0

13 - Control Arms 25 40 60.0

14 - Conrods 5 10 100.0

Light Vehicles Total 2,435 3,420 40.5SBQ Content (kg/vehicle) 186 194 4.3

ApplicationDemand

2011 2020 Δ(%)

15 - Axles 90 95 5.616 - Transmission / Differential 90 95 5.617 - Other Heavy Truck Parts 50 55 10.018 - Camshafts 20 20 -19 - Piston Parts 35 40 14.320 - Suspension Components 15 15 -21 - Conrods 20 25 25.022 - Crankshafts 55 55 -Heavy Trucks Total 375 400 6.7

23 - Off-Highway Vehicles 270 395 46.324 - Other Industries 900 1,100 22.225 - Oil and Gas 500 730 46.026 - Defense 50 60 20.027 - Mining 500 610 22.028 - Wind Power Generation 60 90 50.029 - Railroad 225 275 22.2Industry Total 2,505 3,260 30.1

30 - Service Centers 905 1,300 43.631 - Cold Finishers 515 740 43.7Distribution Total 1,420 2,040 43.7

(1,000 metric t)

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SBQ Demand: Sectors Breakdown

- Localization and technology changes will increase Light Vehicles SBQ demand by 144,000 t by 2020

Overview of Products & Value-Added Services

• 40XX• 41XX• 43XX• 86XX• 10XX• 12L15• Rolled, Forged and as cast forms• Ingot

• Special Credit Terms: 90 to 120 days• Trade Financing up to 1 year programs• Thermal treatment

− Annealing, normalizing, hardening, quenching, tempering, etc.

• Testing − Tensile, charpy, Rockwell, OES, Brinell, etc.

• Other services− Machining, cleaning, bar coding, heat stamping,

straightening, sawing, boring,trepaning.− Program management, inventory management,

consignment• Logistics Management

− Ship to anywhere-anytime-same day service

Product Grades Value-Added Services & Solutions

Bar Source International, LLC provides diversified product offering with focus on Energy Materials

15

Oil and Gas: Understanding the Geography

Rotary Rig Activity SBQ Components Manufacturing

+ Alberta, Canada

+ Vera Cruz, Mexico

- Over the last 5 years, the rotary rig count grew significantly in states such as North Dakota and Pennsylvania due to the exploration of the Bakken oil shale and the Marcellus gas shale respectively.

- The growth in oil and gas production in these states has not impacted the traditional geography for components manufacturing though. The vast majority of parts and equipment used in this market is still manufactured by OEMs in Texas, Alberta (Canada), Oklahoma and Vera Cruz (Mexico), and by forgers located in the Midwest.

Avg. Rig Count (2010-12) Location

>200 TX

100 to 200 OK, ND, LA

50 to 100 PA, NM, CO

10 to 50 CA, WY, UT, KS, WV, AR, MT, OH, MS

<10 All other states

Manufacturing Location

OEMs TX, OK, AB (Canada), VZ (Mexico)Forgers IL, IN, OH, WI, TX, PA

Source: Rig Count History from Baker Hughes Incorporated

2011

SBQ Demand: Sizes Breakdown

SBQ Demand:6.8 million t

SBQ Demand:9.1 million t

Rounds≤ 108 mm(≤ 4.25”)

59.6%Rounds from108 to 152 mm (from 4.25 to

6”)14.1%

Rounds from108 to 152

mm (from 4.25 to

6”)14.4%

Rounds≤ 108 mm(≤ 4.25”)

59.8%

Rounds> 152 mm

(> 6”)17.5%

Rounds> 152 mm

(> 6”)17.0%

RCS8.8%

RCS8.8%

- No significant changes in sizes and shapes are expected for the SBQ market during the analyzed period.

2020

-- Develop successful sales strategies used to capture the customers as “BSI Current

Customers”. -- Develop on-going repetitive customer focused

strategies to create “New BSI Customers”. 

Bar Source International Operational Components- 2013-2016 Analysis of BSI Potential Sales Growth occurred through Complimentary Steel Bar

Processing for Customers

International BSI Expansion throughout Mexico, Canada, Spain, Germany Singapore, Dubai, Saudi Arabia, etc. through:

Organic Growth of the BSI Sales organization Mergers/ Acquisitions of other Competitors or Suppliers

Bar Source International, LLC Growth Rollout 2013-2016

Value:Global supply chain optimization

from known source Import sourced material heat

treated to our facilities and shipped direct to manufacturing and Service Centers locations

All sourcing and logistics managed transparently, centrally

Consistent Volume buys leveraged with savings for Bar Source International

Can be leveraged to grow as footprint grows

OEM

Mill

Mill

Mill

Distributor

Distributor

BSI

The road map Establish ‘Player’ status in North America through organic

development Redefine capabilities to include in-house delivery services,

processing and re-position face to market Domestic – “No Frills” Master Distributor International – Import buyer of Quality Mills

Establish meaningful operations in other key oilfield

manufacturing centres based on above redefined capabilities –Canada, Middle East, Singapore, Brazil, Mexico, Europe, Australia and the United Kingdom

Optimise Supply Chain on global basis and leverage across Bar Source International, LLC group

11

Global Footprint Expansion Strategy

We will be expanding our Global Footprint. In addition, we are looking for a larger footprint in United Kingdom bringing larger distribution capabilities to the region

Houston

Dubai

Shanghai

Brazil

Lafayette

Dallas

Edmonton

Monterey

Bar Source International, LLC will operate 11 Global Distribution Centers

Australia

Singapore

Blackburn

Reasons to use Bar Source International

• Same day delivery• Source your requirements worldwide• Dedicated transportation• 90-day planned inventory• Total traceability from melting to manufacturing• Long term and continuous improvement through

teamwork and cooperation using problem solving ideas with known data and improvement through tracking and traceability

• Products consistently manufactured and produced the same

• Onsite capacity for expansion

Competitive Edge Capabilities vs. our Competition

▫People, Systems Expertise▫Own logistics staff/ team▫Niche: we are 100% carbon, alloy Engineered Bar Products. ▫Stock from 1/4” to 32” diameter▫Long standing partnerships with KEY SBQ mill partners in North America▫Low Cost Metals Distributor▫Solid financial position/debt free

BSI - DifferentiatorsWhy we think that BSI is highly differentiated in our space:

Lead times: Our leading customers, the major distributors that support the OEMs are mainly owned and operated by public companies that are forcing their operating companies to take inventory turns from a market healthy 1.8 – 2.3 to a much faster and growth constraining 4+. This places pressure on these OpCos to order less material more frequently and therefore have less available for sale from their own inventories. We believe that this will significantly impair their ability to service the market as needed and will create opportunity for BSI.

High Quality Products: Quality in our markets is critical – these are all highly specialized products that we are supplying to our customers. By developing a strong technical services group that will constantly monitor customer specifications and manage the product acquisition process with our mill partners we will develop a reputation for providing reliable and sustainable product quality.

Superior local service: The commitments our customers need to make to their customers require product to move quickly through the entire supply chain. By developing local facilities with best in class systems and by offering superior logistics solutions we will provide best in class service that will fuel our growth.

Cost Structure Advantage: We believe that as a small and nimble operating unit we are able to better control costs than our bloated corporate competitors. We also have the advantage of flexibility in our structure and and select only the best performers to join in the early stages maximizing our efficiencies and retained earnings potential.

Industry knowledge: Our people will be our most vital differentiator. We will continue to develop and train our people to understand the applications, manufacturing processes and supply challenges that our customers face every day thereby making them a favored source of information and advice that will pull through product sales. It is not enough to be a trader in our business, we need to ensure that we are able to provide tailored solutions to each of our customers unique demands.

The Company

Strictly Private & Confidential

Page 24

BSI will service the Oil & Gas business, the

Power Generation, Petrochemicals, Aerospace and

Automotive industries initially in North America

Reduced lead times, lower

costs, high quality goods and

superior service locally will give BSI an elevated

competitive advantage against

other slower, bloated suppliers