Ferrous Processing & Trading Co.

A business overview to FPTs Ferrous and non-Ferrous scrap metal processing

Ferrous Processing & Trading Co. Scrap Metal Recycling 313-567-9710 www.fptscrap.com

Ferrous Processing and Trading Organizational Overview

Ferrous Non-Ferrous Steel Service Center (Premier Steel) Retail Used Auto Parts (Parts Galore)

Consist of 20 yards focused in three regions (Michigan/Ontario, Ohio, and Southern Markets) collecting, processing and transporting both ferrous and non-ferrous scrap Sells between 2.5 million and 3.0 million tons annually Services include shredding, baling, briquetting, shearing, torching, granulating and sorting

Sales to both domestic markets and export markets Deals in all non-ferrous metals and soon to expand retail non-ferrous in Florida Key supplier to primary aluminum mills, secondary aluminum smelters, domestic automotives and Tier 1 Suppliers

Slitter of prime and secondary flat rolled steel coils and steel warehouse distributor located in Detroit, MI Key relationship synergies enhance both supplier and customer relationships for FPT and Premier Steel

Self-service used auto parts retail outlet Three locations encompassing approx. 70 acres in the Detroit area Purchase vehicles from charitable organizations, impound yards, dealers and peddlers Attractive opportunity for expansion to spur growth and broaden scrap supply

Ferrous Processing & Trading Co. Scrap Metal Recycling 313-567-9710 www.fptscrap.com
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Ferrous Processing and Trading Full Range of Scrap Recovery Processing Capabilities
Broad product and service portfolio offers a strong competitive advantage Positioned as a fully integrated supplier for all ferrous and non-ferrous scrap material and processing needs Processing capabilities include: Shredding Shearing Torching
Baling Granulating Hot briquetting

Non-ferrous Simplifies the customers purchasing process Provides significant cross-selling opportunities to drive revenue growth Product diversification mitigates revenue volatility

Ferrous Processing & Trading Co. Scrap Metal Recycling 313-567-9710 www.fptscrap.com
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Ferrous Processing and Tradings Strong, Diverse Base of Suppliers

Sources raw materials from over 6,000 industrial supply accounts FPT also sources scrap materials from 19,000 individual peddlers each month Creates operational efficiencies and cost savings for suppliers a valued partner Superior processing capabilities allows FPT to maintain product flow
Many smaller suppliers do not have comparable processing capabilities

Source of Supply
Demolition 6%

Retail Trade 35% Industrial 59%

No material dependence on any single source for raw materials

Ferrous Processing & Trading Co. Scrap Metal Recycling 313-567-9710 www.fptscrap.com
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Strong Supplier Relationships

GM Ford Nissan Chrysler

FPT continues to be a strong manager and buyer of GM scrap in Michigan and Ohio Operations currently at GM facilities in Flint, Lansing, Holt, Parma and Lordstown One of the largest national consumers of GM material
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FPT acts as the Scrap Manager for the Ford Motor Company handling all the production related scrap in the Detroit metro area FPT is directly involved in all Ford generated scrap nationally

FPT acts as the Scrap Manager for Nissan handling all production scrap for the three Nissan production facilities in Smyrna, TN and Decherd, TN and Canton, MS On site presence in Smyrna and Canton

FPT acts as a Scrap Advisor and Plastics scrap manager for Chrysler Services Canadian accounts
GM

Ferrous Processing & Trading Co. Scrap Metal Recycling 313-567-9710 www.fptscrap.com

Loyal, Blue-Chip Customer Base

Leading supplier to a broad network of customers which include electric-arc furnace mills, integrated steel mills, foundries, secondary smelters, metal brokers, and OEMs Maintains long-term relationships with a blue-chip customer base
Top ten customers average length of relationship spans over 20 years

Strong reputation for quality, industry expertise, on-time delivery, transportation capabilities, robust service capabilities and client-focused customer service
Top Ten Customers

($ in Millions)
Fiscal Year Ended May 31, 2010 Customer C ustomer 1 C ustomer 2 C ustomer 3 C ustomer 4 C ustomer 5 C ustomer 6 C ustomer 7 C ustomer 8 C ustomer 9 C ustomer 10 Top 10 C ustomers
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2011 % of Total 16.3% 6.1% 4.6% 3.2% 2.4% 4.0% 1.2% 1.9% 2.1% 0.7% 42.5% Net Sales $195.1 165.5 56.0 52.9 34.5 33.3 31.6 27.6 24.9 23.7 $645.1 % of Total 15.3% 13.0% 4.4% 4.2% 2.7% 2.6% 2.5% 2.2% 2.0% 1.9% 50.7%

Length of Relationship 25+ years 25+ years 25+ years 15+ years 25+ years 25+ years 25+ years 6+ years 25+ years 25+ years

Net Sales $153.9 57.7 43.3 29.9 22.2 37.6 11.4 18.3 20.0 6.6 $401.0

Based on FPT unadjusted sales of $944.4 million and $1,272.8 million in 2010 and 2011, respectively

Ferrous Processing & Trading Co. Scrap Metal Recycling 313-567-9710 www.fptscrap.com
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Unmatched Innovation & Engineering Capabilities

Industry leading in-house engineering and maintenance team Four engineers and 15 highly skilled shop employees Unique team that regularly designs, installs and maintains the Companys equipment Creates operational efficiencies through the development of standardized and interchangeable parts, fabricated in-house, that are able to be used across the Companys locations FPTs engineering team is focused on increasing productivity and preventing equipment failure
DESIGN INSTALL

MAINTAIN

Created non-ferrous separation system that increases non-ferrous scrap recovery rates
Designs, installs, and maintains FPTs shredders, balers and separating systems reducing downtime Internally developed online monitoring systems allow for instant email alerts to executive, engineering and maintenance teams to dispatch support to repair equipment quickly and efficiently FPT Engineers design and construct 80% of all necessary systems

Ferrous Processing & Trading Co. Scrap Metal Recycling 313-567-9710 www.fptscrap.com
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Most facilities are registered to the ISO 9001 Standard and designed to maximize efficiencies Quality Department includes:

Ferrous Processing and Trading Commitment to Quality

Professional quality management (19 years experience) Quality analysis

Laboratory furnace
Chemical engineering operations Qualified operators: Maintain industry and customer quality standards

Evaluate metals through spectrometers and wet system analysis

Testing facilities document the chemistry of all scrap produced Ensures quality of all shipments and quantifies their value

Ferrous Processing & Trading Co. Scrap Metal Recycling 313-567-9710 www.fptscrap.com
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