2015 Q4 LIFE@reliance Newsletter

ISSUE 3 OCTOBER 2015

N E W S L E T T E R Increased Turns Leads to Q2 GP Gains In July, Reliance announced their Q2 2015 financial results. While earnings were down slightly from last year and from Q1 2015, we saw an improvement in gross profit margins. On our quarterly earnings call, President and CEO Gregg Mollins stated, “I am extremely pleased with our operational performance in the second quarter of 2015, which is a testament to the quality of our management team in the field, as well as to our business model. Despite ongoing industry headwinds that further pressured metal pricing in the quarter, we were able to increase our FIFO gross profit margin to 25.7%, up from our strong 2015 first quarter FIFO gross profit margin of 25.4%. We believe that our continued focus on small, quick turnaround orders and inventory turns, allows us to maintain consistent gross profit margins, and that our significant investments in equipment in recent years, to provide higher levels of value-added processing to our customers, has further enhanced our ability to maintain and improve our gross profit margins, even during difficult business environments.” He continued, “In 2015 we have had a significant push on reducing inventory, and I am proud to report that we’ve decreased our FIFO inventory by $163 million during the second quarter. This is a significant accomplishment for our Company, and using our June 30th, 2015 FIFO inventory tons on hand and our first half 2015 shipment levels, our inventory turn rate would be 4.6 times. This is the first time in many years that we have been this close to achieving our internal company-wide goal, which is currently 4.75 turns. I want to personally thank all of our employees that helped us achieve these results.” Reliance’s Q3 2015 earnings conference call is on October 22, 2015. Go to investor.rsac.com to listen to the webcast. It is available for 90 days after the call. In This Issue Media Round Up: Reliance in the Press.....................................................................2 Announcing 4 NewWebsites......................................................................................2 Protecting Company Data and Assets........................................................................3 Annual Enrollment.....................................................................................................3 Anthem Blue Distinction Centers for Specialty Care...................................................4 Wellness....................................................................................................................5 Employee Service Awards..........................................................................................6 Employee Discount Program Spotlight.......................................................................7 Bicycle Around America.............................................................................................8 Safety Tips for Winter.................................................................................................9

The results are in! Reliance is once again atop the Metal Center News Service Center Top 50! This annual survey ranks the largest, most successful metals service centers in North America.

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Media Round-Up: Reliance in the Press Several of our Family of Companies were featured in the publications below. Go to the Awards and Articles page on RELIANCEroots to read all about them.

In order from left to right: 1. Precision Strip, Inc. was featured in Modern Metals’ July 2015 issue in an article entitled, “Riding the Storm.” The story focuses on Precision’s strong determination to rebuild their Perrysburg, Ohio facility after getting hit by an F2 tornado in 2013. 2. Modern Steel Construction ’s June 2015 issue featured Infra-Metals Co. in an article entitled “Keepers of Steel” about their new 280,000-sq.-ft. steel service center in New Boston, Ohio, which opened in January 2014. The new site has contributed to the restoration of the formerly known New Boston Steel Mill that closed in 1980 due to high demands of foreign steel import and is known today as the Ohio River Industrial Park. 3. Reliance Steel & Aluminum Co. was named American Metal Market ’s Service Center of the Year at the 2015 AMM Awards for Steel Excellence and was featured in the August/September issue in an article entitled, “Offering high- quality products, service creates success.” 4. The July/August 2015 issue of A2Z Metalworker included a piece on Reliance Metalcenter Phoenix. The article entitled, “Reliance Metalcenter Phoenix Invests in Technology to Better Service its Customers” highlights RMC Phoenix’s new plasma cutting and drilling capabilities.

Announcing 4 new websites in our Family!

Port City Metals portcitymetals.com

Trident Metals trident-metals.com

Reliance Metalcenter National City reliancemetalcentersd.com

Diamond Manufacturing Company diamondman.com

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Protecting Company Data and Assets Over the last few years there have been news articles and TV and radio show segments about protecting your private information. We are asked to think before we give out or send our Social Security Number, credit card information, or other data that we would not want strangers to know. But what about company data? Whose Data is it?

How do we protect data that we use as part of our day-to-day jobs? When is it okay to give out information and when is it not? The fact is that we give out company data all the time. It can take the form of billing or purchasing information and customer or supplier data. We need to protect this data as if it were our own, just as we protect our credit card information. Why? Because what we do can have a direct impact on the company. Companies have lost thousands and sometimes millions of dollars on scams that cannot be recovered; this affects the bottom line and our ability to do business. What Can You Do?

• Be aware. There are people out there that try to take advantage of people’s willingness to help others. Some of these unsavory individuals create emails that look legitimate but are not. It could be a “bill” that needs to be paid or it will go to collections, a wire transfer that looks authorized at first glance or a request for information like phone directories or organization charts. These people are scam artists that are looking for just one person to give them information that they can use to steal company data or money – or both. • Know who you’re communicating with. If you receive email requests from an unfamiliar person or company, check with others. Try to contact the individual via phone. But until you’re sure, don’t reply to the email or open unsolicited attachments. • Avoid putting confidential information in email, instant messages, or texts. This includes account numbers, passwords, and customer data. • You have power to speak up! If you see something, say something. You are our first line of defense.

Get Ready for 2016 Annual Enrollment! Annual Enrollment for Reliance Rewards is right around the corner – October 26 th - November 6 th

This year’s Annual Enrollment is “passive”, which means if you don’t want to make any changes to your current benefit elections, they will continue to apply in 2016 – with the exception of the Flexible Spending Accounts (you must always annually re-enroll into an FSA) . There are changes to some medical and prescription drug plan features in 2016 – look for further information from your Human Resources Department,

RELIANCEroots and on www.benefitenroll.com . As in prior years, employees eligible for Reliance Rewards will soon receive a 2016 Benefits Guide at work. The Benefits Guide will also include an Enrollment Worksheet to aid in your elections and cost estimates.

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Blue Distinction Centers for Specialty Care It’s a fact – some special health conditions require specialty care. Under the Reliance Rewards medical plan, you have access to Anthem Blue Cross Blue Distinction Centers, which are hospitals specifically contracted for certain conditions of: • Cardiac Care

QUALITY CARE MEANS BETTER HEALTH AND LOWER COST

Blue Distinction Centers for Knee/Hip Replacements had 14.3% fewer readmissions and 11.1% fewer complications than non-designated hospitals, with 22.5% cost savings.

• Complex and rare cancers • Knee and hip replacement • Spine surgery • Solid organ and bone marrow transplants

What makes a hospital a Blue Distinction Center for Specialty Care? Among criteria created by independent medical organizations and experts, Blue Distinction Centers are known for their expert health care team, the number of times they’ve done a procedure, and their track record for results in specialized care. Blue Distinction Centers deliver excellent care with faster recoveries and better expected outcomes. And the best part about them? They offer this extraordinary quality of care at no extra cost to you. If you or one of your family members covered under Reliance Rewards medical needs care for any of the conditions listed above, make sure your doctor is aware of the Anthem Blue Cross Blue Distinction Center network. You can also call Anthem Blue Cross Customer Service at 844-736-9509 or your Anthem Blue Cross Primary Nurse. Or follow the directions below to search online at the Anthem website.

WITH OVER 2,200 BLUE DISTINCTION CENTERS NATIONWIDE. IT’S EASY TO FIND ONE

1. Log in to anthem.com/ca. 2. Log in with your username & password 3. Select Find/Rate a Doctor . 4. Under “I’m looking for a” select Hospitals and Facilities. 5. Under “Who specializes in” select General/Acute Care Hospitals and then enter your location details. 6. Hit Search . 7. Hover over “Quality Snapshot” next to a provider name to find its Blue Distinction Center recognition. Or, from the “Refine Results” column on the left, click Recognition/Awards and then select a Blue Distinction Center by type of care.

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It’s a Win-Win with Wellness At Reliance we believe that one win leads to another: individuals win when they choose a healthy lifestyle, and we all win when our employees and their families are stronger, happier, and healthier. For 2016, we are expanding our wellness @reliance program to make wellness a team sport. That means more coaching programs, group activities, and spouses/ domestic partners enrolled in a Reliance Rewards medical plan can now participate in many of our wellness activities. WHAT TO LOOK FOR IN 2016: • Required Activity Deadline: December 31, 2015. In order to be eligible for the 2017 wellness incentive, you must complete a Mini Wellness Questionnaire and the results of your Biometric Screening must be received by Accountable Health Solutions (AHS) by December 31, 2015.

• New Mini Wellness Questionnaire! Our updated Wellness Questionnaire is now only 10 questions long! It will still give you great insight into your health habits and your answers will also be combined with your Biometric Screening results to create your Personal Wellness Report. But now you can complete it in less than 10 minutes. • Onsite Health Educator for Biometric Screenings! Knowing your health numbers is good, knowing what to do with them is even better. A Health Educator will be available to employees and spouses/domestic partners at all onsite screenings. Together, you will review your results and set up an action plan to help you improve your health numbers. Your consult and action plan will be completely confidential and free. • Weight Management Program! If you or your spouse/domestic partner are looking to lose a few pounds, this is the perfect fit. This is a free voluntary program of 10 sessions (four with a health coach and six with a weight management coach). • Spouses/Domestic Partners Can Participate! Starting this year, spouses/domestic partners enrolled in a Reliance Rewards medical plan are invited to participate in the NEW Mini Wellness Questionnaire, Biometric Screenings,

the Tobacco Cessation program and the Weight Management program!* Check RELIANCEroots for more information about the 2016 program year. *Spouse/domestic partner activities do not count toward the 2017 wellness incentive.

We all know that nutrition is a vital part of your day-to-day health, but your diet affects way more than just your waistline. How you eat impacts your finances, your ability to process stress, your energy and performance levels, and it can even affect how long you live. With approximately 80% of the Reliance population being overweight or obese, nutrition is clearly an area where we need to raise awareness, motivate behavior change, and improve outcomes. That’s why Reliance is stepping up to the plate in 2016. We’re dedicating the next twelve months to understanding and improving nutrition. Throughout the year, we’ll focus on a different aspect of nutrition including its impact on our financial, social, emotional, and physical wellbeing. Introducing the Q3 Wellness Theme: Step Up to the Plate for 2016

Coming in November: Well Bingo!

In November, wellness@reliance is hosting the Well Bingo challenge. Participants will complete wellness activities listed in the squares on a Well Bingo Card. The objective is to complete a horizontal or vertical line of squares – a BINGO! Employees who earn at least one bingo and submit their Well Bingo card will receive 5 Wellness Credits, plus they will be eligible to win additional prizes. Be on the lookout and check RELIANCEroots for more information.

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Employee Service Awards

Kudos to the 146 employees who celebrated milestone service anniversaries in the third quarter of 2015! Reliance would not be where we are today if it wasn’t for you. It never gets old to say that we’re the best in the business because we have the best people working for us. Thank you all very much for your decades of dedication – and congratulations!

20 YEARS OF SERVICE Tina Anderson-Sassa...........Earle M. Jorgensen Manuel Arismendi...........................Metals USA Bobby Atkins...................................Metals USA Renald Beaudet.............................Yarde Metals Dale Berge..........................................Liebovich Jeffery Burchett.............................Good Metals James Canady......................Earle M. Jorgensen Gregory Carroll................................Metals USA Marty Collier............PDM Steel Service Centers Martin Davalos........PDM Steel Service Centers Ralph Dillard..................................Yarde Metals Todd Harpel................................Precision Strip Jeffrey Heisler..................................Metals USA Russell Keeler..............Diamond Manufacturing Reita Mann..........................Earle M. Jorgensen Lance Messick.....................Earle M. Jorgensen Tige Mitchell............PDM Steel Service Centers Ismael Mondragon.............................Liebovich Rick Neal........................................Tube Service Thomas Nevins..........................................Valex Roger Nolen........................Earle M. Jorgensen Donna Orfield................RMC Colorado Springs Peter Pelle................................RMC Union City James Pitts............Earle M. Jorgensen - Canada Anthony Powell..........................Precision Strip Thomas Richardson.............Earle M. Jorgensen Donna Sanchez.........Phoenix Metals Company Jimmy Santos..........................American Metals Terry Scearce...................................Metals USA Leslie Shivers.......................Earle M. Jorgensen Arl Snyder................Hagerty Steel & Aluminum Apolinar Suriel...............................Infra-Metals John Thoolen.......................Earle M. Jorgensen Matthew Tocci...............................Chapel Steel Victor Villanueva...........Precision Flamecutting Gary Weatherford.......................Precision Strip Jeffery Wilson.............................Precision Strip William Wray....................Siskin Steel & Supply James Young.....................................Delta Steel 25 YEARS OF SERVICE Shawna Blum........................................J. Rubin Lori Boeder...........................Mckey Perforating Bruce Brown........................Earle M. Jorgensen Cheryl Buchwalter...............Earle M. Jorgensen Sandra Costa...................................Metals USA Michael Creer..........PDM Steel Service Centers Jeffery Dowell.............................Trident Metals

Victor Estrada......................Earle M. Jorgensen Jose Figueroa...........PDM Steel Service Centers Steven Finch........................Earle M. Jorgensen Marty Finerty........................Ohio River Metals Robert Frost.............................RMC Union City Timoteo Gonzalez.......................Trident Metals Gary Greer..................................RMC Arlington Terry Jarrell..............................Viking Materials Stefan Kawczak....................Earle M. Jorgensen Fred Ludlow.........................Earle M. Jorgensen Lawrence Maddox...............Earle M. Jorgensen Deborah Malpede......................Clayton Metals David Mayle...............................Chatham Steel John Miklitsch.....................Earle M. Jorgensen Christopher Olson...............Earle M. Jorgensen Richard Osborn...........................Precision Strip Anthony Pertee...............................Metals USA Robert Pfeiffer..........................RMC Union City Dennis Plowman................................Liebovich Phillip Poehlman.....Hagerty Steel & Aluminum Bruce Quillen.......................Earle M. Jorgensen Doreen Quinonez................Earle M. Jorgensen Richard Rendon......................American Metals Emilio Rios...........................Earle M. Jorgensen Ernest Rivera.......................Earle M. Jorgensen Debra Teufel............Hagerty Steel & Aluminum Larry Warren.......................Earle M. Jorgensen Richard Yarosavich......Diamond Manufacturing 30 YEARS OF SERVICE Terry Budge....Reliance Metals Canada Limited Edwin Bishop...................................Metals USA Michael Bishop................................Metals USA Allan Bourrie...............................Encore Metals Hayley Brewer.........................American Metals William Carrington.............................Liebovich Jeffrey Davis........................Earle M. Jorgensen Charles Davis....................Siskin Steel & Supply Richard Douma............................Bralco Metals Billy Ervin............................................Liebovich Cornel Freeman................Siskin Steel & Supply James Garcia.......................Earle M. Jorgensen Nancy Gochenour........................Bralco Metals Lisa Hueter....................Durrett Sheppard Steel Robert Lange...........Hagerty Steel & Aluminum Steven Lucia....................................Metals USA Pedro Mendez.............................Bralco Metals Lane Morrison..................Siskin Steel & Supply Christine Nevins...........................Bralco Metals

John Nosler....................................Pacific Metal Adrian Quick...............................Chatham Steel Richard Reis.........................Earle M. Jorgensen David Sherlin....................Siskin Steel & Supply Mark Starnes......................................Liebovich Dale Streed.....................................Metals USA David Thornton..........Diamond Manufacturing Joe Wolf......................................Precision Strip Irmina Zazueta.............................Bralco Metals 35 YEARS OF SERVICE Michele Arnold...............................Metals USA Joseph Avila........................................Liebovich Eduardo Gosano................Earle M. Jorgensen Donald Haack..........PDM Steel Service Centers Isaac Jacobs................................Chatham Steel Johnny Johnston...............Siskin Steel & Supply Ernest Lesaca.......................Earle M. Jorgensen Stephen Loremo.........................RMC Arlington Peter Ray.............................Earle M. Jorgensen John Rodriguez.................................Delta Steel Rory Spurgeon........................Haskins Steel Co. 40 YEARS OF SERVICE Steven Hatfield...................................Liebovich Paul Juergensen..................Earle M. Jorgensen Randall Miller..................................Metals USA George Summerell.....................Chatham Steel Tom White..................................Encore Metals

45 YEARS OF SERVICE Arnold Eddie...................................Metals USA

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Employee Discount Program Spotlight: Reliance U.S. employees and their spouses can take advantage of the Chrysler Group Affiliate Rewards Program and drive away with the Preferred Price (1% below factory invoice) on the purchase or lease of most new Chrysler, Dodge, Jeep ® , Ram and FIAT ® vehicles. You’ll find that the Preferred Price, combined with current incentives, can help you save thousands of dollars off the MSRP!

EXTRAORDINARY PRICES

As our premier partner, you have elite access to Affiliate Rewards Preferred Pricing on Chrysler, Dodge, Jeep ® , Ram and FIAT ® Brand vehicles! That means when you buy or lease any eligible vehicle, you can combine current incentives and rebates with a price that’s 1% below dealer invoice.* TALK ABOUT UNBEATABLE SAVINGS!

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GET STARTED TODAY: Log on to ChryslerAffiliates.com and use your Company Code to gain access. 1.

F 4 7 3 3 4

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Register for your unique Control Number, browse the vehicle selection and see your special Affiliate savings. Visit a participating dealership to take advantage of this incredible deal and drive away in your new vehicle!

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CHRYSLERAFFILIATES.COM | CALL 1.888.444.4321

*To receiveAffiliateRewardsPreferredPricing,youmustprovideproof thatyou are currently employed at anAffiliatepartner company.Proofof eligibilitymaybe a company ID,W-2 formor recentpaycheck stub.ThePreferredPrice is themaximum amountyouwillbe chargedby aparticipatingU.S.dealer for an eligiblevehicle.A$75 administration fee is included in the PreferredPrice.Offervalid forup to two (2)FCAUSLLCvehiclesper calendaryear.All eligiblevehiclemodelsmaynotbe available at the timeof thepurchase. JeepGrandCherokeeSRT,DodgeDartSE,Chrysler200LX,Fiat500e and allDodgeViper and all2015SRTmodels arenot currently eligible for thisprogram.FCAUSLLC reserves the right to alter the ineligible vehicle list at any time. Incentivesvaryby region and residencyofbuyer.Excludesdestination, tax, title and registration fees.Alwaysdrive carefully, consistentwith conditions.Alwayswearyour seatbelt andobey traffic laws.For completeprogramdetails,please callAffiliateRewardsProgramHeadquarters at1.888.444.4321.

Get Behind the Wheel Contest

Participate in the Get Behind the Wheel Contest from October 1- November 30, 2015 for a chance to win an HP Office-jet Pro 8610 e-All-in-One Printer! Five winners will be drawn on December 1, 2015. Here’s how to enter:

• Log in to RELIANCEroots. • Click the My Benefits tab. • Click on Employee Discount Programs .

• Click on the Get Behind the Wheel Contest link on the right side of the page. Follow the contest instructions, including how to gain access to the Affiliate Rewards website. GOOD LUCK AND HAVE FUN! *No purchase necessary to participate in the contest. Entries must be answered correctly to be entered into the drawing.

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Reliance supports veteran Brian D’Apice - nephew of Infra-Metals’ Ron Demski - as he rides solo around the country to raise money and awareness for some worthy charities. Bicycle Around America!

Winter is Coming! Slip, Trip and Fall Prevention at Work and at Home Slips, trips and falls are a major cause of workplace injuries. Unsafe conditions and behaviors, along with lack of safety awareness, can lead to these type of accidents.

SLIPS, TRIPS, AND FALLS on the same level are the SECOND LEADING CAUSE of injury (Bureau of Labor Statistics)

SLIPS, TRIPS, AND FALLS

25,000 SLIP, TRIP, AND FALL ACCIDENTS occur daily in the US (National Safety Council)

ACCOUNT FOR 15% OF ALL ACCIDENTS (National Safety Council)

Although it may not feel like it yet at some of our locations, winter is coming! Injuries involving slips, trips and falls always spike in the winter when walking and working surfaces are at an increased chance of freezing or being covered in ice. Here are a few tips to keep you on your feet while walking at the office or at home during the winter: Create Good Housekeeping Practices • Keep walking surfaces clear and free of clutter • Beware of tracking snow, ice and water onto surfaces that become especially slippery • Ensure adequate lighting is available in slippery areas Cultivate Safe Habits • Give yourself sufficient time- DON’T RUSH • Always use handrails when available and be sure to plant your feet firmly on each step • Try not to carry too much so your arms and hands are free • Wear appropriate shoes/work boots

350 South Grand Avenue Suite 5100 Los Angeles, CA 90071 www.rsac.com

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