CHARTER STEEL

1

• CHARTER STEEL
• CHARTER SPECIALTY STEEL
• AWPA Annual Meeting
• February 27, 2002

2

• Getting To Know Us Better
• Some Background Information

3
FAQ

• Which analyst do you want? Tax, stock, or
  psycho?

4
There Is A Better Way

• Numerous Chapter 11 Bankruptcy Proceedings in the
  past 24 months.
• At Charter Steel, We Completed a 186 million
  Expansion and Improvement phase and have Embarked
  on the Next Phase that will Exceed 130 million
  Over the Next 3 Yrs.
• We will do this primarily with earnings, not
  debt.
• We will continue to Invest in people,
  technologies, and facilities that provide the
  lowest cost, highest quality and highest level of
  service to our customers.
• We are investing in a lean, flexible, capability
  that can be married to a customers manufacturing
  process. One entity, one process, one inventory.

5
We Want to be DifferentRedefine the Customer -
Supplier Relationship in Steel

• Privately Held, Family Owned, Non-Union,
  Investing
• The Luxury of the Longer View
• This is A Service Business. The Key is
  Distribution
• One Stop Shop, From Start to Finish
• Focused. Smaller, Faster, Smarter
• We Cant Be All Things to All People
• 85 is Cold Headed or Cold Formed
• Approach the Market as A Supply Chain Manager
• One Entity, One Inventory
• Building Strategic Relationships
• The Timken Company

6
Up the Ladder More Specialty Grades,
Properties and Value

• Bearing
• Stainless Steels
• Specialty Spring
• High Formability CHQ
• Cold Heading Quality
• Special Quality
• Cold Finishing
• Industrial

7
Financial StrengthNew Investment Is the Key to
Lower Cost

• Net Sales Ended 2001 at 272 million
• Average of 10 per year Growth (internal) for
  Last 5 Yrs.
• 36 Consecutive Profitable Quarters
  Through 12-31-01
• Net Worth up 138 in six years.
• Leverage (Liabilities/Net Worth)
• .66 at the end of 2001
• Capital Expenditures 186.2 M In Last 5 Yrs
• 134.4 million planned for next three years
• DB Rating of 5A2

8
Corporate Structure

• Charter Manufacturing
• Charter Wire Profiled Steel Shapes
• Milwaukee Wire Products Tier 1 Auto
• Charter Steel Carbon producer
• Charter Specialty Steel Stainless rod/processed.

9
Charter Steel Facilities

• Saukville, Wisconsin
• Carbon and Alloy Steel Manufacture and
  Distribution
• Melt, Hot Roll
• Clean, Anneal, Draw, Coat
• Distribute
• Rising Sun, Ohio
• Full Service Processing and Distribution Facility
• Clean, Anneal, Draw, Coat
• Distribute

10
Charter SteelSteel Manufacturing, Coil
Processing and DistributionSaukville, Wisconsin
Melt Shop
Rolling Mill
Coil Processing
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100 Ton DC Electric Arc Furnace / VADCarbon and
Alloy Chemistries
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4-Strand Continuous Casting5.5 inch Square
Billet, Surface Quality is Born Here
13
Danielli Re-Heat FurnaceHigh Efficiency, Walking
Beam Design for Superior Surface
14
Danielli-Morgardshammer Rolling MillHighly
Automated, No-Twist, Orbis (dia.) and Eddy
Current (surface)
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Rolling Mill Stelmor Laying DeckControlled
Cooling to Optimize Metallurgical Structure
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Rolling Mill Sizes From 7/32 to 1-1/324,400
lbs. Coils, Sizes to 1.4375 inches Diameter by
March, 2002
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Bar Mill Y Split
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Bar Sizing Mill
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Carbon and Alloy Coil Processing (4
Lines)Chemical Cleaning Hydrochloric and
Sulfuric and Coating Polymers, Phosphorus,
Lube and Lime
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Carbon and Alloy Coil Processing Mechanical
Cleaning Shot Blasting Unit
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Carbon and Alloy Coil ProcessingEndothermic
Annealing 2 Salem-Daido Continuous Furnaces
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Carbon and Alloy Coil Processing Endothermic
Annealing 3 Salem-Daido STC, and 22 Box Furnaces
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Coil Processing ExpansionIndoor Coil Storage
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Charter Specialty Steel

• Fond du Lac, Wisconsin
• Stainless Steel Coil Processing
• Clean, Anneal, Coat
• Distribute

25
Danielli-Morgardshammer Rolling MillHighly
Automated, No-Twist, Orbis (dia.) and Eddy
Current (surface)
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Stainless Steel Cleaning / Coating Line
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New Stainless Annealing Furnaces
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Stainless Coil Quench
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Charter Specialty Steel (P5)
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Conclusion

• Charter Steel is a Different Kind of Steel
  Supplier
• A Service Organization First
• Privately Held, Family Owned
• Financially Sound and Investing In the Business
• A Supply Chain Manager / Partner
• We Are Better Today than We Were One Year Ago and
  
• One Year From Now
• We will Better Than We Are Today

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• Questions ?