reliance steel & aluminum 92007_12_06_Goldman_Sachs_Presentation

Reliance Steel & Aluminum Co.Goldman Sachs

Global Steel CEO Forum December 6, 2007

www.rsac.com

FORWARD-LOOKING STATEMENT AND NON-GAAP MEASURE

This presentation may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected in these statements.

Further information on factors that could affect the Company’s financial and other results are included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2006 and other reports on file with the Securities and Exchange Commission.

For data included within this presentation that is considered a “non-GAAP financial measure” any reconciliations required by Regulation G will be provided.

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COMPANY PROFILE

• Founded in 1939 in Los Angeles and went public in 1994

• NYSE company with $5.7 billion in 2006 annual net revenues and $5.5 billion in revenues for the nine months ended September 30, 2007

• One of the largest metals service center companies in the U.S.

• Provides value added metals processing services

• Distributes a full-line of over 100,000 products to more than 125,000 customers

• More than 180 locations in 37 states and Belgium, Canada, China, South Korea and United Kingdom

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THE ROLE OF RELIANCE

> Over 125,000 customers

> Over 4,095,000 orders (average order size $1,320)in 2006

> 17,275 transactions per business day in 2006

> Just-in-time 24-hour delivery

> No customer represented more than 1.5% of total 2006 sales

Primary ProducersPrimary Producers Reliance Steel & Aluminum Co.Reliance Steel & Aluminum Co. End UsersEnd Users

>> Pre-production processing including:

• Slitting• Cutting• Sawing• Leveling• Shearing• Blanking• Burning• Toll processing

> Inventory management> Just-in-time delivery> Over 100,000 products> Approximately 80% of sales

from repeat customers

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RECENT ACCOMPLISHMENTS

• Best-ever 2006 annual financial results

• Record 2006 sales of $5.7 billion, up 71% and net income of $354.5 million, up 73% and $4.82 earnings per diluted share (stock split adjusted)

• Earle M. Jorgensen Company acquisition

• Yarde Metals, Inc. acquisition

• Completed five acquisitions in 2007 year-to-date

• New $1.1 billion unsecured credit facility

• Issued $600 million of 10 and 30 year senior unsecured notes with weighted average interest rate of 6.5% in 2006

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AGGRESSIVE ACQUISITION STRATEGY

• More than 40 acquisitions since 1994 IPO

• Immediately accretive to shareholders

• Minimum 15% pre-tax ROI

• Current management and employees remain in place

• Brand name stays in the community

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EARLE M. JORGENSEN ACQUISITION APRIL 2006

• Metals service center company headquartered in Los Angeles, CA with 40 facilities

• About 50% cash and 50% common stock total value of about $984 million, including Jorgensen’s net debt

• Largest acquisition to-date and first acquisition of a publicly-held company

• Immediately accretive to earnings

• Leading North American metals distributor of specialty bar and tubing products

• Revenues of $1.45 billion for the nine months ended December 31, 2006

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YARDE METALS, INC. ACQUISITION AUGUST 2006

• Metals service center headquartered in Southington, CT

• Founded in 1976 and specializes in stainless steel and aluminum plate, rod and bar products

• Additional facilities in New Hampshire, New Jersey, New York, North Carolina, Ohio, Pennsylvania and a sales office in Florida

• Second largest acquisition to-date in terms of revenues and immediately accretive to earnings

• Net sales of $182 million for the five months ended December 31,2006

• Adds significantly to geographic network in the Northeastern U.S.

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2007 ACQUISITIONS

• Encore Group (Encore Metals, Encore Metals (USA), Inc., Encore Coils and Team Tube in Canada)

– 17 facilities mainly in Western Canada

– 2006 revenues of C$259 million

– Alloy and carbon bar and tube; stainless steel sheet, plate and bar; and carbon steel flat-rolled

• Crest Steel Corporation

– Headquartered in Carson, CA with facilities in Riverside, CA and Phoenix, AZ

– 2006 revenues of $133 million

– Carbon steel flat-rolled plate, bars and structurals9

2007 ACQUISITIONS (CONT.)• Industrial Metals and Surplus, Inc. (and Athens Steel, Inc.)

– Atlanta and Athens, Georgia

– 2006 revenues of $105 million

– Carbon steel structurals, flat-rolled and ornamental iron products

• Clayton Metals, Inc.

– Headquartered in Wood Dale, IL with additional facilities in California, North Carolina and New Jersey

– 2006 revenues of $123 million

– Aluminum, stainless steel and red metal flat-rolled products, custom extrusions and aluminum circles

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2007 ACQUISITIONS (CONT.)

• Metalweb plc

– Headquartered in Birmingham, England with additional facilities in Manchester, London and Oxford, England

– Revenues of about $53 million for the fiscal year ended May 31, 2007

– Primarily aluminum products for non-structural aerospace components and general engineering parts used in high-end industrial applications

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• Liebovich Bros. opened a new facility in Green Bay, WI

• Siskin Steel & Supply expanded facility in Chattanooga, TN

• Phoenix Metals added a new location in Philadelphia and moved into larger, more efficient facilities in Birmingham and Charlotte

• EMJ opened a satellite facility in Lafayette, Louisiana; relocated its Portland, Oregon operation to a larger facility; and relocated its Kansas City facility

• SSA moved its Los Angeles titanium operation into a larger, more efficient facility

• Precision Strip expanded facility in Talladega, AL

• Increased the size of Allegheny Steel Distributors facility in PA

• Toma Metals expanded its facility in Johnstown, PA

• Doubled the size of AMI Metals facility in Belgium

• Expanded the Valex Korea operation

INTERNAL GROWTH ACCOMPLISHMENTS

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2007 YTD SALES BY PRODUCT

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11% Carbon Steel P late10% Carbon Steel Bar10% Carbon Steel Tubing7% Carbon Steel Structurals4% Galvanized Steel S & C3% Hot Rolled Steel S & C1% Cold Rolled Steel S & C7% Aluminum Bar & Tube5% Heat Treated Aluminum Plate4% Common Alloy Aluminum S & C2% Common Alloy Aluminum Plate1% Heat Treated Aluminum S & C11% Stainless Steel Bar & Tube6% Stainless Steel S & C3% Stainless Steel P late1% Electropolished S S Tubing6% Alloy Bar & Tube1% Alloy Plate, S & C3% Toll Processing4% Other

2007 YTD SALES BY COMMODITY

Stainless Steel21%

Alloy 7%

Toll3%

Carbon Steel46%

Aluminum19%

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Other 4%

2007 YTD SALES BY REGION

Mountain4%

Mid-Atlantic4%

Southeast20%

Midwest23%

California16%

West / SW14%

Pacific NW8%

Northeast6%

Int'l5%

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BROAD GEOGRAPHIC COVERAGE

National NetworkMore than 180 locations in 37 states and Belgium, Canada, China, South Korea and United Kingdom

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GEOGRAPHIC, PRODUCT AND CUSTOMER DIVERSITY

• More than 180 locations in 37 states and Belgium, Canada, China, South Korea and United Kingdom

• Full range of over 100,000 products

– Non-residential construction, general manufacturing and transportation, primarily the aerospace, truck trailer and rail car markets

– Diversified customer base of more than 125,000 customers

– No customer represented more than 1.5% of 2006 sales

– Toll processing 3% of sales

– Began servicing the energy market through our acquisitions of Jorgensen and Encore

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• Proven ability to perform in all types of operating environments

• Healthy metals pricing on historical basis

• Aerospace and other end markets doing well

• Geographic regions remain healthy

• Favorable industry consolidation and acquisition opportunities

MARKET CONDITIONS

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SELECTED FINANCIAL DATA(in thousands, except per share data)

Nine Months Ended September 30: 2007 2006

Sales $5,550,018 $4,173,416Net Income $328,045 $279,865Earnings Per Share - diluted $4.28 $3.83 (1)

Weighted Average Shares Outstanding - diluted 76,613 72,985 (1)

Cash Dividends Per Share $.24 $.16 (1)

At Sept. 30, 2007 At Dec. 31, 2006

Working Capital $1,317,548 $1,124,650Total Assets $4,151,071 $3,614,173Long-term Debt $1,244,208 $1,088,051Shareholders’ Equity $2,023,993 $1,746,398(1) Adjusted for the 2-for-1 stock split effective July 19, 200620

NET SALES

(Millions of $)

0

1000

2000

3000

4000

5000

6000

2002 2003 2004 2005 2006 2006 2007

$3,367$2,943

$1,745$1,883

$5,743

September 30

$4,173

$5,550

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NET INCOME

(Millions of $)

September 30

0

50100150200250300350400

2002 2003 2004 2005 2006 2006 2007

$30.2 $34.0

$205.4

$354.5

$169.7

$279.9

$328.0

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0.00

1.00

2.00

3.00

4.00

5.00

2002 2003 2004 2005 2006 2006 2007

$.47

EARNINGS PER SHARE DILUTED (1)

Dollars ($)

September 30

$.53

$2.60$3.10

$4.82

$3.83$4.28

23(1) Adjusted for the 2-for-1 stock split effective July 19, 2006

Stock Price Performance

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0

50

100

150

200

250

300

350

12/01 12/02 12/03 12/04 12/05 12/06

Reliance Steel &Aluminum Co.

S & P 500

Russell 2000

New PeerGroup(1)

Old Peer Group(1)

$

* $100 Invested on December 31, 2001 in stock or index – including reinvestment of dividends. Fiscal Year ending December 31.

(1) See Proxy Statement dated May 16, 2007 for listing of companies included in this Group

SHAREHOLDER VALUE

• 47 years of consecutive quarterly cash dividends

• 33% dividend rate increase effective 2007 1Q to $.08 per share

• 2-for-1 stock split in July 2006

• Committed to shareholder value - 2006 ROE of 27%

• Dividend payments increased 1,300% (since 1994 IPO)

• Stock value compound annual growth rate of 25% at September 30, 2007 (since 1994 IPO)

• Actively repurchasing Company stock in 2007 under the Stock Repurchase Plan

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INVESTMENT HIGHLIGHTS

• A market leader within the metals service center industry

• Diversification of products, customers and geography serve to reduce

volatility in operating performance

• Favorable industry dynamics supported by healthy end use markets

• Unique, decentralized operating structure focused on profitability and

working capital management

• Demonstrated ability to grow existing businesses and also identify

and make accretive acquisitions

• Experienced management team with solid track record

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Reliance Steel & Aluminum Co.www.rsac.com