Company: ZEUS
Filing Date: 2025-10-29
Form Type: 425
Source: 0001193125-25-256374
Chunk: 13

Company: OLYMPIC STEEL INC
Filing Date: 2025-10-29
Form: 425
Chunk 13
---
 can start to see another very
complementary fit as we go up that curve to getting more margin on that consistency for transactional spot building bill of material business, the menu offerings that you can take to a program account or an OEM, and then all the way through to
manufactured products. Rick?

Rick Marabito: Yeah. Thanks, Eddie. And some of you may or may not know about Olympic strategy the past five or six years to
acquire and integrate end product manufacturing into our mix. So, for example, we make inside of Olympic, we make industrial hoppers, we make stainless steel bollards, we make metal canopies. We’ve got many different end products that go into
HVAC applications. And as I spoke before, the end product, it carries a higher margin in return profile than traditional service center business. And then the end products are also countercyclical to distribution margins. So for example, when metal
pricing declines kind of the depression in the cycle of metals service center margins tend to come under pressure, while end product margins have the offsetting effect.

In those types of declining price environments, end product margins typically expand. So the other beautiful thing about it is end products
through our internal purchasing, through fabricating capabilities, which I think about Olympic and now triple that given the new co size, we’re able to provide synergies to the end product manufacturing companies that our competitors at the
end market level just don’t have. So I think the new combined company is going to really be able to better leverage those synergies across the end product portfolio that we have.

And then, if you go right into the next slide, we also talk about stronger capital structure. Wow. The ability to continue to invest at a
faster pace in the areas that expand our margins. So you could see on this slide really the summary is on the left side, when you look at the margin profile, immediately accretive synergies give us the boost to earnings that Eddie talked about,
improved EBITDA returns getting to 6%. And then on the right side, you look at the capital structure and the balance sheet, and you go, wow, stronger, more flexible balance sheet synergies drive cash flow generation. So more cash flow, reduced debt,
reduced leverage. That’s a beautiful thing for being able to fund future growth in the areas that give us higher returns and more profitability.

- 7 -

So I think and it ties in with the slide