Company: ZEUS
Filing Date: 2025-10-29
Form Type: 425
Source: 0001193125-25-256374
Chunk: 11

Company: OLYMPIC STEEL INC
Filing Date: 2025-10-29
Form: 425
Chunk 11
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 region and in Texas, we were on legacy systems for 40 years, and we finally had to bite the bullet, and we finally had to convert and get on a uniform ERP system. I
mean, that is a two-to-three-year trail of tears. But once you come through it, all of a sudden, everybody knows that language and they find possibilities and
capabilities they didn’t have before within that system to create a better customer experience. So we are on the other side of that. As you see, restructuring and rework costs come down, and we do the cleanups from a three year investment
cycle coming through this downturn with the investments we’ve made, as you look at a combined Olympic and Ryerson, I think you can really start to see the potential of how those investments, they don’t just pay off as individual
organizations, but when you bring them together, the payoffs are very, very attractive.

And that takes us to, again, the compelling
synergy opportunity. So I spoke to two very powerful synergies a couple of minutes ago. And I want to put a spotlight now on procurement and supply chain. So you go from two million tons to, say, 2.9 to three million tons of combined purchasing
spend, and you pick up scale. And if you really break this down into math, metal on any given day is between 70 and 95% of our cost, depending on the pound that you’re quoting and the pound that you sell, 70 to 95%. So if you don’t buy
well, it’s really hard to operate your way out of suboptimal buying.

But when you look at the combined scale that we generate now
going to that supply chain marketplace to that procurement marketplace, we’re talking about $14 a ton. Over 2.9 million tons is what we’re talking about. And we are highly confident that we know how to get $14 a ton in supply chain
synergies, not the least of which follow through to fuller truckloads that we received from our suppliers. So we pick up savings not just on the freight, but obviously the main course is the metal. And now you’ve got greater optionality of how
you purchase that, how you combine that spend and where you direct it through a more dense network to bring down your overall procurement costs. Rick?

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Rick Marabito: Thanks, Eddie. Next, let’s just talk about our profile in terms of pro