commercial metals 5b64bb2a-7598-444d-bf4a-e335edf33026_overview_0109

6565 N. MacArthur Blvd. Suite 800 Irving, TX 75039Tel 214. 689.4300 Fax 214. 689.5886

www.cmc.com 2CMC Overview January 2009

CMCA Global Steel and Metals Company

Metal Recycling FacilitiesSteel MinimillsSteel Fabrication PlantsSteel Joist & Deck PlantsHeat Treating PlantsSteel Fence Post Mfg. PlantsSteel Service CentersConstruction-Related Product WarehousesCopper Tube MinimillPipe & Tube MillMarketing and Distribution OfficesStrategic Investments

Over 15,000 Employees Worldwide in 14 Different Countries

CMC Recycles, Manufactures, Markets and Distributes Steel and Metal Products and Related Materials and Services Through a Network of Over 250 Locations Worldwide

3CMC Overview January 2009

Vertical Integration

Product Diversification

Global Geographic Dispersion

CMC – Business Model

• Domestic Steel Minimills(Long Products)

• Copper Tube Minimill

• Downstream Operations: Rebar andStructural Fab, Joist, Deck, CRP, Domestic Steel Import, Fence Posts, Heat Treating, Other

• Locations Throughout the Sunbelt• Significant Regional Processor

of Ferrous and Nonferrous• Strategic Mill Support

• Poland -- Main Products are Rebar & Wire Rod; Mega Shredder on Site; Captive Scrap Branches

• Croatia Tubular Products

• Offices in 13 Countries• Physical Operations and Strategic Investments

―11% Investment in Czech Mill―Australian Service Centers―Belgian Pickling & Oiling 24%

Joint Venture• Consultants/Agents in 20 Countries• Rebar Fab; 2 Locations; More Underway• Wire Mesh; 2 locations in Poland

Effective 9/1/2007


How is CMC Different?

31 Consecutive Years of ProfitabilityBuild Markets, then Build Manufacturing/Processing OperationsVertically Integrated: Scrap Processing and Steel Fabrication are Hedges for the Steel and Copper Tubing MillsMarketing and Distribution – Consistently ProfitablePeople Development

Conservative Company with a Strong, Experienced Management Team


Conservative AccountingFast Depreciation RatesNo Significant Post-Retirement BenefitsHigh Correlation Between Hedging Strategy and Underlying AssetsNo Speculation or Position TakingNo Esoteric Financial InstrumentsVery Cautionary Bad Debt Reserves / Use of Credit InsuranceLIFO Inventory ValuationInvestment Grade Long-Term Debt and Commercial Paper


CMC’s Peer Group

Bayou Steel (Arcelor)Gerdau AmeriSteelMueller IndustriesNucor CorporationOregon Steel Mills, Inc.Quanex CorporationSchnitzer Steel IndustriesSteel DynamicsWolverine Tube Inc

Plus Private & International Players

CorusDavid J. Joseph (Nucor)DufercoGlencoreMittalOmnisource (Steel Dynamics)Sims (Metal Management)Stemcor

Peer Companies


Profitability» Net Income Return on Beginning Equity 10 - 14%

» Operating Profit ROA > 16%

Leverage» Long-Term Debt/Total Capitalization 30 - 40%

Coverage» EBITDA/Interest > 6x

Financial Objectives


Liquidity

$400 MM Commercial Paper Program

$200 MM A/R Securitization Agreement

Unsecured Bank Credit Lines

Weighted Average Long-Term Interest Rate on Public Debt – 6.73%


Operating Profit by SegmentFY 2006

44%

9%

20%20%

9%18%

FY 2007 FY 2008

AmericasRecycling

International Fab& Distribution

AmericasMills

Americas Fab& Distribution

International Mills

40%

11%

17%17%

17%

15%

41%

24%

29%29%19%

(13)%


Consolidated Net Sales

4.6

6.37.2

8.3

10.4

$0

$2

$4

$6

$8

$10

$12

2004 2005 2006 2007 2008

($ in Billions)


7

42

7 15 5

77 7959

172

$0$20$40$60$80

$100$120$140$160$180$200

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Stock Repurchases($ in Millions)


Dividends Per Share

0.07 0.08 0.085 0.1150.171

0.33

0.45

$0.00$0.05$0.10$0.15$0.20$0.25$0.30$0.35$0.40$0.45$0.50

2002 2003 2004 2005 2006 2007 2008


52110

131

206

355

$0$50

$100$150$200$250$300$350$400

2004 2005 2006 2007 2008

Capital Expenditures($ in Millions)

Note: Excludes Acquisitions


LIFO Reserve($ in Millions)

050

100150200250300350400450500550600

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

3 8 6 8 17

92 111

189

At August 31

241

562


United States End-Use Markets

Light Commercial10%

Agriculture5%

Residential5%

OEM’s and Other20%

Service Centers15%

Heavy Commercial15%

Public Infrastructure30%


Americas Mills Net Sales

1.11.3

1.6 1.5

2.0

$0.0

$0.4

$0.8

$1.2

$1.6

$2.0

$2.4

2004 2005 2006 2007 2008

($ in Billions)

Americas Mills and Fabrication & Distribution Locations

Steel ManufacturingCopper Tube ManufacturingSteel FabricationSteel Joist & Deck PlantsFence Post Manufacturing Construction-Related Products WarehousingHeat TreatingCastellated & Cellular Beam FabricatorDistribution


Copper Tube Manufacturing

Copper Tube Minimill: Melt Scrap/Cast/Extrude/Draw

Located in New Market, Virginia

Markets: More than 44 States

80 Million Pound Capacity

Water Tubing for Plumbing, Air Conditioning and Refrigeration

Value-Added Products – Line Sets


Copper Tube Manufacturing Shipments

68.4 66.6 65.752.5 52.3

0

20

40

60

80

100

2004 2005 2006 2007 2008

(in Millions of Pounds)


0200400600800

1,0001,2001,4001,6001,8002,0002,2002,4002,6002,800

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

CMC-TX CMC-AL CMC-AR CMC-SC

Americas Steel Mill Shipments(Tons 000’s)

1,6851,853 1,903

2,1712,284

2,4012,266

2,4922,250

2,528


46%

20%

Americas Steel Mill Shipments by RegionFiscal 2008

34%


CMC Steel MinimillsCapacity (Tons 000’s)

Melting Rolling

CMC Steel Alabama: Birmingham, AL 700 575(mid-size structural products)

CMC Steel Arkansas: Magnolia, AR 0 150(posts, rebar, flats, angles, squares)

CMC Steel South Carolina: Cayce, SC 750 800(full line bar size products)

CMC Steel Texas: Seguin, TX 1,000 1,000(full line bar size products)

CMC Zawiercie: Zawiercie, Poland 1,870 1,100(rebar and wire rod)

CMC Sisak: Sisak, Croatia 80 330(pipe and tube)

Total 4,400 3,955 24CMC Overview January 2009

MIL

LM

ILL

Americas Steel Mill Facilities

MEL

TM

ELT

CMC Steel Alabama

90 NTDC Fce

72 MVAXfrmr

28”

21 MVAXfrmr LMS

Ind Stir

14 stand in-line continuous mill with quick changecapability on 9 stands120 tph reheat furnace capacityIn-line straightening & stacking

Melt Capacity:

90 tph

CMC Steel Arkansas

Rail slitting & re-rolling;billet rolling12 stand in-line mill(12 passes continuous; 14 passes using 3 hi)40 tph reheat furnaceIn-line bundling2000 fpm finishing speed


17 stand in-line continuousmill (all conventional)with quick change on all 17 stands160 tph capacity; 3,300 fpm finishing and In-line straightening/stacking/bundlingProfile gauge

MIL

LM

ILL

Americas Steel Mill Facilities

MEL

TM

ELT 120 NT

AC Fce80 MVAXfrmr

25 MVAXfrmr

24”

LMSInd Stir

17 stand in-line continuous mill (7 stand cantilever rougher) with quick change capability150 tph reheat furnace capacity3,000 fpm finishing speedIn-line bundlingProfile gauge

Melt Capacity:

130 tph

100NTAC Fce

80 MVAXfrmr

22”

LMSInd Stir

21.5 MVAXfrmr

Melt Capacity:

105 tph

CMC Steel South Carolina CMC Steel Texas


#1 Furnace #2 Furnace

Bar Mill18 stand in-line continuous mill with quick change capability on 6 stands; 120 metric tph reheat furnace capacity;16 meters per second finishing speed;In-line stacking and bundling

Wire Rod MillDual strand double rodblock 17 stand mill plus8 strand wire rod block;100 metric tph reheat furnace capacityMaximum speed 55 meters per second

135 NTAC Fce

105 MVAXfrmr

22”

LMS Porous Plug Stirring

60 MVAXfrmr

Melt Capacity:

117 mtph

CMCZ Steel Mill Facility

135 NTAC Fce

105 MVAXfrmr

22”

LMS60 MVAXfrmr

Melt Capacity:

84 mtph

Porous Plug Stirring

MIL

LM

ILL

MEL

TM

ELT


CMC Steel Alabama

Medium Section Mill

Continuous Cost / Productivity/Quality Improvements

New Reheat Furnace in 2008

Growth in South Central U.S.A.

FY 2008– Tons Melted 676,000

– Tons Rolled 430,000– Tons Shipped 647,000


CMC Steel Arkansas

USA’s Leading Fence Post Provider

Modern, Efficient Rail Reroller– Posts/Rebar/Bed Angles/Earth Bar

Low Cost Producer of Posts

Roll Billets Into Niche Products– Flats/Angles/Rounds

FY 2008– Tons Rolled 147,000

– Tons Shipped 142,000


CMC Steel South Carolina

Growth in Southeast U.S.A.State-of-the-Art, Quick Change, High Productivity Bar MillFY 2008

– Tons Melted 723,000 – Tons Rolled 732,000 – Tons Shipped 711,000


CMC Steel TexasLow Cost ProducerFlexible, High Productivity Bar MillBroad Product Range

– Rebar, Merchant Bar, and SBQ

Strong Customer BaseTrucking Fleet Backhauls ScrapGrowth in Southwest U.S.A.FY 2008

– Tons Melted 997,000– Tons Rolled 792,000– Tons Shipped 1,028,000

CMC Steel Mill Products

5.5 – 13.5 mmWire Rod

6.0 – 12.0 mmCoiled Rebar

Rail anchors;jail bars;Other

Earth bar;concrete form bar; sign posts

SpecialSections

.95#, 1.25#,1.33#

All sizesFence Post3” – 6”3” – 6”3” – 8”Channels

25.0 – 50.0 mm1” – 4”1” – 4”1” – 2”3” – 7”Angles

10.0 – 52.0 mm1/2” – 3-1/2”1/2” – 2”Squares

25.0 – 120.0 mm2” – 6”1-1/2” – 6”1-1/2” – 3”3” – 12”Flats

12.0 – 75.0 mm1/2” – 3-1/2”1/2” – 3”1/2” – 1”RoundsSBQ & MBQ

8.0 – 40.0 mm#3–18#3–18#3–6Rebar

CMCZCMC Steel TXCMC Steel SCCMC Steel ARCMC Steel ALPRODUCTS


Inter-Segment Dealings

46%Steel Purchased by Americas Fabrication & Distribution Segment from Americas Steel Mills

37%Steel Produced by Americas Steel Mills and Sold toAmericas Fabrication & Distribution Segment

13%Ferrous Scrap Processed by Texas Shredder35%

Ferrous Scrap Purchased by Americas Steel Millsfrom Americas Recycling

As % of Total Requirement


Americas Steel Mill Customers

FabricatorsOther OEM’s

Other OEM’sCold Drawers

Sucker Rod Mfg.Trailer Mfg.

Forge ShopsOther OEM’sManufacturersTower Mfg.

Service CentersService CentersService CentersMobile Home Mfg.

ContractorsContractorsLumber YardsService Centers

FabricatorsFabricatorsFarm Co-Ops/Distributors

Fabricators

CMC Steel TXCMC Steel SCCMC Steel ARCMC Steel AL


Steel DynamicsSteel Dynamics

Nucor Corp.Nucor Corp.W. Silver Inc.Nucor Corp.

GerdauAmeriSteel

GerdauAmeriSteel

Jersey Shore Steel

GerdauAmeriSteel

Border SteelBayou SteelChicago Heights SteelBayou Steel

CMC Steel TXCMC Steel SCCMC Steel ARCMC Steel AL

Americas Steel Mill Competitors


Second Largest Steel Producer in PolandMinimill Capacity 1.1 Million TonsGoal is 70% Domestic and 30% Export SalesMain Products are Rebar, Wire Rod, and MerchantsNew Wire Rod Block October 2008Mega Shredder and Fab Shop in 2006FY 2008

– Tons Melted 1,502,000– Tons Rolled 1,100,000– Tons Shipped 1,434,000

CMC Zawiercie


Established 1948; Acquired September 2007Manufactures Seamless, Welded and Cold Processed Pipe1,250 Employees330,000 MT Rolling Capacity

– 187,000 Welded Tubes– 77,000 Heavy Walled Seamless Pipe– 39,000 Medium Section Seamless Pipe– 27,000 Cold Drawn Tubes– Melt Shop – 77,000 Blooms

Turnaround; Manufacturing at Less Than 20% of Capacity at AcquisitionFY 2008

– Tons Melted 34,000– Tons Rolled 67,000– Tons Shipped 57,000

CMC Sisak


Americas Mills and Americas Recycling Locations

Steel MinimillsCopper Tube MillRecycling LocationsRecycling Shredders


3,525Total525Nonferrous

3,000Ferrous

Recycling Tons Capacity(000’s)


International Mills and InternationalFabrication & Distribution Locations

Steel MinimillPipe & Tube MillScrap ProcessingProcessingDistributionSteel FabricationWire MeshRepresentative OfficesAgentsInvestments and Joint Ventures


Provide Niche Value-Added Physical Operationsin Special Situations

– Marketing and Distribution Emphasized– Warehouses in Australia– Steel Service Centers in Australia (Processing)

Partnering with Suppliers and Customers– Pickling and Oiling Steel Coils in Belgium– Czech Marketing and Trading Agreement

Physical Marketers, Not Screen Traders

Consistently Profitable

International Fabrication & Distribution Strategy


International Fabrication & Distribution Segment Locations

Domestic– CMC Commonwealth Metals (Fort Lee, NJ)– CMC Cometals (Fort Lee, NJ)

International– Australia– China– Germany– Hong Kong– India– Poland– Russia – Singapore– Switzerland– United Kingdom


International Fabrication & Distribution Segment Strategic Investments

Trinecke (Czech Republic)

Europickling (Belgium)


International Fabrication & Distribution Products and Services

Aluminum, Brass and Copper SemisIndustrial Products for Steel, Refractory, Foundry IndustriesNew Steel, Long and Flat ProductsSteel and Aluminum Re-Rolling StockProcessing, Heat Treating, Pickle and Oil


International Fabrication & Distribution Services Provided

• Integrity

• Market Knowledge

• Multiple Suppliers

• Competitive Bids

• Foreign LanguageCapability

• Contract Documentation

• Hedging

• Foreign Exchange

• Production Monitoringand Inspection

• L/C Arrangement

• Re-Packaging/Port Loading/Discharge

• Marine and InlandTransportation

• Insurance

• Customs Clearance

• Warehousing/JIT

• Technical Support

• Financing

• Claim Settlement


International Fabrication & Distribution Synergies Within CMC

Sales of Rails / Alloys / Complementary Steel and Copper Finished Goods to Domestic MillsPersonnel Seconded to CMCZImport for Domestic Fab StockMarket Intelligence

– World Metal Prices – Local– World Metal Prices – Import– Local Political/Economic Conditions– Freight Markets– Competitor Moves– M&A Opportunities– Joint China Strategy


$50$100$150$200$250$300$350$400$450$500$550$600$650$700

2002 2003 2004 2005 2006 2007 2008

CMC

S&P 500

S&P Stl Ind

CMC

S&P 500

S&P Stl Ind

Commercial Metals Company $100.00 $556.39S&P 500 $100.00 $139.75S&P Steel Industry Group $100.00 $534.21

2003 2008

Stock Performance GraphFiscal Years


Maintain Investment Grade RatingReturn on Capital Criteria MetAccretive to Shareholders Within One YearWithin Our Current Scope of CompetencyProduct Line ExtensionGeographic ExpansionEnd-Use Market AttractiveInternational Assets Can Be AttractivePreference for Non-Union But Not an AbsoluteGreenfield Option

Acquisition Criteria


Our Core Competencies

We Know How to Treat Our Employees, Customers and SuppliersWe Know How to Make SteelWe Know How to Fabricate SteelWe Know How to Process ScrapWe Know How to Market Worldwide

– Buy– Sell– Transport– Finance

We Do it the RIGHT Way!


There is More to ComeSustainability

Macro Factors– Industry Consolidation Has Brought:

» Financially Stronger Companies with Longer-Term Outlooks

» Pricing Power Pendulum Swinging Towards Producers

» Greater Supply Discipline in Response to Demand Changes

» More Control Over Raw Material Inputs» Diversification of Sources of Earnings Power



Macro Factors– Historical Trend Has Developing Economies

More Metal Intensive» Industrialization is a Continuing Story

» Economic Development Drives Steel/Metals Consumption

– Global Infrastructure


0

100

200

300

400

500

600

700

0 10 20 30 40

Stee

l Con

sum

ptio

n K

G P

er C

apita

UK

France

Germany

Japan

ThailandChina

India

Australia

USA

Mexico

Source: IISI, World Bank, CMC EstimatesGDP is 2006, Steel Consumption Estimated 2005

Metal Consumption is the Driving Factor for Metal Pricing

Consumption Curve

0

200

400

600

800

1,000

1,200

1,400

USA U

K

Fran

ce

Ger

man

y

Japa

n

Thai

land

Mex

ico

Chi

na

Indi

a

Aus

tralia

Est. 2006 Population (in Millions)

US$ GDP Per Capita


Commercial Metals’ Factors– Diversification Limits Down Cycle Risk– Favorable Geography – Capital Assets in Sunbelt

Growth Areas and Central European Expansion Corridor

– Supply Chain Balance – Control Sufficient Scrap Capacity to Meet Mill Demand Which Has Sufficient Capacity to Meet Downstream Value-Added Operations’ Demand

– Vibrant End-Use Markets – Long Products for Construction, Service Centers, Agriculture, Non-Auto OEM’s



Commercial Metals’ Factors (Continued)– Profit Opportunities Long Cycle – Spot in

Recycling, Mid-Range in Mills, Longer Term in Fabricators/Distribution

– Market Upheavals Create Profit Opportunities for Worldwide Reach of Marketing & Distribution

– Proven Track Record – 31 Years of Annual Profitability; Only One Quarterly Loss OverThat Span



People

Markets

Sourcing

Why CMC Outperforms


Non-GAAP Financial Measuresand Regulation G

This written and verbal presentation may use financial statementmeasures considered non-GAAP financial measures by the Securities

and Exchange Commission (SEC). In compliance with the SEC’s Regulation G, we have

provided on our web site at

a reconciliation to the most comparable GAAP measure and other information that may be of interest to investors.

www.cmc.com

Investor Information


Forward Looking StatementsThis written and verbal presentation may contain forward-looking statements regarding the outlook for the Company's financial results including net earnings, product pricing and demand, production rates, interest rates, inventory levels, impact of acquisitions and general market conditions. These forward-looking statements generally can be identified by phrases such as the company or its management “expect,” “anticipates,”“believe,” “ought,” “should,” “likely,” “appears,” “projected,” “forecast,” “outlook,”“will” or other words or phrases of similar impact. There is inherent risk and uncertainty in any forward-looking statements. Variances will occur and some could be materially different from management's current opinion. Developments that could impact the Company's expectations include solvency of financial institutions and their ability or willingness to lend, extent of government intervention and its effect on capital markets, construction activity, difficulties or delays in the execution of construction contracts resulting in cost overruns or contract disputes, metals pricing over which the Company exerts little influence, interest rate changes, increased capacity and product availability from competing steel minimills and other steel suppliers including import quantities and pricing, court decisions, industry consolidation or changes in production capacity or utilization, the ability to integrate acquisitions into operations; global factors including political and military uncertainties, credit availability, currency fluctuations, energy and supply prices and decisions by governments impacting the level of steel imports and pace of overall economic activity, particularly China.

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