Commercial Metals : Q2 Fiscal 2021 Supplemental Presentation

CAUTIONARY STATEMENTS

This presentation contains or incorporates by reference a number of "forward-looking statements" within the meaning of the federal securities laws with respect to general economic conditions, key macro-economic drivers that impact our business, the effects of ongoing trade actions, the effects of continued pressure on the liquidity of our customers, potential synergies and organic growth provided by acquisitions and strategic investments, demand for our products, metal margins, the effect of COVID-19 and related governmental and economic responses thereto, the ability to operate our steel mills at full capacity, future supplies of raw materials and energy for our operations, share repurchases, legal proceedings, the undistributed earnings of our non-U.S. subsidiaries, U.S. non-residential construction activity, international trade, capital expenditures, our liquidity and our ability to satisfy future liquidity requirements, estimated contractual obligations and our expectations or beliefs concerning future events. These forward-looking statements can generally be identified by phrases such as we or our management "expects," "anticipates," "believes," "estimates," "intends," "plans to," "ought," "could," "will," "should," "likely," "appears," "projects," "forecasts," "outlook" or other similar words or phrases. There are inherent risks and uncertainties in any forward-looking statements. We caution readers not to place undue reliance on any forward-looking statements.

Our forward-looking statements are based on management's expectations and beliefs as of the time this Form 10-Q is filed with the SEC or, with respect to any document incorporated by reference, as of the time such document was prepared. Although we believe that our expectations are reasonable, we can give no assurance that these expectations will prove to have been correct, and actual results may vary materially. Except as required by law, we undertake no obligation to update, amend or clarify any forward-looking statements to reflect changed assumptions, the occurrence of anticipated or unanticipated events, new information or circumstances or any other changes. Important factors that could cause actual results to differ materially from our expectations include those described in Part I, Item 1A, Risk Factors, of the 2020 Form 10-K, as well as the following: changes in economic conditions which affect demand for our products or construction activity generally, and the impact of such changes on the highly cyclical steel industry; rapid and significant changes in the price of metals, potentially impairing our inventory values due to declines in commodity prices or reducing the profitability of our downstream contracts due to rising commodity pricing; impacts from COVID-19 on the economy, demand for our products and on our operations, including the responses of governmental authorities to contain COVID-19 and the impact from the distribution of various COVID-19 vaccines; excess capacity in our industry, particularly in China, and product availability from competing steel mills and other steel suppliers including import quantities and pricing; compliance with and changes in existing and future government laws, regulations and other legal requirements and judicial decisions that govern our business, including increased environmental regulations associated with climate change and greenhouse gas emissions; involvement in various environmental matters that may result in fines, penalties or judgments; potential limitations in our or our customers' abilities to access credit and non-compliance by our customers with our contracts; activity in repurchasing shares of our common stock under our repurchase program; financial covenants and restrictions on the operation of our business contained in agreements governing our debt; our ability to successfully identify, consummate and integrate acquisitions, and the effects that acquisitions may have on our financial leverage; risks associated with acquisitions generally, such as the inability to obtain, or delays in obtaining, required approvals under applicable antitrust legislation and other regulatory and third party consents and approvals; operating and start-up risks, as well as market risks associated with the commissioning of new projects could prevent us from realizing anticipated benefits and could result in a loss of all or a substantial part of our investment; lower than expected future levels of revenues and higher than expected future costs; failure or inability to implement growth strategies in a timely manner; impact of goodwill impairment charges; impact of long-lived asset impairment charges; currency fluctuations; global factors, such as trade measures, military conflicts and political uncertainties, including the impact of the 2020 U.S. election on current trade regulations, such as Section 232 trade tariffs, tax legislation and other regulations which might adversely impact our business; availability and pricing of electricity, electrodes and natural gas for mill operations; ability to hire and retain key executives and other employees; competition from other materials or from competitors that have a lower cost structure or access to greater financial resources; information technology interruptions and breaches in security; ability to make necessary capital expenditures; availability and pricing of raw materials and other items over which we exert little influence, including scrap metal, energy and insurance; unexpected equipment failures; losses or limited potential gains due to hedging transactions; litigation claims and settlements, court decisions, regulatory rulings and legal compliance risks; risk of injury or death to employees, customers or other visitors to our operations; and civil unrest, protests and riots.

KEY TAKEAWAYS FROM TODAY'S CALL

Delivering continued strong results in a volatile environment

• • Record second quarter Core EBITDA

• • Seventh consecutive quarter of 10%+ ROIC

Sharp focus on optimizing factors within CMC's control

• • Driving efficiencies throughout the business and lowering controllable costs

Line-of-sight on benefits from strategic growth projects in coming quarters

• • 3rd Polish rolling line startup

• • Impact of network optimization, particularly Steel CA rolling mill closure

Construction backlog has stabilized, bidding activity showing improvement

Strong financial position provides continued flexibility to fund growth, weather economic uncertainty, and pursue opportunistic M&A

Q2 Core EBITDA1 of $171M

Up 18% y/y

Q2 Annualized ROIC2 of 10%Adjusted EPS of $0.66

Up 25% y/y

Notes:

• [1] Core EBITDA is a non-GAAP measure. For a reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measures, see the appendix to this document.

• [2] Return on Invested is a non-GAAP measure. For a reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measures, see the appendix to this document.

3

OPERATIONAL UPDATE

PERFORMANCE DRIVERS

• • Strong cost management throughout vertically integrated footprint − North America mill conversion costs continued to trend downward year-over-year

• • Successful realization of steel product price adjustments; margins expanded month-to-month throughout the quarter

• • Benefited from impact of selling lower-cost steel product inventory in a rising price environment

• • Expanded margins on raw material sales, as pricing for both ferrous and non-ferrous products increased meaningfully

• • Good demand for rebar and merchant products from the mills - rebar benefitted from growth in residential market

• • Downstream shipments impacted by modest year-over-year backlog, construction and weather-related jobsite delays

• • Strong demand across Europe segment's various end markets; commercial focus on merchant and other products during the quarter

• • Europe margins over scrap improved sequentially

  STRATEGIC

  ITEMS

• • Finalizing construction of 3rd rolling line in Europe

• • Completed full closure of Steel California and transition of market supply − Cost benefits expected in coming quarters

• • California land sale process underway

3RD ROLLING

LINE

•	Total capital spending below original budget	•	Will utilize current excess melt capacity, adding roughly
200,000 tons of finished steel output
•	Expected FY '21 capital spend of $20 million
•	Helps to leverage fixed costs
•	Targeted commissioning in H2 FY21
•	Expected to add $20 million of annual EBITDA
•	Adds significant production flexibility