Insteel Industries : Investor Presentation

Investor Presentation

October 19, 2023

Forward-Looking Statements

• This presentation contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. When used in this presentation, the words "believes," "anticipates," "expects," "estimates," "appears," "plans," "intends," "may," "should," "could" and similar expressions are intended to identify forward-looking statements. Although we believe that our plans, intentions and expectations reflected in or suggested by such forward-looking statements are reasonable, they are subject to a number of risks and uncertainties, and we can provide no assurances that such plans, intentions or expectations will be implemented or achieved. All forward-looking statements are based on information that is current as of the date of this presentation. Many of these risks and uncertainties are discussed in detail in our filings with the U.S. Securities and Exchange Commission our Annual Report on Form 10-K for the year ended October 1, 2022.
• All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by these cautionary statements. All forward-looking statements speak only to the respective dates on which such statements are made, and we do not undertake any obligation to publicly release the results of any revisions to these forward-looking statements that may be made to reflect any future events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events, except as may be required by law.

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Business Overview

• Insteel Industries is the nation's largest manufacturer of steel wire reinforcing products for concrete construction applications.
• We manufacture and market a broad range of welded wire reinforcement ("WWR") and prestressed concrete strand ("PC strand") products.
• Headquartered in Mount Airy, North Carolina, Insteel operates ten manufacturing facilities located in the United States (seven WWR plants and three PC strand plants).
• Our business strategy is focused on:
• • achieving leadership positions in our markets.
  • operating as the lowest cost producer in our industry.
  • pursuing growth opportunities in our core businesses that further our penetration of the markets we currently serve or expand our footprint.

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Business Overview

• Insteel's products are sold primarily to manufacturers of concrete products that are used in nonresidential construction.
• Virtually all sales are in the U.S. (< 1% foreign in 2023).
• Demand is both cyclical and seasonal. Shipments are usually higher in the third and fourth quarters of the fiscal year (April to September) when weather conditions are more conducive to construction activity, and lower in the first and second quarters.
• Insteel's customer base is diverse with minimal concentration.

Sales by End Use

Residential

Construction

15%

Nonresidential

Construction

85%

Sales by Customer Category

Distributors	Concrete Product
Manufacturers
Rebar Fabricators
70%
Contractors
30%

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Welded Wire Reinforcement ("WWR")

Produced as both standard and specially engineered reinforcing products for use in nonresidential and residential construction. Broad offering of WWR products includes:

Engineered Structural Mesh - Engineered made-to-order reinforcing products that are used as the primary reinforcement in concrete elements or structures, frequently serving as a substitute for hot- rolled rebar.

Concrete Pipe Reinforcement - Engineered made-to-order reinforcing products that are used as the primary reinforcement in concrete pipe and box culverts for drainage and sewage systems, water treatment facilities and other related applications.

Standard Welded Wire Reinforcement - Secondary reinforcing products made-to-stock in standard styles for crack control applications in residential and light nonresidential construction, including driveways, sidewalks and a wide range of slab-on-grade applications.

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Prestressed Concrete Strand ("PC Strand")

Seven-wire strand used to impart compression forces into precast concrete elements and structures, providing reinforcement for bridges, parking decks, buildings and other concrete structures.

• High tensile strength makes it possible to cast longer spans and thinner sections.
• PC strand is used for both pretensioned and posttensioned reinforcing applications.
• • Pretensioned - Strands are tensioned and anchored at the ends of a form. Anchors are released after the concrete has been placed and cured, creating compression forces within the element.
  • Posttensioned - Strands are tensioned after the concrete has been placed and cured.

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Manufacturing Locations

Kingman, AZ

ESM, CPR

St. Joseph, MO

ESM, CPR

Hickman, KY

SWWR

Hazleton, PA

ESM, SWWR

Mount Airy, NC

ESM, CPR, SWWR

Dayton, TX

ESM, CPR, SWWR

Houston, TX

PCS

Gallatin, TN

PCS

Sanderson, FL

PCS

Jacksonville, FL

ESM, SWWR

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Competitive Position

Primary Competitors

Welded Wire Reinforcement

• Liberty Steel/Engineered Wire Products
• Wire Mesh Corp.
• Concrete Reinforcements Inc.
• National Wire Products
• Davis Wire
• Oklahoma/Iowa Steel and Wire

PC Strand

• Sumiden Wire Products
• Wire Mesh Corp.
• Imports

• Largest domestic producer of WWR and PC strand and only producer with a national market presence.
• Strong market leadership positions extend across all product lines/families.
• Ability to bundle WWR and PC strand products, which are used in combination for many concrete reinforcing applications.

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Growth Strategy - Organic

• Continued conversion of rebar users to ESM for cast-in-place applications represents substantial growth opportunity that leverages Insteel's manufacturing and engineering capabilities.
• Eliminates labor intensive process of placing and hand-tying required for rebar, yielding significant cost savings and accelerating the construction process.
• Fewer tons of steel are generally required when ESM is specified due to its higher yield strength (80,000 PSI for ESM versus 60,000 PSI for rebar).

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Growth Strategy - Acquisitions

Ivy Steel & Wire

Second Largest U.S. Producer of WWR

Purchase Price $50.3mm

American Spring Wire

Second Largest U.S. Producer of PC Strand

Purchase Price $33.5mm

Ortiz Engineered Products

Provider of Value-Engineered

Reinforcing Solutions for

Concrete Construction Industry

Strand-Tech Manufacturing

Fourth Largest U.S.

Producer of PC Strand

Purchase Price $19.4mm

Nov 2010

Aug 2014

Nov 2017

Mar 2020

• Focused on pursuing additional strategic opportunities in existing core businesses or related products sold into same markets that offer substantial synergy potential.

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