MRC Global : 2021 Annual Report

An industry in transition.

1. company that is ready.

2021 Annual Report

Change

Growth

Results

In February of 2021, MRC Global celebrated its 100th anniversary. As if on cue, the year signaled a turning point for the company and a time of momentous change. The markets we serve began to recover, and MRC Global emerged from a period of contraction into one of growth. A new CEO took the helm, two new directors were elected to our board and new leaders joined our executive management team, bringing fresh energy and ideas to their roles.

We reduced our debt to new lows as a public company, increased our profitability and strengthened our balance sheet. We continued to diversify our business to reduce volatility and stabilize ourselves against commodity prices. We dedicated new resources to helping customers navigate the energy transition.

The industry is changing, and the recovery is here. We have been hard at work preparing for both, and we are now beginning to see the rewards.

1

2021 Results

Revenue

$2,666 Million

Gross Profit

15.6%

Adjusted Gross

Profit

20.1%

Adjusted

EBITDA Margin

5.5%

Net Working

Capital / Revenue

15.6%

Leverage Ratio

1.7x

Revenue	Net (Loss) Income		Adjusted EBITDA
(millions)	(millions)		(millions)
			EBITDA Margin %

$4,000			$50			$250	5.5%		5.5%
			0			200
							3.8%
2,000			(100)			150
					100
			(200)
					50
			(300)
0					0
2019	2020	2021	2019	2020	2021		2019	2020	2021

Long-Term Debt		Cash Flow From		SG&A
(millions)			Operations		(millions)
			(millions)
$600			$300			$600
400						450
200			150			300
					150
0			0			0
2019	2020	2021	2019	2020	2021	2019	2020	2021

NOTE: Refer to the Company's Annual Report on Form 10-K, fi led February 16, 2022 and 8-K fi led February 15, 2022, for reconciliations of non-GAAP to GAAP measures and defi nitions.

2021 Operational Highlights

New

Leadership

In February, MRC Global

celebrated its 100th Rob Saltiel anniversary, and weeks

later Rob Saltiel became President and CEO, succeeding Andrew Lane, who served as President and CEO for nearly 13 years.

Diversified Growth

Our gas utilities business achieved $1B in revenue, two years ahead of our projections, grew to 38% of our revenues and is now our largest sector.

Future-Ready Structure

We created our DIET sector (Downstream, Industrial and Energy Transition), refl ecting the growing importance of energy transition and our commitment to serving our customers in their transition efforts.

2

Revenue by Geography

International 13%

Canada 5%

United States 82%

Revenue by Industry Sector

Midstream							Gas Utilities 38%
Pipeline 13%			9%			Chemical
Upstream
9%				Refining			Downstream, Industrial
Production 20%	11%						and Energy Transition 29%

Other Industrials

and Energy Transition

Revenue by Product Line

Stainless Steel Alloy Pipe			Valves, Automation, Measurement
		and Instrumentation 36%
and Fittings 5%
General Products 8%

Gas Products 24%	Carbon Steel Pipe, Fittings and Flanges 27%

Balance Sheet Strength

MRC Global achieved a leverage ratio of 1.7x at the end of 2021, the lowest in its public company history. We also refi nanced our asset-based lending facility,

1extending.7the maturityxwith terms similar to the previous instrument.

Improving Profi tability

and Profi t Margins

We achieved an adjusted EBITDA margin of 5.5% in 2021, up 170 basis points from the previous year. Our adjusted EBITDA for 2021 was $146 million, a 51% improvement over 2020.

Change Growth Results

Non-GAAPMeasures The following letter to shareholders, and pages, contains references to adjusted EBTIDA, adjusted gross profi t percentage, adjusted gross profi t, adjusted earnings per share, leverage ratio and net debt. These are all non-GAAP measures, which are not necessarily better than the related GAAP measure. For a discussion of the differences between these non-GAAP measures and the related GAAP measures and a reconciliation between each, please see "Management's Discussion and Analysis

of Financial Condition and Results of Operations" in the company's Annual Report on Form 10-K for the year ended December 31, 2021, a copy of which is included in the annual 3 report to shareholders to which the letter is attached. In addition, please see our 8-K dated February 15, 2022.