The Urgent Need for Change and The Superior Path Forward

ABSOLUTELY NO PROGRESS MADE IN SPECIALTY CHEMICALS IN NINE YEARS Poor recent decision-making and no corporate support has resulted in the steady erosion of the Specialty Chemicals Segment's margins Revenue vs. Operating Margin $ in millions PRIVET FUND $42.8 UPG STRONGER TOGETHER 5.2% 2011 A $51.4 9.4% 2012A $56.5 10.2% 2013A 1. Source: Company filings $65.2 9.4% 2014A Revenue $60.6 9.4% 2015A $48.4 9.7% 2016A -Operating Margin $48.2 9.1% 2017A $58.6 6.8% 01. 02. 03. 04. 05. 2018A Meaningful Change is Required at Synalloy $54.1 Following a sizable capital expansion in 2012 and the acquisition of CRI Tolling, LLC in 2013, the Specialty Chemicals Segment's margins have steadily eroded This negative trend has culminated in a significant decline over the past two years even though revenue has remained roughly in-line with historical averages Many of the past leaders of the Specialty Chemicals Segment, who participated in the growth in the earlier part of the decade, have been run off by Mr. Bram 5.2% 2019A 55

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