The Urgent Need for Change and The Superior Path Forward slide image

The Urgent Need for Change and The Superior Path Forward

PRIORITY #1: STRATEGIC REVENUE OPPORTUNITIES ■ We believe we can increase volume at Synalloy Chemicals to 2014-2015 levels There is a meaningful amount of unused capacity at the Specialty Chemicals division that can be unlocked through targeted selling efforts ■ ■ ■ Due diligence shows that CRI Tolling, the Company's Chemicals operation in South Carolina, is materially underutilized Synalloy has done a very poor job of leveraging its historic competitive advantages (cost and location) and, due to poor cost controls, has fewer selling strategies other than competing in a race to the bottom on price Our plan to aggressively communicate the Chemicals Segment's value proposition includes: 1) identifying new products and new industries (e.g. agriculture, healthcare, personal care), and 2) recruiting new sales resources with specific market and chemistry knowledge 01. 02. 03. 04. 05. Tolling produces chemicals where raw materials are owned by the customer, making it a low-margin business that is dependent on capacity utilization and cost controls to generate acceptable margins and returns PRIVET FUND Our Plan To Strengthen Synalloy CRI Tolling, LLC (Google images) UPG STRONGER TOGETHER Our plan contemplates just over $6 million in incremental chemical revenue, flowing to EBITDA at a 10% margin BELUE 80
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