The Urgent Need for Change and The Superior Path Forward

WE SEE A PATH TO IMPROVING EBITDA BY $30 MILLION PER YEAR Major Initiatives Management has suggested that it can cut only $6 million of costs, but we believe this is meaningfully lower than what is NEEDED and is ACHIEVABLE Metals Partnership Revenue Chemicals Capacity Utilization Supply Chain Savings Inventory Management PRIVET FUND UPG STRONGER TOGETHER ■ I ■ I 01. 02. 03. 04. 05. Details Our Plan To Strengthen Synalloy As a small-scale manufacturer, Synalloy businesses can be at a disadvantage when selling to larger distributors and end-users Synalloy has been unable to effectively cross-sell complementary products following acquisitions We see an opportunity to sell certain Synalloy products through UPG's distribution network Continued volume erosion has led to meaningful underutilization at the Company's Specialty Chemicals Segment Synalloy's toll manufacturing unit has low margins and is dependent on capacity utilization and cost controls for effective returns Limited new product development and ineffective selling strategies has resulted in a 54% drop in income over the past five years We see an opportunity to aggressively communicate the segment's value proposition and recruit sales resources with targeted market knowledge At its small size, Synalloy wields no purchasing power with its vendors The Company's outsourced freight and logistics strategy appears unsophisticated and cobbled together in a haphazard fashion Opportunity for volume discounts, procurement rebates and leveraging UPG's in-house freight network to realize savings on overlapping routes Synalloy manages its inventory roughly half as effectively as peers, resulting in "inventory pricing losses" nearly every year Most of the excess inventory can be traced back to poor sales and operations planning, inefficient plant logistics and an ineffective procurement process We see an opportunity to utilize UPG's complementary footprint to lower lead times and reduce in-stock amounts to improve inventory management effectiveness EBITDA Potential $2.6 million $0.7 million $2.6 million $5.8 million 76

View entire presentation