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The Local Impact of Globalization

Todd Zyra Klein Steel Services

Andy Germanow G-S Plastic Optics

Kevin Husselbeck AT&T

2016 GRE Upstate NY Trade Conference

The Local Impact Of Globalization Todd Zyra, President & CEO June 10, 2016

We Live in a Dynamic New World

Business is global.

Competition is global.

Opportunity is global.

The Opportunity Is Staggering

The New World And The Opportunity

A premier metals supplier and processing center

3,500 line items of carbon, stainless steel, aluminum & specialty metals; and full range of value-added processing services

300,000 sq. ft. footprint for customers in NY, PA, MA, VT & CT

Global reach through customers and partners

Klein Steel And The Opportunity

June 2, 2016: Klein Steel Opens The Industry’s Most Advanced Steel Service Center With 40,000 Sq. Ft. Hub Facility That Leverages State-Of-The-Art Equipment and Digital Technologies In Rochester, NY

Klein Steel Is Expanding For Global Opportunities

Klein Steel Is Recognized Globally And In The USA

One of few NQA-1 compliant metal service centers in USA

Our vendors are global

Our partners are global

Our end customers are global

Market forces are global

Globalization Is Klein Steel

Ficep S.p.A. located at the foot of the Alps on the northern border between Switzerland and Italy

Many other Klein Steel partners/vendors located throughout the world

Globalization And Klein Steel Partners/Vendors

3,500 customers in NY, PA, MA, VT, CT & throughout USA

China & South Korea

England & France

United Arab Emirates

Globalization And Klein Steel End Customers

Technology

International Finance System

Reduction In Trade Barriers

Driving Factors Of Globalization

Price of oil

Impact of currency

Trade policies

Steel over-supply

China

Globalization Affects World Steel & Klein Steel

Steel is essential in most products & industries

Safe drinking water & food production

Construction & Transportation

Medicine & Energy

National security

Steel Is Everywhere And Affects Everyone

Harbinger of the economy

Steel industry inter-related with other industries

Globalization Of Steel Affects Everyone

Commodity prices

Supply and demand

Manufacturing & construction

Jobs, jobs, jobs!

Globalization Of Steel Affects The Supply Chain

Control what you can

Invest in people and technology

Be innovative

Be entrepreneurial

Engage with partners

Communicate with government officials

Global Success Starts With Domestic Success

Accountability

Dependability

Integrity

Teamwork

Trust

Klein Steel Success Starts With Values

We will be the strongest metal service center in the markets we serve…

To support the stability and growth of manufacturing in our communities…

To create opportunity for current and future generations.

Klein Steel Globalization Is Forged By Our Mission

2016 GRE Upstate NY Trade Conference

The Local Impact Of Globalization Todd Zyra, President & CEO June 10, 2016

Thank You! June 10, 2016

The Local Impact of Globalization 100 years of Transitions

Manufacturing - Importing - Exporting

Germanow-Simon Corporation

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The Local Impact of Globalization

Biz Success = Mixed Nuts + Good Luck!! Easy ones - Hard ones Good margins - Poor margins Product mix - Customer mix Domestic - Foreign

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The Local Impact of Globalization

Transition – Watch Crystals

To Plastic Optics

Transition - Consumer markets

To Industrial markets

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The Local Impact of Globalization

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© 2016 AT&T Intellectual Property. All rights reserved. AT&T, Globe logo, Mobilizing Your World and DIRECTV are registered trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks are the property of their respective owners.

The Local Impact of Globalization

© 2016 AT&T Intellectual Property. All rights reserved. AT&T, Globe logo, Mobilizing Your World and DIRECTV are registered trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks are the property of their respective owners.

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138 Years Serving Customers

Investing in the Network of Tomorrow

$140B U.S. investment past six years More than any other public company

$132.5B revenue, #11 Fortune 500

#25 in top 50 U.S. patent assignees

On 6 continents, 225+ countries

© 2016 AT&T Intellectual Property. All rights reserved. AT&T, Globe logo, Mobilizing Your World and DIRECTV are registered trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks are the property of their respective owners.

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Technology is rapidly changing how the world works and communicates. Networking has truly enabled globalization to evolve over the past few decades. We are entering into a new transformative age where connectivity will transform global markets yet again.

AT&T’s services reach 99% of the global economy

AT&T’s network carries more than 110 Petabytes of data traffic on an average business day

© 2016 AT&T Intellectual Property. All rights reserved. AT&T, Globe logo, Mobilizing Your World and DIRECTV are registered trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks are the property of their respective owners.

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The Communications Revolution

Mobile Video Software

The Network of Tomorrow will make Global Markets feel as if they were Local

© 2016 AT&T Intellectual Property. All rights reserved. AT&T, Globe logo, Mobilizing Your World and DIRECTV are registered trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks are the property of their respective owners.

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Mobile

Multiple means of communication

Global footprint

Short burst data transmission

High bandwidth applications

250% Increase in data usage by IoT customers in the last 24 months

The ubiquitous access to connectivity will make Global marketplaces feel as if they were Local

Nature of traffic continues to change

More endpoints (handset ubiquity, Internet

of Things driving trend)

© 2016 AT&T Intellectual Property. All rights reserved. AT&T, Globe logo, Mobilizing Your World and DIRECTV are registered trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks are the property of their respective owners.

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Video

2X more than

2014-2015

Key Drivers

HD video / 4k

Larger screen phones

More content providers

Video autoplay

© 2016 AT&T Intellectual Property. All rights reserved. AT&T, Globe logo, Mobilizing Your World and DIRECTV are registered trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks are the property of their respective owners.

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Software

Virtualize network functions for agility (Separates network functions from equipment – which means reduced operational and capital expenses)

Scaling network functions to Cloud for optimal deployment

SDN for cross domain control

(Software “defines” the network as opposed to physical connections)

2X

more than

2014-2015

Cloud

SDN

NFV

© 2016 AT&T Intellectual Property. All rights reserved. AT&T, Globe logo, Mobilizing Your World and DIRECTV are registered trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks are the property of their respective owners.

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Seamless Connectivity to Applications & Content from Virtually Anywhere at Anytime

Offices Data centers

Factories Mobile devices

Fleets Internet of Things (IoT)

Accelerated Operations

Networking of Tomorrow

Improved Efficiencies New Marketplaces

Flexible Workforce New Innovations

AT&T has been transforming

the way we do business…

© 2016 AT&T Intellectual Property. All rights reserved. AT&T, Globe logo, Mobilizing Your World and DIRECTV are registered trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks are the property of their respective owners.

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Places: AT&T is improving our employee experience by providing a range of workplace options that support both team and individual work. In AT&T’s larger facilities, workspaces are being designed to bring people together, providing increased opportunities to collaborate and innovate.

AT&T has been focusing on transforming our people through a company-wide effort we call…

Places

Technology

People WORKFORCE 2020

People: Our employees deliver results by using our technology & resources so we look to provide them with the ability to do their work in an environment that best meets our business needs.

Technology: Equipping our employees with the skills, tools and technology to succeed. These tools & technologies help people work more effectively, enabling both virtual and in-person collaboration.

AT&T has ~30K full & part-time telecommuters in 37 countries (working from home one or more days every week). That’s >25% of AT&T’s management workforce.

AT&T employees completed >450,000 hours of technology

development training in 2015

© 2016 AT&T Intellectual Property. All rights reserved. AT&T, Globe logo, Mobilizing Your World and DIRECTV are registered trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks are the property of their respective owners.

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We realize that transforming will require collaboration

AT&T Labs AT&T Developer Program Inventing the Science Behind

the Service Where Ideas are Made Unleash your imagination Power of cloud & developer

communities

Plano, TX, USA Palo Alto, CA, USA

Atlanta, GA, USA

Ra’anana, Israel

Toronto, Canada

Bangalore, India

Singapore

243,000+ employees in 52 countries 31,000+ ideas

$44 million seed funding

4 locations 6 strategic partners 1,300 researchers & scientists

6 locations around US 9 Nobel Prizes

Foundry Proof of Concept Lab

Amsterdam, Netherlands London, UK

Frankfurt, Germany

Global Briefing Centers

Birmingham, UK

© 2016 AT&T Intellectual Property. All rights reserved. AT&T, Globe logo, Mobilizing Your World and DIRECTV are registered trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks are the property of their respective owners.

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In Summary

Networking will make global marketplaces feel even more local in the years ahead. Preparing your people and your operations will be key in order to capitalize on the next major wave of change. Software will continue to fuel the Global transformation.

EXHIBITOR LIST

Littler Mendelson, P.C. Digital Rochester SEKO Worldwide Global NY, Empire State Development Export-Import Bank of the U.S. U.S. Small Business Administration U.S. Department of Commerce

Mohawk Global Logistics Language Intelligence ER – Select LLC CentriLogic Wells Fargo Bank ALT Translations, LLC

High Tech Rochester Brockport Small Business Development Center St. John Fisher College PC Results Inc. Monroe County Economic Development SPEED Global Services

THANK YOU SPONSORS