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SAFETY

UPDATE

While the market in 2019 was very challenging for Kloeckner, one posi-
tive area was our safety performance. Although our goal continues (and
will always be) zero injuries, we had a record year in regards to the num-
ber of employees that were injured. We had an even greater reduction in
the number of serious injuries to employees compared to previous years.

Our performance is directly attributed to all the work that each and every
one of you did to keep our coworkers safe from harm. This is the safety
culture that we are striving to achieve. A culture in which none of our em-
ployees are injured on or off the job. A culture in which each employ-
ee is looking out for their coworker’s safety. Where we all ACTIVELY care
for one another and will do whatever we can to protect others from harm.
This is Safety ALWAYS. Our employee safety and well-being are one of
our Core Beliefs. And we will pursue this goal with relentless commitment.

A large reason for our safety success last year was due to the tremendous re-
sponse we had to our Close Call program. We asked you to get involved and
to be engaged in safety and you responded. There were almost 12,500 close
calls submitted by your teammates in 2019! These close call submittals en-
abled us to take action BEFORE anyone got injured. We intend to continue
this process again in 2020 but to really focus on executing preventive actions.

As we mentioned in the last newsletter, a Safety Perception Survey was con-
ducted at the end of 2018 and specific actions were taken to address some of
the concerns expressed in those results. In addition, we have just completed a
follow-up Safety Perception Survey (end of 2019), which showed that we have
made significant improvements in many of the areas. We saw a 61% improve-
ment in the response to the question regarding your involvement in safety
activities and a 57% improvement in your overall satisfaction with the safety of
the organization. While all question responses improved compared to the sur-
vey in 2018, we did see little improvement with responses regarding the extent

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