SCHN 2017 Proxy Statement

Proxy Summary Fiscal 2017 Business Performance & Accomplishments Our earnings performance improved significantly in fiscal 2017 compared to fiscal 2016, and we delivered our strongest financial performance in the past six years. These results reflect our success in sustaining the benefits from our multi-year cost savings and productivity improvement initiatives, increasing our sales diversification, expanding our supply channels, enhancing our nonferrous metal recovery, and improved market conditions. As shown in the graphs below, we delivered significant improvements in our business performance in fiscal 2017. Our fiscal 2017 reported earnings per share of $1.60 and adjusted earnings per share of $1.53 represent substantial increases compared to fiscal 2016 reported loss per share of $0.66 and adjusted earnings per share of $0.69. Our Auto and Metals Recycling (AMR) business nearly doubled its operating performance year-over-year. In our Cascade Steel and Scrap (CSS) business, we completed the integration of our steel manufacturing (SMB) and Oregon metals recycling businesses and invested in a major equipment upgrade aimed at increasing productivity and enhancing product quality. Our strong operating income performance in fiscal 2017 enabled us to deliver operating cash flow of $100 million and reduce our debt by 25% while continuing to invest in our Company and return capital to our shareholders through our quarterly dividend. 2016 Consolidated Operating Income (Loss) (in thousands) Adjusted Consolidated Operating Income (in thousands) * 2017 2016 2017 $54,043 $27,772 $56,013 ($7,842) Diluted Earnings Per Share Adjusted Diluted Earnings Per Share * 2016 2017 ($0.66) $1.60 $1.53 $0.69 2016 2017 8 | Notice of Annual Meeting of Shareholders and 2017 Proxy Statement