Supplier Requirements Manual - AK Steel

It is in our best interest, and that of our Suppliers, to work together to find ways to improveefficiencies and lower AK Steel’s costs. These cost reductions can take different forms, such asmore flexible payment terms, price reductions, volume discounts, use of alternate materials andservices, combining services among our seven operating plants, technology improvements,process improvements, and long-term contracts.We welcome your ideas and suggestions for innovative ways to increase value to achieve ourmutual goals and improve our competitiveness. This is what we must do to compete.Key Suppliers have an obligation to assist us in continuously reducing our costs. Suppliers thatprovide rate reductions which have allowed AK Steel to lower our total system costs havebenefited with additional volume. Those that are not participants in lowering AK Steel totalsystem costs may not continue as Suppliers.Supply Agreements for high-volume, repetitive requirements are typically negotiated for anextended period of time (i.e. one year or more and possibly on a single-source basis). EstablishedSuppliers are encouraged to discuss with AK Steel the mutual benefits of longer-term supplyagreements centered on continual improvement and value enhancement. Many such contracts arepresently in effect.AK Steel requires a Supplier to work with AK Steel for a winning future – beneficial to bothparties – consistent with the business strategies of each company. We are asking you to dedicateresources to work with AK Steel to develop specific projects and initiatives to achieve that goal.Working with you to achieve our targets will determine the team’s success. By no means do weexpect the achievement of our mutual objective to be easy, yet by no means do we expect to fail.AK Steel’s Quality PolicySuppliers are expected to uphold AK Steel’s Quality Policy:AK Steel Corporation’s Quality Policy is to take a planned approach tocontinuous improvement of our products, processes and services such that wemeet or exceed our customers’ expectations 100% of the time. We arecommitted to this policy which serves our customers and provides us withsustained profitability.This policy has been implemented and is understood and maintained through all levels of theorganization.AK Steel Supplier Requirements Page 5 of 55Revised 01/13