Supplemental Guarantor Information

AK Steel has outstanding $550.0 of 7.625% Senior Notes due 2020 (the “2020 Notes”). The 2020 Notes are governed by indentures entered into by AK Holding and its wholly-owned subsidiary, AK Steel. Under the terms of the indentures, AK Holding fully and unconditionally, jointly and severally, guarantees the payment of interest, principal and premium, if any, on the 2020 Notes. AK Holding is the sole guarantor of the 2020 Notes.

The presentation of the supplemental guarantor information reflects all investments in subsidiaries under the equity method of accounting. Net income (loss) of the subsidiaries accounted for under the equity method is therefore reflected in their parents’ investment accounts. The principal elimination entries eliminate investments in subsidiaries and inter-company balances and transactions. The following supplemental condensed consolidating financial statements present information about AK Holding, AK Steel and the other subsidiaries.



Condensed Statements of Operations
Three Months Ended September 30, 2011

	AK Holding			AK Steel			Other			Eliminations			Consolidated Company
Net sales	$	—		$	1,529.1		$	193.0		$	(136.3	)	$	1,585.8
Cost of products sold (exclusive of items shown below)	—			1,433.6			161.3			(122.3		)	1,472.6
Selling and administrative expenses	1.0			55.2			11.2			(11.7		)	55.7
Depreciation	—			44.5			1.6			—			46.1
Total operating costs	1.0			1,533.3			174.1			(134.0		)	1,574.4
Operating profit (loss)	(1.0		)	(4.2		)	18.9			(2.3		)	11.4
Interest expense	—			13.5			—			—			13.5
Other income (expense)	—			(2.3		)	(1.4		)	(1.0		)	(4.7		)
Income (loss) before income taxes	(1.0		)	(20.0		)	17.5			(3.3		)	(6.8		)
Income tax provision (benefit)	(0.5		)	(6.9		)	7.9			(1.2		)	(0.7		)
Net income (loss)	(0.5		)	(13.1		)	9.6			(2.1		)	(6.1		)
Less: net income (loss) attributable to noncontrolling interests	—			—			(2.6		)	—			(2.6		)
Equity in net income (loss) of subsidiaries	(3.0		)	10.1			—			(7.1		)	—
Net income (loss) attributable to AK Steel Holding Corporation	$	(3.5	)	$	(3.0	)	$	12.2		$	(9.2	)	$	(3.5	)



Condensed Statements of Operations
Three Months Ended September 30, 2010

	AK Holding			AK Steel			Other			Eliminations			Consolidated Company
Net sales	$	—		$	1,515.2		$	150.3		$	(89.6	)	$	1,575.9
Cost of products sold (exclusive of items shown below)	—			1,535.4			136.6			(95.9		)	1,576.1
Selling and administrative expenses	0.9			55.1			(4.0		)	—			52.0
Depreciation	—			48.6			1.7			—			50.3
Total operating costs	0.9			1,639.1			134.3			(95.9		)	1,678.4
Operating profit (loss)	(0.9		)	(123.9		)	16.0			6.3			(102.5		)
Interest expense	—			5.9			—			—			5.9
Other income (expense)	—			(2.0		)	10.0			—			8.0
Income (loss) before income taxes	(0.9		)	(131.8		)	26.0			6.3			(100.4		)
Income tax provision (benefit)	(0.3		)	(53.6		)	11.3			2.2			(40.4		)
Net income (loss)	(0.6		)	(78.2		)	14.7			4.1			(60.0		)
Less: net income (loss) attributable to noncontrolling interests	—			—			(0.8		)	—			(0.8		)
Equity in net income (loss) of subsidiaries	(58.6		)	19.6			—			39.0			—
Net income (loss) attributable to AK Steel Holding Corporation	$	(59.2	)	$	(58.6	)	$	15.5		$	43.1		$	(59.2	)



Condensed Statements of Operations
Nine Months Ended September 30, 2011

	AK Holding			AK Steel			Other			Eliminations			Consolidated Company
Net sales	$	—		$	4,756.0		$	569.0		$	(366.2	)	$	4,958.8
Cost of products sold (exclusive of items shown below)	—			4,411.4			475.9			(332.2		)	4,555.1
Selling and administrative expenses	3.6			171.7			26.6			(36.9		)	165.0
Depreciation	—			134.6			4.7			—			139.3
Total operating costs	3.6			4,717.7			507.2			(369.1		)	4,859.4
Operating profit (loss)	(3.6		)	38.3			61.8			2.9			99.4
Interest expense	—			33.7			—			—			33.7
Other income (expense)	—			(5.7		)	6.4			(2.0		)	(1.3		)
Income (loss) before income taxes	(3.6		)	(1.1		)	68.2			0.9			64.4
Income tax provision due to tax law change	—			2.0			—			—			2.0
Income tax provision (benefit)	(1.4		)	1.5			27.2			0.3			27.6
Net income (loss)	(2.2		)	(4.6		)	41.0			0.6			34.8
Less: net income (loss) attributable to noncontrolling interests	—			—			(3.5		)	—			(3.5		)
Equity in net income (loss) of subsidiaries	40.5			45.1			—			(85.6		)	—
Net income (loss) attributable to AK Steel Holding Corporation	$	38.3		$	40.5		$	44.5		$	(85.0	)	$	38.3



Condensed Statements of Operations
Nine Months Ended September 30, 2010

	AK Holding			AK Steel			Other			Eliminations			Consolidated Company
Net sales	$	—		$	4,443.9		$	428.2		$	(294.4	)	$	4,577.7
Cost of products sold (exclusive of items shown below)	—			4,163.2			387.1			(302.6		)	4,247.7
Selling and administrative expenses	3.3			167.7			(12.2		)	—			158.8
Depreciation	—			145.2			5.3			—			150.5
Total operating costs	3.3			4,476.1			380.2			(302.6		)	4,557.0
Operating profit (loss)	(3.3		)	(32.2		)	48.0			8.2			20.7
Interest expense	—			25.9			—			—			25.9
Other income (expense)	—			(9.5		)	3.5			0.2			(5.8		)
Income (loss) before income taxes	(3.3		)	(67.6		)	51.5			8.4			(11.0		)
Income tax provision due to tax law change	—			25.3			—			—			25.3
Income tax provision (benefit)	(1.2		)	(25.1		)	19.3			2.9			(4.1		)
Net income (loss)	(2.1		)	(67.8		)	32.2			5.5			(32.2		)
Less: net income (loss) attributable to noncontrolling interests	—			—			(1.6		)	—			(1.6		)
Equity in net income (loss) of subsidiaries	(28.5		)	39.3			—			(10.8		)	—
Net income (loss) attributable to AK Steel Holding Corporation	$	(30.6	)	$	(28.5	)	$	33.8		$	(5.3	)	$	(30.6	)



Condensed Balance Sheets
September 30, 2011

	AK Holding			AK Steel			Other			Eliminations			Consolidated Company
ASSETS
Current assets:
Cash and cash equivalents	$	—		$	35.3		$	23.4		$	—		$	58.7
Accounts receivable, net	—			612.2			72.6			(94.4		)	590.4
Inventory, net	—			680.3			112.8			(9.9		)	783.2
Deferred tax asset	—			226.5			0.2			—			226.7
Other current assets	0.2			28.4			0.8			—			29.4
Total current assets	0.2			1,582.7			209.8			(104.3		)	1,688.4
Property, plant and equipment	—			5,387.4			511.9			—			5,899.3
Accumulated depreciation	—			(3,706.3		)	(67.9		)	—			(3,774.2		)
Property, plant and equipment, net	—			1,681.1			444.0			—			2,125.1
Other non-current assets:
Investment in AFSG Holdings, Inc.	—			—			55.6			—			55.6
Investment in affiliates	(1,379.7		)	1,379.7			1,191.8			(1,191.8		)	—
Inter-company accounts	2,008.1			(3,170.4		)	(267.1		)	1,429.4			—
Goodwill	—			—			37.1			—			37.1
Deferred tax asset	—			580.8			0.3			—			581.1
Other non-current assets	—			63.6			29.5			—			93.1
TOTAL ASSETS	$	628.6		$	2,117.5		$	1,701.0		$	133.3		$	4,580.4
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)
Current liabilities:
Borrowings under credit facility	$	—		$	295.0		$	—		$	—		$	295.0
Accounts payable	—			690.2			42.8			(0.5		)	732.5
Accrued liabilities	—			172.9			9.4			—			182.3
Current portion of long-term debt	—			0.7			—			—			0.7
Current portion of pension and other postretirement benefit obligations	—			111.1			0.5			—			111.6
Total current liabilities	—			1,269.9			52.7			(0.5		)	1,322.1
Non-current liabilities:
Long-term debt	—			650.2			—			—			650.2
Pension and other postretirement benefit obligations	—			1,467.3			4.9			—			1,472.2
Other non-current liabilities	—			109.8			404.6			2.1			516.5
Total non-current liabilities	—			2,227.3			409.5			2.1			2,638.9
TOTAL LIABILITIES	—			3,497.2			462.2			1.6			3,961.0
TOTAL AK HOLDING STOCKHOLDERS’ EQUITY (DEFICIT)	628.6			(1,379.7		)	1,248.0			131.7			628.6
Noncontrolling interests	—			—			(9.2		)	—			(9.2		)
TOTAL STOCKHOLDERS’ EQUITY (DEFICIT)	628.6			(1,379.7		)	1,238.8			131.7			619.4
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	628.6		$	2,117.5		$	1,701.0		$	133.3		$	4,580.4



Condensed Balance Sheets
December 31, 2010

	AK Holding			AK Steel			Other			Eliminations			Consolidated Company
ASSETS
Current assets:
Cash and cash equivalents	$	—		$	201.4		$	15.4		$	—		$	216.8
Accounts receivable, net	—			516.6			57.8			(91.6		)	482.8
Inventory, net	—			359.7			100.4			(11.4		)	448.7
Deferred tax asset	—			225.6			0.1			—			225.7
Other current assets	0.2			29.1			0.8			—			30.1
Total current assets	0.2			1,332.4			174.5			(103.0		)	1,404.1
Property, plant and equipment	—			5,324.1			344.1			—			5,668.2
Less accumulated depreciation	—			(3,571.8		)	(63.2		)	—			(3,635.0		)
Property, plant and equipment, net	—			1,752.3			280.9			—			2,033.2
Other non-current assets:
Investment in AFSG Holdings, Inc.	—			—			55.6			—			55.6
Investment in affiliates	(1,341.0		)	1,341.0			1,149.7			(1,149.7		)	—
Inter-company accounts	1,985.5			(3,127.1		)	(275.7		)	1,417.3			—
Goodwill	—			—			37.1			—			37.1
Deferred tax asset	—			581.2			0.3			—			581.5
Other non-current assets	—			52.0			25.1			—			77.1
TOTAL ASSETS	$	644.7		$	1,931.8		$	1,447.5		$	164.6		$	4,188.6
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)
Current liabilities:
Accounts payable	$	—		$	518.6		$	34.8		$	(0.3	)	$	553.1
Accrued liabilities	—			136.7			8.3			—			145.0
Current portion of long-term debt	—			0.7			—			—			0.7
Pension and other postretirement benefit obligations	—			145.2			0.5			—			145.7
Total current liabilities	—			801.2			43.6			(0.3		)	844.5
Non-current liabilities:
Long-term debt	—			650.6			—			—			650.6
Pension and other postretirement benefit obligations	—			1,701.2			4.8			—			1,706.0
Other non-current liabilities	—			119.8			224.5			2.1			346.4
Total non-current liabilities	—			2,471.6			229.3			2.1			2,703.0
TOTAL LIABILITIES	—			3,272.8			272.9			1.8			3,547.5
TOTAL AK HOLDING STOCKHOLDERS’ EQUITY (DEFICIT)	644.7			(1,341.0		)	1,178.2			162.8			644.7
Noncontrolling interests	—			—			(3.6		)	—			(3.6		)
TOTAL STOCKHOLDERS’ EQUITY (DEFICIT)	644.7			(1,341.0		)	1,174.6			162.8			641.1
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	644.7		$	1,931.8		$	1,447.5		$	164.6		$	4,188.6



Condensed Statements of Cash Flows
Nine Months Ended September 30, 2011

	AK Holding			AK Steel			Other			Eliminations			Consolidated Company
Net cash flows from operating activities	$	(1.5	)	$	(366.7	)	$	11.1		$	1.7		$	(355.4	)
Cash flows from investing activities:
Capital investments	—			(87.8		)	(163.4		)	—			(251.2		)
Other investing items, net	—			1.5			(0.8		)	—			0.7
Net cash flows from investing activities	—			(86.3		)	(164.2		)	—			(250.5		)
Cash flows from financing activities:
Net borrowings under credit facility	—			295.0			—			—			295.0
Redemption of long-term debt	—			(0.5		)	—			—			(0.5		)
Debt issuance costs	—			(9.2		)	—			—			(9.2		)
Proceeds from exercise of stock options	0.2			—			—			—			0.2
Purchase of treasury stock	(1.4		)	—			—			—			(1.4		)
Common stock dividends paid	(16.5		)	—			—			—			(16.5		)
Inter-company activity	19.2			1.7			(19.2		)	(1.7		)	—
Advances from noncontrolling interest owner	—			—			180.3			—			180.3
Other financing items, net	—			(0.1		)	—			—			(0.1		)
Net cash flows from financing activities	1.5			286.9			161.1			(1.7		)	447.8
Net decrease in cash and cash equivalents	—			(166.1		)	8.0			—			(158.1		)
Cash and equivalents, beginning of period	—			201.4			15.4			—			216.8
Cash and equivalents, end of period	$	—		$	35.3		$	23.4		$	—		$	58.7



Condensed Statements of Cash Flows
Nine Months Ended September 30, 2010

	AK Holding			AK Steel			Other			Eliminations			Consolidated Company
Net cash flows from operating activities	$	(1.6	)	$	(187.0	)	$	(1.6	)	$	13.7		$	(176.5	)
Cash flows from investing activities:
Capital investments	—			(72.2		)	(86.5		)	—			(158.7		)
Other investing items, net	—			1.6			(0.8		)	—			0.8
Net cash flows from investing activities	—			(70.6		)	(87.3		)	—			(157.9		)
Cash flows from financing activities:
Proceeds from issuance of long-term debt	—			400.0			—			—			400.0
Redemption of long-term debt	—			(506.1		)	—			—			(506.1		)
Debt issuance costs	—			(9.0		)	—			—			(9.0		)
Proceeds from exercise of stock options	1.3			—			—			—			1.3
Purchase of treasury stock	(7.7		)	—			—			—			(7.7		)
Common stock dividends paid	(16.5		)	—			—			—			(16.5		)
Inter-company activity	21.3			(8.3		)	0.7			(13.7		)	—
Advances from noncontrolling interest owner	—			—			88.4			—			88.4
Other financing items, net	3.2			—			(0.4		)	—			2.8
Net cash flows from financing activities	1.6			(123.4		)	88.7			(13.7		)	(46.8		)
Net decrease in cash and cash equivalents	—			(381.0		)	(0.2		)	—			(381.2		)
Cash and equivalents, beginning of period	—			444.3			17.4			—			461.7
Cash and equivalents, end of period	$	—		$	63.3		$	17.2		$	—		$	80.5