Ryerson Holding Corporation · NYSE:RYZ
Ryerson — Q3 2022 Earnings Presentation
24 slides from Ryerson's earnings presentation, Nov 2, 2022
Slide 1: Ryerson Quarterly Release Presentation Q3 2022
Ryerson Quarterly Release Presentation Q3 2022 Exhibit 99.2
Slide 2: Important Information About Ryerson Holding Corporation
31 Important Information About Ryerson Holding Corporation These materials do not constitute an offer or solicitation to purchase or sell securities of Ryerson Holding Corporation (“Ryerson” or “the Company”) or its subsidiaries and no investment decision should be made based upon the information pr
Slide 3: Q3 2022 Highlights
Q3 2022 Highlights Diluted EPS1 of $1.46 on $1.54 billion of revenue Net Income of $55 million and Adjusted EBITDA, excluding LIFO2 of $79 million Generated Operating Cash Flow of $152 million and Free Cash Flow3 of $124 million Redeemed final $50 million outstanding 8.50% senior secured notes due 2
Slide 4: Macro & Commodities
Macro & Commodities Commodity indices reset lower driven by macro headwinds Sources: Bloomberg: prices through September 30, 2022; Futures prices as of October 17,2022; Federal Reserve, Industrial Production Index monthly year-over-year change; Bloomberg, U.S. Manufacturing PMI Commodity Prices Sinc
Slide 5: Debt Opportunistically Retired
Debt Opportunistically Retired Consistently driven down high-yield debt as part of financial transformation strategy Q1 ’22 $63.1M repurchased via open-market Q2 ’22 $186.9M repurchased via oversubscribed tender and open-market Q3 ’22 $50M redeemed using special redemption option 1Chart represents o
Slide 6: Sequential increase in Liquidity and decrease in Net Debt
Sequential increase in Liquidity and decrease in Net Debt Global liquidity increased to $906M in Q3 ’22 from $894M in Q2 ‘22 Leverage maintained at historic low 0.5x Stronger Liquidity to Fund Operations and Investments Cash and Cash Equivalents Foreign Availability North American Availability
Slide 7: Sequential Q3 2022 End-Market Trends
Sequential Q3 2022 End-Market Trends North American volumes impacted by most end-market deferred demand; partially offset by increases in Consumer Durables and HVAC 12021 Sales Mix Excludes Other Industry Sectors which represent approximately 4% of Ryerson sales mix; Sales Mix based on 2021 results
Slide 8: Capital Allocation Plan
Capital Allocation Plan Strong free cash flow generation $100M in ’22 plan: $74M for modernization and Value-Add Raised dividend to $0.16 per share Track record of successful acquisitions $51M repurchased since ’21; New $75M authorization CAPEX DIVIDENDS BUYBACKS M&A supports increases in 4 key pill
Slide 9: Q4 2022 Guidance
Q4 2022 Guidance Anticipate a seasonally slower Q4 and pricing to trend lower on macroeconomic factors Net Sales Net Income1 Adj. EBITDA, excl. LIFO $1.25 - 1.30B $27 - 29M $40 - 44M Fourth quarter revenue guidance of $1.25B to $1.30B assumes: Average Selling Price decrease of 7% to 11% Shipments de
Slide 10: Q3 2022 Selected Financial & Operating Metrics
Q3 2022 Selected Financial & Operating Metrics See Ryerson’s 8-K filed on November 2, 2022. 1Free Cash Flow Yield is calculated based on quarterly cash flow divided by period end market capitalization Q3 2022 Investment 2022 Projection $28M $100M Capital Investment Expenses Expenses / Sales +$4M +16
Slide 11: Ryerson has driven down net debt and fixed cash commitments
Ryerson has driven down net debt and fixed cash commitments as part of its financial transformation strategy, significantly reducing annual interest payments 2016 Refinance 2020 Refinance 2021 Q1 2022 Q2 2022 Q3 2022 Notes Principal Amount $650M $500M $300M $237M $50M $0M Coupon 11.00% 8.5
Slide 12: Capital Allocation Plan Update
Ryerson distributed its fifth quarterly cash dividend and completed ~$0.9M in share repurchases. On November 2, 2022, the Board of Directors approved a fifth dividend increase, raising the Company’s fourth quarter dividend to $0.16 per share $0.15 per Share Return of capital to investors and $0.9M S
Slide 13: Dividend Payments Trend Higher
Dividend Payments Trend Higher Stronger capital structure allows for greater returns to shareholders 1Dividend Yield based on projected annual dividend divided by share price as of 10/11/22 of $29.25 1
Slide 14: Q3 2022 Key Financial Metrics
1 Net Income attributable to Ryerson Holding Corporation; A reconciliation of non-GAAP financial measures to the comparable GAAP measure is included in the Appendix. See Ryerson’s 8-K filed on November 2, 2022 Q3 2022 Key Financial Metrics Net Sales Gross Margin Net Income1 Diluted Earnings per Shar
Slide 15: Intelligent Network of Industrial Metals Service Centers
Intelligent Network of Industrial Metals Service Centers Say “yes” culture ~100 company-operated locations Hundreds of “virtual” locations Dedicated logistics network Availability, speed, ease, consistency Advanced value-add Diversified (metals mix, 40k customers, 75k products) 24/7 e-commerce platf
Slide 16: Ryerson Family of Companies
RYERSON FAMILY OF COMPANIES [FANELLO fay # industries ae es G <> Singer Ce SY Ste sme Wig) eS ses Sia Ge
Slide 17: Appendix
Appendix
Slide 18: Quarterly Financial Highlights
Tons Sold (000’s) Quarterly Financial Highlights 1 Net Income attributable to Ryerson Holding Corporation A reconciliation of non-GAAP financial measures to the comparable GAAP measure is included in this Appendix Average Selling Price Per Ton Gross Margin & Gross Margin, excl. LIFO Adj EBITDA, excl
Slide 19: Ryerson Book Value and Balance Sheet Transformation
Ryerson Book Value and Balance Sheet Transformation 12021 includes $12M of deferred pension contributions as allowed under the CARES Act; 2Q2 2022 represents Trailing Twelve Months figures; 3Avg. Competitor includes Klockner, Olympic, Reliance and Russel Fixed Cash Commitments 2 2 3 3 1
Slide 20: Non-GAAP Reconciliation: Quarterly Adjusted EBITDA, excl. LIFO
Non-GAAP Reconciliation: Quarterly Adjusted EBITDA, excl. LIFO 20
Slide 21: Adjusted Net Income Reconciliation
Adjusted Net Income Reconciliation Q3 2022 reported net income1 of $55.1 million reflects a $0.6 million gain on bargain purchase and a $1.5 million loss on the early retirement of debt. Adjusted earnings were $55.8 million in Q3 2022 1 Net Income attributable to Ryerson Holding Corporation
Slide 22: Non-GAAP Reconciliations: Net Debt
Non-GAAP Reconciliations: Net Debt
Slide 23: EBITDA and Adjusted EBITDA notes
31 Note: EBITDA represents net income before interest and other expense on debt, provision for income taxes, depreciation, and amortization. Adjusted EBITDA gives further effect to, among other things, reorganization expenses, gain on bargain purchase, gain on sale of assets, loss on retirement of d
Slide 24: Ryerson
RYERSON