Ryerson Holding Corporation · NYSE:RYZ
Ryerson — Global Industrials & Materials Summit 2020
26 slides from Ryerson's conference presentation, June 2020
Slide 1: Global Industrials & Materials Summit
Global Industrials & Materials Summit June 2020 1
Slide 2: Important Information About Ryerson Holding Corporation
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”) and no investment decision should be made based upon the information provided herein. Ryerson
Slide 3: Business Overview
Business Overview Eddie Lehner Molly Kannan President & Chief Controller & Chief Executive Officer Accounting Officer 3
Slide 4: Years, Locations, Customers, Products
178 Years 100+ Locations 42,000 Customers 75,000 Products Focused on creating great customer experiences at Speed, Scale, & Consistency 4
Slide 5: Diverse End-Markets
Diverse End-Markets Metal Industrial Fabrication Equipment and Machine 18% Shop 23% Commercial Other 4% Ground Transportation Oil & Gas 16% 4% HVAC 6% Consumer Construction Durable 11% Food Equipment Processing & 8% Ag 10% End market percentages are based on 2019 sales as disclosed in Ryerson’s Annu
Slide 6: COVID-19 Response: Dual Mandate
COVID-19 Response: Dual Mandate Continuing to operate as an essential business while rapidly implementing our comprehensive COVID-19 response focused on the health and safety of employees as well as liquidity and recovery capacity Health & Safety Liquidity & Recovery Capacity •COVID-19 Task Force co
Slide 7: Stronger Down-Cycle Resilience
Stronger Down-Cycle Resilience Focused management and improved operational performance have resulted in a more fortified Ryerson 1st Comparative Period 2nd Comparative Period Current Period Q1 2008 2009 2010 2014 2015 2016 2018 2019 2020 Gross Margin, excl. 15.1% 9.2% 15.2% 17.6% 16.0% 19.7% 19.2% 1
Slide 8: Strong Liquidity to Fund Operations and Investments
Strong Liquidity to Fund Operations and Investments Ryerson has maintained ample liquidity to fund operations throughout the COVID-19 crisis ($M) • Liquidity decreased quarter-over- quarter in Q1 ‘20 due to our repurchase of $55M in Senior Secured Notes at an average discount to par of $98.5. • In a
Slide 9: Q1 2020 Financial Performance Highlights
Q1 2020 Financial Performance Highlights Generated strong cash from operating activities, reduced net debt, and maintained strong liquidity amidst the COVID-19 pandemic Diluted Adjusted Gross Margin, Adj. EBITDA, excl. Cash from Operating Net Sales Earnings per Days of Supply excl. LIFO LIFO Activit
Slide 10: Building a Better Ryerson: CS&W Transformation
Building a Better Ryerson: CS&W Transformation Upon closing the acquisition in July of 2018, Ryerson gained an expanded footprint and complementary product offering and has since been actively implementing Ryerson’s industry leading expense and working capital management practices, driving towards a
Slide 11: Navigating Through the Unprecedented 2020 Environment
Navigating Through the Unprecedented 2020 Environment Uncertainties Risks Growth Supportive Factors - Asynchronous Virus Uncertainty - Political Risk - Low Imports - Continued Fiscal and Monetary - Debt Levels - Inventory Replenishment Stimulus - Global Trade Tensions - Fiscal Stimulus - Working Cap
Slide 12: Strategic Priorities for Obtaining Next Phase Targets
Strategic Priorities for Obtaining Next Phase Targets Explore opportunities to refinance 2022 Notes Reduce net leverage Gain profitable market share Increase value-add as a percentage of sales Achieve Central Steel & Wire long-term, mid-cycle target 2.0x Net Debt / Adj. $600m/$50M CS&W Net 20% Gross
Slide 13: Appendix
Appendix 13
Slide 14: Current Asset Coverage
Current Asset Coverage Ryerson has an improved asset profile and strengthened collateral coverage compared to previous downturn years on a pro forma basis, adjusting for the $166M in cash drawn in Q1 2020 As of December 31, 2007 ($M) As of December 31, 2015 ($M) Pro Forma March 31, 2020 ($M) 2.1x 1.
Slide 15: Bond Repurchase Summary – Bonds Trading Back at Par
Bond Repurchase Summary – Bonds Trading Back at Par Repurchased $55M of Senior Secured notes at $98.5 average. This was partially accomplished with earmarked proceeds from the sale-leaseback transaction completed in the fourth quarter of 2019. Ryerson Senior Secured Notes In the first quarter, we ha
Slide 16: CS&W Transformation: Q1 2020 vs. Q1 2019
CS&W Transformation: Q1 2020 vs. Q1 2019 First quarter results illustrate the year-over-year progression of management’s turnaround strategies as margins have expanded, expenses have declined, inventory levels have decreased, and the company achieved Adj. EBITDA, excl. LIFO of $3M in the first quart
Slide 17: Same-Store Financial Metrics Reconciliation
Same-Store Financial Metrics Reconciliation Central Steel & Wire contributed $123M in net sales and $3 million in Adj. EBITDA, excl. LIFO to Ryerson’s first quarter results First Quarter 2020 Central Steel & Ryerson Same Ryerson Holding $M, Tons 000's Wire Company Store Corporation Tons Shipped 76 4
Slide 18: Annual Financial Highlights
Annual Financial Highlights Tons Sold (000’s) Average Selling Price Per Ton 2,024 1,897 1,903 2,000 2,268 2,381 $1,790 $1,670 $1,503 $1,682 $1,944 $1,891 2014 2015 2016 2017 2018 2019 2014 2015 2016 2017 2018 2019 Gross Margin & Gross Margin, excl. LIFO Adjusted EBITDA, excl. LIFO Margin % Gross Mar
Slide 19: Quarterly Financial Highlights
Quarterly Financial Highlights Tons Sold (000’s) Average Selling Price Per Ton 619 623 598 541 566 $1,988 $1,934 $1,847 $1,777 $1,785 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Gross Margin & Gross Margin, excl. LIFO Adjusted EBITDA, excl. LIFO Margin % Gross Mar
Slide 20: Ryerson's Commitment to our Employees and Communities
Ryerson’s Commitment to our Employees and Communities Safety Sustainability Community Support We consistently outperform the Although our operations by their nature do not The Ryerson Gives Back Bureau of Labor Statistics, and, have a significant impact on the environment, program supports active in
Slide 21: Experienced Management Team
Experienced Management Team Years in Years at Years in Executive Title Position Ryerson Industry Eddie Lehner(1) President & Chief Executive Officer 5 8 31 Mike Burbach President - North / West Region 13 36 36 Kevin Richardson President - South / East Region 13 35 35 Molly Kannan(2) Controller and C
Slide 22: Non-GAAP Reconciliation
Non-GAAP Reconciliation EBITDA represents net income before interest and other expense on debt, provision (benefit) for income taxes, depreciation, and amortization. Adjusted EBITDA gives further effect to, among other things, gain on the sale of assets, impairment charges on assets, reorganization
Slide 23: Non-GAAP Reconciliation: Adjusted EBITDA, excl. LIFO
Non-GAAP Reconciliation: Adjusted EBITDA, excl. LIFO ($M) Q1 '19 Q2 '19 Q3 '19 Q4 '19 Q1 '20 Tons Sold (000's) 619 623 598 541 566 Net Sales 1,230.8 1,204.9 1,104.4 961.5 1,010.3 Gross Profit 231.3 211.8 204.4 180.4 195.8 Gross Profit per Ton 374 340 342 333 346 Gross Margin 18.8% 17.6% 18.5% 18.8%
Slide 24: Non-GAAP Reconciliation: Annual
Non-GAAP Reconciliation: Annual ($M) 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Tons Sold (000's) 2,505 1,881 2,252 2,433 2,149 2,038 2,024 1,897 1,903 2,000 2,268 2,381 Net Sales 5,309.8 3,066.1 3,895.5 4,729.8 4,024.7 3,460.3 3,622.2 3,167.2 2,859.7 3,364.7 4,408.4 4,501.6 Gross P
Slide 25: Non-GAAP Reconciliations: Adjusted Net Income & Net Debt
Non-GAAP Reconciliations: Adjusted Net Income & Net Debt (Dollars and shares in millions, except per share data) Q1 '20 Q1 '19 Q4 '19 Net income attributable to Ryerson Holding Corporation $16.4 $29.5 $26.4 Gain on sale of assets - - (20.6) Restructuring and other charges - 0.3 0.7 (Gain) loss on re
Slide 26: Ryerson
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