Ryerson Holding Corporation · NYSE:RYZ
Ryerson — Bank of America Merrill Lynch Leveraged Finance Conference 2020
29 slides from Ryerson's conference presentation, Dec 1, 2020
Slide 1: BAML Leveraged Finance Conference
BAML Leveraged Finance Conference December 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”) or its subsidiaries and no investment decision should be made based upon the information provi
Slide 3: Business Overview
Business Overview Eddie Lehner Molly Kannan President & Chief Controller & Chief Executive Officer Accounting Officer 3
Slide 4: Consistently Better In Every Way
Consistently Better In Every Way Successful Refinance of 11.00% 2022 Notes Achieved a coupon 250 bps lower on a reduced principal amount, favorable optional redemption terms (which provide further deleveraging optionality), and an 8-year runway for future operating model enhancements. Completed ABL
Slide 5: Intelligent Network of Service Centers
Intelligent Network of Service Centers 178 Years ~100 Locations 42,000 Customers 75,000 Products Creating great customer experiences at Speed, Scale, & Consistency in a fragmented industrial metals 5 marketplace
Slide 6: Diverse End-Markets – More than 42,000 Active Customers
Diverse End-Markets – More than 42,000 Active Customers Secular growth end markets emerging in climate/HVAC, cloud computing, and e-commerce Includes electric vehicles & software infrastructure Metal Industrial Fabrication Equipment and Machine 18% Shop 23% Commercial Other 4% Ground Includes Transp
Slide 7: Strong Liquidity to Fund Operations and Investments
Strong Liquidity to Fund Operations and Investments Ryerson has ample liquidity to fund operations throughout the COVID-19 crisis ($M) The Company’s liquidity increased by approximately $48 million compared to the second quarter driven by Adj. EBITDA , excl. LIFO generation and excellent working cap
Slide 8: Stronger Cycle Resilience: Better in the Ups & through the Downs
Stronger Cycle Resilience: Better in the “Ups” & through the “Downs” Ryerson's Improvements Show Through When Comparing Recessionary Periods 1st Comparative Period 2nd Comparative Period Current Period $M 2008 2009 2010 2014 2015 2016 2018 2019 Q3 2020 YTD Gross Margin, excl. LIFO 15.1% 9.2% 15.2% 1
Slide 9: Decreasing Net Debt with Secured Optionality
Decreasing Net Debt with Secured Optionality Ryerson has driven down net debt and fixed cash commitments as part of its transformation strategy and has begun to exercise the optional redemption terms secured in the July 2020 refinance Net Debt ($M) Reduced Principal & Interest 2012 2016 2020F Bon
Slide 10: Current Asset Coverage
Current Asset Coverage Successful asset management & significant debt reduction are expected to result in substantially higher collateral coverage compared to previous years As of December 31, 2018 ($M) As of December 31, 2019 ($M) September 30, 2020 ($M) 1.8x 2.1x 2.3x Collateral Coverage Collatera
Slide 11: Significant Reduction in Annual Fixed Cash Commitments
Significant Reduction in Annual Fixed Cash Commitments Since going public in 2014, legacy liabilities have declined significantly, even with the addition of CS&W’s pension obligations in July of 2018. Lower annual interest expenses have further decreased fixed cash commitments going forward. $M $181
Slide 12: Best in Class Free Cash Flow Yield
Best in Class Free Cash Flow Yield Free cash flow yield over the past 23 quarters was well above our publicly-traded peer group and compares favorably to the Composite S&P 500 Free Cash Flow Yield. Annualized average figures 2015 - 2019 2015 - Q3 2020 Free cash flow $94M $140M Market capitalization
Slide 13: Strategic Priorities for Obtaining Next Phase Targets
Strategic Priorities for Obtaining Next Phase Targets – All About Creating The Industry's Best Customer Experience with Consistency and at Scale. Reduce net leverage as further operating model improvement realizations take effect Ryerson digitalization initiatives and footprint optimization work dri
Slide 14: 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 15: Eventually This Bill Comes Due … It's Past Due
Eventually This Bill Comes Due … It’s Past Due Recent Events Further Underscore The Need 15 15
Slide 16: Ryerson Takeaways
Ryerson Takeaways Moving Through and Looking Beyond The Pandemic Enhanced Operating Leverage Through Ongoing Operating Model Improvements Vastly Improved Asset Based Collateral Improved Through-The-Cycle Leverage Strong Liquidity Profile Positive Cash Flow from Operating Activities Lower Structural
Slide 17: Yes, It's Time To Build #YITTB
YES, IT’S TIME TO BUILD #YITTB 17
Slide 18: Appendix
Appendix 18
Slide 19: Q3 2020 Key Financial Metrics
Q3 2020 Key Financial Metrics Ryerson’s performance amidst the continuing pandemic characterized by excellent cash flow generation alongside a strengthened balance sheet Cash from Gross Margin, Diluted Adjusted Adj. EBITDA, excl. Net Sales Operating excl. LIFO Earnings per Share LIFO Activities Thir
Slide 20: Generating Significant Free Cash Flow Through The Cycle
Generating Significant Free Cash Flow Through The Cycle Improved operating profile expected to generate higher through-the-cycle quality of earnings & less cash flow generation volatility $5,310 $4,730 $4,408 $4,502 $4,025 $3,896 $3,460 $3,622 Generated $3,365 $3,066 $3,167 $277 $223 $202 $218 $2,86
Slide 21: 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 22: Quarterly Financial Highlights
Quarterly Financial Highlights Tons Sold (000’s) Average Selling Price Per Ton 598 541 566 462 489 $1,847 $1,777 $1,785 $1,671 $1,700 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Gross Margin & Gross Margin, excl. LIFO Adjusted EBITDA, excl. LIFO Margin % Gross Mar
Slide 23: Ryerson's Commitment to our Employees and Communities
Ryerson’s Commitment to our Employees and Communities Safety Sustainability Community Support We consistently outperform the Although our operations by their nature do not The Ryerson Gives Back Bureau of Labor Statistics, and, have a significant impact on the environment, program supports active in
Slide 24: Experienced Management Team
Experienced Management Team Years in Years at Years in Executive Title Position Ryerson Industry Eddie Lehner(1) President & Chief Executive Officer 5 8 31 Mike Burbach President - North / West Region 13 37 37 Kevin Richardson President - South / East Region 13 36 36 Molly Kannan(2) Controller and C
Slide 25: Non-GAAP Reconciliation
Non-GAAP Reconciliation Note: EBITDA represents net income before interest and other expense on debt, provision for income taxes, depreciation, and amortization. Adjusted EBITDA gives further effect to, among other things, reorganization expenses, gain or loss on retirement of debt, loss on pension
Slide 26: Non-GAAP Reconciliation: Adjusted EBITDA, excl. LIFO
Non-GAAP Reconciliation: Adjusted EBITDA, excl. LIFO ($M) Q3 '19 Q4 '19 Q1 '20 Q2 '20 Q3 '20 Tons Sold (000's) 598 541 566 462 489 Net Sales 1,104.4 961.5 1,010.3 771.8 831.5 Gross Profit 204.4 180.4 195.8 115.5 155.9 Gross Profit per Ton 342 333 346 250 319 Gross Margin 18.5% 18.8% 19.4% 15.0% 18.7
Slide 27: 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 28: 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) Q3 '19 Q2 '20 Q3 '20 Net income (loss) attributable to Ryerson Holding Corporation $10.1 ($25.6) ($39.9) Gain on insurance settlement (1.5) - - Restructuring and other charges 0.3 2.0 0.2
Slide 29: Ryerson
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Ryerson Holding — Bank of America Merrill Lynch Leveraged Finance Conference 2020 on 6ix