Russel Metals Inc. · TSX:RUS
Russel Metals — Investor Presentation (June 2020)
15 slides from Russel Metals's investor presentation, Jun 4, 2020
Slide 1: June 2020
JUNE 2020 al OT ony aw Mim ad
Slide 2: Cautionary Statement on Forward-Looking Information
CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION Certain statements contained in this document constitute forward-looking statements or information within the meaning of applicable securities laws, including statements as to our future capital expenditures, our outlook, the availability of future
Slide 3: Company Overview
COMPANY OVERVIEW 3
Slide 4: Summary
SUMMARY We are one of the largest metals distribution and processing companies in North America. Metal Service Centers Energy Products Steel Distributors Geographic Breakdown EBIT Breakdown Total – 142 Locations Three Months Ended March 31, 2020 Metals Energy Service Products United Centers 26% Stat
Slide 5: Value-Added Processing Capabilities
VALUE-ADDED PROCESSING CAPABILITIES 5
Slide 6: Countercyclical Cash Flow
COUNTERCYCLICAL CASH FLOW EBITDA positive throughout the cycles; working capital repatriation during market downturns. Quarterly EBITDA vs. Change in Working Capital ($000's) $250,000 $200,000 $150,000 $100,000 $50,000 $0 ($50,000) ($100,000) ($150,000) Q1 2007 Q1 2008 Q1 2009 Q1 2010 Q1 2011 Q1 201
Slide 7: Variable Cost Model – Breakdown of Cash Costs
VARIABLE COST MODEL – BREAKDOWN OF CASH COSTS THREE MONTHS ENDED MARCH 31, 2020 YEAR ENDED DECMEBER 31, 2019 $787 Million $3,499 Million Cost of Cost of Materials, Materials, $660 $3,028 Employee Expenses - Operating Employee Variable, $5 Operating Expenses - Expenses - Expenses - Operating Fixed, $
Slide 8: Balance Sheet at March 31, 2020
BALANCE SHEET AT MARCH 31, 2020 (millions) ASSETS EMPLOYED Cash $ 52 Accounts Receivable 475 • Net Debt/Invested Capital: 31% Inventories 907 • Net Debt/Shareholders Equity: 45% Property, Plant and Equipment 384 Goodwill/Intangibles 141 • Liquidity: $393 Million Other 52 $ 2,011 • Long term Debt Mat
Slide 9: Market Trends
MARKET TRENDS 9
Slide 10: Price of HR Sheet & HR Plate
200 300 400 500 600 700 800 900 1,000 1,100 1,200 Jan-11 May-11 Sep-11 US$ per Ton Jan-12 May-12 Sep-12 Jan-13 May-13 Sep-13 Jan-14 May-14 Sep-14 Jan-15 May-15 Sep-15 Jan-16 May-16 Sep-16 Jan-17 May-17 HR Sheet Sep-17 Jan-18 May-18 PRICE OF HR SHEET & HR PLATE Sep-18 Jan-19 May-19 Carbon Plate Sep-1
Slide 11: Scrap Pricing
$100 $150 $200 $250 $300 $350 $400 $450 $500 Jan-13 Mar-13 May-13 Jul-13 Sep-13 Nov-13 Jan-14 Mar-14 May-14 Jul-14 Sep-14 AMM Scrap Values Nov-14 Jan-15 Mar-15 May-15 Jul-15 SCRAP PRICING Sep-15 Nov-15 Jan-16 Mar-16 May-16 Jul-16 Sep-16 Nov-16 Jan-17 Mar-17 May-17 Jul-17 Sep-17 Nov-17 Jan-18 Mar-18
Slide 12: Mill Production Tons
Net Tons (000's) 700 900 1,100 1,300 1,500 1,700 1,900 2,100 Jan-13 Mar-13 May-13 Jul-13 Sep-13 Nov-13 Jan-14 Mar-14 May-14 Jul-14 Sep-14 Nov-14 Jan-15 Mar-15 May-15 Jul-15 Sep-15 Nov-15 Jan-16 Mar-16 May-16 Jul-16 Sep-16 Nov-16 Jan-17 Mar-17 May-17 MILL PRODUCTION TONS Jul-17 Sep-17 Nov-17 Jan-18 M
Slide 13: North American Rig Count
NORTH AMERICAN RIG COUNT 1,000 2,250 900 2,000 Canada U.S 800 1,750 700 1,500 600 1,250 500 1,000 400 750 300 500 200 100 250 0 0 Source: Baker Hughes 13
Slide 14: Summary
\& Russel Metals SUMMARY
Slide 15: Summary
SUMMARY Leading Market Position Strong supplier relationships and unique market insight Low customer concentration, multiple business segments with diversified customer base Superior service and product availability Strong value-added processing Flexible Business Model Variable cost/compen