Ryerson Holding Corporation · NYSE:RYZ
Ryerson — BAML Leveraged Finance Conference 2020
29 slides from Ryerson's conference presentation, Dec 1, 2020
Slide 1: BAML Leveraged Finance Conference December 2020
BAML Leveraged Finance Conference December 2020 Exhibit 99.1
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: Business Overview
Business Overview Eddie Lehner President & Chief Executive Officer Molly Kannan Controller & Chief Accounting Officer
Slide 4: Consistently Better In Every Way
As of the end of the third quarter of 2020, Ryerson has increased book value of equity by $315M since 2010. Ryerson’s net debt and pension obligations have decreased by approximately $440M & $130M, respectively, in the last 10 years. These significant legacy liability reductions have driven down our
Slide 5: Intelligent Network of Service Centers
~100 Locations 178 Years 42,000 Customers 75,000 Products Creating great customer experiences at Speed, Scale, & Consistency in a fragmented industrial metals marketplace Intelligent Network of Service Centers
Slide 6: Diverse End-Markets – More than 42,000 Active Customers
Diverse End-Markets – More than 42,000 Active Customers End market percentages are based on 2019 sales as disclosed in Ryerson’s Annual Report on Form 10-K for the year ended December 31, 2019. Secular growth end markets emerging in climate/HVAC, cloud computing, and e-commerce Includes renewable en
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 The Company’s liquidity increased by approximately $48 million compared to the second quarter driven by Adj. EBITDA , excl. LIFO generation and excellent working capital
Slide 8: Improving operating metrics and leverage ratios through the cycle
Ryerson continues improving operating metrics and leverage ratios through the cycle from peak to trough. After adjusting for one time impacts from bond refinancing and ABL amend & extend events, normalized cash interest expense is expected to be significantly lower moving forward as compared to the
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 2012 2016 2020F Bond Principal Amt $900M $650M $450M Cou
Slide 10: Substantially higher collateral coverage
Successful asset management & significant debt reduction are expected to result in substantially higher collateral coverage compared to previous years Current Asset Coverage 2.3x Collateral Coverage 1.7x Tangible Asset Value September 30, 2020 ($M) 1.8x Collateral Coverage 1.6x Tangible Asset Value
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 *A p
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. Our improved operating profile led to a 28% average free cash flow yield for the five-year period of 2
Slide 13: Strategic Priorities for Obtaining Next Phase Targets
13 6% U.S. Market Share 15% Value-Add Mix 20% Gross Margin, excl. LIFO 2.0x Net Debt / Adj. EBITDA, excl. LIFO $600m/$50M CS&W Net Sales/Adj. EBITDA, excl. LIFO Strategic Priorities for Obtaining Next Phase Targets – All About Creating The Industry's Best Customer Experience with Consistency and at
Slide 14: Navigating Through the Unprecedented 2020 Environment
Navigating Through the Unprecedented 2020 Environment Growth Supportive Factors - Low Imports - Inventory Replenishment - Fiscal Stimulus - Supply Side Responses - Reshoring - YITTB- Yes, It’s Time to Build Movement Uncertainties - Asynchronous Virus Uncertainty - Continued Fiscal and Monetary Stimu
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
Slide 16: Ryerson Takeaways
Ryerson Takeaways 16 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 Structur
Slide 17: Yes, It’s Time to Build #YITTB
YES, IT’S TIME TO BUILD #YITTB
Slide 18: Appendix
Appendix
Slide 19: Q3 2020 Key Financial Metrics
A reconciliation of non-GAAP financial measures to the comparable GAAP measure is included in the Appendix. . Net Sales Gross Margin, excl. LIFO Diluted Adjusted Earnings per Share Adj. EBITDA, excl. LIFO Cash from Operating Activities $832M 16.7% $0.31 $31M $121M +8% vs. Q2’20 -25% vs. Q3’19 -10 bp
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 20 Generated $1.2B of FCF despite business cycles and capital expenditures of $382M
Slide 21: Annual Financial Highlights
Annual Financial Highlights A reconciliation of non-GAAP financial measures to the comparable GAAP measure is included in this Appendix. Tons Sold (000’s) Average Selling Price Per Ton Gross Margin & Gross Margin, excl. LIFO Adjusted EBITDA, excl. LIFO Margin %
Slide 22: Quarterly Financial Highlights
Quarterly Financial Highlights A reconciliation of non-GAAP financial measures to the comparable GAAP measure is included in this Appendix. Tons Sold (000’s) Average Selling Price Per Ton Adjusted EBITDA, excl. LIFO Margin % Gross Margin & Gross Margin, excl. LIFO
Slide 23: Commitment to Employees, Communities and Sustainability
Although our operations by their nature do not have a significant impact on the environment, we continue to: Purchase metal produced using recycled materials or scrap melted in electric arc furnaces and sell scrap to recyclers Use propane fuel to operate forklifts Install energy efficient lighting U
Slide 24: Experienced Management Team
Experienced Management Team
Slide 25: EBITDA and Adjusted EBITDA definitions
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 or loss on retirement of debt, loss on pension settlement, purchase
Slide 26: Non-GAAP Reconciliation: Adjusted EBITDA, excl. LIFO
Net income includes a vacation accrual adjustment of $11M in Q4 2019. ` Non-GAAP Reconciliation: Adjusted EBITDA, excl. LIFO
Slide 27: Non-GAAP Reconciliation: Annual
Non-GAAP Reconciliation: Annual Net income includes gain on bargain purchase of $70M in 2018 for acquisition of CS&W and includes a favorable vacation accrual adjustment of $11M in 2019.
Slide 28: Non-GAAP Reconciliations: Adjusted Net Income & Net Debt
Non-GAAP Reconciliations: Adjusted Net Income & Net Debt
Slide 29: Ryerson
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