Ryerson Holding Corporation · NYSE:RYZ
Ryerson — BMO Global Metals & Mining Conference 2021
25 slides from Ryerson's conference presentation, March 2021
Slide 1: BMO Global Metals & Mining Conference
BMO Global Metals & Mining Conference March 2021 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 Jim Claussen Executive Vice President & Chief Financial Officer Molly Kannan Corporate Controller & Chief Accounting Officer 3
Slide 4: An intelligently connected network of industrial metal service centers
An intelligently connected network of industrial metal service centers offering great customer experiences ✓ A leading North American value-added metals service center with speed, scale and value-add across Ryerson's ✓ Approximately 100 locations across North America & China customer experience eco-
Slide 5: Ryerson at the Center of The Industrial Metals Value Chain
Ryerson at the Center of The Industrial Metals Value Chain – A Fragmented Industry within a Greater than $250 Billion Market Suppliers Customers • 75,000 aluminum, carbon, and stainless • Manufacture metals products in inventory and network access to • Purchase smaller quantities • Produce & ship la
Slide 6: Key Investment Highlights
Key Investment Highlights Well Positioned For Cyclical and Secular Growth Trends; Counter-Cyclical Performance Well Established Transformed Operating and Financial Profile Since IPO Transferring Value to Shareholders through Operating Model Advancement and Balance Sheet Deleveraging Organic and Inor
Slide 7: Well Positioned For Growth Assuming Attractive Metals Sector Fundamentals
Well Positioned For Growth Assuming Attractive Metals Sector Fundamentals…Recovery as Indicators Currently Show Market Commentary Commodity Prices Since Dec. 2017 U.S. Industrial Production & MSCI Tons (M) CRU HRC ◼ Demand is recovering in nearly all 1.8 U.S. Industrial Production LME Nickel markets
Slide 8: Secular Growth End-Markets
Secular Growth End-Markets ✓Electric Vehicles Metal fabrication and Industrial equipment machine shop 18% 25% ✓Cloud Infrastructure Ground transport 14% ✓Automation Other 4% ✓Renewable Energy Oil & Gas 4% HVAC 6% ✓E-Commerce Logistics Consumer durables 11% Construction equipment Food processing 9% 9
Slide 9: Ryerson Stands to Benefit From Increased Infrastructure Spending
Ryerson Stands to Benefit From Increased Infrastructure Spending Public investment in infrastructure has never regained its earlier levels but that has to change - "YITTB" Public Spending On Broad Infrastructure As A % Of GDP More Than Old Enough At Record Lows Record age for U.S. assets is seen poi
Slide 10: Ryerson has Transformed its Operating and Financial Profile
Ryerson has Transformed its Operating and Financial Profile with a “Say Yes, Figure It Out” Approach to its Business and Company Culture INDUSTRY-LEADING PERFORMANCE OPERATIONAL EFFICIENCY MARGIN EXPANSION PROFITABLE GROWTH ⚫ Expense and working ⚫ Optimize product and customer mix ⚫ Growing share by
Slide 11: Ryerson Transformational Proof
Ryerson Transformational Proof Ryerson’s performance shows consistent through the cycle improvements in key financial metrics 1st Comparative Period 2nd Comparative Period Current Period $M 2008 2009 2010 2014 2015 2016 2018 2019 2020 Gross Margin, excl. LIFO 15.1% 9.2% 15.2% 17.6% 16.0% 19.7% 19.2%
Slide 12: Material Deleveraging Offers Value Transfer to Shareholders
Material Deleveraging Offers Value Transfer to Shareholders Net Debt * Pension Benefit Liability Annual Fixed Cash Commitments $M $123 $448 $93 $1,127 $277 $181 $679 $154 $88 IPO 2020 IPO 2020 IPO 2020 Repaying debt, borrowing at lower rates, extending maturities, and leveraging our real-estate port
Slide 13: Investing in the Business
Investing in the Business Ryerson has invested $103 million in growth initiatives since 2014 to expand value-added capabilities, improve its interconnected network, and enhance the customer experience. Enhanced intelligent systems for connecting: • People – Subject matter experts • Supply chains – V
Slide 14: Value-added Processing Shift
Value-added Processing Shift Ryerson targets increasing its fabrication mix to 15% of sales, which is expected to positively impact gross margin by ~30-50 bps Value-Added Sales Mix 15.0% 10.4% 6.7% 2010 2019 Next Phase Target 13.9% 18.4% 18.7-18.9% Gross Margin Gross Margin Gross Margin Note: Target
Slide 15: Strategic Priorities for Obtaining Next Phase Targets
Strategic Priorities for Obtaining Next Phase Targets – All About Creating The Industry's Best Customer Experience with Speed, Scale, and Consistency Reduce net leverage as further operating model Digital Capabilities improvement realizations take effect Ryerson digitalization initiatives and footpr
Slide 16: Experienced Management Team
Experienced Management Team Eddie Lehner Jim Claussen President and Chief Executive Officer |6 years Executive Vice President and Chief Financial Officer | <1 year ▪ 9+ years at Ryerson ▪ 19+ years at Ryerson ▪ 31+ years of industry experience ▪ 26+ years of industry experience Mike Burbach Kevin Ri
Slide 17: Financial Update
Financial Update 17
Slide 18: Q4 2020 Key Financial Metrics
Q4 2020 Key Financial Metrics Realized significant accomplishments and improvements to the business in a pandemic year of adversities with enhanced recovery capacities Diluted Adjusted Cash from (used Gross Margin, Adj. EBITDA, excl. Net Sales Earnings (Loss) in) Operating excl. LIFO LIFO per Share
Slide 19: 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 to fuel value shift to equity shareholders and future growth investment $5,310 $4,730 $4,408 $4,502 $3,896 $4,02
Slide 20: Ryerson Takeaways
Ryerson Takeaways Transferring value to shareholders and poised to grow and provide excellent customer experiences with speed, scale and consistency Well Positioned For Growth Given Attractive Metals Sector Fundamentals and End-Market Growth Trends Transformed Operating and Financial Profile Since I
Slide 21: Appendix
Appendix 21
Slide 22: Non-GAAP Reconciliation
Non-GAAP Reconciliation Note: EBITDA represents net income before interest and other expense on debt, provision for income taxes, depreciation, and amortization. Adjusted EBITDA gives further effect to, among other things, reorganization expenses, gain or loss on retirement of debt, loss on pension
Slide 23: Non-GAAP Reconciliation: Adjusted EBITDA, excl. LIFO
Non-GAAP Reconciliation: Adjusted EBITDA, excl. LIFO ($M) Q1 '19 Q2 '19 Q3 '19 Q4 '19 Q1 '20 Q2 '20 Q3 '20 Q4 '20 Tons Sold (000's) 619 623 598 541 566 462 489 492 Net Sales 1,230.8 1,204.9 1,104.4 961.5 1,010.3 771.8 831.5 853.0 Gross Profit 231.3 211.8 204.4 180.4 195.8 115.5 155.9 153.9 Gross Pro
Slide 24: Non-GAAP Reconciliation: Annual
Non-GAAP Reconciliation: Annual ($M) 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 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 2,009 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 4,50
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) Q4 '19 Q3 '20 Q4 '20 2019 2020 Net income (loss) attributable to Ryerson Holding Corporation $26.4 ($39.9) ($16.7) $82.4 ($65.8) Gain on sale of assets (20.6) - - (20.6) - Gain on insuran
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