Ryerson Holding Corporation · NYSE:RYZ
Ryerson — Conference Presentation (May 2021)
24 slides from Ryerson's conference presentation, May 2021
Slide 1: Investor Presentation
Investor Presentation May 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 Molly Kannan Executive Vice President Corporate Controller & & Chief Financial Officer 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 Transformed Operating and Financial Profile Since IPO Significantly Reduced Debt and Fixed Cash Commitments Diverse End-Markets that are Well Positioned for Cyclical Recovery and __Secular Growth Trends Poised for Growth Supported by Investment in Future State Systems, __Ca
Slide 7: 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 8: 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 Most Recent 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% 1
Slide 9: Reduced Debt, Legacy Liabilities & Fixed Cash Commitments
Reduced Debt, Legacy Liabilities & Fixed Cash Commitments Net Debt* Pension Benefit Liability Annual Fixed Cash Commitments** $M $429 $141 $93 $1,127 $277 $181 $698 $136 $88 IPO Q1 2021 IPO Q1 2021 IPO 2020 Ryerson is decreasing debt, borrowing at lower rates and extending maturities with opportunit
Slide 10: 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 Jan. 2020 U.S. Industrial Production & MSCI Tons (M) CRU HRC U.S. Industrial Production ◼ Demand appears to be recovering in 2.6 4.1 LME Nickel MSC
Slide 11: Diverse End-Markets Benefitting from Secular Growth Trends
Diverse End-Markets Benefitting from Secular Growth Trends ✓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% Constructio
Slide 12: Q1 2021 Financial Performance Highlights
Q1 2021 Financial Performance Highlights Strong asset management and expense leverage yield exceptional results which illuminate balance sheet achievements Net Debt / TTM Gross Margin, Diluted Adjusted Adj. EBITDA, excl. Cash Conversion Net Sales Adj. EBITDA, excl. LIFO Earnings per Share LIFO Cycle
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 Speed, Scale, and Consistency Reduce net leverage as further operating model Digital Capabilities improvement realizations take effect Ryerson digitalization initiatives and footpr
Slide 14: Investing in the Business
Investing in the Business Ryerson has invested $107 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 15: 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 ▪ 32 years of industry experience ▪ 26 years of industry experience Mike Burbach John Orth C
Slide 16: Ryerson Takeaways
Ryerson Takeaways Ryerson is poised to accelerate debt reduction, further de-risk legacy liabilities, drive operating leverage and deliver increasing value accretion to stakeholders Transformed Operating and Financial Profile Since IPO Significantly Reduced Debt and Fixed Cash Commitments Diverse En
Slide 17: Appendix
Appendix 17
Slide 18: Earnings & Operating Cash Flow per Diluted Share
Earnings & Operating Cash Flow per Diluted Share Ryerson has generated significant cash flow from operating activities in the past several years and utilized it to improve the balance sheet, thereby shifting value from debt to equity and expanding future EPS potential 18 18
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 $4,02
Slide 20: Building a Better Ryerson: CS&W Transformation
Building a Better Ryerson: CS&W Transformation Upon closing the acquisition in July of 2018, Ryerson gained an expanded footprint and complementary product offering and has since been actively implementing Ryerson’s industry leading expense and working capital management practices, driving towards a
Slide 21: Non-GAAP Reconciliation
Non-GAAP Reconciliation Note: EBITDA represents net income before interest and other expense on debt, provision for income taxes, depreciation, and amortization. Adjusted EBITDA gives further effect to, among other things, reorganization expenses, gain or loss on retirement of debt, loss on pension
Slide 22: Non-GAAP Reconciliation: Adjusted EBITDA, excl. LIFO
Non-GAAP Reconciliation: Adjusted EBITDA, excl. LIFO ($M) Q1 '19 Q2 '19 Q3 '19 Q4 '19 Q1 '20 Q2 '20 Q3 '20 Q4 '20 Q1 '21 Tons Sold (000's) 619 623 598 541 566 462 489 492 543 Net Sales 1,230.8 1,204.9 1,104.4 961.5 1,010.3 771.8 831.5 853.0 1,147.3 Gross Profit 231.3 211.8 204.4 180.4 195.8 115.5 15
Slide 23: Non-GAAP Reconciliation: Annual
Non-GAAP Reconciliation: Annual ($M) 2008 2009 2010 2014 2015 2016 2018 2019 2020 Tons Sold (000's) 2,505 1,881 2,252 2,024 1,897 1,903 2,268 2,381 2,009 Net Sales 5,309.8 3,066.1 3,895.5 3,622.2 3,167.2 2,859.7 4,408.4 4,501.6 3,466.6 Gross Profit 712.9 456.1 539.8 593.8 567.7 570.6 758.1 827.9 621
Slide 24: Non-GAAP Reconciliations: Adjusted Net Income & Net Debt
Non-GAAP Reconciliations: Adjusted Net Income & Net Debt Q1 2021 net income includes a gain related to the sale of our Renton, Washington facility. Adjusting to remove this gain and the associated income taxes, Ryerson generated net income of $10.2M, or $0.26 per diluted share. (Dollars and shares i