Ryerson Holding Corporation · NYSE:RYZ
Ryerson — Investor Day (November 2022)
113 slides from Ryerson's investor day presentation, Nov 8, 2022
Slide 1: Investor Day 2022
Investor Day 2022 1 NYSE and Virtual, November 8th
Slide 2: Agenda
Agenda Time Section Topic Speaker 2:00 – 2:25 Welcome coffee and pastries NYSE – Siebert Hall 2:30 – 2:40 OVERVIEW • Who We Are and What We Do Jorge Beristain, VP – Finance 2:40 – 3:00 • Key Takeaways, Industry Themes Eddie Lehner, President & Chief Executive Officer 3:00 – 3:30 MARKETS & OPERATIONS
Slide 3: Overview
Overview 3
Slide 4: Overview: Who We Are, What We Do
Overview 01 Introductions 02 Who We Are Jorge Beristain Vice President - Finance 03 What We Do 4
Slide 5: Disclaimer
Disclaimer 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 inform
Slide 6: Executive Leadership Team
Executive Leadership Team Eddie Lehner Jim Claussen President & Chief Executive Officer | 8 years Executive Vice President & Chief Financial Officer | 2 years • 11 years at Ryerson • 21 years at Ryerson • 33 years of industry experience • 28 years of industry experience Mike Burbach John Orth Chief
Slide 7: Who We Are
Who We Are Headquarters Chicago, IL Revenue ($B) Operating Locations ~100 6.3 5.7 TTM Revenue $6.6B TTM Adj. EBITDA1 $792M 3.5 TTM Adj. EBITDA Margin 12.1% Market Cap2 $1.0B Net Debt3 $426M Global Employees ~4,000 2020 2021 2022E TTM = Trailing Twelve Months as of September 30, 2022 Diluted Earnings
Slide 8: Leading Metals Distributor and Processor
Leading Metals Distributor and Processor 2021 Revenue ($m) 2021 Revenue Mix1 2 Carbon Bright Metals Other 14,093 1% 8% 4% 4% 25% 45% 34% 5,675 92% 4,154 3,933 3,360 75% 2,312 54% 58% Reliance Ryerson Kloeckner Worthington Russel Olympic Ryerson Reliance Olympic Russel Ryerson’s scale and intelligent
Slide 9: What We Do – At Nexus of $230 Billion Industry
What We Do – At Nexus of $230 Billion Industry SUPPLIERS CUSTOMERS • Primarily produce “hot • 75k stocked metal products enhanced • Require a variety of metal" cast into coils, by more than 80k "virtually" mapped products/services plates and bars items • Purchase to spot bill of • Produce and ship l
Slide 10: Key Takeaways
Key Takeaways 01 Our Ryerson DNA 02 The Ryerson Network Eddie Lehner 03 Industry Themes President & Chief Executive Officer 04 Our Value Proposition 10
Slide 11: Our Ryerson DNA
Our Ryerson DNA The “how” really matters in this industry and is a primary growth driver 11
Slide 12: It Starts With Culture
RYERSON It Starts With Culture . 2 [|
Slide 13: Differentiated Customer-Centric Model
Differentiated Customer-Centric Model “RYERSON FAMILY” • Single network • National coverage • Great customer experiences GEOGRAPHIC SCALE CONNECTIVITY • Service largest metals markets • Technical knowledge to meet our customers’ needs Leveraging Scale and • Processing & fabrication • Coast to coast
Slide 14: Intelligent Network of Service Centers
Intelligent Network of Service Centers • Diversified (metals mix, ~40k customers, ~75k products) • Availability, speed, ease, consistency • Hundreds of “virtual” locations • 24/7 e-commerce • Digitalized customer experience • Building the value chain of the future 14
Slide 15: Digitalization – The Network Effect
Digitalization – “The Network Effect” Pricing Transportation Speed to Analytics Management Quote Fabrication Intelligent Customer Locator Operating Shipment Systems Visibility Operations Virtual ryerson.com Analytics Warehouse Data 15
Slide 16: Industry Themes
Industry Themes Global Mega-Trends North America Trends • De-globalization and a supply • Domestic mill consolidation chain re-think favor North America • Fair trade rules have helped level • Decarbonization drives higher the import playing field metals intensity, while emissions • Energy transition
Slide 17: Infrastructure and Public Health
Infrastructure and Public Health US Public Infrastructure Spend as % of GDP Life Expectancy, United States 3.5% 80 1958, 3.2% 78 3.0% 76 2.5% (Years) 2009, 2.1% 74 1949, 2.2% 2.0% 72 1.5% 2021, 1.6% 70 1.0% 68 1949 1953 1957 1961 1965 1969 1973 1977 1981 1985 1989 1993 1997 2001 2005 2009 2013 2017
Slide 18: Metals and Energy Capex Have Lagged
Metals and Energy Capex Have Lagged ($M) Aggregate Trailing 12-month Capex $400 $350 $300 China-driven 2000’s US Shale US Infrastructure, $250 Commodities Super Revolution Electrification and Cycle Decarbonization $200 $150 $100 $50 $- Source: Bloomberg data through October 30, 2022; Aggregate capit
Slide 19: De-globalization Favors North America
De-globalization Favors North America Extended Supply Chains: Penny-wise or Pound Foolish? • Global supply chains pushed to breaking point during COVID-19 • Europe's energy crisis is a new variable impacting industrial manufacturing • Asia's critical components shortage caused global production bott
Slide 20: Decarbonization Is Metals Intensive
Decarbonization Is Metals Intensive • Each new GWh of clean Clean Energy Require Massive Infrastructure Upgrades power requires 6x steel, aluminum and copper versus coal-fired power1 • 500,0002 new Electric Vehicle charging stations to be built nationwide (~10x current) • Batteries for both mobile a
Slide 21: Commodities Pricing Support
Commodities Pricing Support Key Commodity Prices Across Time • Processed metals generally reset higher HRC Steel (/ton) LME Nickel (/lb) over time and are an $736 inflation hedge $632 $10.97 $474 $7.11 • Reflect not only higher $326 $6.93 energy, labor and input $3.13 costs, but increasingly 1990's
Slide 22: Steel Consolidation and Fair Trade
Steel Consolidation and Fair Trade Top 4 US Steel Company Steel Imports • Domestic steel mill Share of Production Share of US Market consolidation: Top 4 now account for 84% of 84% production1 29% • Steel imports have settled 65% at 24% of market versus 24% 29% peak seven years ago; indirect imports
Slide 23: Supportive Government Policies
Supportive Government Policies 23
Slide 24: Customers Seek More Value-Add
Customers Seek More Value-Add Manufacturers are labor and capital constrained, looking for trusted long- term business partners • Re-thinking extended supply chains • Re-shoring facilities • Relying more on outside metals suppliers and processors Ryerson is answering the call with Customized Metal S
Slide 25: Our Value Proposition
Our Value Proposition Financial Transformation Snapshot ($M) • De-risked business with a fortified Total Debt Diluted EPS Balance Sheet and debt structure • Supportive themes such as on- $11.52 shoring, infrastructure spend and $1,242 customers seeking more value-add $477 -$1.01 • Re-investing for g
Slide 26: Industrial Metals Solutions Made Easy
Industrial Metals Solutions Made Easy 26
Slide 27: Markets & Operations
Markets & Operations 27
Slide 28: Ryerson Operating Model
Ryerson Operating Model 01 Diverse Products 02 End-Markets Mike Burbach Chief Operating Officer 03 Supply Chain Expertise 04 Operational Excellence 28
Slide 29: Ryerson Operating Model
Ryerson Operating Model OPERATIONAL MARGIN PROFITABLE EFFICIENCY EXPANSION GROWTH • Expense and working • Product and customer mix • Market share growth capital leadership optimization through refining the customer experience • Significant operating • Value-added processing leverage • Multi-channel
Slide 30: Diverse Product Mix
Diverse Product Mix Aluminum Long 18% Flat 4% Long 12% 13% Carbon Plate & Alloy 2% Red Metals & Other 1% 54% Long Flat Stainless 4% 31% Steel Flat 18% 27% Plate Plate 5% 10% Product mix is based on 2021 sales as disclosed in Ryerson’s Annual Report on Form 10-K for the year ended December 31, 2021.
Slide 31: Product Offering – Custom Solutions
Product Offering – Custom Solutions Metal Contract or Transactional Carbon Stainless Aluminum pricing/duration Carbon x Shape Numerous metal/ Flat Long Plate shape/process Burn/ combinations Plate Cut Processing = Fabricated Burn/ As-Is Attractive margin Cut combinations 31
Slide 32: Moving Up the Value Chain
RYERSON Moving Up the Value Chain Value-Add / Value Engineer Margins Value-Add
Slide 33: First Stage Processing
First Stage Processing • Customers get what they need, which maximizes labor force use, manufacturing space and optimizes working capital • Economies of scale for processing machinery utilization/uptime • Effective use of inventory buying in bulk and then cut to correct size or length • Higher margi
Slide 34: Advanced Processing
Advanced Processing • Advanced fabrication capitalizes on increased customer demand for outsourced complex parts and sub-assemblies • Provides a growth platform beyond industry projections • Higher margins achieved by de- linking from underlying commodities • Minimal customer turnover as cost to cha
Slide 35: Diverse End-Markets
Diverse End-Markets Secular Trends: Industrial Machinery Metal Fabrication & • Electric Vehicles Machine Shops & Equipment 27% 18% • Cloud Infrastructure • Automation Commercial Ground Transportation • Renewable Energy 13% • E-Commerce Logistics • Infrastructure Construction Consumer Durable Equipme
Slide 36: Industrial Machinery and Equipment
Industrial Machinery and Equipment • Broadly diversified sector includes machinery manufacturers, Industrial Machinery and Equipment chemical industries, power generation and electrical equipment • General manufacturing-related sector. Later cycle end-market due to nature of long-lead equipment Refi
Slide 37: Commercial Ground
Commercial Ground • Ryerson supplier to multiple modes of commercial ground transportation • We sell to most major Class 8 truck producers in North America • ~70% of freight tonnage in US moved through trucks per American Trucking Association NA Class 8 Retail Sales Market Share by OEM Navistar Volv
Slide 38: Consumer Durable
Consumer Durable • Residential Construction, household formation and regulatory energy efficiency standards drive growth • Greater appliance connectivity and automation influence model upgrades • We supply processed carbon & stainless flat rolled, tubing and other metals Consumer Durable US Home App
Slide 39: HVAC/Climate
HVAC/Climate US HVAC Equipment Market ($B) • Green Buildings, increasing consumer installation of smart HVAC systems are key demand drivers 55.5 56.6 • Inflation Reduction Act credits, product innovation 50.8 51.5 53.1 54.3 and technological advancement drive greater demand • Ryerson supplies 4 out
Slide 40: Emerging Markets
Emerging Markets • Charging infrastructure for Electric Vehicles (EV) could grow 10x1 • Inflation Reduction Act and federal tax credits accelerating manufacturing growth in the space, particularly with emphasis on domestic supply base • Doubling of US solar installations to 200 GWh expected over the
Slide 41: Supply Chain – Managing Complexity
Supply Chain – Managing Complexity Lead Times Comparison • Top 30 vendors = 85% of purchases Weeks 14 12 10 • Imports equal roughly 10% of our 8 purchases 6 4 2 • Challenging supplier performance 0 metrics – on time and complete Sep-11 Sep-12 Sep-13 Sep-14 Sep-15 Sep-16 Sep-17 Sep-18 Sep-19 Sep-20 S
Slide 42: Supply Chain – Expertise
Supply Chain – Expertise Diverse & Long-Term Supplier Partners • Best in class inventory management and Days of Supply Supply Chain Analytics • Internal tools & systems to capture vendor activities, customer forecasts and usage Vendor Relationship Management • Visibility to inventory across Ryerson
Slide 43: Supply Chain – Long Term Partnerships
Supply Chain – Long Term Partnerships 43
Slide 44: Operational Excellence
Operational Excellence 01 Safety 02 Operating Efficiency John Orth Executive Vice President - Operations 03 Automation 04 Network Optimization 44
Slide 45: Safety Commitment Drives Success
Safety Commitment Drives Success • Maintaining a safe workplace is one of our core values evidenced by our consistent 2.08 Our 2021 OSHA rate1 was significantly better than outperformance of the industry industry average of 3.52 • Focusing on health, safety and wellness has the benefit of positively
Slide 46: RPS (Ryerson Production System)
RPS (Ryerson Production System) Safety • Certified sites are positively impacting the P&L • Outperforming the average Productivity across key operational and financial metrics • Scalability of lessons Operating Expense Management learned throughout our network On Time Delivery Scrap Improvement 46
Slide 47: ROAD (Ryerson Operations Analytics Data)
ROAD (Ryerson Operations Analytics Data) • Real time asset condition monitoring to improve productivity and service • Machine-based data collection enhances productivity via better information and KPIs • Visual Management and Operator Engagement through live dashboards and automated shift summary em
Slide 48: Benefits of Automation
Benefits of Automation • Reduced workplace accidents • Increased profitability through cost savings and scalability • Enhanced visibility to inventory management • Consistent quality through fewer errors • Skilled labor attraction and retention 48
Slide 49: Network Optimization Pillars
Network Optimization Pillars MONETIZE & FOOTPRINT VALUE-ADD MODERNIZE OPTIMIZATION INVESTMENT Monetize our valuable Leverage analytics to maximize Provide value-add processing industrial real estate and the profitability of our existing to our customers then modernize intelligently connected to stre
Slide 50: Automated Laser and Fabrication Center
Automated Laser and Fabrication Center • Brownfield expansion of existing facility in 2023 located in Portage, IN • Automation and optimized supply chain model drive our value proposition • High quality parts, short lead times and best- in-class delivery servicing multiple sales channels, markets an
Slide 51: Pacific NW Growth and Modernization
Pacific NW Growth and Modernization • New 214,000 square foot facility • Located in Centralia, Washington • Services Pacific Northwest • State-of-the-art facility with advanced processing capabilities for sheet, plate and long products • Funded in part through sale of legacy Renton, WA facility 51
Slide 52: New Midwest Long Products Hub
New Midwest Long Products Hub • New CS&W headquarters and long product hub with 900,000 square foot facility operational in Q2 2023 • Located in University Park, IL, south of Chicago with direct access to major interstates and broad geographic area • Significant investment in technology and automati
Slide 53: Break
Break 53
Slide 54: Customer Experience
Customer Experience 54
Slide 55: Digitalizing Our Business
Digitalizing Our Business 01 The Customer Experience 02 Future State Apps Frank Williams General Manager of E-Commerce, Marketing and Communication Srini Sundarrajan Chief Information Officer 55
Slide 56: Customer Experience – The Driving Force
Customer Experience – The Driving Force Customers need: • Quick delivery of complete quotes • Efficiency • Transparency • Insights Our employees need: • Tools that are customized to our business • Real-time information • Simplicity • More ways to say yes 56
Slide 57: Digitalizing Our Business
Digitalizing Our Business Complete Insights Response VIRTUAL WAREHOUSE Efficiency Response Speed Transparency CUSTOMER 57
Slide 58: Emissions Illuminator: Go Green!
Emissions Illuminator: Go Green! Compares supply chain options based on carbon emissions estimates 58
Slide 59: Future State Apps
Future State Apps mobile-first fast/easy full-service metal universe developed in-house Delivering the best-in-class customer experience is our mission. We are investing in proprietary, next-generation applications to enable this future 59
Slide 60: Benefiting Customers Through Tools
Benefiting Customers Through Tools • Consolidating and modernizing the ERP ryerson.com Supplier Management • Adopting SaaS tools Quick • Developing apps that are Quoting Production purpose-built for Ryerson System • Applications are integrated to ERP work together using APIs Virtual Warehouse Truck
Slide 61: Innovation in Metal
Innovation in Metal Using agile framework: • Development led by product owners from the business • Strong internal web development teams paired with proven digital agencies • Low-code app development • DevOps process and Cloud-first approach • Machine learning and analytics 61
Slide 62: Developing Leading Edge Digital Tools
Developing Leading Edge Digital Tools • Initiatives are determined by prioritized needs and led by the business • Modern interfaces with ease of use built into the design • Consistent look and feel across applications • Apps simplify the business process, reduce friction and improve the customer exp
Slide 63: Finance & Strategy
Finance & Strategy 63
Slide 64: Finance & Strategy
Finance & Strategy Environmental, Social & 01 Governance 02 Current Financial Highlights Molly Kannan Corporate Controller & Chief Accounting Officer 64
Slide 65: Transparent, Sustainable Growth
Transparent, Sustainable Growth • Emissions baseline Emissions Baseline, 2021 estimate established • ESG Committee established 98k tCO2e Scope 1 & 2 • Focus on circular economy and sustainable products • Continued focus on Diversity, Equity and Electricity Mobile Inclusion Fleet • Talent and future
Slide 66: Low Carbon Emissions Footprint
Low Carbon Emissions Footprint Metals Distributor emissions are much lower Non-metals Company Metals Company Peers than producer emissions, typically <100mt CO2e / $M revenue 2020 Scope 1 and 2 mt CO2e / EAF BF/BOF $M Revenue producer producer 500+ 1,000+ Distributor Metals Metals Distr. 3 & Online
Slide 67: YTD Q3 2022 Key Financial Metrics
YTD Q3 2022 Key Financial Metrics Diluted Earnings Net Sales Gross Margin Net Income1 Debt per Share $5.04B 22.8% $415.1M $10.78 $476.9M +21.6% +300 bps +$227.2M +$5.94 -$195.7M YoY YoY YoY YoY YoY Gross Margin, Adj. EBITDA Adjusted Diluted Tons Shipped Net Debt excl. LIFO excl. LIFO Earnings per Sh
Slide 68: YTD Q3 2022 Selected Metrics
YTD Q3 2022 Selected Metrics Asset Management Inventory Days of Supply Cash Conversion Cycle The Company’s cash conversion cycle 79 79 remained constant year-over-year Cash Flow Cash from operating activities Free Cash Flow Yield1 Cash flow generation was driven by strong $320M 26.9% operating profi
Slide 69: Current Financial Highlights – Q3 2022
Current Financial Highlights – Q3 2022 • Diluted EPS1 of $1.46 and Adj. diluted EPS1 of $1.48 on $1.54 billion of revenue • Net Income of $55 million and Adjusted EBITDA, excluding LIFO2 of $79 million • Generated Operating Cash Flow of $152 million and Free Cash Flow3 of $124 million • Redeemed fin
Slide 70: Q3 2022 Key Financial Metrics
Q3 2022 Key Financial Metrics Diluted Earnings Net Sales Gross Margin Net Income1 Debt per Share $1.54B 17.6% $55.1M $1.46 $476.9M -11.5% -910 bps -$141.3M -$3.64 -$56.6M QoQ QoQ QoQ QoQ QoQ Gross Margin, Adj. EBITDA Adjusted Diluted Tons Shipped Net Debt excl. LIFO excl. LIFO Earnings per Share 512
Slide 71: Commodity Pricing Environment
Commodity Pricing Environment 4.0 CRU HRC LME Aluminum LME Nickel 3.50 3.5 3.00 Prices Indexed to Dec. 2017 3.0 2.50 2.5 2.00 2.0 1.50 1.5 1.00 1.0 0.5 0.50 0.0 - Dec-17 Jun-18 Dec-18 Jun-19 Dec-19 Jun-20 Dec-20 Jun-21 Dec-21 Jun-22 Dec-22 Commodity indices reset driven by macroeconomic global headw
Slide 72: Transitory Margin Impact
Transitory Margin Impact $3,500 3.5 • Average Selling Prices reset faster $3,000 3.0 and ahead of Cost of Materials Sold Commodity Index $2,500 2.5 • As replacement Per Ton inventory material $2,000 2.0 tracks lower (Receipt Cost), margins $1,500 1.5 recover in coming periods $1,000 1.0 Q4 20 Q1 21
Slide 73: Full Year 2022 Guidance
Full Year 2022 Guidance Adj. EBITDA, Annual Diluted Earnings per Share Net Sales Net Income1 excl. LIFO $6.29 - 6.34B $442 - 445M $593 - 597M $11.52 Q4 2022 Guidance $7.56 $7.46 • Revenue of $1.25B to $1.30B $2.81 $2.17 1.79 $1.07 • Net Income of $27 - $30M ($1.73)($0.08) • Adj. EBITDA excluding LIF
Slide 74: Targets Achieved
Targets Achieved 20% 70 – 75 2x Gross Margins Days of Supply Net Debt-to- excluding-LIFO EBITDA 74
Slide 75: Finance & Strategy
Finance & Strategy 01 Financial Transformation 02 Capital Allocation Jim Claussen Executive Vice President & 03 Targets Chief Financial Officer 75
Slide 76: Financial Priorities
Financial Priorities BALANCE SHEET RE-INVEST IN RETURNS TO MINDFULNESS BUSINESS SHAREHOLDERS • Maintain leverage ratio • Invest in strong ROI capital • Dividends through the cycle of 0.5x projects • Continue opportunistic to 2.0x • Continue digital deployment of $75M, two- infrastructure initiatives
Slide 77: Financial Transformation Since 2014
Financial Transformation Since 2014 • Reduced total debt by over $750 million • Reduced annual interest payments by approximately $70 million • Increased Revolving Credit facility capacity to $1.3 billion • Reduced pension liability by approximately $190 million • Increased Book Value of equity1 ove
Slide 78: High Yield Notes Fully Repaid
High Yield Notes Fully Repaid $111 $91 $84 $74 $73 $72 $71 $66 $54 $36 $10 $900 $900 $801 $740 $650 $650 $600 $588 $450 $300 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022F 1 High-Yield Year-End Balance ($M) High-Yield Interest Expense ($M) Interest savings, refinance risk removed, and debt
Slide 79: Net Leverage vs Long-Term Targets
Net Leverage vs Long-Term Targets Net Debt / Adj. EBITDA excl. LIFO High Band Low Band 8.8x 5.4x 5.3x 5.7x 0.7x 0.5x 5.0x 4.9x 3.7x 1 2014 2015 2016 2017 2018 2019 2020 2021 Q3 2022 We remain below our previous target 2.0x net leverage target 1Calculated using net debt and trailing twelve-month Adj.
Slide 80: Working Capital, Cash Conversion Cycle
Working Capital, Cash Conversion Cycle 94 91 80 79 79 74 75 73 66 $919 $655 $659 $718 $937 $857 $618 $982 $1,068 2014 2015 2016 2017 2018 2019 2020 2021 Q3 2022 Net Working Capital ($M) TTM Cash Conversion Cycle (days) Structural reduction in cash conversion cycle has mitigated the cash use during a
Slide 81: Free Cash Flow Through the Cycle
Free Cash Flow Through the Cycle $396 $247 $264 $218 $252 $238 $142 $81 $5 $25 $(11) $(4) $(24) $(59) $(88) $(61) $(219) $(363) 2014 2015 2016 2017 2018 2019 2020 2021 2022F Free Cash Flow ($M) Working Capital (Build) Release ($M) Ryerson has generated cash through both metals up- and down-cycles 81
Slide 82: Gross Margin and Expense vs Sales
Gross Margin and Expense vs Sales 22.8% 20.0% 20.2% 18.4% 17.9% 17.9% 17.3% 17.2% 16.4% 16.0% 15.3% 14.0% 14.5% 14.0% 14.0% 13.7% 10.6% 10.7% 2014 2015 2016 2017 2018 2019 2020 2021 YTD Q3 2022 Gross Profit % of Sales Expenses % of Sales Linear (Gross Profit % of Sales) Linear (Expenses % of Sales)
Slide 83: Transactional and Value-Added Sales
Transactional and Value-Added Sales Transactional Sales Value-Added Sales 60% 20% 53% 13% 2021 Target 2021 Target Structural margin growth driven by increased Transactional and Value-Added sales 83
Slide 84: Variabilized Expense Structure
Variabilized Expense Structure Warehousing, Delivery, Selling, General and Administrative Expense Expense Profile1 67% 68% 64% 64% 64% 62% 63% 62% SG&A Warehousing 38% 37% 38% Compensation 36% 36% 36% 33% Delivery & Benefits 32% 2014 2015 2016 2017 2018 2019 2020 2021 Fixed Variable Linear (Fixed) L
Slide 85: Operating Metrics – Ahead of Peers
Operating Metrics – Ahead of Peers Inventory Days of Supply Ryerson Expense % of Sales Excl. D&A, One-Time Items 98 96 Competitor Average 18.9% 91 89 17.9% 88 17.0% 84 15.6% 15.4% 14.3% 14.4% 12.3% 13.8% 12.6% 12.7% 12.8% 76 76 11.5% 74 73 73 71 9.5% 2016 2017 2018 2019 2020 2021 2016 2017 2018 2019
Slide 86: Market Share – Outpacing Competition
Market Share – Outpacing Competition Tons/Day (Indexed to 2014) RYI MSCI 1.3 1.2 1.1 1.0 0.9 0.8 0.7 0.6 2014 2015 2016 2017 2018 2019 2020 2021 H1 2022 Outpaced the industry on a tons per day basis sold and against a challenging market 86RYI = Ryerson, MSCI = Metals Service Center Institute, the in
Slide 87: Capital Allocation Plan
Capital Allocation Plan Strong free cash flow generation $100M ’22 Progressively plan: $74m for raised to $0.16 modernization per share and Value-Add CAPEX DIVIDENDS M&A BUYBACKS Track record of $51M repurchased successful since ’21; New acquisitions $75M Supports increases in authorization 4 key pi
Slide 88: Dividend Payments Trend Higher
Dividend Payments Trend Higher 1 EPS Dividend Yield Dividend per Share $11.52 $0.160 $0.150 $7.56 $0.125 1.6% $0.100 $0.080 $0.085 0.6% 2021 2022F Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Current dividend yield of 1.6% is comparable to the S&P 500 average of 2% yield between 2011 to 20212 1Yield for 2021
Slide 89: Capital Expenditures Shift to Growth
Capital Expenditures Shift to Growth $53 $58 $54 $56 $58 $46 $44 $43 $47 $22 $22 $23 $25 $38 $46 $26 $59 $100 2014 2015 2016 2017 2018 2019 2020 2021 2022F Capital Expenditures ($M) Depreciation & Amortization ($M) Operating model improvements and reduction of debt service has substantially grown ou
Slide 90: M&A Strategy – More Value-Add
M&A Strategy – More Value-Add Ryerson Acquisition Timeline Acquire capabilities and IP to enhance the Central Steel & customer experience Wire Excelsior Purchases accretive Sunbelt-Turret- Wilcox Guy Metals to gross margin & Adj. Howard EBITDA excl. LIFO Singer Steel Specialty Focus on Value-A
Slide 91: Case Study: Central Steel & Wire
Case Study: Central Steel & Wire Acquired July 2018 for $164 million. CS&W capital returned: • ~$100 million of working capital taken out • ~$50 million in asset sales proceeds • >35% Return On Investment (ROI)1 since investment close of July 2018 Long product franchise, enhanced inventory position
Slide 92: M&A – Howard and Excelsior
M&A – Howard and Excelsior Howard Precision Metals Excelsior, Inc. • High-quality, precision-cut aluminum • Large-scale materials, complex service center assemblies and millwright services • Minimal customer overlap and natural • Customer base in attractive growth product line extension markets such
Slide 93: Lower Interest Expense Frees up Cash Returns
Lower Interest Expense Frees up Cash Returns Capital Allocation 2014 vs. 2022F ($M) $300 $250 $49 Dividends & share $20 $200 repurchases $63 $150 $20 funded by interest $22 $100 expense savings $99 $50 $107 $36 $- 2014 2022F Interest Expense Capital Expenditures Mergers & Acquisitions ($M) Dividends
Slide 94: Increased Operating Cash Flow Expands Options
Increased Operating Cash Flow Expands Options Historical Uses of Cash1 Future Potential Uses (Illustrative)2 Share Repurchases & Dividends Returns to Shareholders Capex & Debt Retirement Acquisitions Re-invest in Business3 Mindful of our Balance Sheet, cash flow pivot to growth and shareholder retur
Slide 95: Next Phase Targets
Next Phase Targets 95
Slide 96: Next Phase Targets
Next Phase Targets OUTGROW MSCI $350-400M “MID- ENVIRONMENT & CYCLE” EBITDA STEWARDSHIP • Pursue incremental high • Gross Margin 21 - 23% • Publish inaugural margin growth Environment, Social & • Expense-to-Sales 13 - 15% Governance report end of • Achieve >60% 2022 transaction revenue • Develop lon
Slide 97: Closing Remarks
Closing Remarks 97
Slide 98: Key Takeaways
Key Takeaways 01 Performance vs Market 02 Why Ryerson Eddie Lehner President & Chief Executive Officer 98
Slide 99: Performance vs Market
Performance vs Market 350% RYI SP500 +328% on 300% April 21, 2022 250% $44.09 200% 150% 100% 50% 0% -50% -100% Sep-14 Sep-15 Sep-16 Sep-17 Sep-18 Sep-19 Sep-20 Sep-21 Sep-22 Prices in USD at November 4, 2022. CAGR based on share prices appreciation. 99
Slide 100: Performance vs Peers and Market
Performance vs Peers and Market 350% Service Center Peers SP500 RYI 300% 250% 200% 150% 100% 50% 0% -50% -100% Sep-14 Sep-15 Sep-16 Sep-17 Sep-18 Sep-19 Sep-20 Sep-21 Sep-22 Prices in USD at November 4, 2022; Service Center peers include: WOR, RS, ZEUS, RUS-TSX, KCO.DE and represents an equally weig
Slide 101: Why Ryerson
Why Ryerson • Outperformance versus metals peers, Return on Invested Capital versus Peers distributors and broader market 60% • Tailwinds such as on-shoring, 50% infrastructure spend and customers seeking more value-add 40% • Re-investing for growth with focus on 30% value-add, bright metals and bes
Slide 102: The time to invest in renewal and modernization of infrastructure
That goes beyond the clichés of potholes and traffic jams, extending out The time to invest in to the mobility, energy, communications, and wellness infrastructures that we all rely on for every interaction with the world today. the renewal and Metal provides the foundation for such efforts. It is t
Slide 103: Questions & Answers
Questions & Answers 103
Slide 104: Appendix
Appendix 104
Slide 105: 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 on bargain purchase, gain on sale of assets, los
Slide 106: Non-GAAP Reconciliation: Adjusted Net Income
Non-GAAP Reconciliation: Adjusted Net Income (Dollars and shares in millions, except per share data) Q3 '21 Q4 '21 Q1 '22 Q2 '22 Q3 '22 Net income attributable to Ryerson Holding Corporation $49.7 $106.4 $163.6 $196.4 $55.1 Gain on sale of assets - (1.9) - (3.8) - Gain on bargain purchase - - - - (0
Slide 107: Non-GAAP Reconciliation: Annual Adj. EBITDA, excl. LIFO
Non-GAAP Reconciliation: Annual Adj. EBITDA, excl. LIFO ($M) 2014 2015 2016 2017 2018 2019 2020 2021 Tons Sold (000's) 2,024 1,897 1,903 2,000 2,268 2,381 2,009 2,095 Net Sales 3,622.2 3,167.2 2,859.7 3,364.7 4,408.4 4,501.6 3,466.6 5,675.3 Gross Profit 593.8 567.7 570.6 582.5 758.1 827.9 621.1 1,14
Slide 108: Non-GAAP Reconciliation: Quarterly Adj. EBITDA, excl. LIFO
Non-GAAP Reconciliation: Quarterly Adj. EBITDA, excl. LIFO ($M) Q3 '21 Q4 '21 Q1 '22 Q2 '22 YTD Q2 '22 Q3 '22 Tons Sold (000's) 519 474 528 524 1,052 512 Net Sales 1,575.1 1,533.9 1,748.8 1,743.5 3,492.3 1,543.1 Warehousing, delivery, selling, general, and administrative expenses 180.2 180.9 175.3 1
Slide 109: Non-GAAP Reconciliation: Net Debt and Leverage
Non-GAAP Reconciliation: Net Debt and Leverage ($M) Q3 '21 Q4 '21 Q1 '22 Q2 '22 Q3 '22 Total debt 672.6 639.3 551.3 533.5 476.9 Less: cash and cash equivalents (39.9) (51.2) (44.7) (41.4) (50.9) Net Debt $632.7 $588.1 $506.6 $492.1 $426.0 TTM Adj. EBITDA, excl. LIFO $ 655.5 $ 860.6 $ 987.7 $ 1,014.5
Slide 110: Sales Trends – Product Mix
Sales Trends – Product Mix 2% 2% 2% 2% 2% 2% 2% 1% 18% 22% 23% 24% 22% 22% 22% 22% 27% 24% 23% 24% 26% 24% 23% 26% 52% 52% 50% 50% 52% 53% 50% 54% 2014 2015 2016 2017 2018 2019 2020 2021 Carbon Stainless Aluminum Other Source: Ryerson Annual 10k’s 110
Slide 111: Sales Trends – Shape Mix
Sales Trends – Shape Mix 2% 2% 2% 2% 2% 2% 2% 1% 23% 23% 21% 20% 22% 24% 21% 25% 16% 17% 18% 17% 19% 18% 17% 17% 56% 57% 61% 61% 58% 56% 57% 61% 2014 2015 2016 2017 2018 2019 2020 2021 Sheet Plate Long Other Source: Ryerson Annual 10k’s 111
Slide 112: Sales Trends – End Markets Mix
Sales Trends – End Markets Mix 6% 7% 7% 4% 4% 4% 4% 4% 5% 5% 4% 4% 3% 9% 7% 5% 6% 6% 7% 7% 6% 7% 7% 8% 10% 10% 9% 9% 10% 7% 7% 9% 8% 8% 9% 9% 7% 9% 9% 8% 11% 11% 11% 10% 11% 10% 11% 11% 14% 13% 16% 16% 17% 18% 16% 16% 18% 18% 18% 18% 18% 18% 18% 17% 23% 25% 27% 18% 18% 18% 20% 22% 2014 2015 2016 201
Slide 113: Ryerson Family of Companies
NS & Singer =~ & BS oSteel TURRE Tyrer @65j5.(/STEEL sTee RYERSON FAMILY OF COMPANIES [FANETLO fay # induswies