Ryerson Holding Corporation · NYSE:RYZ
Ryerson — Q1 2021 Earnings Presentation
19 slides from Ryerson's earnings presentation, May 5, 2021
Slide 1: Q1 2021
@ Exhibit 99.2 Qi 2021
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: Q1 2021 Highlights
3 Q1 2021 Highlights Generated first quarter revenues of $1.15 billion, 13.6% higher than the year-ago period, driven by strong pricing and recovering metals demand. While gross margin contracted sequentially to 17.2% due to transient LIFO impacts, gross margin, excluding LIFO expanded during the qu
Slide 4: Sequential Q1 2021 End-Market Trends
Sequential Q1 2021 End-Market Trends 4 First quarter North American per day volume improvement across nearly all end-markets *Excludes Other Industry Sectors which represent approximately 4% of Ryerson sales mix **Sales product mix based on 2020 results as disclosed in Ryerson’s Annual Report on For
Slide 5: Macro & Commodities
Macro & Commodities 5 Tightened supply environment lifting prices while demand conditions show improvement Sources: Bloomberg: prices through Apr 30, 2021; Federal Reserve, Industrial Production Index monthly year-over-year change; Bloomberg, U.S. Manufacturing PMI Commodity Prices Since Dec. 2017 U
Slide 6: Second Quarter Guidance
Second Quarter Guidance Second quarter revenue guidance of $1.32B to 1.34B assumes sequential average selling price growth of 12% to 14% and shipment growth of 1% to 3%. 6 Elevated pricing across all three of Ryerson’s commodities & improving demand fundamentals drive second quarter optimism Diluted
Slide 7: Q1 2021 Financial Strategy Update
7 Q1 2021 Financial Strategy Update Capital Investment Investing in speed, value-add and digitalization Expense Management Compared to Q1 2020 Expenses as a percentage of sales decreased compared to Q1 2020 despite inflationary pressures and variable incentive compensation Asset Management Operating
Slide 8: Q1 2021 Key Financial Metrics
Net Debt / Adjusted EBITDA, excl. LIFO calculated as total debt less cash, cash equivalents and restricted cash divided by TTM Adj. EBITDA, excl. LIFO A reconciliation of non-GAAP financial measures to the comparable GAAP measure is included in the Appendix. Q1 2021 Key Financial Metrics 8 Strong as
Slide 9: Strong Liquidity to Fund Operations and Investments
Strong Liquidity to Fund Operations and Investments 9 Ryerson’s North American availability increased significantly in the first quarter Ryerson’s global liquidity rose during the period from $373M as of December 31, 2020 to $583M as of March 31, 2021 as the Company’s Adjusted EBITDA, excluding LIFO
Slide 10: The Ryerson Customer Experience Eco-System
97 Locations 179 Years 40,000Customers 75,000 Products Focused on creating great customer experiences at Speed, Scale, & Consistency The Ryerson Customer Experience Eco-System Intelligently Connected Network of Service Centers
Slide 11: Appendix
Appendix
Slide 12: Q1 2021 vs. Q1 2020 Financial Performance
12 18.4% increase in average selling price 24.6% gross margin, excl. LIFO, +720bps Adj. EBITDA, excl. LIFO 4.1% decrease 12.0% increase in expenses excl. D&A and one-time items $124M in Adj. EBITDA, excl. LIFO is an increase year-over-year of $89M driven by higher average selling prices and expanded
Slide 13: 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 % 13 Gross Margin & Gross Margin, excl. LIFO
Slide 14: Earnings & Operating Cash Flow per Diluted Share
Earnings & Operating Cash Flow per Diluted Share 14 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
Slide 15: Non-GAAP Reconciliation: Adjusted EBITDA, excl. LIFO
15 Non-GAAP Reconciliation: Adjusted EBITDA, excl. LIFO Net income includes a vacation accrual adjustment of $11M in Q4 2019. `
Slide 16: Adjusted Net Income Reconciliation
Adjusted Net Income Reconciliation 16 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.
Slide 17: Non-GAAP Reconciliations: Expenses excl. D&A and One-Time Items and Net Debt
Non-GAAP Reconciliations: Expenses excl. D&A and One-Time Items and Net Debt 17
Slide 18: 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 on sale of assets, gain or loss on retirement of debt, loss on pensi
Slide 19: Ryerson
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