Ryerson Holding Corporation · NYSE:RYZ
Ryerson — Goldman Sachs Annual Global Metals and Mining Conference 2014
24 slides from Ryerson's conference presentation, Nov 20, 2014
Slide 1: Goldman Sachs Annual Global Metals and Mining Conference
Goldman Sachs Annual Global Metals and Mining Conference November 20, 2014
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 and no investment decision should be made based upon the information provided herein. Ryerson strongly urges you to review
Slide 3: Executive Summary
Executive Summary Company with transformed performance and potential Industry-leading expense and working capital management Expanding gross margins and operating leverage Sustainable competitive advantages to fuel targeted growth Favorable end market dynamics 3
Slide 4: One of North America's largest metals processors/distributors
One of North America’s With more than largest metals 100 locations on processors/distributors, three continents with 2013 sales of $3.5 billion Founded in 1842; Relisted on NYSE with IPO in August 2014 4
Slide 5: Metal Service Center Supply Chain
Metal Service Center Supply Chain SUPPLIERS SERVICE CENTERS CUSTOMERS • Manufacture metals • Purchase in scale; ship • Purchase smaller • Produce in large volume smaller quantities in over 1 quantities million transactions annually • Require a variety of • Have long lead times • Is a single-source s
Slide 6: Transformation Driving Industry-Leading Performance
Transformation Driving Industry-Leading Performance Operational Efficiency Margin Expansion Profitable Growth Structural cost reduction Shift product mix Leveraging significant scale in highly fragmented Expense control Optimize customer mix market leadership Value-driven pricing and Multi-channel s
Slide 7: Proven Expense and Working Capital Management
Proven Expense and Working Capital Management Expenses as % of sales(1)(2) Days of Supply (DOS) 17.8% 16.3% 16.4% 17.4% 110 110 95 105 11.8% 12.5% 80 84 10.5% 11.5% 82 74 2011 2012 2013 2014 YTD 2011 2012 2013 2014 YTD Q3 Q3 Competitor averages are based on Ryerson’s analysis of financial informatio
Slide 8: Changing Mix to Improve Margins
Changing Mix to Improve Margins Processing Capabilities Ryerson Product Mix (% of Sales) 100% 4% 3% 3% Plate 90% ~ 16% 22% 40% 30% 80% 31% 57% Long Products 15% 70% 18% 60% 27% Coil and Sheet 50% ~ 40% 65% 30% 57% Investments 20% 40% ~ Opened eight new service centers since 2011 10% 0% 2010A 2013A L
Slide 9: Leveraging Scale and Integrated Network
“ONE RYERSON” • Single franchise • One brand CONNECTIVITY • Technical knowledge GLOBAL SCALE • Processing • Global capabilities • Fabrication in local markets Leveraging Scale and • Logistics Integrated Network • Inventory • Service MULTI-CHANNEL SALES • Local sales & service • Centralized call cent
Slide 10: Financial Overview
RYERSON Financial Overview
Slide 11: Financial Results
Financial Results Gross Profit (dollars in millions) Gross Profit (dollars in millions) Gross Margin (%) Gross Margin (%) $451.6 $658.8 $709.6 $616.6 $539.8 $456.1 $149.5 17.8% $147.2 $147.7 $154.4 15.8% 16.4% 17.6% 14.9% 13.9% 13.9% 18.4% 16.9% 16.6% 2009 2010 2011 2012 2013 Q4 2013 Q1 2014 Q2 2014
Slide 12: Successful Gross Margin Improvement…
Successful Gross Margin Improvement… Gross Profit Ex. LIFO ($) / Gross Margin Ex. LIFO (%) Quarterly year-over-year gross margin improvement +136 bps +95 bps +197 bps +90 bps $168 $169 $157 18.0% $141 17.9% 17.8% 17.5% Q4 2013 Q1 2014 Q2 2014 Q3 2014 Note: Dollars in millions Gross profit excluding
Slide 13: …Drives EBITDA Improvement
…Drives EBITDA Improvement Adjusted EBITDA Ex. LIFO ($) / Adjusted EBITDA Margin Ex. LIFO (%) Quarterly year-over-year EBITDA growth 18% 17% 53% 48% $62 $62 $53 $42 6.7% 6.6% 6.1% 5.2% Q4 2013 Q1 2014 Q2 2014 Q3 2014 Note: Dollars in millions Gross profit excluding LIFO and Gross margin excluding LI
Slide 14: Performance vs. Peers
Performance vs. Peers Gross Margin excl. LIFO Adj. EBITDA Margin excl. LIFO 25.0% 22.4% 22.1% 21.5% 7.0% 6.4% 21.4% 21.5% 5.9% 6.0% 20.0% 17.9% 4.7% 4.7% 5.0% 5.1% 4.9% 16.1% 16.9% 5.0% 15.2% 15.0% 4.1% 15.0% 3.8% 4.0% 3.4% 10.0% 3.0% 2.0% 5.0% 1.0% 0.0% 0.0% 2010 2011 2012 2013 2014 YTD 2010 2011 2
Slide 15: Current Market 32% Below Prior Peak
Current Market 32% Below Prior Peak Steel Shipments (mm tons) 6,000 5,500 5,000 32% below 4,500 prior peak 4,000 3,500 3,000 2,500 2,000 Jan-93 Mar-95 May-97 Jul-99 Sep-01 Nov-03 Jan-06 Mar-08 May-10 Jul-12 Sep-14 Source: Metals Service Center Institute, September 2014. 15
Slide 16: Significant EBITDA Leverage to Recovering Volumes
Significant EBITDA Leverage to Recovering Volumes Quarterly year-over- year growth 53.1% 47.7% 17.6% 16.9% 3.4% 10.2% 2.7% -1.9% -10.6% -5.6% Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Operating Leverage Will Drive Considerable EBITDA Adjusted EBITDA EX. LIFO Growth Growth Relative to Sales Growth Sale
Slide 17: Long-term Aspirational Financial and Operating Goals
Long-term Aspirational Financial and Operating Goals METRIC TARGET • Gross margin • 20% • EBITDA margin • 10% • Working Capital • 75 DOS • Debt / EBITDA • 3.0x 17
Slide 18: Highlights
Broad Geographic Reach, Extensive Products and Services, and Diverse Industry Leading Differentiated Expense Control and Service Model / Competitive Working Capital Advantages Management HIGHLIGHTS Gross Margin Levered to Late Expansion Through Cycle End Market Improved Product and Recoveries Custom
Slide 19: Goldman Sachs Annual Global Metals and Mining Conference
Goldman Sachs Annual Global Metals and Mining Conference November 20, 2014
Slide 20: Appendix
Appendix
Slide 21: Non-GAAP Reconciliation
($ in millions) Non-GAAP Reconciliation Nine Months 2010 2011 2012 2013 Ended 9/30/14 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Net Sales $3,896 $4,730 $4,025 $3,460 $2,754 $860 $803 $874 $932 $948 Gross Profit $540 659 710 617 452 155 147 148 154 150 LIFO Expense (Income) 52 48 (63) (33) 42 (10) (6)
Slide 22: Non-GAAP Reconciliation
Non-GAAP Reconciliation EBITDA represents net income before interest and other expense on debt, provision for income taxes, depreciation and amortization. Adjusted EBITDA gives further effect to, among other things, impairment charges on fixed assets and goodwill, reorganization expenses and the pay
Slide 23: Capitalization
Capitalization Current Call Data 9/30/2014 LTM Adj. EBITDA ($ in millions) Rate Call Date Call Price Book Value Multiple (9/30/2014) Cash and Cash Equivalents $81 Marketable Securities 12 Availability under Revolver 301 and Foreign Debt Facilities Total Liquidity $394 ABL Revolver due 2017 $398 1.8x
Slide 24: Non-GAAP Reconciliation of Net Income
Non-GAAP Reconciliation of Net Income ($ in millions) YTD 2014 Q3 2014 (through Q3) Net income attributable to Ryerson Holding Corporation $(34.7) $(30.5) IPO-related and debt redemption expenses, net of 37.3 37.3 income taxes* Net income attributable to Ryerson Holding Corporation $2.6 $6.8 excludi
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