Ryerson Holding Corporation · NYSE:RYZ
Ryerson — Jefferies Industrials Conference 2020
31 slides from Ryerson's conference presentation, Aug 4, 2020
Slide 1: Jefferies Industrials Conference
Jefferies Industrials Conference August 2020 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 Eddie Lehner Molly Kannan President & Chief Corporate Controller & Executive Officer Chief Accounting Officer 3
Slide 4: Consistently Better In Every Way
Consistently Better In Every Way Successful Refinance of 11.00% 2022 Notes Achieved a coupon 250 bps lower on a reduced principal amount, favorable redemption terms which provide further deleveraging optionality, and an 8-year runway for future operating model enhancements. Credit Rating Upgrade Dri
Slide 5: Intelligent Network of Service Centers
Intelligent Network of Service Centers 178 Years ~ 100 Locations 42,000 Customers 75,000 Products Creating great customer experiences at Speed, Scale, & Consistency in a fragmented industrial metals 5 marketplace
Slide 6: Diverse End-Markets – More than 42,000 Active Customers
Diverse End-Markets – More than 42,000 Active Customers Secular growth end markets emerging in climate/HVAC, cloud computing, and e-commerce Includes electric vehicles & software infrastructure Metal Industrial Fabrication Equipment and Machine 18% Shop 23% Commercial Other 4% Ground Includes Transp
Slide 7: COVID-19 Response: Dual Mandate
COVID-19 Response: Dual Mandate Continuing to operate as an essential business adhering to our comprehensive COVID-19 response focused on the health and safety of employees as well as liquidity and recovery capacity Health & Safety Liquidity & Recovery Capacity •COVID-19 Task Force commissioned and
Slide 8: Strong Liquidity to Fund Operations and Investments
Strong Liquidity to Fund Operations and Investments Ryerson has ample liquidity to fund operations throughout the COVID-19 crisis ($M) • Liquidity decreased quarter-over-quarter due to a lower borrowing base from reduced inventories and receivables. • We had drawn upon on our credit facility in Marc
Slide 9: Stronger Cycle Resilience: Better in the “Ups” & through the “Downs”
Stronger Cycle Resilience: Better in the “Ups” & through the “Downs” Ryerson's Improvements Show Through When Comparing Recessionary Periods 1st Comparative Period 2nd Comparative Period Current Period $M 2008 2009 2010 2014 2015 2016 2018 2019 1H 2020 Gross Margin, excl. LIFO 15.1% 9.2% 15.2% 17.6%
Slide 10: Successful Refinance: Achievements Illuminated & Optionality Secured
Successful Refinance: Achievements Illuminated & Optionality Secured Ryerson has driven down net debt and fixed cash commitments as part of its transformation strategy and has now secured a lower coupon and terms that grant optionality for further optimization Net Debt ($M) Reduced Interest 2012 20
Slide 11: Best in Class Free Cash Flow Yield
Best in Class Free Cash Flow Yield Free cash flow yield over the past 22 quarters well above publicly traded peer group and compares favorably with most companies over that time period Annualized average figures 2015 - 2019 2015 - Q2 2020 Free cash flow $94M $133M Market capitalization $330M $319M F
Slide 12: Strategic Priorities for Obtaining Next Phase Targets
Strategic Priorities for Obtaining Next Phase Targets Reduce net leverage as further operating model improvement realizations take effect Ryerson digitalization initiatives and footprint optimization work drive differentiation in the industry Increase value-add as a percentage of sales as investment
Slide 13: Navigating Through the Unprecedented 2020 Environment
Navigating Through the Unprecedented 2020 Environment Uncertainties Risks Growth Supportive Factors - Asynchronous Virus Uncertainty - Political Risk - Low Imports - Continued Fiscal and Monetary - Debt Levels - Inventory Replenishment Stimulus - Global Trade Tensions - Fiscal Stimulus - Working Cap
Slide 14: Eventually This Bill Comes Due … It’s Past Due
Eventually This Bill Comes Due … It’s Past Due Recent Events Further Underscore The Need 14 14
Slide 15: Ryerson Takeaways
Ryerson Takeaways Moving Through and Looking Beyond The Pandemic Enhanced Operating Leverage Through Ongoing Operating Model Improvements Vastly Improved Collateralization Improved Through-The-Cycle Leverage Strong Liquidity Generating Positive Cash Flow from Operating Activities Lower Structural Le
Slide 16: Yes, It’s Time to Build #YITTB
YES, IT’S TIME TO BUILD #YITTB 16
Slide 17: Appendix
Appendix 17
Slide 18: Q2 2020 Key Financial Metrics
Q2 2020 Key Financial Metrics Significant operating cash flow generation leading to lowest net debt level in ten years, liquidity & recovery capacity intact, Senior Secured Notes refinanced at a lower coupon with 8-year tenor & improved covenants Cash from Gross Margin, Diluted Adjusted Adj. EBITDA,
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 $5,310 $4,730 $4,408 $4,502 $3,896 $4,025 Generated $3,460 $3,622 $3,365 $277 $3,066 $3,167 $2,860 $308 $1.1B $2
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: CS&W Transformation: Q2 2020 Results
CS&W Transformation: Q2 2020 Results Two years since acquisition, CS&W has generated $146M in cash flows, or approximately 90% of its purchase price. While affected by the second quarter’s pandemic induced demand weakness, CS&W’s expense decrease outpaced the volume contraction and margins remained
Slide 22: Same-Store Financial Metrics Reconciliation
Same-Store Financial Metrics Reconciliation Central Steel & Wire contributed $216M in net sales to Ryerson’s first half results First Half 2020 Central Steel & Ryerson Same Ryerson Holding $M, Tons 000's Wire Company Store Corporation Tons Shipped 139 889 1,028 Net Sales $215.6 $1,566.5 $1,782.1 Gro
Slide 23: Annual Financial Highlights
Annual Financial Highlights Tons Sold (000’s) Average Selling Price Per Ton 2,024 1,897 1,903 2,000 2,268 2,381 $1,790 $1,670 $1,503 $1,682 $1,944 $1,891 2014 2015 2016 2017 2018 2019 2014 2015 2016 2017 2018 2019 Gross Margin & Gross Margin, excl. LIFO Adjusted EBITDA, excl. LIFO Margin % Gross Mar
Slide 24: Quarterly Financial Highlights
Quarterly Financial Highlights Tons Sold (000’s) Average Selling Price Per Ton 623 598 541 566 462 $1,934 $1,847 $1,777 $1,785 $1,671 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Gross Margin & Gross Margin, excl. LIFO Adjusted EBITDA, excl. LIFO Margin % Gross Mar
Slide 25: Ryerson’s Commitment to our Employees and Communities
Ryerson’s Commitment to our Employees and Communities Safety Sustainability Community Support We consistently outperform the Although our operations by their nature do not The Ryerson Gives Back Bureau of Labor Statistics, and, have a significant impact on the environment, program supports active in
Slide 26: Experienced Management Team
Experienced Management Team Years in Years at Years in Executive Title Position Ryerson Industry Eddie Lehner(1) President & Chief Executive Officer 5 8 31 Mike Burbach President - North / West Region 13 36 36 Kevin Richardson President - South / East Region 13 35 35 Molly Kannan(2) Controller and C
Slide 27: Non-GAAP Reconciliation
Non-GAAP Reconciliation EBITDA represents net income before interest and other expense on debt, provision (benefit) for income taxes, depreciation, and amortization. Adjusted EBITDA gives further effect to, among other things, gain on the sale of assets, gain on insurance settlements, reorganization
Slide 28: Non-GAAP Reconciliation: Adjusted EBITDA, excl. LIFO
Non-GAAP Reconciliation: Adjusted EBITDA, excl. LIFO ($M) Q1 '19 Q2 '19 Q3 '19 Q4 '19 Q1 '20 Q2 '20 Tons Sold (000's) 619 623 598 541 566 462 Net Sales 1,230.8 1,204.9 1,104.4 961.5 1,010.3 771.8 Gross Profit 231.3 211.8 204.4 180.4 195.8 115.5 Gross Profit per Ton 374 340 342 333 346 250 Gross Marg
Slide 29: Non-GAAP Reconciliation: Annual
Non-GAAP Reconciliation: Annual ($M) 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 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 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 4,501.6 Gross P
Slide 30: Non-GAAP Reconciliations: Adjusted Net Income (Loss) & Net Debt
Non-GAAP Reconciliations: Adjusted Net Income (Loss) & Net Debt (Dollars and shares in millions, except per share data) Q2 '19 Q1 '20 Q2 '20 Net income (loss) attributable to Ryerson Holding Corporation $16.4 $16.4 ($25.6) Restructuring and other charges 1.1 - 2.0 (Gain) loss on retirement of debt -
Slide 31: Ryerson
RYERSON ®OOO
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