Ryerson Holding Corporation · NYSE:RYZ
Ryerson — Conference Presentation (June 2021)
22 slides from Ryerson's conference presentation, June 2021
Slide 1: Investor Presentation
Investor Presentation June 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: Intelligently interconnected network focused on speed, scale and value-add
Intelligently interconnected network ✓ A storied North American service center delivering focused on speed, scale and value-add industrial metal solutions to a diverse customer base ✓ 100+ locations across North America & China ✓ Chosen by our customers for our intelligent network of value- added se
Slide 5: Ryerson at the Center of a Fragmented US $250 Billion Industry
Ryerson at the Center of a Fragmented US $250 Billion Industry Suppliers Customers • 75,000 aluminum, carbon, and stainless products in inventory and network access to • Purchase smaller quantities • Manufacture metals the metal universe through our "virtual • Require a variety of products • Produce
Slide 6: Key Investment Highlights
Key Investment Highlights Improved Operating and Financial Profile Since IPO Shareholder Value Accretion through Operating Model __Execution and Balance Sheet Transformation Well Positioned For Cyclical and Secular Growth Trends Organic and Inorganic Growth Supported by Investment in __Digitalizatio
Slide 7: Contributing to our customers' success
Customer-Centric “Say Yes, Figure It Out” Approach to Transformation Great Customer Experiences with Tools and Enablers to Make it Happen INDUSTRY-LEADING PERFORMANCE OPERATIONAL EFFICIENCY MARGIN EXPANSION PROFITABLE GROWTH ⚫ Expense and working ⚫ Optimize product and customer mix ⚫ Growing share b
Slide 8: Q1 2021 Financial Performance Highlights
Q1 2021 Financial Performance Highlights Strong asset management and expense leverage yield exceptional results which illuminate balance sheet achievements Gross Margin, Diluted Adjusted Cash Conversion Net Debt / TTM Adj. Net Sales excl. LIFO Earnings per Share Cycle EBITDA, excl. LIFO $1.15B 24.6%
Slide 9: Decreased Debt, Legacy Liabilities & Fixed Cash Commitments
Decreased Debt, Legacy Liabilities & Fixed Cash Commitments Net Debt* Pension Benefit Liability Annual Fixed Cash Commitments** $M $437 $141 $93 $1,135 $277 $181 $698 $136 $88 Q3 2014 Q1 2021 2014 Q1 2021 2014 2020 Ryerson has decreased debt, legacy liabilities and fixed cash commitments since IPO a
Slide 10: 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 11: Well Positioned for Growth Amidst an Industrial Metals Sector Recovery
Well Positioned for Growth Amidst an Industrial Metals Sector Recovery Current Market Commentary Commodity Prices Since Jan. 2020 U.S. Industrial Production & MSCI Tons (M) CRU HRC U.S. Industrial Production ◼ Demand recovering in nearly all end 4.1 16.5 LME Nickel MSCI Tons (M) markets LME Aluminum
Slide 12: It's Time to Build! Well Positioned for Infrastructure Investment & Secular Growth Trends
It’s Time to Build! Well Positioned for Infrastructure Investment & Secular Growth Trends Metal fabrication and Industrial equipment machine shop 18% 25% ✓ Electric Vehicles ✓ Cloud Infrastructure Ground transport 14% ✓ Automation Other ✓ Renewable Energy 4% Oil & ✓ E-Commerce Logistics Gas 4% HVAC
Slide 13: Investing in the Future
Investing in the Future 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 – leverage expertise across the company • Supp
Slide 14: 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 operating model improvements take hold Digital Capabilities Create differentiation through digitalization initiatives and footpri
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 Transferring value to shareholders and poised to grow and provide excellent customer experiences with speed, scale and consistency Improved Operating and Financial Profile Since IPO Shareholder Value Accretion through Operating Model Execution and Balance Sheet Transformation Well
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: Ryerson Stands to Benefit From Increased Infrastructure Spending
Ryerson Stands to Benefit From Increased Infrastructure Spending Lack of infrastructure investment and long-life equipment investment is a root cause of societal dysfunction and decline. "It’s Time to Build.”1 Public Spending On Broad Infrastructure As A % Of GDP More Than Old Enough At Record Lows
Slide 20: 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 21: 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
Slide 22: 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
Ryerson Holding — Conference Presentation (June 2021) on 6ix