Slide 1: Investor Presentation May 2006
Investor Presentation May 2006 Exhibit 99.1
Slide 2: EBITDA: The turnaround
EBITDA* The turnaround 28.0 (48.7) 19.9 27.4 121.1 275.8 77.1 (100) (50) Q1 2006 $ in millions * Earnings before discontinued operations, taxes, interest expense, depreciation and amortization. (Full reconciliation is attached.) Q1 $86.7
Slide 3: Three Fundamentals
Three Fundamentals Intense focus on operating efficiency Organic growth Acquisitions and joint ventures to structurally enhance competitive position
Slide 4: Three Fundamentals: Target world-class operations
Three Fundamentals Target world-class operations Through 2004: • Cut annualized fixed costs by $85 million (2000-2004) • Optimized facility configuration • Centralized non-customer- facing activities • Consolidated purchasing Intense focus on operating efficiency Organic growth Acquisitions and join
Slide 5: Through 1Q06 and Beyond
Through 1Q06 Beyond Reduced inventory $175 million** Consolidated redundant facilities 2005-2006 and beyond Integration of Integris Through 1Q06 Beyond Asset management Ryerson Plus/Lean Six Sigma Upgrade IT capabilities; consolidate multiple platforms into single, integrated platform using SAP Reac
Slide 6: Three Fundamentals
Three Fundamentals Intense focus on operating efficiency Organic growth Acquisitions and joint ventures to structurally enhance competitive position
Slide 7: Aggressive national marketing
Aggressive marketing • Advertising • Direct mail • Special promotions • Coordinated sales follow-up • Direct sales reps Leads to trial • Good experience leads to retention • Measure internally and externally • Met or exceeded expectations for 80% of customers • Continuous effort to improve National
Slide 8: 2003–2005 and Beyond
2003–2005 Beyond 2005 and beyond 10,000 new accounts 2003–2005 Beyond Annualized revenue of $200 million Expand into new vertical markets Cross-sell materials and capabilities Expand transactional business
Slide 9: Three Fundamentals
Three Fundamentals Intense focus on operating efficiency Organic growth Acquisitions and joint ventures to structurally enhance competitive position
Slide 10: Acquisition strategy
Product/supply chain “Add strength to strength” Highest overall potential Cross-selling opportunities “Buying a cash flow” Very risky New markets Acquisition strategy Product/supply chain Different Different Same Same Service center industry is fragmented and consolidating
Slide 11: Leading metals service center company
Stainless & aluminum sales $2,921 Trailing 12-month revenues (through 1Q06) Leading metals service center company $5,257 $1,641 $894 $5,688 $2,282 Ryerson Reliance Steel & Earle M. Jorgensen (1) Russel Metals (2) Metals USA Olympic Steel Source: Company filings and press releases Includes 9 months o
Slide 12: Acquisitions and joint ventures: Complete and In process
Complete In process 2005 and beyond Complete In process Integris acquisition Joint ventures Global sourcing Customer and key employee retention Operating and sales leadership in place within two months Maintain and improve service levels Leverage supply relationships Began eliminating redundant faci
Slide 13: Stainless and Aluminum prices
Stainless and Aluminum 1,000 1,200 1,400 1,600 1,800 2,000 2,200 2,400 2,600 2,800 0.7 0.9 1.1 1.3 1.5 1.7 1.9 Stainless Aluminum Source: Purchasing Magazine *Spot prices include raw materials' surcharges starting in 1st Quarter 2001 Hot Rolled, Cold Rolled and Plate Prices Hot Rolled Cold Rolled Ca
Slide 14: Used to pay down debt
Used to pay down debt Ryerson Debt and Debt-to-Capital Trend 1,000 1,050 1,100 1,150 1,200 1,250 1,300 1,350 1,400 1/4/05 3/31/05 6/30/05 9/30/05 12/31/05 3/31/06 55% 57% 59% 61% 63% 65% 67% 69% 71% 73% 75% Debt Debt-to-Capital
Slide 15: EBITDA Reconciliation
2000 2001 2002 2003 2004 2005 Q1 2006 EBITDA Reconciliation Net Income $(29.9) $(60.2) $(96.3) $(13.6) $56 $98.1 $32.4 Cumulative effect of change in accounting principle ---- ---- 82.2 ---- ---- ---- ---- Discountinued operations (gain)/loss 4.8 ---- 1.7 ---- (7.0) ---- ---- Income tax/(benefit) (8