Slide 1: Ryerson Quarterly Release Presentation Q2 2023
Ryerson Quarterly Release Presentation 1 Q2 2023
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: Q2 2023 Highlights
Q2 2023 Highlights • Achieved Net Income attributable to Ryerson Holding Corporation of $37.6 million with Adjusted EBITDA1, excluding LIFO of $70.1 million • Earned Diluted EPS2 of $1.06 on revenue of $1.3 billion • Generated Operating Cash Flow of $115.3 million and Free Cash Flow of $69.1 million
Slide 4: Macro and Commodities
Macro and Commodities Commodity mix facing counter-cyclical conditions Commodity Prices Since Dec. 2017 U.S. Industrial Production 4.0 CRU HRC LME Nickel LME Aluminum 4.5 3.2 3.0 3.1 3.1 3.5 1.9 1.5 3.0 Prices Indexed to Dec. 2017 0.6 0.8 0.2 0.4 0.2 -0.4 2.5 Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 2.0 1
Slide 5: Sequential Q2 2023 End-Market Trends
Sequential Q2 2023 End-Market Trends North American volumes experienced softening demand 2022 QoQ Volume Commentary Sales Mix1 Metal Fab and Machine Shop 25% Ryerson’s second quarter North American shipments reflected easing Industrial Equipment 19% customer demand, which was influenced by an uncert
Slide 6: Q3 2023 Guidance
Q3 2023 Guidance Anticipate seasonally slower Q3 and pricing to trend lower on macroeconomic factors Diluted Earnings per Share Adj. EBITDA, Net Sales Net Income1 excl. LIFO $1.25 - 1.30B $11 - 15M $43 - 47M $5.10 $5.31 Third quarter revenue guidance of $1.25B to $1.30B $1.46 $1.48 $1.27 1.27 $1.06
Slide 7: Q2 2023 Selected Financial and Operating Metrics
Q2 2023 Selected Financial and Operating Metrics Asset Management Inventory Days of Supply Cash Conversion Cycle The decrease in the Company’s cash conversion cycle was driven by a sequential decrease in 81 76 working capital requirements Cash Flow Cash from operating activities TTM Free Cash Flow Y
Slide 8: Strong Liquidity to Fund Operations and Investments
Strong Liquidity to Fund Operations and Investments Liquidity remains strong and Net Debt at historic lows $492 $426 $328 $351 $366 • Net Leverage of 1.4x in Q2 ‘23 within target leverage range of 0.5x to 2.0x $894 $906 $909 $856 $790 • Global liquidity remains historically strong at $790M in Q2 ’23
Slide 9: Capital Allocation Plan
Capital Allocation Plan Strong free cash flow generation $125M in ’23E; Raised quarterly $100M for dividend to modernization and $0.1825 and Value-Add per share for Q3’23 CAPEX DIVIDENDS M&A BUYBACKS Track record of $104M repurchased successful in ’23; $50M acquisitions remains of $100M authorizatio
Slide 10: Capital Allocation Plan Update
Capital Allocation Plan Update Ryerson distributed its eighth quarterly cash dividend and completed ~$50.4M in share repurchases in the second quarter. On July 31, 2023, the Board of Directors approved an eighth consecutive dividend increase, raising the Company’s third quarter of 2023 dividend to $
Slide 11: Q2 2023 Key Financial Metrics
Q2 2023 Key Financial Metrics Diluted Earnings Net Sales Gross Margin Net Income1 Debt per Share $1.3B 19.4% $37.6M $1.06 $396M -4.5% +60 bps -$9.7M -$0.21 +$1M QoQ QoQ QoQ QoQ QoQ Gross Margin, Adj. EBITDA Adjusted Diluted Tons Shipped Net Debt excl. LIFO excl. LIFO Earnings per Share 496k 18.7% $7
Slide 12: Intelligent Network of Service Centers
Intelligent Network of Service Centers • Diversified (metals mix, ~40k customers, ~75k products) • Availability, speed, ease, consistency • Hundreds of “virtual” locations • 24/7 e-commerce • Digitalized customer experience • Building the value chain of the future $1.3B $1.06 Net Sales Diluted Earni
Slide 13: Ryerson Family of Companies
RYERSON FAMILY OF COMPANIES a NS Gu G ex guy = 3) Z TURnet > TEXAS Spiengeesee Steel
Slide 14: Appendix
Appendix 14
Slide 15: Dividend Payments Trend Higher
Dividend Payments Trend Higher Stronger capital structure allows for greater returns to shareholders EPS Dividend Yield 1 Dividend per Share $0.1825 $10.21 $0.1800 $0.1700 $0.1600 $0.1500 $0.1250 $0.1000 $0.0850 1.8% $2.33 $0.0800 1.6% 2022 YTD 2023 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Q3
Slide 16: Quarterly Financial Highlights
RYERSON Quarterly Financial Highlights Tons Sold (000’s) Average Selling Price Per Ton $2,709 $2,709 Q22022 Q32022 Q42022 Q12023 Q22023 Q22022 Q32022 Q42022 Q12023 Q22023 Gross Margin & Gross Margin, excl. LIFO Adj EBITDA, excl. LIFO & Net Income Margin %' mGross Margin % = Gross Margin, exc. LIFO m
Slide 17: Non-GAAP Reconciliation: Adjusted EBITDA, excl. LIFO
Non-GAAP Reconciliation: Adjusted EBITDA, excl. LIFO ($M) Q2 '22 Q3 '22 Q4 '22 Q1 '23 Q2 '23 Tons Sold (000's) 524 512 465 519 496 Net Sales 1,743.5 1,543.1 1,288.2 1,406.1 1,343.5 Gross Profit 465.9 271.0 163.1 264.2 260.9 Gross Margin 26.7% 17.6% 12.7% 18.8% 19.4% LIFO expense (income) (73.8) (21.
Slide 18: Non-GAAP Reconciliation: Adjusted Net Income
Non-GAAP Reconciliation: Adjusted Net Income (Dollars and shares in millions, except per share data) Q2 '22 Q3 '22 Q4 '22 Q1 '23 Q2 '23 Net income (loss) attributable to Ryerson Holding Corporation $196.4 $55.1 ($24.1) $47.3 $37.6 Gain on sale of assets (3.8) - - - - Gain on bargain purchase - (0.6)
Slide 19: Non-GAAP Reconciliation: Net Debt
Non-GAAP Reconciliation: Net Debt ($M) Q2 '22 Q3 '22 Q4 '22 Q1 '23 Q2 '23 Total debt $533.5 $476.9 $367.0 $395.1 $396.1 Less: cash and cash equivalents ($41.4) ($50.9) ($39.2) ($43.7) ($30.0) Net Debt $492.1 $426.0 $327.8 $351.4 $366.1 TTM Adj. EBITDA, excl. LIFO $1,014.5 $792.0 $582.0 $421.5 $267.4
Slide 20: 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 on bargain purchase, gain on sale of assets, lo
Slide 21: Ryerson
RYERSON