Ryerson Holding Corporation · NYSE:RYZ

Ryerson — Deutsche Bank's 23rd Annual Leveraged Finance Conference 2015

30 slides from Ryerson's conference presentation, Sep 30, 2015

  1. Slide 1: Deutsche Bank's 23rd Annual Leveraged Finance Conference

    D E U T S C H E B A N K ’ S 2 3 RD A N N UA L LEVERAGED FINANCE CONFERENCE September 30, 2015

  2. Slide 2: Business Overview

    BUSINESS OVERVIEW EDDIE LEHNER President and Chief Executive Officer

  3. Slide 3: 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

  4. Slide 4: Executive Summary

    EXECUTIVE SUMMARY 1 Transformation yielding higher performance and potential 2 Industry-leading expense and working capital management 3 Successful shift to higher value mix and value-added processing 4 Building sustainable competitive advantages to fuel growth 5 Leveraged to later-cycle end markets

  5. Slide 5: One of North America's largest metals processors and distributors

    • One of North America’s largest metals processors and distributors, with 2014 sales of $3.6 billion • More than 100 locations in U.S., Canada, Mexico, China and Brazil • Founded in 1842; relisted on NYSE with IPO in August 2014 • Distribute more than 70,000 products to 35,000 active customers • Pri

  6. Slide 6: Metal Service Center Supply Chain

    METAL SERVICE CENTER SUPPLY CHAIN SUPPLIERS SERVICE CENTERS CUSTOMERS • Manufacture metals • Purchase in scale; ship smaller quantities • Purchase smaller quantities • Produce in large volume • Process more than half of products sold • Require a variety of • Have long lead times • Same/next day deli

  7. Slide 7: Transformation Driving Industry-Leading Performance

    Transformation Driving Industry-Leading Performance OPERATIONAL EFFICIENCY MARGIN EXPANSION PROFITABLE GROWTH  Structural cost reduction  Shift product mix  Leveraging scale in highly fragmented market  Expense control leadership  Optimize customer mix  Multi-channel sales and  Working capita

  8. Slide 8: Key Macro Business Drivers

    KEY MACRO BUSINESS DRIVERS M E TA L P R I C E S RYERSON’S END MARKETS T R A N S F O R M AT I O N Operational Margin Profitable Efficiency Expansion Growth D E U T S C H E B A N K ’ S 2 3 RD A N N U A L L E V E R A G E D F I N A N C E C O N F E R E N C E 8

  9. Slide 9: Long-Term Financial and Operating Goals

    LONG-TERM FINANCIAL and OPERATING GOALS METRIC TARGET Gross Margin 20% (excl. LIFO) EBITDA Margin 10% (Adjusted EBITDA, excl. LIFO) Working Capital 75 DOS Debt/EBITDA 2.0 x D E U T S C H E B A N K ’ S 2 3 RD A N N U A L L E V E R A G E D F I N A N C E C O N F E R E N C E 9

  10. Slide 10: Proven Operational Efficiency

    PROVEN OPERATIONAL EFFICIENCY Expenses as a percent of sales(1) Working capital management Inventory days of supply (DOS) 17.7% 16.3% 16.4% 17.6% 110 109 95 107 11.9% 12.5% 10.5% 11.5% 84 82 82 74 2011 2012 2013 2014 2011 2012 2013 2014 Competitor averages are based on Ryerson’s analysis of financia

  11. Slide 11: Higher Value Mix to Improve Margins

    HIGHER VALUE MIX to IMPROVE MARGINS PRODUCT MIX (PERCENTAGE OF SALES) ADVANTAGE OF CHANGING MIX 100% 4% 2% 3% 90% 16% ~ • Shift to higher-margin plate and 23% 80% 31% 42% 30% 57% long products 15% 70% 19% • Increase value-added processing 60% 27% • Expand transactional business 50% ~ 40% 65% 30% 56%

  12. Slide 12: Performance Versus Peers

    PERFORMANCE VERSUS PEERS Gross margin, excluding LIFO Adjusted EBITDA margin, excluding LIFO 25.0% 22.4% 22.1% 21.4% 21.5% 21.0% 7.0% 5.8% 20.0% 6.0% 6.0% 5.0% 4.6% 4.9% 15.0% 16.9% 17.6% 5.0% 16.1% 4.0% 4.7% 4.9% 3.7% 15.2% 15.0% 3.0% 3.3% 10.0% 3.4% 2.0% 5.0% 1.0% 0.0% 0.0% 2010 2011 2012 2013 201

  13. Slide 13: Differentiated Model

    DIFFERENTIATED MODEL “ONE RYERSON” • Single franchise • One brand • Speed • Great customer experiences CONNECTIVITY GLOBAL SCALE RY E R S O N • Technical knowledge • Global capabilities in Leveraging Scale and • Processing and fabrication local markets • Logistics Integrated Network • Inventory serv

  14. Slide 14: Financial Review

    FINANCIAL REVIEW ERICH SCHNAUFER Interim Chief Financial Officer D E U T S C H E B A N K ’ S 2 3 RD A N N U A L L E V E R A G E D F I N A N C E C O N F E R E N C E 14

  15. Slide 15: Ryerson Financial Objectives

    RYERSON FINANCIAL OBJECTIVES • Reduce balance sheet leverage • High return growth capital projects • Accretive bolt-on acquisitions consistent with strategic focus: • Fay Industries – $30 million annual revenues, focused on long products; adds significant number of new transactional accounts • South

  16. Slide 16: Annual Results: Improvement in Key Metrics

    ANNUAL RESULTS: Improvement in Key Metrics Net sales ($M) Gross margin 4,000 20.0% 3,000 $3,460 $3,622 15.0% 17.8% 16.4% 2,000 10.0% 1,000 5.0% 0 2013 2014 0 2013 2014 Gross margin excluding LIFO Expenses excluding depreciation and 20.0% amortization and IPO-related expenses ($M) 15.0% 16.9% 17.6% 6

  17. Slide 17: Annual Results: Improvement in Key Metrics

    ANNUAL RESULTS: Improvement in Key Metrics Net income attributable to Ryerson Holding Corp. ($M) Adjusted EBITDA, excluding LIFO ($M) 140 250 120 +28% $127.31 200 $218 100 80 150 $170 60 100 40 50 20 0 0 2013 2014 -20 $(25.7)2 Adjusted EBITDA, excluding LIFO, is a non-GAAP financial measure. A recon

  18. Slide 18: Macro Trends: Mixed End Market Demand

    MACRO TRENDS: Mixed End Market Demand Industrial Equipment % 2% 3% U.S. Purchasing Managers’ Index (PMI) ~ Transportation Equipment Industrial Fabricators Heavy Equipment Electrical Machinery Oil & Gas PMI Growth threshold 1H 2015 vs. 1H 2014 Source: U.S. Census Bureau, weighted >4% growth >2% growt

  19. Slide 19: Macro Trends: Highly Deflationary Base Metal Prices

    MACRO TRENDS: Highly Deflationary Base Metal Prices Source: LME and CRU D E U T S C H E B A N K ’ S 2 3 RD A N N U A L L E V E R A G E D F I N A N C E C O N F E R E N C E 19

  20. Slide 20: First Half 2015: Impacted by Deflationary Pressure

    FIRST HALF 2015: Impacted by Deflationary Pressure Net income attributable to Ryerson Holding Corp. ($M) Adjusted EBITDA, excluding LIFO ($M) 14 125 12 100 10 $1.6 75 8 6 50 $115.2 $65.1 4 $4.2 $13.31 25 2 0 0 1H 2014 1H 2015 1H 2014 1H 2015 Adjusted EBITDA, excluding LIFO, is a non-GAAP financial m

  21. Slide 21: Quarterly Results: Strong Counter-Cyclical Cash Flow

    QUARTERLY RESULTS: Strong Counter-Cyclical Cash Flow Cash Flow From Operations ($M) 200 150 100 $162.9 $53.2 50 0 $9.5 1H 2014 1H 2015 D E U T S C H E B A N K ’ S 2 3 RD A N N U A L L E V E R A G E D F I N A N C E C O N F E R E N C E 21

  22. Slide 22: Macro Trends: Substantial Upside

    MACRO TRENDS: Substantial Upside U.S. CARBON and STAINLESS STEEL SHIPMENTS (M tons) 33% below prior peak Source: Metals Service Center Institute D E U T S C H E B A N K ’ S 2 3 RD A N N U A L L E V E R A G E D F I N A N C E C O N F E R E N C E 22

  23. Slide 23: Ryerson Highlights

    RYERSON HIGHLIGHTS 1 Industry-leading expense and working capital management 2 Improving product and customer mix and value-added focus 3 Differentiated service model/competitive advantages 4 Significant operating leverage tied to late-cycle end markets D E U T S C H E B A N K ’ S 2 3 RD A N N U A L

  24. Slide 24: Deutsche Bank's 23rd Annual Leveraged Finance Conference

    D E U T S C H E B AN K ’ S 2 3 RD AN N U A L LEVERAGED FINANCE CONFERENCE September 30, 2015 D E U T S C H E B A N K ’ S 2 3 RD A N N U A L L E V E R A G E D F I N A N C E C O N F E R E N C E 24

  25. Slide 25: Appendix

    APPENDIX D E U T S C H E B A N K ’ S 2 3 RD A N N U A L L E V E R A G E D F I N A N C E C O N F E R E N C E 25

  26. Slide 26: 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 assets, reorganization expenses and the payment of management

  27. Slide 27: Non-GAAP Reconciliation

    NON-GAAP RECONCILIATION Figures may not add due to rounding. ($M) 2010 2011 2012 2013 2014 Net Sales $3,896 $4,730 $4,025 $3,460 $3,622 Gross Profit $540 659 710 617 594 LIFO Expense (Income) 52 48 (63) (33) 42 Gross Profit, excluding LIFO $592 $707 $647 $584 $636 Gross Margin, excluding LIFO 15.2%

  28. Slide 28: Non-GAAP Reconciliation

    NON-GAAP RECONCILIATION ($M) 1H 2014 1H 2015 Net Income attributable to Ryerson Holding $4.2 $13.3 Interest and other expense on debt 54.9 49.1 Provision for income taxes 5.6 10.0 Depreciation and amortization expense 22.4 22.2 EBITDA $87.1 $94.6 Reorganization 1.4 3.7 Advisory Service Fee 2.5 - Los

  29. Slide 29: Capitalization

    CAPITALIZATION Figures may not add due to rounding. Current Call Data 6/30/15 Trailing 12-mos. Adj. EBITDA, Rate Call Date Call Price Book Value excl. LIFO Multiple ($M) (as of 6/30/15) Cash and Cash Equivalents $66 Marketable Securities 9 Availability under Revolver 215 and Foreign Debt Facilities

  30. Slide 30: Net Debt to Adjusted EBITDA, excl. LIFO Reconciliation

    NET DEBT to ADJUSTED EBITDA, excl. LIFO RECONCILIATION Trailing 12-mos. ($M) 2010 2011 2012 2013 2014 (as of 6/30/15) Cash and Cash Equivalents $63 $62 $71 $74 $60 $66 Marketable Securities 20 10 21 21 11 9 Total Debt 1,211 1,316 1,305 1,295 1,259 1,145 Net Debt $1,128 $1,244 $1,214 $1,200 $1,188 $1

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