Ryerson Holding Corporation · NYSE:RYZ
Ryerson — Q2 2024 Earnings Presentation
29 slides from Ryerson's earnings presentation, Jul 31, 2024
Slide 1: Ryerson Quarterly Release Presentation Q2 2024
Ryerson Quarterly Release Presentation Q2 2024 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: 10 Year View Since Ryerson IPO
10 YEAR VIEW SINCE RYERSON IPO Improved Improved Balance Sheet Transformation Operating Model Capital Allocation Adj. EBITDA ex. Book Value of Equity Net PP&E 10-Year Total LIFO1 Investment ▲$1.0B ▲$170M 10-Year ▲$30/share Capex $525M $2.9B Total $886M Acquisitions $458M Annual $603M $295M $433M Ave
Slide 4: Earnings Power Increase
EARNINGS POWER INCREASE 10-Year Annual Total Average Adj. EBITDA ex. LIFO1 $2.9B $295M Cash from Operations $1.6B $161M $501M $365M $259M $278M $193M $25M $57M $35M $83M $218M $109M $178M $184M $308M $190M $120M $861M $582M $231M -$3M -$22M -$73M 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 YTD
Slide 5: Fixed Asset Portfolio
FIXED ASSET PORTFOLIO Service Center Sqft = 9.4M1 $122M Owned; 4.0M; 42% $105M Leased; 5.4M; 58% $59M $63M $58M $56M $59M $53M $54M $45M $46M $47M $44M $43M $35M $46M $26M $22M $23M $25M $22M $38M Owned Real Estate $428M $400M $388M $423M $489M $440M $422M $388M $458M $590M $603M Portfolio Valuation
Slide 6: Equity Value Accretion
EQUITY VALUE ACCRETION $1,448M $1,332M $1,311M $277M $1,196M $175M $1,098M $1,133M $181M $1,063M $238M $165M $216M $140M $833M $154M $684M $96M $557M $1,157M $1,171M $1,130M $401M $446M $60M $958M $882M $968M $923M $73M $64M $679M $588M $382M $497M $328M Jun '14 2014 2015 2016 2017 2018 2019 2020 20
Slide 7: Capital Allocation
CAPITAL ALLOCATION $260M $208M $138M $162M $57M $170M $74M $74M $42M $46M $15M $122M $45M $31M $49M $105M $24M $26M $20M $9M $59M $38M $46M $45M $22M $22M $23M $25M $26M 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 YTD Jun Gross Capex Acquisitions '24 $139M Share Repurchases Avg. Shares Cost $7
Slide 8: Q2 2024 Highlights
Q2 2024 HIGHLIGHTS • Delivered Net Income attributable to Ryerson Holding Corporation of $9.9 million and Adjusted EBITDA1, excluding LIFO of $42.6 million • Earned diluted EPS of $0.29 on $1.23 billion of revenue from 508,000 tons shipped and average selling price of $2,412 per ton • Reduced operat
Slide 9: Macro & Commodities
MACRO & COMMODITIES Commodity Prices Since Dec. 2017 U.S. Industrial Production 1.6 3.5 CRU HRC 1.1 LME Aluminum 0.6 0.3 3.0 LME Nickel (0.1) (0.2) (0.1) (0.2) (0.4) (0.4) (0.8) (0.7) (0.8) 2.5 Jun-23 Sep-23 Dec-23 Mar-24 Jun-24 2.0 1.5 1.0 Futures 0.5 Dec-17 Dec-18 Dec-19 Dec-20 Dec-21 Dec-22 Dec-2
Slide 10: Sequential End-Market Trends
SEQUENTIAL END-MARKET TRENDS 2023 QoQ Volume Sales Mix1 Commentary Metal Fab and Machine Shop 25% Ryerson’s second quarter North Industrial Equipment American shipments reflected 17% seasonal buying patterns as well Commercial Ground Transportation as selective restocking customer 17% demand from co
Slide 11: Q3 2024 Guidance
Q3 2024 GUIDANCE Diluted Earnings (loss) per Share Adj. EBITDA, Net Sales Net Income1 excl. LIFO $1.12 - 1.16B $0 – 3M $21 - 25M $1.00 $1.00 $0.74 $0.73 $0.29 0.33 $0.05 Second quarter revenue guidance of $1.12B to $1.16B ($0.22) ($0.18) assumes: • Average Selling Prices decrease 3% to 5% Q3 2023 Q4
Slide 12: Financial and Operating Metrics
FINANCIAL AND OPERATING METRICS Asset Management Inventory Days of Cash Conversion The Company’s cash conversion cycle increased Supply Cycle sequentially due to an increase in days sales outstanding, partially offset by a decrease in inventory days of supply 83 78 Cash Flow Cash from Operating LTM
Slide 13: Liquidity and Leverage
LIQUIDITY AND LEVERAGE $497 • Net Leverage of 3.2x in Q2 ’24 above $455 target leverage range of 0.5x to 2.0x $382 $366 $329 • Global liquidity remained strong at $585M in Q2 ’24 $790 $807 $656 $684 $585 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Liquidity Net Debt $790 $807 30 37 $684 $656 48 45 54 42 $585 42 4
Slide 14: Capital Allocation Plan
CAPITAL ALLOCATION PLAN LTM1 free cash flow generation $23M in Q2’24; Quarterly $110M in ’24E dividend Modernization and of $0.1875 and Value-Add per share for Q3’24 CAPEX DIVIDENDS M&A BUYBACKS Track record of $14M repurchased successful in Q2’24; acquisitions Authorization extended to 2026 Support
Slide 15: Shareholder Returns
SHAREHOLDER RETURNS $0.1875 and $14.0M per Share Share repurchases completed in Return of capital to investors Q2 2024 Q3 2024 Announced: $0.1875 Ryerson’s dividend is enabled by a transformed balance sheet and per Share continued prioritization of Return of capital to investors shareholder returns
Slide 16: Q2 2024 Key Financial Metrics
Q2 2024 KEY FINANCIAL METRICS Diluted Income Net Sales Gross Margin Net Income1 Debt per Share $1.2B 18.2% $9.9M $0.29 $525M (1.1%) +60 bps +$17.5M +$0.51 +$28M QoQ QoQ QoQ QoQ QoQ Gross Adjusted Diluted Tons Adj. EBITDA Margin, excl. Income per Net Debt Shipped excl. LIFO LIFO Share 508k 17.4% $42.
Slide 17: Intelligent Network
INTELLIGENT NETWORK • Diversified (metals mix, ~40k customers, ~75k products) • Availability, speed, ease, consistency • Over 110 facilities • Hundreds of “virtual” locations • 24/7 E-Commerce Platform • Relationship-centric customer experience • Building the value chain of the future 17
Slide 18: Reimagined E-Commerce Platform
REIMAGINED E-COMMERCE PLATFORM • Investing in digitalization to improve customer experience 18
Slide 19: Ryerson Family of Companies
RYERSON FAMILY OF COMPANIES 2 (A L IP 2 ¢ [FANELLO <2 TWreer a STEEL f +>, = fay+ eee ee yo Riba “WS
Slide 20: Appendix
Appendix
Slide 21: Investing in the Business
INVESTING IN THE BUSINESS University Park – New CS&W HQ Shelbyville Expansion Centralia Pacific NW • 900,000 sq ft facility • State-of-the-art cut-to-length line • 214,000 sq ft facility • Significant automation and (CTL) and automated storage and • Advanced processing capabilities technological enh
Slide 22: Dividend Payments
DIVIDEND PAYMENTS Dividend per Share 1 EPS Dividend Yield 2 $4.10 $0.1875 $0.1875 $0.1875 $0.1850 $0.1825 $0.18 $0.17 $1.81 $0.16 2.1% 3.8% $0.15 2023 TTM Q2'24 Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 • Stronger capital structure allows for greater returns to shareholders 1EPS is Dilut
Slide 23: Quarterly Financial Highlights
QUARTERLY FINANCIAL HIGHLIGHTS Tons Sold (000’s) Average Selling Price Per Ton $2,709 496 497 508 $2,608 478 $2,472 $2,493 450 $2,412 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Gross Margin & Gross Margin, excl. LIFO Adj. EBITDA excl. LIFO & Net Income (Loss) Mar
Slide 24: Non-GAAP Reconciliation: Adjusted EBITDA, Excl. LIFO
NON-GAAP RECONCILIATION: ADJUSTED EBITDA, EXCL. LIFO ($M) Q2 '23 Q3 '23 Q4 '23 Q1 '24 Q2 '24 Tons Sold (000's) 496 478 450 497 508 Net Sales 1,343.5 1,246.7 1,112.4 1,239.2 1,225.5 Gross Profit 260.9 249.3 247.2 217.6 223.5 Gross Margin 19.4% 20.0% 22.2% 17.6% 18.2% LIFO expense (income) (9.0) (33.4
Slide 25: Non-GAAP Reconciliation: Adjusted Net Income
NON-GAAP RECONCILIATION: ADJUSTED NET INCOME (Dollars and shares in millions, except per share data) Q2 '23 Q3 '23 Q4 '23 Q1 '24 Q2 '24 Net income (loss) attributable to Ryerson Holding Corporation $37.6 $35.0 $25.8 ($7.6) $9.9 Restructuring and other charges - - - - 1.7 Pension settlement charge -
Slide 26: Non-GAAP Reconciliation: Net Debt
NON-GAAP RECONCILIATION: NET DEBT ($M) Q2 '23 Q3 '23 Q4 '23 Q1 '24 Q2 '24 Total debt $396.1 $365.9 $436.5 $497.3 $525.4 Less: cash and cash equivalents ($30.0) ($37.4) ($54.3) ($41.9) ($28.0) Net Debt $366.1 $328.5 $382.2 $455.4 $497.4 TTM Adj. EBITDA, excl. LIFO $267.4 $233.9 $231.1 $181.2 $153.7 N
Slide 27: Reconciliation: Annual Net Debt
RECONCILIATION: ANNUAL NET DEBT ($M) Q2 '14 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Q2 '24 Total debt $1,254.8 $1,242.1 $1,023.5 $963.5 $1,045.7 $1,153 $981.8 $740.0 $639.3 $367.0 $436.5 $525.4 Less: cash and cash equivalents ($82.9) ($60.0) ($63.2) ($80.7) ($77.4) ($23.2) ($11.0) ($61.4)
Slide 28: Reconciliation: Annual Adj. EBITDA
RECONCILIATION: ANNUAL ADJ. EBITDA ($M) 2H14 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 1H24 Tons Sold (000's) 989 2,024 1,897 1,903 2,000 2,268 2,381 2,009 2,095 2,029 1,943 1,005 Net Sales 1,816.3 3,622.2 3,167.2 2,859.7 3,364.7 4,408.4 4,501.6 3,466.6 5,675.3 6,323.6 5,108.7 2,464.7 Averag
Slide 29: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION Note: EBITDA represents net income (loss) before interest and other expense on debt, provision (benefit) for income taxes, depreciation, and amortization. Adjusted EBITDA gives further effect to, among other things, reorganization expenses, benefit plan curtailment gain, pens