J.P. Morgan Global High Yield & Leveraged Finance Conference February 24, 2020 1
Important Information About Ryerson Holding Corporation These materials do not constitute an offer or solicitation to purchase or sell securities of Ryerson Holding Corporation (“Ry ers on” or “the Company”) and no investment decision should be made based upon the information provided herein. Ryerson strongly urges you to review its filings with the Securities and Exchange Commission, which can be found at https://ir.ryerson.com/governance/governance-documents. This site also provides additional information about Ryerson. Safe Harbor Provision Certain statements made in this presentation and other written or oral statements made by or on behalf of the Company constitute "forward-looking statements" within the meaning of the federal securities laws, including statements regarding our future performance, as well as management's expectations, beliefs, intentions, plans, estimates, objectives, or projections relating to the future. Such statements can be identified by the use of forward-looking te rminology such as “objectives,” “goals,” “preliminary,” “range,” "believes," "expects," "may," "estimates," "will," "should," "plans," or "anticipates" or the negativ e thereof or other variations thereon or comparable terminology, or by discussions of strategy. The Company cautions that any such forward-looking statements are not guarantees of future performance and may involve significant risks and uncertainties, and that actual results may vary materially from those in the forward-looking statements as a result of various factors. Among the factors that significantly impact the metals distribution industry and our business are: the cyclicality of our business; the highly competitive, volatile, and fragmented market in which we operate; fluctuating metal prices; our substantial indebtedness and the covenants in instruments governing such indebtedness; the integration of acquired operations; regulatory and other operational risks associated with our operations located inside and outside of the United States; work stoppages; obligations under certain employee retirement benefit plans; the ownership of a majority of our equity securities by a single investor group; currency fluctuations; and consolidation in the metals producer industry. Forward-looking statements should, therefore, be considered in light of various factors, including those set forth above and those set forth under "Risk Factors" in our annual report on Form 10-K for the year ended December 31, 2018, and in our other filings with the Securities and Exchange Commission. Moreover, we caution against placing undue reliance on these statements, which speak only as of the date they were made. The Company does not undertake any obligation to publicly update or revise any forward-looking statements to reflect future events or circumstances, new information or otherwise. Non-GAAP Measures Certain measures contained in these slides or the related presentation are not measures calculated in accordance with generally accepted accounting principles (“GAAP”). They should not be considered a replacement for GAAP results. Non -GAAP financial measures appearing in these slides are identified in the footnotes. A reconciliation of these non-GAAP measures to the most directly comparable GAAP financial measures is included in the Appendix. 2 2
Business Overview E D D I E L E H N E R │ P R E S I D E N T & C H I E F E X E C U T I V E O F F I C E R 3
Ryerson: Built on 177 Years of Ingenuity From its modest start in 1842, Ryerson has grown into an intelligent network of service centers with leading capabilities to serve customers’ industrial metal supply chain needs. Ryerson has survived the Great Chicago Fire, weathered economic downturns, and evolved with changing markets. Ryerson is passionate about profitably providing consistently great customer experiences. 4 4
Ryerson’s North American Interconnected Network Local Presence, National Scale – Intelligent, Fast, Complete, Consistent Customer Experiences Over 100 locations across North America and China Value-Added Processing Next day delivery 24/7 customer service on Ryerson.com Sales product mix based on 2018 10-K results; 5 Carbon includes other metal sales representing 2% 5 of sales mix.
Metal Service Center Supply Chain RYERSON SUPPLIERS CUSTOMERS • 75,000+ aluminum, carbon, and • Manufacture metals • Purchase smaller quantities stainless products • Produce & ship large volumes • Require a variety of products • Processes over 75% of products and services • Have long lead times with high • Delivers same/next day • Can leverage Ryerson to reduce variance delivery times • Provides product and processing and inventory investment needs end-market expertise • Purchases in scale; ship smaller quantities 6 6
Delivering Value to Customers Understanding the “Elements” Is Vital to Profitable Growth Metal Shape Processing Fabrication Burn/Cut As Is Carbon 54% Stainless 24% Aluminum 22% Flat Long Plate As Is 23% 60% 22% 18% Burn/Cut 67% Fabrication 10% *Product Mix and shape based on Dec. 31, 2018 10-K. Carbon and flat products include other metals and shapes, which represent approximately 2% of sales mix. 7 7
Ryerson’s Processing Capabilities = Value -Add Fully integrated into our customer’s supply chain, delivering value -add products that exceed our customers’ expectations Perforating Bending Polishing Beveling Precision Blanking Blanchard Grinding Profile Cutting Machining and Blasting Punching Forming Plate Burning Rolling Centerless Grinding Sawing Cutting-to-Length Beveling Scribing Drilling Shearing Embossing Slitting Flattening Welding Stamping Forming Tapping Grinding Threading Laser Cutting Painting Toll Processing Machining Turning Notching Water Jet Cutting Painting Welding Image: Converter system for packaging equipment customer 8 8
Growing Diversified End-Markets with Significant Tailwinds Industrial Machinery Metal Fabrication & & Equipment Machine Shops 18% Sales 22% Sales 1.4% (2017-2024 All Other Commercial N.A. 4% Sales Ground Commercial Transportation Truck Oil & 1.8% 16% Sales Production Gas 5% Sales Volume (2017-2022 U.S. Market CAGR) HVAC Consumption Volume CAGR) 6% Sales Consumer 5.2% Durable Construction Food (2016-2021 11% Sales Equipment Processing Global HVAC 8% Sales Market & Ag. Revenue 10% Sales CAGR) End market percentages are based on 2018 sales as 3.9% disclosed in Ryerson’s Annual Report on Form 10 -K for the year ended December 31, 2018. (2017-2023 Global Food Processing Equipment Compounded annual growth rates “CAGR” determined based Market CAGR) on Wall Street Research. 9 9
Current Macro Conditions Volatile Commodity U.S. Industrial Production Prices Since Dec. 2017 Dec.‘17 - Jan.‘20 performance CRU HRC 1.8 LME Nickel Prices Indexed to Dec. 2017 LME Aluminum + Midwest Premium 1.6 1.4 1.2 +18.8% 1.0 -8.4% -8.6% 0.8 0.6 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Sources: Bloomberg: prices through January 2020; Federal Reserve: industrial production index monthly year-over-year change. 10 10 10
INDUSTRY-LEADING PERFORMANCE Fundamentals First and Always OPERATIONAL EFFICIENCY MARGIN EXPANSION PROFITABLE GROWTH Expense and working Growing share by leveraging scale Optimize product and customer mix ▪ ⚫ ⚫ capital leadership in highly fragmented market Value-added processing ⚫ Significant operating leverage Multi-channel sales and distribution ▪ ⚫ Value-driven pricing ⚫ platform Best practice talent management ▪ Supply chain innovation, ⚫ Investment in capabilities ⚫ Speed architecture, and leadership ▪ Strategic acquisitions ⚫ Expanding use of analytics ⚫ Contributing to our customers’ success 11 11 11
Ryerson’s Targeted Commercial Initiatives Optimizing the Customer Experience Through Intelligently Networked Service Centers 1 2 3 4 Develop & Diversify Stainless Products Scale Prospecting Coil & Sheet Franchise Vertical Markets Leadership Centers Renewal Portfolio 5 6 7 8 Ryerson Virtual Ryerson Advanced Ryerson E-Commerce Long Products Depots Warehouse – Mapped Processing – Value-Add Build-Out & Scaling Centers of Excellence Supply Chains Amplifier & Accelerator 12 12 12
Value-added Processing Shift Ryerson targets increasing its fabrication mix to 15% of sales as a catalyst for expanded gross margins thru the cycle . Value-Added Sales Mix A shift in Ryerson’s fabrication mix from 10.2% to 15% is expected to positively impact Adj. EBITDA, excl. LIFO margins by ~30-50 bps 6.7% 10.2% 15.0% 2010 2018 Next Phase Target Note: Targets are based on 3-year window; Service center industry growth assumed consistent with 2018 tons shipped and average selling prices consistent with Ryerson historical average prices 13 13 13
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