Goldman Sachs Leveraged Finance Conference May 2018 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 (“Ryerson” 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/sec-filings/sec-filings/default.aspx. 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, or projections relating to the future. Such statements can be identified by the use of forward-looking terminology such as “believes,” “expects,” “may,” “estimates,” “will,” “should,” “plans,” or “anticipates” or the negative 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, 2017, 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
Business Overview M I K E B U R B A C H │ P R E S I D E N T N O R T H / W E S T R E G I O N 3
Iconic Industrial Metals Company Founded in 1842 Processes and distributes carbon, aluminum, and stainless products Distributes 65,000+ products to 40,000 manufacturing customers 100 interconnected facilities located in North America and China Sales of $3.4 billion and shipments of 2 million tons in 2017 Processes over 75% of the metal we sell, emphasizing value-added fabrication services 4
Local Presence, National Scale Leading North American metals processor and distributor optimizing customer supply chains with tailored solutions, services, and products 24/7 customer access through local sales, customer development centers, and e-commerce Intelligently networked locations sharing assets and inventory, generating leverage Differentiated model creates continuing great customer experiences 5
The DNA of Our Success ANAL YTICS CULTURE SPEED VALUE-ADD SCALE 6
Prices Indexed to Dec. 31, 2015 7 Sources: Bloomberg; prices through March 31, 2018; Federal Reserve; industrial production index monthly year-over-year change. 0.8 1.0 1.2 1.4 1.6 1.8 2.0 2.2 2.4 2.6 Volatile but Improved Commodity Dec-15 Jan-16 Feb-16 Prices Since Dec. 31, 2015 Mar-16 Apr-16 May-16 Jun-16 LME Aluminum + Midwest Premium LME Nickel CRU HRC Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Macro Outlook Jan-18 Feb-18 Dec.‘15-Mar.‘18 Mar-18 performance +136% +47% +54% Dec-15 -3.3 Jan-16 -2.0 -2.1 Feb-16 Mar-16 -2.4 -1.7 Apr-16 May-16 -1.5 -0.8 Jun-16 Industrial Production Jul-16 -1.2 -1.3 Aug-16 Inflection in U.S. Sep-16 -1.2 -0.8 Oct-16 Nov-16 -0.4 0.8 Dec-16 Jan-17 0.0 0.4 Feb-17 Mar-17 1.4 1.9 Apr-17 May-17 2.1 1.8 Jun-17 Jul-17 1.4 1.1 Aug-17 Sep-17 1.2 2.7 Oct-17 Nov-17 3.4 2.9 Dec-17 Jan-18 3.0 4.4 Feb-18 Mar-18 4.3
MSCI Demand Gap Persisting U.S. Carbon and Stainless Average Monthly Shipments 5.0 Tons Per Month Jan. '93 - Oct. '08 = 4.2M/mo. Nov. '08 - Present = 3.2M/mo. 4.5 Average Monthly Tons in Millions 4.0 3.5 3.0 2.5 2.0 Source: Average annual shipments calculated using monthly Metals Service Center Institute data. 8
Diverse End-Markets All Other, Oil & 4% Gas, 5% Commercial Ground Transportation, Food 16% Processing & Ag., 10% Construction Equipment, 9% Metal Fabrication & Machine Shops, 20% HVAC, 7% Consumer Industrial Durable, 11% Machinery & Equipment, 18% Percentages are based on 2017 sales as disclosed in Ryerson’s Annual Report on Form 10-K for the year ended December 31, 2017. 9
Driving Market Share Growth 4.21% Highly fragmented 3.78% U.S. industry with: 17.3% • 7,000 service centers 16.4% • 1 million customers • 30 million transactions per year 2014 2017 RYI U.S. MSCI Market Share Gross Margin Sources: Metals Service Center Institute and IBISWorld Estimated market data based on Ryerson’s analysis of Metals Service Center Institute data. 10
Ryerson’s Growth Drivers 1 2 3 4 Develop & Diversify Stainless Products Scale Prospecting & Coil & Sheet Franchise Vertical Markets Leadership Call Centers Renewal Portfolio 5 6 7 8 Ryerson Virtual Ryerson Advanced Ryerson E-Commerce Long Products Depots Warehouse – Mapped Processing – Value-Add Built-Out & Scaling Centers of Excellence Supply Chains Amplifier & Accelerator 11
Ryerson’s Processing Capabilities Perforating Bending Precision Blanking Beveling Polishing 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 Fully integrated into our customer’s supply chain delivering value-add products that exceed our customer’s expectations 12
Optimizing Mix to Drive Margin Expansion Gross Profit per Ton Fabrication % of Sales 17.3% 13.9% 6.7% 9.8% $240 $263 $291 $301 2010 2017 2010 2017 Gross Profit Per Ton ($M) Gross Profit Per Ton, excl. LIFO ($M) Gross Margin Ryerson processes over 75% of $M, Tons 000's 2010 2017 % Change Tons Sold 2,252 2,000 -11% the metal we sell, with a greater Gross Profit 540 583 8% Gross Margin 13.9% 17.3% 340 bps emphasis on value-added LIFO Expense 52 19 -63% Gross Profit, excl. LIFO 592 602 2% fabrication services Gross Margin, excl. LIFO 15.2% 17.9% 270 bps 13
Financial Overview E R I C H S C H N A U F E R │ C H I E F F I N A N C I A L O F F I C E R 14
Ryerson Financial Priorities 3x 70-75 20% Days of Gross Margins, Debt / Supply excl. LIFO EBITDA Building a strong financial profile upon an iconic history 15
Annual Financial Highlights $184.1 $178.0 • Adj. EBITDA, excluding LIFO increased 3.4% to $184M in 2017 • Average selling prices per ton increased 11.9%, tons sold increased 5.1%, and revenues grew by 17.7% vs. 2016 • Operating expenses as a percentage $18.7 $17.1 of sales declined to 14.0% compared to 15.3% in 2016 • Lowered days of supply to 71 days 2016 2017 in 2017 compared to 76 days in 2016 Adj. EBITDA, excl. LIFO ($M) Net Income Attributable to Ryerson Holding Corporation ($M) A reconciliation of non-GAAP financial measures to the comparable GAAP measure is included in the Appendix. 16
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