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June 2015 Investor Presentation – Russel Metals Inc.

Russel Metals Inc. · Jun 30, 2015 · 45 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. June 2015 Investor Presentation – Russel Metals Inc. – slide 1
    JUNE 2015
  2. June 2015 Investor Presentation – Russel Metals Inc. – slide 2
    CAUTIONARY STATEMENT ON FORWARD FORWARD-LOOKING LOOKING INFORMATION Certain statements contained in this document constitute forward-looking statements or information within the meaning of applicable securities laws, including…
  3. June 2015 Investor Presentation – Russel Metals Inc. – slide 3
    OVERVIEW OF RUSSEL METALS We are one of the largest metals distribution and processing companies in North America America. We are one of the largest pipe, valve and fittings companies in North America. Consolidated Revenues: Six…
  4. June 2015 Investor Presentation – Russel Metals Inc. – slide 4
    EPS 2010 - 2015 3.00 2 01 2.01 1.97 2.00 1.63 1.37 0.96 0.97 1 00 1.00 0.57 - 2010 2011 2012 2013 2014 Six Months Six Months 2014 2015 Notes: 2012 restated due to adoption of IAS 19 (amended 2011) 4
  5. June 2015 Investor Presentation – Russel Metals Inc. – slide 5
    THREE DISTINCT SEGMENTS REVENUES SIX MONTHS -2015 (YE -2014) Steel Distributors 13% (11%) Metals Service Centers 44% (42%) gy Energy Products 43% (47%) 5
  6. June 2015 Investor Presentation – Russel Metals Inc. – slide 6
    OPERATING UNITS CANADA METALS SERVICE CENTERS STEEL DISTRIBUTORS ENERGY British Columbia Wirth Steel Comco Pipe Apex Distribution Alberta (A.J. Forsyth) (Montreal) (Alberta) (Alberta) Fedmet Tubulars Triumph Tubulars Man/Sask…
  7. June 2015 Investor Presentation – Russel Metals Inc. – slide 7
    BALANCE SHEET AS AT JUNE 30,, 2015 (millions) ASSETS EMPLOYED Cash 28 1% Accounts Receivable 446 23% I Inventories t i 924 49% Property, Plant and Equipment 258 14% Goodwill/Intangibles 216 11% Other 29 2% 1,900 100%…
  8. June 2015 Investor Presentation – Russel Metals Inc. – slide 8
    BROAD PRODUCT FOCUS BREAKDOWN FOR SIX MONTHS ENDED JUNE 30, 30 2015 (YE 2014) Bars Flat Rolled 5.2% (5.1%) 4.7% (4.1%) Non Ferrous 2.9% (2.3%) Other 4.4% (4.1%) Pipe Products 27.6% (31.1%) Plate 19.7% ((20.0%))…
  9. June 2015 Investor Presentation – Russel Metals Inc. – slide 9
    TOP MILL SUPPLIERS FOR YTD JUNE 30 2015 % of total purchased Products Purchased Supplier 1 6.9% Bars, Structurals Supplier 2 5.2% Tubing / Pipe / Supplier 3 4.9% Flat Roll, Plate Supplier 4 4.9% Tubing / Pipe Supplier 5…
  10. June 2015 Investor Presentation – Russel Metals Inc. – slide 10
    SERVICE CENTER/DISTRIBUTION COMPETITORS TOP 14 BY REVENUE Public/ (i billi ) (in billions) 2013 P i t Headquarters Private H d t Reliance Steel & Aluminum Co. 9.2 Public U.S NOW Inc NOW Inc. 5.3 53 (E) Public US U.S MRC Global…
  11. June 2015 Investor Presentation – Russel Metals Inc. – slide 11
    MARKET TRENDS 11
  12. June 2015 Investor Presentation – Russel Metals Inc. – slide 12
    MONTHLY SERVICE CENTER SHIPMENTS STEEL PRODUCTS US CANADA 4500 900 4000 800 3500 700 s in Thousands Thousands 3000 600 ments- Tons in T hipments - Tons 2500 500 2000 400 US Shipm Canadian sh 1500…
  13. June 2015 Investor Presentation – Russel Metals Inc. – slide 13
    RUSSEL CAPTURING MARKET SHARE SHIPMENT VOLUMES YTD CHANGE MSCI - YTD % Change in Canadian Shipment Volumes (2014 - 2015) 6 0% 6.0% 4.0% 2 0% 2.0% 0.0% -2.0% 2 0% -4.0% -6.0% 6 0% -8.0% -10.0% 10 0%…
  14. June 2015 Investor Presentation – Russel Metals Inc. – slide 14
    20 220 420 620 820 1020 1220 1420 1620 7-Jan-05 7-Apr-05 7-Jul-05 7-Oct-05 7-Jan-06 7-Apr-06 7-Jul-06 7-Oct-06 7-Jan-07 7-Apr-07 7-Jul-07 7-Oct-07 7-Jan-08 7-Apr-08 7-Jul-08 7-Oct-08 7-Jan-09 7-Apr-09 7-Jul-09…
  15. June 2015 Investor Presentation – Russel Metals Inc. – slide 15
    CARBON PLATE AND RUSSEL METALS EBIT 1,600 160 150 Carbon Plate EBIT 1,400 140 130 1,200 120 110 Carrbon plate (US per ton) dollars) 1,000 100 90 BIT (millions of d 800 80 70 600 60 EB 50 400 40…
  16. June 2015 Investor Presentation – Russel Metals Inc. – slide 16
    Net Tons (00 00's) 1,100 1,300 1 500 1,500 1,700 1,900 2 100 2,100 700 900 5-Jan-08 5-Mar-08 5 5-May-08 5 5-Jul-08 2008 5-Sep-08 5 5-Nov-08 5 5-Jan-09 5-Mar-09 5 5-May-09 5 5-Jul-09 2009…
  17. June 2015 Investor Presentation – Russel Metals Inc. – slide 17
    - 100.00 200.00 300.00 400.00 600.00 500 00 500.00 5-Jan-07 5-Mar-07 5-May-07 5-Jul-07 5-Sep-07 5-Nov-07 5-Jan-08 5-Mar-08 5-May-08 5-Jul-08 5-Sep-08 5-Nov-08 5-Jan-09 5-Mar-09 5-May-09 5-Jul-09 5-Sep-09…
  18. June 2015 Investor Presentation – Russel Metals Inc. – slide 18
    OIL AND NATURAL GAS PRICES LOW 10 120 110 9 100 8 90 7 80 Natural Gas 6 70 Gas Prices Oil Prices Crude Oil 5 60 50 4 40 3 30 2 20 1 10 - - 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012…
  19. June 2015 Investor Presentation – Russel Metals Inc. – slide 19
    0 250 500 750 1000 1250 1500 1750 2000 Jan n-00 2250 Jun n-00 Novv-00 Aprr-01 Sep p-01 Feb b-02 Jul-02 Decc-02 Mayy-03 Octt-03 Marr-04 Aug g-04 Jan n-05 Jun n-05 Novv-05 Aprr-06 Sep p-06 Feb b-07…
  20. June 2015 Investor Presentation – Russel Metals Inc. – slide 20
    RMI OPERATIONS METALS STEEL SERVICE DISTRIBUTORS CENTERS ENERGY PRODUCTS 20
  21. June 2015 Investor Presentation – Russel Metals Inc. – slide 21
    METALS SERVICE CENTERS STRONG CANADIAN FRANCHISE Six months 2015 revenues of 786 million,, EBIT of 28 million. 2014 revenues of 1.6 billion, EBIT of 82 million. 52 Metals Service Centers in Canada. 13 Metals Service Centers in…
  22. June 2015 Investor Presentation – Russel Metals Inc. – slide 22
    ROLE OF METALS SERVICE CENTERS Suppliers Metals Service Centers Customers Mills producing base metal Source material and Manufacturers, fabricators products purchase in large quantity Processing g includes Process material to meet…
  23. June 2015 Investor Presentation – Russel Metals Inc. – slide 23
    LOCATION OF OPERATIONS METALS SERVICE CENTERS 23
  24. June 2015 Investor Presentation – Russel Metals Inc. – slide 24
    OPERATIONS METALS SERVICE CENTERS - 65 UNITS Canada Alb t /M it b /S k t h Alberta/Manitoba/Saskatchewan 16 units it British Columbia 10 units Ontario 9 units Atlantic 5 units Quebec 12 units United States 1 unit 8…
  25. June 2015 Investor Presentation – Russel Metals Inc. – slide 25
    METALS SERVICE CENTERS PROCESSING CAPABILITIES Cutting-to-Length Stretcher Leveling Blanking L Leveling li Edge Trimming Slitting Oxygen Fuel Cutting Plasma Cutting Hi d fi iti Hi-definition Pl Plasma C tti Cutting…
  26. June 2015 Investor Presentation – Russel Metals Inc. – slide 26
    PROCESSING CAPABILITIES Shearing Braking Rolling Shot Blasting S Sawing Mitre Sawing Bundle Cutting 26
  27. June 2015 Investor Presentation – Russel Metals Inc. – slide 27
    TOP METAL SERVICE CENTER CUSTOMERS SIX MONTHS ENDED JUNE 30, 30 2015 % of Customer End Market Segment Products Purchased Customer 1 Heavy Equipment Manufacturer f 0.8% Plate (Discreet & Plate in Coil) l ( & l l) Customer 2…
  28. June 2015 Investor Presentation – Russel Metals Inc. – slide 28
    METALS SERVICE CENTERS OPERATING PROFIT & OPERATING PROFIT AS A % OF REVENUES 40 12% 35 8.6% 10.0% 7.5% 10% 7.1% 7 1% 30 6.1% 8% 25 6.2% 5 9% 5.9% 5 3% 5.3% 6.2% 5.7% 5.4% 5.4% 5.4% 20 6% 5.0% 0,000's) 5.1%…
  29. June 2015 Investor Presentation – Russel Metals Inc. – slide 29
    ENERGY PRODUCTS Six months 2015 revenues of 653 million, EBIT of 37 million. 2014 revenues of 1.8 billion, EBIT of 124 million. Apex Distribution & Apex Monarch Western Canada A Apex R Remington i t Central C t l U.S. US…
  30. June 2015 Investor Presentation – Russel Metals Inc. – slide 30
    ROLE OF PIPE DISTRIBUTORS Suppliers Pipe Distributors Customers Mills producing pipe, Source material and Oil and gas valves and fittings purchase in large quantity producers/distributors Processing P i iincludes l d Arrange…
  31. June 2015 Investor Presentation – Russel Metals Inc. – slide 31
    ROLE OF VALVE AND FITTING FIELD STORES Suppliers Field Stores Customers Mills producing pipe, High service model Oil and gas valves and fittings producers/distributors Limited ability to service Located close to Focused on…
  32. June 2015 Investor Presentation – Russel Metals Inc. – slide 32
    WELL POSITIONED TO SERVICE NORTH AMERICAN ENERGY SECTOR ENERGY PRODUCTS 25 32
  33. June 2015 Investor Presentation – Russel Metals Inc. – slide 33
    ENERGY PRODUCTS - 79 UNITS Canada Alberta/B.C./Manitoba/Saskatchewan 49 units Alberta/Manitoba/Ontario 5 units Alberta 1 unit * Alberta 1 unit * United States East and Central U.S. 15 units Colorado / Texas 6 units Colorado /…
  34. June 2015 Investor Presentation – Russel Metals Inc. – slide 34
    TOP ENERGY PRODUCTS CUSTOMERS SIX MONTHS ENDED JUNE 30, 30 2015 % 2015 Customer End Market Segment Products Purchased Customer 1 C t 1 Oil drilling, Gas drilling Oil d illi G d illi 10.6% 10 6% OCTG Customer 2 Gas drilling, Gas…
  35. June 2015 Investor Presentation – Russel Metals Inc. – slide 35
    ENERGY PRODUCTS OPERATING PROFIT & OPERATING PROFIT AS A % OF REVENUES 35 10% 7.3% 6.6% 6.5% 8.6% 30 7.9% 7.7% 7.4% 8% 7 3% 7.3% 7.2% 2% 25 6.8% 6.8% 6.9% 5.0% 6.3% 5.6% 5.8% 5.4% 5.9% 5.5% 5.4% 6% 20 5.2% 4.6%…
  36. June 2015 Investor Presentation – Russel Metals Inc. – slide 36
    STEEL DISTRIBUTORS Six months 2015 revenues of 244 million, EBIT of 12 million. 2014 revenues of 441 million, EBIT of 38 million . Sunbelt Group, Arrow Steel Houston, Texas; Wirth Steel Montreal, Vancouver Arrow Steel provides…
  37. June 2015 Investor Presentation – Russel Metals Inc. – slide 37
    ROLE OF STEEL DISTRIBUTORS Suppliers Steel Distributors Customers Mills producing base metal Source material and Large original equipment products purchase in large quantity manufacturers Processing includes incl des Arrange…
  38. June 2015 Investor Presentation – Russel Metals Inc. – slide 38
    LOCATION OF OPERATIONS STEEL DISTRIBUTORS 38
  39. June 2015 Investor Presentation – Russel Metals Inc. – slide 39
    STEEL DISTRIBUTORS - 6 UNITS Canada Wirth Steel Montreal, Vancouver United States Sunbelt Group - Houston, Texas (2) 39
  40. June 2015 Investor Presentation – Russel Metals Inc. – slide 40
    TOP STEEL DISTRIBUTOR CUSTOMERS SIX MONTHS ENDED JUNE 30, 30 2015 % 2015 Customer End Market Segment Products Purchased Customer 1 C 1 SService center laser processor i l 9.0% 9 0% Plate Pl Customer 2 Service center processor…
  41. June 2015 Investor Presentation – Russel Metals Inc. – slide 41
    STEEL DISTRIBUTORS OPERATING PROFIT & OPERATING PROFIT AS A % OF REVENUES 14 15% 12.6% 12.6% 9.6% 12 9.2% 11.0% 12% 10.9% 10 9.8% 9.1% 8.1% 8.8% 8.8% 9% 8 7.9% 8.0% 7.7% 7 5% 7.5% (000,000's) 6.6% 6.7% 7.2% 6.7%…
  42. June 2015 Investor Presentation – Russel Metals Inc. – slide 42
    SUMMARY 42
  43. June 2015 Investor Presentation – Russel Metals Inc. – slide 43
    SUMMARY Leading market position Strong supplier relationships and unique market insight Successful acquisition strategy to deploy capital Multiple business segments Diversified service center and energy customer base Superior…
  44. June 2015 Investor Presentation – Russel Metals Inc. – slide 44
    GROWTH OPPORTUNITIES - INTERNAL Field stores (Apex Remington) U.S. Acquisitions A i iti (1 iin 2015 2015, 2 iin 2014 and d 3 iin 2013) Service center g greenfields in U.S. Capital investments equipment 44
  45. June 2015 Investor Presentation – Russel Metals Inc. – slide 45
    GROWTH OPPORTUNITIES - EXTERNAL Upside potential from construction recovery XL or other pipe line approval Re-shoring Re shoring of manufacturing 45

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