Ryerson Inc

www.zerohedge.com

Ryerson Inc (United States) CREDIT SNAPSHOT

10/13/09

01 DEBT DISTRIBUTION 02 BONDS 03 INCOME STATEMENT 04 CASH FLOW 05 BALANCE SHEET 06 COVERAGE RATIOS 07 LEVERAGE RATIOS 08 ENTERPRISE VALUE 09 RETURN ON CAPITAL e-mail

[email protected]

10 RECOVERY & TANGIBLE NET WORTH

blog

www.zerohedge.com

11 ACCOUNTING RED FLAGS 12 LATEST SEC FILINGS 13 LEGAL DISCLAIMER

RYI US Equity equity ticker:

RYI US

capitalisation (USD in millions):

bond ticker:

RYI

stock price

sector:

Basic Materials

shares outstanding (million)

-

subgroup:

Steel-Producers

market capitalisation (USD mm)

-

company description: Ryerson Inc. is a metals service center in the United States. The Company distributes and processes metals and other materials, operating as an intermediary between primary metals producers and customers. Ryerson carries a full line of carbon steel, stainless steel, and aluminum, and a limited line of alloy steel, nickel, red metals, and plastics. Ryerson Inc has 5,700 employees.

total debt cash + marketable securities

not listed

625 38

other capital

-

enterprise value (excl. cash)

-

current EV / TTM EBITDA

-

www.ryersontull.com

The distribution of this report is restricted. Important information concerning these restrictions and legal disclaimer is set forth at the end of this report.

03 /3 1 05 /05 /3 1 07 /05 /3 1 09 /05 /3 0 11 /05 /3 0 01 /05 /3 1 03 /06 /3 1 05 /06 /3 1 07 /06 /3 1 09 /06 /3 0 11 /06 /3 0 01 /06 /3 1 03 /07 /3 1 05 /07 /3 1 07 /07 /3 1 09 /07 /3 0 11 /07 /3 0 01 /07 /3 1 03 /08 /3 1 05 /08 /3 1 07 /08 /3 1 09 /08 /3 0 11 /08 /3 0 01 /08 /3 1 03 /09 /3 1 05 /09 /3 1 07 /09 /3 1 09 /09 /3 0/ 09

03 /3 1 05 /05 /3 1 07 /05 /3 1 09 /05 /3 0 11 /05 /3 0 01 /05 /3 1 03 /06 /3 1 05 /06 /3 1 07 /06 /3 1 09 /06 /3 0 11 /06 /3 0 01 /06 /3 1 03 /07 /3 1 05 /07 /3 1 07 /07 /3 1 09 /07 /3 0 11 /07 /3 0 01 /07 /3 1 03 /08 /3 1 05 /08 /3 1 07 /08 /3 1 09 /08 /3 0 11 /08 /3 0 01 /08 /3 1 03 /09 /3 1 05 /09 /3 1 07 /09 /3 1 09 /09 /3 0/ 09 03 /3 1 05 /05 /3 1 07 /05 /3 1 09 /05 /3 0 11 /05 /3 0 01 /05 /3 1 03 /06 /3 1 05 /06 /3 1 07 /06 /3 1 09 /06 /3 0 11 /06 /3 0 01 /06 /3 1 03 /07 /3 1 05 /07 /3 1 07 /07 /3 1 09 /07 /3 0 11 /07 /3 0 01 /07 /3 1 03 /08 /3 1 05 /08 /3 1 07 /08 /3 1 09 /08 /3 0 11 /08 /3 0 01 /08 /3 1 03 /09 /3 1 05 /09 /3 1 07 /09 /3 1 09 /09 /3 0/ 09

BONDS

02

*interpol. swap spread

coupon mat

RYERSON TULL INC 8.250 12/15/11 USD 4,384,000

78375PAK RYERSON INC 7.858 11/01/14 USD

78375PAL RYERSON INC 12.000 11/01/15 USD

id

Ryerson Inc issuer

78375PAG

RYERSON INC 8.25% 12/2011 USD 15

RYERSON INC 7.85813% 11/2014 USD 10

RYERSON INC 12% 11/2015 USD

outstanding S&P MDY ask px

www.zerohedge.com yield

NR WR 79.00 20.7 1929 10/11/09

101,876,000 CCC+ Caa1 87.00 FRN FRN 10/11/09

382,200,000 CCC+ Caa1 97.50 12.6 961 10/11/09

spread*

Prices & yields bid side to 28/7/08 and ask side thereafter. Spread is Govt Bid Sprd to 28/7/08 and Interpol. Swap Ask Sprd then.

px date

Total Debt for the company currently stands at USD 625.4mm.

bond price

120

100

80

60

40

20

0

yield

25

20

5

0

interpolated swap spread

2500

2000

1500

1000

500

0

www.zerohedge.com

Ryerson Inc USD in millions

Q4 06

Q2 07

Q1 07

Q1 09

Q2 09

03

04

05

06

06/30/09 Revenues

1,415

1,663

1,618

805

743

2,189

3,302

5,781

5,909

COGS

1,232

1,407

1,379

679

658

1,767

2,811

4,894

5,051

87.1%

84.6%

85.3%

84.4%

88.5%

80.7%

85.1%

84.7%

85.5%

169

185

169

124

118

414

394

657

696

11.9%

11.1%

10.5%

15.4%

15.9%

18.9%

11.9%

11.4%

11.8%

COGS % of Revenues SG&A SG&A % of Revenues EBITDA

25

81

79

11

-15

33

119

270

202

Interest Expense

21

25

15

18

18

19

24

76

71

EBT

-7

47

54

-17

-51

-10

74

154

92

Net Income

-4

28

38

-4

-130

-14

56

98

72

EBITDA Margin

1.7%

4.9%

4.9%

1.3%

-2.0%

1.5%

3.6%

4.7%

3.4%

EBIT Margin

1.0%

4.3%

4.3%

0.2%

-4.4%

0.4%

3.0%

4.0%

2.7%

Q1 09

Q2 09

02

3.4%

4.7%

4.0%

3.0%

1.5%

3.6% 01

0.4%

0.6%

0.5%

00

03

-0.6%

Q2 07

1.8%

1.3% Q1 07

0.2%

4.9%

4.3%

4.3%

4.9% 1.7%

Q4 06

-0.9%

Q3 06

1.0%

4.1%

3.4%

4.2%

Q2 06

EBIT Margin

04

05

06

-4.4%

-2.0%

Q1 06

3.5%

3.9%

Q4 05

3.2%

3.9%

Q3 05

3.2%

2.8%

3.5%

EBITDA Margin

0.7%

INCOME STATEMENT

12/31/06

2.7%

03

Q4 06

Q1 07

Q2 07

Q1 09

Q2 09

03

04

05

06/30/09

06 12/31/06

5,909

6,124

6,234

2,189

3,302

5,781

5,909

207

232

248

33

119

270

202

TTM D&A

40

40

40

24

21

39

40

TTM EBIT

167

192

208

9

98

230

162 71

TTM Revenues TTM EBITDA

TTM Interest Expense

71

80

80

19

24

76

TTM EBT

96

112

128

-10

74

154

92

TTM Net Income

72

68

83

-14

56

98

72

TTM EBT

TTM Interest Expense

39 40 40 76 80

40

80 71

71 21 24

96

Q4 06

112

Q1 07

128

Q2 07

0

0

Q1 09

Q2 09

24 19 -10 03

154 92

74

04

202

Q2 07

05

06

Q4 06

33

119

TTM D&A

40

Q1 07

270

06

207

05

0

04

0 03

248

0 Q2 09

232

0 Q1 09

5,909

Q2 07

5,781

Q1 07

3,302

6,234

Q4 06

TTM EBITDA EBITDA

2,189

6,124

TTM Revenues Revenues TTM

5,909

TTM INCOME STATEMENT

USD in millions

Q1 09

Q2 09

03

04

05

06

04

www.zerohedge.com

Ryerson Inc USD in millions

Q4 06

Q1 07

Q2 07

Q1 09

Q2 09

03

04

05

CASH FLOW

06/30/09

06 12/31/06

Cash from Operations (CFO)

-18

138

182

195

354

-13

-170

322

Cash from Investing (CFI)

-52

-11

-6

7

2

-18

-57

-418

-17

Free Cash Flow (CFO + CFI)

-70

127

177

202

356

-30

-227

-97

-278

83

-145

-179

-269

-427

32

232

106

305

Cash from Financing Activities

Cash from Operations (CFO)

-261

Free Cash Flow (CFO + CFI)

400 300 200 100 0 Q3 05

-100

Q4 05

Q1 06

Q2 06

Q3 06

Q4 06

Q1 07

Q2 07

Q1 09

Q2 09

00

01

02

03

04

05

06

-200 -300 -400

USD in millions

Q4 06

Q1 07

Q2 07

Q1 09

Q2 09

03

04

05

06/30/09 -261

-86

187

TTM Cash from Invest. (CFI)

-17

-73

-75

TTM Capex

-36

-40

-49

TTM Cash from Operations (CFO)

TTM D&A TTM Free Cash Flow (CFO + CFI) TTM Cash from Financing Activities

-7

-13

-170

322

-18

-57

-418

-261 -17

-19

-33

-33

-36

-40

-40

-40

-24

-21

-39

-40

-278

-159

112

-30

-227

-97

-278

305

171

-102

-297

-126

138

-510

-1,019

32

232

106

305

-32

-203

289

-297

TTM EBITDA - Capital Expenditures

171

193

199

13

86

237

167

TTM EBITDA - Capex - Change in WC

171

193

199

13

87

237

167

45

53

39

3

48

82

41

TTM CFO/Total Debt

-21.6%

-8.2%

21.3%

-4.7%

-32.3%

36.7%

-21.6%

TTM FCF/Total Debt

-23.0%

-15.2%

12.8%

-11.4%

-43.2%

-11.0%

-23.0%

TTM EBITDA-Capex-WC-CshIntEx-CshTax-CshDiv

TTM EBITDA - Capital Expenditures -36 -40 -17

-33 -21 -57

-19 -24 -18

237 -7

-61

-49 -40 -75

-40 -40 -73

-36 -40 -17

TTM Cash from Invest. (CFI) 0 0

TTM D&A 0 0

TTM Capex

-33 -39

TTM CASH FLOW

TTM CFO - Capital Expenditures

-61

06 12/31/06

199

193 171

-418

167

86

13

Q4 06

Q1 07

Q2 07

Q1 09

Q2 09

03

04

05

06

TTM EBITDA - Capex - Change in WC

Q4 06

Q1 07

Q2 07

0

0

Q1 09

Q2 09

03

04

05

06

TTM EBITDA-Capex-WC-CshIntEx-CshTax-CshDiv

250 200 150 100 50 0 Q4 06

Q1 07

Q2 07

Q1 09

03

04

05

06

05

www.zerohedge.com

Ryerson Inc USD in millions

Q4 06

Q1 07

Q2 07

Q1 09

Q2 09

03

04

05

06/30/09 55

Cash

37

35

42

06 12/31/06

38

14

18

27

55

Marketable Securities / ST Investments Accounts & Notes Receivable Inventories & Unbilled Receivables

837

806

432

386

258

465

610

643

879

791

710

575

438

607

834

1,129

Net Fixed Assets

401

403

406

542

542

225

239

398

401

75% of Accounts Receivable

482

628

605

324

290

193

349

458

482

30% of Inventories & Unbill. Rec.

339

264

237

213

173

131

182

250

339

10% of Net Fixed Assets Collateral (Liquidation) Asset Value Working Capital Net Other Long Term Assets & Liabs. Total Borrowings (includes ST Borrowings)

40

41

54

54

23

24

40

40

969

918

633

555

361

573

775

916

1,420

1,173

1,015

822

728

503

779

778

1,420

-48

-51

-33

-278

-413

-80

-52

-104

-48

1,207

1,045

876

771

625

266

526

877

1,207

1,151

1,008

841

729

587

253

508

850

1,151

75.9%

92.7%

104.8%

82.2%

88.7%

135.5%

109.0%

88.4%

75.9%

Net Debt Collateral Asset Value / Total Borrowings

40 916

explanations and definitions: The approximation we use to calculate a company's total Collateral (Liquidation) Asset Value (for an asset based liquidation scenario) is calculated as the sum of Cash plus Marketable Securities / Short-Term Investments plus assets with the following valuation rates applied: 75% of stated Accounts Receivable 30% of stated Inventory 10% of stated Net Fixed Assets. Although we acknowledge that some industries and individual situations demand clearly different assumptions we nevertheless think this is a useful approximation across all industries covered, if only as a starting point for further individual in-depth analysis. 75% of Accounts Receivable

30% of Inventories & Unbill. Rec.

Working Capital

10% of Net Fixed Assets 1,420 40

41

40 264

1,015

40

237

339

339 54

24

54 213 628

173

605

482 324

Q4 06

Q1 07

Q2 07

Q1 09

290

Q2 09

728

182 23 131 349

779

778

04

05

503 458

482

05

06

193 03

04

Q4 06

Q1 07

Q2 07

Q1 09

Q2 09

Total Borrowings (includes ST Borrowings)

-33

-51

822

250

Net Other Long Term Assets & Liabs.

-48

1,420 1,173

40

03

06

Net Debt

-48

-52 -80

1,207 1,151

877 850 266 253

526 508

625 587

771 729

876 841

-278

1,045 1,008

-104

1,207 1,151

BALANCE SHEET

643 1,129

-413 Q4 06

Q1 07

Q2 07

Q1 09

Q2 09

03

04

05

06

Q4 06

Q1 07

Q2 07

Q1 09

Q2 09

03

04

05

Collateral Asset Value / Total Borrowings

135.5% 109.0%

104.8% 92.7% 82.2%

75.9%

Q4 06

Q1 07

Q2 07

Q1 09

88.7%

88.4% 75.9%

Q2 09

03

04

05

06

As of 12/31/2006 the Pension Plan of Ryerson Inc was underfunded by USD 91mm. The discount rate used for the company's Pension Plan liabilities is 5.95%. As of 12/31/2006 the Post Retirement Benefits Plan of Ryerson Inc was underfunded by USD -206mm. The discount rate used for the company's Post Retirement Benefits liabilities is 5.55%.

06

06

Ryerson Inc

COVERAGE RATIOS

USD in millions

www.zerohedge.com Q4 06

Q1 07

Q2 07

Q1 09

Q2 09

03

04

05

06/30/09

06 12/31/06

TTM EBITDA / TOTAL INTEREST

2.9x

2.9x

3.1x

-

-

1.7x

5.0x

3.5x

2.9x

TTM EBITDAR / TOTAL INTEREST+RENT

2.3x

2.4x

2.5x

-

-

1.4x

3.4x

2.8x

2.3x

TTM EBITDA-CAPEX / TOTAL INTEREST

2.4x

2.4x

2.5x

-

-

0.7x

3.6x

3.1x

2.4x

TTM EBITDAR-CAPEX / TOTAL INTEREST+RENT

2.0x

2.0x

2.1x

-

-

0.8x

2.5x

2.5x

1.9x

explanations and definitions: TTM TOTAL INTEREST: For all coverage ratio calculations we use the Total Interest figure which in addition to Interest Expense also includes Capitalized Interest Expenses. We think this gives a better view of the economic reality than the simple Interest Expense figure.

TTM EBITDA / TOTAL INTEREST

TTM EBITDAR / TOTAL INTEREST+RENT

3.4x

5.0x

2.8x 3.5x 2.9x

2.9x

3.1x

2.3x

2.4x

2.5x 2.3x

2.9x 1.4x 1.7x

0.0x

0.0x

Q4 06 Q1 07 Q2 07 Q1 09 Q2 09

03

04

05

06

Q4 06

Q1 07

Q2 07

0.0x

0.0x

Q1 09

Q2 09

03

04

05

2.5x

2.5x

06

TTM EBITDAR-CAPEX / TOTAL INTEREST+RENT

TTM EBITDA-CAPEX / TOTAL INTEREST 3.6x 3.1x

2.4x

2.4x

2.0x

2.5x

2.0x

2.1x 1.9x

2.4x

0.8x 0.7x

0.0x

0.0x

Q4 06 Q1 07 Q2 07 Q1 09 Q2 09

03

04

05

06

Q4 06

Q1 07

Q2 07

0.0x

0.0x

Q1 09

Q2 09

03

04

05

06

07

www.zerohedge.com

Ryerson Inc USD in millions

Q4 06

Q1 07

Q2 07

Q1 09

Q2 09

03

04

05

LEVERAGE RATIOS

06/30/09

06 12/31/06

NET DEBT / TTM EBITDA

5.6x

4.3x

3.4x

7.7x

4.3x

3.2x

5.7x

TOTAL DEBT / TTM EBITDA

5.8x

4.5x

3.5x

8.1x

4.4x

3.3x

6.0x

TOTAL DEBT / TTM EBITDA-CAPEX

7.1x

5.4x

4.4x

20.0x

6.1x

3.7x

7.2x

Rentadj. TOT DEBT / TTM EBITDAR

6.1x

4.9x

4.0x

8.1x

4.9x

3.7x

6.2x

Rentadj. TOT DEBT / TTM EBITDAR-CAPEX

7.2x

5.8x

4.9x

13.4x

6.4x

4.2x

7.4x

HAIRCUT EBITDA MULTIPLE / TOTAL DEBT

54.0%

69.9%

89.1%

38.7%

71.1%

96.8%

52.8%

7.2x

5.5x

4.2x

30.3x

5.4x

3.8x

7.4x

TOTAL DEBT / TTM EBIT

explanations and definitions: Rent adj. Total Debt/TTM EBITDAR: This ratio is calculated by dividing the Rent Adjusted Total Debt figure (Total Debt plus 8 times TTM Rental Expenses) by EBITDAR (TTM EBITDA plus TTM Rental Expenses). HAIRCUT EBITDA MULTIPLE / TOTAL DEBT: We adjust TTM EBITDA to 70% of its stated value, multiply the result with 4.5 as an assumed exit multiple and relate the resulting figure (the haircut EBITDA multiple) to the TOTAL DEBT number. This ratio should reflect the situation of an issuer's liquidation, whereby the assets can be sold at a reduced EBITDA multiple.

TOTAL DEBT / TTM EBITDA

NET DEBT / TTM EBITDA

TOTAL DEBT / TTM EBITDA-CAPEX

7.7x 20.0x

5.7x

5.6x 4.3x

4.3x 3.4x

3.2x

8.1x 7.1x 5.8x

Q4 06

Q1 07

Q2 07

0.0x

0.0x

Q1 09

Q2 09

5.4x 4.5x

6.1x 4.4x

4.4x 3.5x

7.2x 6.0x 3.7x 3.3x

0.0x 0.0x 0.0x 0.0x 03

04

05

06

Q4 06

HAIRCUT EBITDA MULTIPLE / TOTAL DEBT

Q1 07

Q2 07

Q1 09

Q2 09

03

04

05

06

Rentadj. TOT DEBT / TTM EBITDAR Rentadj. TOT DEBT / TTM EBITDAR-CAPEX

96.8%

13.4x

89.1% 71.1%

69.9% 54.0%

52.8% 38.7%

Q4 06

Q1 07

Q2 07

0.0%

0.0%

Q1 09

Q2 09

03

04

05

06

30.3x

7.4x

7.2x

Q4 06

Q1 07

5.4x

4.2x

Q2 07

3.8x 0.0x

0.0x

Q1 09

Q2 09

5.8x 4.9x

7.4x 6.2x

6.4x 4.9x 4.0x

4.9x

4.2x 3.7x

0.0x 0.0x 0.0x 0.0x

TOTAL DEBT / TTM EBIT

5.5x

8.1x 7.2x 6.1x

03

04

05

06

Q4 06

Q1 07

Q2 07

Q1 09

Q2 09

03

04

05

06

www.zerohedge.com

Ryerson Inc

08

USD in millions

Q4 06

Q2 07

Q1 07

Q1 09

Q2 09

03

04

05

ENTERPRISE VALUE

06/30/09 8.8x

8.9x

7.4x

16.4x

7.6x

5.5x

9.0x

10.9x

10.8x

8.9x

61.0x

9.2x

6.4x

11.2x

EV / TTM EBITDA EV / TTM EBIT

06 12/31/06

Enterprise Value

1,815

2,064

1,845

TOTAL DEBT

1,207

1,045

876

771

659

1,049

998

915

Equity Market Cap

625

EV / TTM EBITDA

537

902

1,472

1,815

266

526

877

1,207

284

394

614

659

EV / TTM EBIT 16.4x 61.0x

8.8x

9.0x

8.9x 7.6x

7.4x

5.5x

10.9x

Q4 06

Q1 07

Q2 07

0.0x

0.0x

Q1 09

Q2 09

03

04

05

11.2x

9.2x

8.9x

6.4x 0.0x

0.0x

Q1 09

Q2 09

06 Q4 06

TOTAL DEBT

10.8x

Q1 07

Q2 07

EV - TOTAL DEBT

03

04

05

06

Equity Market Cap

1,049 998

609

659

614

659

594

969

609

1,018

915

Q1 09

625

266 271

526

Q2 09

03

04

1,207

Q2 07

877

771

Q1 07

0 876

Q4 06

1,045

1,207

0

376

394 284

0 05

06

Q4 06

Q1 07

Q2 07

Q1 09

Q2 09

03

04

05

06

RYI US stock closing price

45 40 35 30 25 20 15 10 5

Jul/07

Okt/07

Apr/07

Okt/06

Jän/07

Jul/06

Apr/06

Jän/06

Jul/05

Okt/05

Apr/05

Okt/04

Jän/05

Jul/04

Apr/04

Jän/04

Okt/03

Jul/03

Apr/03

Jän/03

Okt/02

Jul/02

Apr/02

Jän/02

Okt/01

Jul/01

Apr/01

Jän/01

Okt/00

Jul/00

Apr/00

Jän/00

Okt/99

0

09

www.zerohedge.com

Ryerson Inc USD in millions

Q4 06

Q1 07

Q2 07

Q1 09

Q2 09

03

04

05

06/30/09 6.06%

6.12%

0

7.81%

11.06%

12.63%

7.81%

Tangible Capital

1,733

1,639

1,524

1,009

752

625

938

1,314

1,733

Total Intangibles

67

60

60

88

88

10

9

84

67

9.6%

11.7%

13.6%

1.4%

10.4%

17.5%

9.4%

7.3%

9.7%

6.7%

10.7%

5.9%

After-tax ROIC (assumed tax rate)

6.3%

7.6%

8.9%

0.9%

6.8%

11.4%

6.1%

WACD (Pre-tax)

5.9%

7.7%

9.1%

7.1%

4.6%

8.7%

5.9%

Adjusted Cap Rate RETURN ON CAPITAL

06 12/31/06

Pre-tax ROIC After-tax ROIC (effective tax rate)

explanations and definitions: Adjusted Cap Rate: This ratio shows EBIT reduced by an assumed tax rate of 35% and adjusted for Net Non-Operating and Extraordinary Losses (Gains) - averaged over the last 5 years - divided by the Enterprise Value. Tangible Capital: Starting with the Total Book Capital the Tangible Capital figure is calculated by subtracting Intangibles, Cash and Marketable Securities as well as Short Term Investments. We calculate three different ROIC (Return on Invested Capital) figures: Pre-Tax ROIC: this ratio relates the trailing twelve months (TTM) EBIT to Tangible Capital as defined above. After-tax ROIC (effective tax rate): here EBIT is corrected by the company's effective tax rate as stated in it's latest financials, giving an after-tax ROIC rate. After-tax ROIC (assumed tax rate): here EBIT is corrected by an assumed tax rate of 35%, giving a modified after-tax ROIC rate. WACD (Pre-Tax): This rate is defined as trailing twelve months (TTM) TOTAL INTEREST EXPENSE divided by Total Borrowings.

After-tax ROIC (assumed tax rate)

Adjusted Cap Rate

11.4% 12.6% 11.1% 8.9% 7.6% 7.8%

7.4% 6.1%

7.8%

6.8% 6.3%

6.1%

6.1%

0.9% 0.0%

0.0%

Q4 06 Q1 07 Q2 07 Q1 09 Q2 09

03

04

05

06

WACD (Pre-tax) 9.1% 8.7% 7.7% 7.1% 5.9%

5.9% 4.6%

0.0%

0.0%

Q4 06 Q1 07 Q2 07 Q1 09 Q2 09

03

04

05

06

Q4 06

Q1 07

Q2 07

0.0%

0.0%

Q1 09

Q2 09

03

04

05

06

DEFAULT ESTIMATE

10

Ryerson Inc

Average Bond Spread (in BPoints (1)) Estimated Bond Recovery Rate (2) Resulting Tolerable Default Rate (3)

www.zerohedge.com

972 100.0% N/A

explanations and definitions: We calculate estimated default and recovery rates to be used in other credit models (f.i. for the valuation of CDOs or similar structures) as follows: (1) Average Bond Spread: Average Spread of all bonds listed on page 2 of this report. (2) Estimated Bond Recovery Rate: To calculate this rate we first divide the total debt amount into bond debt and loan debt that is senior to bond debt. As an approximation for the total amount of bond debt we use the sum of the amounts outstanding of all bonds listed on page 1 of this report. The total debt figure is reduced by this sum, giving us an approximate figure for debt that is senior to bond debt. We then calculate a collateral asset coverage figure for the bond debt by starting with the Collateral Asset Value (as defined on page 5 of this report) which we reduce by the amount of senior debt ahead of the bonds. The remaining Collateral Asset Value is then divided by the approximate bond debt amount as defined above, giving an estimated recovery value on a collateral asset basis. We apply the same logic to an EBITDA multiple ratio (as on page 7 of this report) and get a second recovery estimate based on the EBITDA multiple. The higher of the 2 estimates is used as the "Estimated Bond Recovery Rate". (3) Resulting Tolerable Default Rate: The implied default rate calculated using the Market Spread (1) and the Estimated Recovery Rate (2). With the given Market Spread and Estimated Recovery Rate it defines the maximum tolerable default probability for the risk premium paid in the form of Spread. Please note: This rate will only be displayed when it is greater than 0% and lower than 30% as we believe it is not meaningful ('NM') out of this range.

TANGIBLE NET WORTH ESTIMATE

Although we acknowledge that the calculated results are by no means exact, we think they make for a good estimate in the valuation of credit structures when individual default and recovery rates for single issuers are to be used.

USD in millions

Q4 06

Q1 07

Q2 07

Q1 09

Q2 09

03

04

05

06/30/09

06 12/31/06

Total Assets

2,537

2,458

2,326

1,990

1,752

1,114

1,541

2,151

2,537

Total Liabilites

1,889

1,768

1,583

1,622

1,499

732

1,101

1,603

1,889

67

60

60

88

88

10

9

84

67

Tangible Net Worth

Total Intangibles

582

631

683

280

165

372

431

464

582

Rent Debt (8x Annual Rental Expense)

257

257

257

Underfunded Pension & Post Ret. Liab. Discount on Hard Assets Adjusted Tangible Net Worth

131

130

246

257

-282

-277

-356

-297

1,312

1,187

1,121

1,093

987

573

757

1,095

1,312

-987

-813

-694

-813

-822

-614

-733

-1,232

-1,284

www.zerohedge.com

Ryerson Inc

11

USD in millions

Q4 06

Q1 07

Q1 09

Q2 07

Q2 09

03

04

05

06

06/30/09 (CFO-Net Income)/Revenues

-0.9%

6.6%

8.9%

24.7%

65.1%

0.1%

-6.8%

3.9%

8.5%

14.9%

7.2%

-47.7%

-47.5%

4.4%

50.8%

75.1%

2.2%

12.9%

15.4%

14.7%

15.6%

11.5%

19.3%

14.9%

15.3%

14.5%

yoy Revenue Growth Gross Margin

-5.6%

Days Sales Outstanding

40

50

47

43

51

39

40

Days Sales of Inventory

70

52

46

73

67

53

70 252

Soft Assets ACCOUNTING RED FLAGS

12/31/06

252

245

228

217

211

169

193

258

Unbilled Receivables

-

-

-

-

-

-

-

-

-

Deferred / Unearned Revenue

-

-

-

-

-

-

-

-

-

15

18

17

19

14

-

14

21

15

Allowance for Doubtful Accounts TTM Dividends Paid

5

6

5

-

-

5

5

5

5

TTM Preferred Dividends

0

0

0

-

-

0

0

0

0

2

4

0

0

0

0

2

4

17

-39

1

12

14

15

2

-25

-386

19

Net Change in Capital Stock Non-Capex CFI (CFI less Capex)

Gross Margin

yoy Revenue Growth

(CFO-Net Income)/Revenues

100.0% 80.0% 60.0%

-6.6%

4%

0%

-2%

15%

50.8% 15%

19% 4.4%

20%

19%

-21.6%

-9%

19%

12%

-47.7%

-7%

14%

-1%

-47.5%

9%

16%

13% 8.5%

7%

25%

-1%

-5%

-20.0%

14% 8.6%

15%

15%

14%

15% 7.2%

10%

15% 14.9%

0.0%

9%

15%

20.0%

15% 2.2%

75.1%

65%

40.0%

-6%

-7%

-40.0% -60.0%

Days Sales of Inventory

0

0

0

0

0 0

0 0

Q2 06

Q3 06

Q4 06

Q1 07

Q2 07

Q1 09

Q2 09

00

01

02

03

04

05

Auditor Information: Current auditor

ERNST & YOUNG LLP (as of 9.3.2007)

Auditor's opinion

Unqualified

Auditor's opinion - Definitions Not Audited / Unaudited

No tests were performed to verify amounts in financial statements. Typically applied to interim statement.

Partially audited

Not all statements were audited. Auditor may specifically give opinion on one or two statements.

Unqualified

Auditor declares, without reservation, that the financial statements fairly represent the company's financial position at a point in time and that the statements conform in all material respects to GAAP.

Qualified: Limited Scope

An aspect of the company's financial statements could not be verified, such as a portion of inventory not counted.

Qualified: Inconsistent Standards

Accounting standards were not applied consistently between periods.

Qualified: not GAAP

Standard accounting principles for the country were not followed. Typically related to a unique line item and uses the phrase 'except for.'

Qualified: uncertainty

Doubt exists related to a material balance sheet item, such as value of investment or collectability of major receivable; or auditor doubts going concern ability of company. This opinion usually employs the phrase 'subject to.'

Disclaimer

Auditor refuses to state opinion on financial statements, typically due to lack of sufficient documentation provided by company and/or subsidiaries.

0

0

0

0

0

0

0

46

52

53

61

70

0

Q1 06

67

0

Q4 05

65

70

53

0

72

72 53 0 Q3 05

61

73

79

Days Sales Outstanding

06

12

Ryerson Inc

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LATEST SEC FILINGS

Quarterly Report (Form Type 10-Q)

end of period

FORM 10-Q

http://www.sec.gov/Archives/edgar/data/790528/000119312509162421/d10q.htm

06/30/09

AMENDMENT NO. 1 TO FORM 10-Q

http://www.sec.gov/Archives/edgar/data/790528/000119312509132547/d10qa.htm

03/31/09

FORM 10-Q

http://www.sec.gov/Archives/edgar/data/790528/000119312509098124/d10q.htm

03/31/09

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http://www.sec.gov/Archives/edgar/data/790528/000119312507168023/d10q.htm

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http://www.sec.gov/Archives/edgar/data/790528/000119312507099445/d10q.htm

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http://www.sec.gov/Archives/edgar/data/790528/000119312506222355/d10q.htm

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http://www.sec.gov/Archives/edgar/data/790528/000119312506161096/d10q.htm

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http://www.sec.gov/Archives/edgar/data/790528/000119312506101840/d10q.htm

03/31/06

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http://www.sec.gov/Archives/edgar/data/790528/000119312506068926/d10qa.htm

09/30/05

AMENDMENT TO FORM 10-Q

http://www.sec.gov/Archives/edgar/data/790528/000119312506068918/d10qa.htm

06/30/05

Annual Report (Form Type 10-K)

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FORM 10-K AMENDMENT NO. 1

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12/31/06

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http://www.sec.gov/Archives/edgar/data/790528/000119312507054507/d10k.htm

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http://www.sec.gov/Archives/edgar/data/790528/000119312506068943/d10k.htm

12/31/05

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http://www.sec.gov/Archives/edgar/data/790528/000119312505057092/d10k.htm

12/31/04

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http://www.sec.gov/Archives/edgar/data/790528/000119312504030363/d10k.htm

12/31/03

FORM 10-K

http://www.sec.gov/Archives/edgar/data/790528/000095013103000932/d10k.htm

12/31/02

FORM 10-K YEAR ENDED DECEMBER 31

http://www.sec.gov/Archives/edgar/data/790528/000095013102000979/d10k405.txt

12/31/01

FORM 10-K

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12/31/00

Special Events & Material News (Form Type 8-K)

filing date

Prospectus (Form Type 42..)

filing date

424B1

http://www.sec.gov/Archives/edgar/data/790528/000119312509039019/d424b1.htm

02/26/09

424B3

http://www.sec.gov/Archives/edgar/data/790528/000119312505231006/d424b3.htm

11/22/05

424B3

http://www.sec.gov/Archives/edgar/data/790528/000119312505199566/d424b3.htm

10/11/05

424B3

http://www.sec.gov/Archives/edgar/data/790528/000119312505135109/d424b3.htm

06/30/05

424B3

http://www.sec.gov/Archives/edgar/data/790528/000119312505114852/d424b3.htm

05/25/05

424B3

http://www.sec.gov/Archives/edgar/data/790528/000119312505088467/d424b3.htm

04/28/05

424B5

http://www.sec.gov/Archives/edgar/data/790528/000119312505029438/d424b5.htm

02/14/05

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