2017 Annual Meeting Presentation

Annual Shareholder
Meeting
16 November 2017

Meeting Agenda
Chair’s Welcome and Overview
Management Presentation
Shareholder Discussion
Resolutions
Other Business
Close of Meeting

Chair’s Presentation
Susan Paterson

A Modern and Innovative Company
Providing Strength to New Zealand
Steel & Tube is New Zealand’s leading
steel solutions provider, helping customers
build what the country needs.
Our aspiration is to be a supply chain
participant of scale, delivering superior
value to our customers.

Delivering for New Zealanders
Supporting critical infrastructure and
construction projects:
Supplied over 7Km of stainless steel
pipework for Mangerewastewater
treatment plant upgrade
Supplied 1500 tonnes of reinforcing for the
new KapitiExpressway
Supporting NZ’s young talent:
The First Foundation helping teenagers
progress to the workforce

Strategy Refresh
Build on One Company ethos, focus on adding further
customer value and delivering profitable growth
Customer
Focus
Growth
Optimal
Operations
Leverage size, geographical presence
and comprehensive product offering
Build on ‘One Company’ ethos and
deliver solutions that meet customer
needs
H&S, Quality
Deliver products cost effectively and
efficiently
Technology
More agile, responsive and connected
Continue to improve quality systems
and focus on health and safety

Refreshed Board
Susan Paterson
Independent Chair
Appointed Jan 2017
Steve Reindler
Independent Director
Appointed Oct 2017
Anne Urlwin
Independent Director
Appointed June 2013
Christopher Ellis
Independent Director,
Appointed Oct 2017
Rosemary Warnock
Independent Director,
Appointed Sept 2010
Dean Pritchard
Independent Director
Appointed May 2005
(retiringNov 2017)

Delivering Shareholder Value
Three Year Targets:
Net debt to net debt + equity
within target range of 30% -
35%
Net debt to EBITDA < 2.75xs
A dividend payoutratio target
of between 60% and 80% of
net earnings adjusted for any
material non-ordinary items
and subject to relevant factors
at the time
FY17 Total Dividend 16.0 cps

Fit for the future
Fit for the
Future

Management Presentation
Interim CEO, Mark Malpass

Management Presentation
FY17 Financial Summary
Market Positions and Sector Exposure
Resetting the Business
Our Licence to Operate

FY17 Financial Summary
0
100
200
300
400
500
600
FY13FY14FY15FY16FY17
$Millions
Revenue
FY16 EBIT and NPAT includes $6.3m gain on property sale
0
5
10
15
20
25
30
35
40
FY13FY14FY15FY16FY17
$Millions
EBIT
Overview:
Positive result although
below company’s
expectations
Benefitted from acquisitions
and continuing focus on
margin management and
cost efficiencies
Well positioned to build on
operational cashflow and
quickly optimise balance
sheet
0
5
10
15
20
25
30
35
40
FY13FY14FY15FY16FY17
$Millions
NPAT
Revenue down 0.9%
EBIT* up 2%
NPAT* up 3.1%
*Excluding FY16 gain on sale

Market Positions and
Sector Exposure

Our Role in the Supply Chain
Large Minimum Order
Quantities (MOQ’s)
Narrow range of products
Long lead times
Pricing volatility
No credit
No processing or product
customisation
Smaller order quantities
Broad range of products
Short delivery times
Price stability
Credit terms
Customised
requirements
Enough scale to access
Mill MOQ’s
Hold wider range of stock
Hold / break down bulk
Manage pricing
Offering credit
Processing, light
manufacture e.g. slitting,
detailing / placing
Steel Mills
End Customers

Sourcing Steel

Steel Market Landscape
Market share based
on S&T estimates
and assumptions

Sector Exposure
Most sectors show promise
of growth, in particular:
Constructiongrowth is
expected to drive demand
for reinforcing, piping and
structural steel
Equipment and
machinery manufacturing
growth expected to drive
demand for plates, coils,
sections and fasteners
The dairy sector is
expected to perform well,
which will drive demand for
stainless steels

Resetting the Business

Resetting the Business
Refreshed
Leadership
Refreshed
Board
Platform For
Change
Refreshed board of directors
delivering fresh thinking,
industry knowledge and
business expertise
Stronger leadership team and
organisational structure
Deep customer relationships
Group procurement opportunities
Business simplification
Key goals:
1.Provide superior value
to our customers
2.Simplify the business

Aligning People, Structure and Strategy
Interim CEO
Mark Malpass
DistributionInfrastructure
Support
Functions
Objectives:
1.Organise the business
around our customers
2.Clear line of sight for
improved
accountability
3.Unlock integration
benefits from acquired
businesses
Marc Hainen
GM Distribution
Ross Pickworth
GM Infrastructure
Greg Smith
CFO

Our Licence to Operate
Quality
Management
Health,
Safety and
Environment
Continue building capacity
and engagement within
our workforce and create
a healthy, safe, fair and
just culture
Implement a ‘world-class’
Quality Management
System (QMS) that will set
the industry standard and
provide customers with
certainty of a world-class
compliance system

Strengthening the Capital Structure
$M
FY16FY17
Inventory
129.4143.1
Debtors
89.893.5
Trade and other Creditors
(45.1)(54.4)
Working Capital
174.1182.2
Cash and Cash Equivalents
2.36.5
Property, Plant, Equipment
61.6102.6
Intangibles
47.366.8
Total Assets
285.3358.1
Borrowings
97.9133.4
Other
7.212.6
Total Liabilities
105.1146.00
Shareholders Equity
180.2212.1
Gearing (Debt: Debt+ Equity)
35%38.6%
FY18 focus on:
Capturing working capital
benefits from scale and
technology investments
Better inventory
management ~$14m
reduction since FY17
year end
Divestment of property –
funds to be used to
reduce debt and reinvest
into growth
Steady state capex likely
to be $5-10m range

Operating Environment
Outlook

Outlook and Guidance
Trading Environment:
Demand for steel continues to grow in line with global growth forecasts
Steel prices on a rising trend
2017/18 Earnings Outlook:
Short term downside before improvement
HY18 EBIT $9 -10 million lower than HY17 due to a review of inventory
holdings (approx. 50% of earnings reduction), reorganisation and
restructuring and margin pressures
H2 18 expected improvement with actions being taken and FY 18 EBIT
expected to be materially the same as FY 17, excluding inventory write-
down
Benefit of improvement actions expected to flow through subsequent
years

In Summary: Board’s Focus

Board Priorities
Risk
Management
CEO
Appointment
Financial and
Operational
Oversight
Talented CEO who can lead the
change needed and realise the
potential of the company
Focus on health & safety, quality
and clear understanding and
oversight of risks relevant to the
business
Fully engaged to support the
management team in delivering to
the expectations of both the Board
and our shareholders
Engagement
Better and more transparent
communication and
engagement

Shareholder Discussion

Resolutions

Resolutions: Election of Directors
1That Susan Paterson, having been appointed
as a Director of the Company by the Board on
16 January 2017, and being eligible and having
offered herself for election, be elected as a
Director of the Company.
2 That Steve Reindler, having been appointed
asa Director of the Company by the Board on
1 October 2017, and being eligible and having
offered himself for election, be elected as a
Director of the Company.
3 That Chris Ellis, having been appointed as
a Director of the Company by the Board on
1 October 2017, and being eligible and having
offered himself for election, be elected as a
Director of the Company.

Resolutions: Re-election of Directors
4 That Rosemary Warnock, who retires by rotation
at the annual meeting and is eligible for
re-election, be re-elected as a Director of the
Company.

Resolutions
5Auditor fees and expenses
That the Directors be authorised to fix the auditors’ remuneration for the ensuing
financial year.
6 Directors’ remuneration
That the pool available for payment of Director fees be increased by $155,000
from $420,000 to $575,000 with such amount to be divided amongst the
Directors in such proportion and such manner as the Directors determine from
time to time following external independent benchmarking.

Proxies
RESOLUTIONFORAGAINST
PROXY
DISCRETION
Election of Susan Paterson
11,300,410
67.10%
86,925
0.52%
5,453,115
32.38%
Election of Steve Reindler
11,266,360
66.92%
42,467
0.25%
5,527,123
32.83%
Election of Chris Ellis
11,225,222
66.77%
62,747
0.37%
5,523,181
32.85%
Re-election of Rosemary Warnock
11,050,475
65.73%
221,038
1.31%
5,539,837
32.95%
Auditor fees and expenses
11,270,195
67.07%
90,790
0.54%
5,441,983
32.39%
Directors Remuneration
9,384,235
56.70%
1,886,360
11.40%
5,278,651
31.90%
Total proxies received in respectof 16.8 million shares representing 18.6% of total
shares on issue

Other Business
Close of Meeting

This presentation has been prepared by Steel & Tube Limited (“STU”).The information in this presentation is of a general nature only. It is not a complete
description of STU.
This presentation is not a recommendation or offer of financial products for subscription, purchase or sale, or an invitationorsolicitation for such offers.
This presentation is not intended as investment, financial or other advice and must not be relied on by any prospective investor.It does not take into account
any particular prospective investor’s objectives, financial situation, circumstances or needs, and does not purport to contain all the information that a prospective
investor may require. Any person who is considering an investment in STU securities should obtain independent professional advice prior to making an
investment decision, and should make any investment decision having regard to that person’s own objectives, financial situation,circumstances and needs.
Past performance information contained in this presentation should not be relied upon (and is not) an indication of future performance.This presentation may
also contain forward looking statements with respect to the financial condition, results of operations and business, and business strategy of STU. Information
about the future, by its nature, involves inherent risks and uncertainties. Accordingly, nothing in this presentation is a promise or representation as to the future or
a promise or representation that an transaction or outcome referred to in this presentation will proceed or occur on the basis described in this presentation.
Statements or assumptions in this presentation as to future matters may prove to be incorrect.
A number of financial measures are used in this presentation and should not be considered in isolation from, or as a substitutefor, the information provided in
STU’s financial statements available at www.steelandtube.co.nz.
STU and its related companies and their respective directors, employees and representatives make no representation or warranty of any nature (including as to
accuracy or completeness) in respect of this presentation and will have no liability (including for negligence) for any errors in or omissions from, or for any loss
(whether foreseeable or not) arising in connection with the use of or reliance on, information in this presentation.
DISCLAIMER